Insurers Trim Hedge Fund Holdings – AIG Cuts A Third – According to AM Best

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By Jason Hopper, Associate Director – Industry Research and Analytics at A.M. Best   The U.S. insurance industry continued to reduce its risk appetite for hedge fund investments, as holdings declined year over year by 8.5% to $16.4 billion from $17.9 billion in 2016, according to a new A.M. Best report based on year-end 2017 data from the National Association of […] Read more »

Insurers Continued to Pull Away from Hedge Funds in 2016

From Jason Hopper and Dan Heitlinger of A.M.Best   Our November 2016 report, “Hedge Fund Performance Has Insurers Reducing Exposure,” noted rising investor concerns surrounding the performance of hedge funds and the insurance industry’s exposure to this asset class from 2013-2015. Based on 2016 data from year-end NAIC statutory financial statements, the insurance industry has continued pulling back its investment […] Read more »

Hedge Fund Performance Has Insurers Reducing Exposure Says AM Best

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By Jason Hopper and Ken Johnson of A.M. Best With interest rates remaining persistently low, NAIC Schedule BA assets, which include alternative investment securities, have generally provided insurers with the potential for higher risk-adjusted returns to help mitigate the decline in higher portfolio book yields. Without a meaningful increase in interest rates, insurers have limited choices for investing new dollars from […] Read more »

The Hartford 3Q Income Report Positive on Hedge Fund Contribution

By Hedge Fund Insight staff   Today The Hartford reported its’ Third Quarter 2016 Net Income. Included in the press release was this paragraph: “Third quarter 2016 net investment income totaled $772 million, before tax, a 6% increase from third quarter 2015, principally due to higher investment income from LPs. Investment income from LPs totaled […] Read more »

Smaller Insurers Represent Sales Opportunity For Hedge Funds

By Gary Shub and Team at The Boston Consulting Group (BCG)     The quest to diversify assets as insurers hunt for higher returns in a low-interest-rate environment suggests that there might be a significant opportunity for asset managers—both independent and insurance owned—to curate and offer alternative investment products for small insurance companies in the […] Read more »

A.M. Best Comments on Insurers’ Hedge Fund Activity: Road Ahead Looks Rocky

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By Ken Johnson, CFA, CAIA, FRM, Vice President, A.M. Best.   Headlines reflecting the recent underperformance from the hedge fund industry have caused insurers to rethink their current investment allocations, and whether or not to add allocations to this non-traditional asset class going forward.  However, the ongoing low interest rate environment and more recent equity volatility have […] Read more »

A.M. Best on Insurance Industry Hedge Fund Exposures

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By Jason Hopper and Ken Johnson of A.M.Best*   Introduction In A. M. Best’s recently published briefing, “Industry Interest in Non-Traditional Assets Continues”, we discussed the overall increased interest in non-traditional assets which are found on Schedule BA of the U.S. statutory filings. As allocations to Schedule BA assets (BA assets) have been increasing for […] Read more »

Five Supports For A Positive Hedge Fund Outlook in 2015

By Diane Harrison, principal of Panegyric Marketing   Every year, Preqin publishes their annual review of the hedge fund industry, 120-plus pages of comprehensive data and analyses providing a detailed look at the industry’s make up. According their website, Preqin is the alternative assets industry’s leading source of data and intelligence. Our products and services […] Read more »

Graphic of the Day – Investors in CTAs

By Hedge Fund Insight staff Today’s graphic shows the proportion of each investor type that invest in CTAs. Source: Preqin Hedge Fund Investor Profiles From this graphic one could say that a fund of hedge funds is four times as likely to have invested in CTAs as a family office.  Or, that a marketer of […] Read more »