Finance & Investment

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Finance & Investment Sessions


Tuesday, July 12

11:00 am–Noon


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Finance & Investment

A More Efficient Approach to Private Market Investing


Speakers
Moderator

Workers’ compensation has historically allocated heavily to equities in relative insurer peer space (roughly 8%). In most recent years, we’ve seen the move into Schedule BA assets become an important contributor to portfolio returns. Over the last few years, we’ve observed an increased allocation to alternatives in search of replacement income that once came from traditional fixed income portfolios and the desire to become even more capital efficient with allocations. Under the BCAR model, we have observed a higher compensation relative to global equities for private equity and relative to IG credit, as well as private credit solutions producing more income to the over portfolio at similar capital charges. We believe there is an opportunity for portfolios to become even more nimble with capital efficient solutions and minimize j-curve risk in the private markets.




Wednesday, July 13

9:45 am–10:45 am


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Finance & Investment

Investment Trends, Asset Allocation, and Peer Analysis


Speaker
  • Bernie Ryan, Head of Insurance Business Development-Americas for DWS

DWS will discuss investment and asset allocation trends across the P&C insurance industry and specifically to AASCIF member companies. The continued low rate environment is challenging for all insurers and member companies – DWS will examine general account investment strategies, positioning considerations and the continued evolution of private markets and alternative investments on insurer balance sheets. Furthermore, consideration for the full insurance enterprise, ESG integration and business challenges specific to AASCIF member companies will be integral to the discussion. DWS will provide its view on the future of insurance investing and its impacts on member companies.


11:00 am–Noon


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ERM | Finance

Stress Testing Our Future

Speakers

Scenario tests measure the impact of events on the profitability and capital stability of carriers. The demands for scenario-testing from regulators and rating agencies has been increasing as carriers face greater uncertainty in today’s operating environment. This session will cover multiple selected systemic risk scenarios for workers’ compensation carriers, with test results for the segment showing volatility and return metrics for each scenario. The session will cover two systemic scenarios for 2022—“Inflationary Growth” and “Stagflation”—both of which may have significant implications for insurers. Understanding the impact of these events for capital management decisions is critical to ensuring that balance sheet strength is maintained to support strategic needs.