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This newsletter brings the latest topics impacting insurers, aimed to help those managing investment portfolios while considering an insurer’s business, regulatory and solvency needs.
For the second edition of our Invesco Insurance Insights for 2025, we take a more detailed look at the role alternative or private asset classes can play within the all-important asset allocation.
We extend our analysis beyond a typical single strategy approach and illustrate how multi-alternatives exposure can bring added diversification benefits, help improve the resilience of insurers’ portfolios, and position them appropriately over a longer time horizon.
This analysis also takes into consideration aspects of expected returns and estimated capital charges (based on some simplified assumptions) for the indicated asset classes. The risk-reward profile can be tailored to meet insurers’ specific requirements as the allocation to the various underlying sub-strategies can be customized.
As always, please do not hesitate to reach out to us – your thoughts on such topics are always much appreciated.
Jaijit Kumar, Head of Asia Insurance Solutions
In this second edition of Insurance Insights, Jaijit Kumar and Derek Fin take a deeper dive into private markets and alternative assets—areas that are increasingly capturing the attention of insurers in their asset allocation strategies. Watch the video to learn more.
Hello everyone, welcome back to this second edition of our Insurance Insights newsletter for 2025.
This time, we’re extending our asset allocation analysis to delve a bit deeper into strategies that we feel can further enhance the efficiency of insurance portfolios. We believe that certain private market asset classes can offer value over the longer term and lend themselves well to an insurance portfolio construct. What we focus on in this edition is extending the investment frontier by incorporating multiple alternative strategies as part of a systematic investment program.
As before, we hope you find this of use and we’ll be very happy to get your thoughts, insights, and suggestions around this topic, or indeed any other issues you are dealing with, and we look forward to receiving your feedback.
Thank you.
In this analysis, Jaijit Kumar, Head of Asia Insurance Solutions illustrates how the introduction of representative alternative asset classes can help improve the efficiency of insurance portfolios. He then uncovers how constructing a sub-portfolio of different alternatives strategies (“multi-alternatives”), has the potential to diversify an insurers portfolio, without significantly increasing the volatility/estimated risk charges.
Jaijit Kumar, Invesco’s Head of Asia Insurance Solutions shares his Q1 2025 case study on how to enhance insurer’s portfolios using updated capital market assumptions.
Jaijit Kumar, Invesco’s Head of Asia Insurance Solutions shares his Q4 analysis on key considerations for insurers.
Jaijit Kumar, Invesco’s Head of Asia Insurance Solutions shares his case study for Q3 2024 which looks at optimizing insurers’ fixed income portfolios.
David Chao and Thomas Wu in Invesco’s GMS Office share their macro outlook for 2H 2025. They believe precise estimates of where tariff rates will settle, the timing of interest rate changes, and detailed inflation and growth forecasts, are heavily dependent on a more consistent sense of US policy direction.
For the first half of 2025, shifting policies and trade dynamics have stirred market uncertainty. But amidst turmoil comes opportunity. Discover what’s ahead for the rest of the year.
Our long-term outlook utilizes a building block approach to estimate asset class returns, risk, and correlations to aid in allocation decisions.
Recently announced tariffs from the Trump administration have widened public spreads, which has yet to be reflected in the private markets.
The Vision platform is a state-of-the art, portfolio diagnostics tool to “pre-experience” how different variables affect investment outcomes. By identifying risk and return drivers, including under certain risk-based capital regimes, as well as exposures to an array of factors, Vision effectively characterizes the inherent risks in a defined liability or cash flow profile to identify optimal investment strategies.
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