Tuesday, July 12
A More Efficient Approach to Private Market Investing
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.
Investment Trends, Asset Allocation, and Peer Analysis
Stress Testing Our FutureSpeakers