Insurance Solution
A Flexible Solution for an Insurance Client
A property/casualty insurance client with intermediate duration liabilities approached Wellington Management with the need to maximize after-tax total return, while preserving capital, optimizing after-tax income and maintaining target volatility and liquidity levels.
The firm's Insurance Asset Management Group examined the client's situation, bringing to the table its special expertise in:
- Financial, actuarial and tax analyses
- Asset/liability management
- Investment reporting
- Regulatory compliance
After an in-depth assessment, the group recommended a crossover fixed income management approach. This customized investment approach combines exposure to both tax-advantaged and taxable investments to optimize after-tax income around the US Alternative Minimum Tax. It can also attempt to exploit inefficiencies between the two markets by “crossing over” between them as opportunities arise.
The group then worked closely with the client — using a range of modeling tools and other inputs — to create a customized approach and process.
A senior portfolio manager skilled in managing both taxable and tax-exempt asset classes was assigned to the mandate, so that continuous comparison of cross-market relative values and opportunities would be built into the investment approach. The portfolio manager draws from recommendations of our credit research team, which includes analysts who focus on municipals, and recommendations from other analysts who focus on asset allocation among taxable investments.
Features:
We provide a variety of investment communications to our clients.
Our client base encompasses a range of institutions worldwide.
We exist for our clients and are driven by their needs.
—Wellington Management Goals, Strategy and Culture Statement