Although reinsurance companies often have multiple accounts based on the number and type of reinsurance policies, there are still fundamental investment management principles that apply, regardless of the level of complexity of any particular client's needs.
The investment strategies we employ for reinsurance accounts rely on these four key principles:
1. Asset Allocation*
- Asset allocation is the central theme of our investment
philosophy and is the primary factor in determining
investment results.
- The biggest mistake investors make is not paying enough
attention to asset allocation.
2. Specialist Managers
- The more management styles represented in your portfolio,
the greater the diversification and the less risk for your money.
- Each manager has an expertise in a specific market sub-style.
- These managers are employed to invest in that mandate alone.
3. Portfolio Structure
- We diversify your portfolio within and across asset classes
and styles, which helps you access the return potential of
the full range of financial markets.
- The high level of diversification** in our portfolios helps
manage your investment risk and smooth out performance.
- We further enhance diversification with alternative investments,
real estate, and other opportunities when appropriate.
4. Continuous Management
- Portfolios “drift” from their original allocations as different sectors of the market appreciate or depreciate over time. Some fund objectives may also change over time. Investmark addresses these types of changes via a two-step process:
- Your asset mix is systematically rebalanced to its target points.
- Ongoing monitoring and manager reviews ensure that managers’ investment styles remain consistent with their assigned objectives.
*Asset allocation programs do not assure a profit or protect against loss in declining markets. No program can guarantee that any objective or goal will be achieved
**Diversification does not assure a profit or protect against loss in declining markets, and diversification cannot guarantee that any objective or goal will be achieved.
We customize a strategy for each company that takes into account their unique combination of requirements, goals, and risk tolerance.
Our investment strategy is primarily focused on finding the balance between protecting your plan assets so that you are prepared for claims and growing your plan assets.
Tax Aware
Our investment advisors are well versed in the potential tax advantages available to reinsurance companies, and we will work with your tax preparers to take full advantage of that wherever possible. Additionally, our investment selection and management always have an eye on tax implications and maximizing after tax results.
Downside Protection
We work closely with the reinsurance administrators to develop a deeper understanding of your reinsurance products, claim histories, sales volume, and patterns.
These factors help determine each company’s risk perspective: Some accounts within the portfolio need to be more conservative, some more aggressive, some need more liquidity, and some can be invested for longer-term/retirement goals. Although we strive for growth in many areas, an essential component of our strategies is to diversify and strive to limit downside exposure in the portfolio.
Get Control of Your Assets
Working with ReInsuranceMax gives you greater control over your company’s assets.
Utilizing appropriate strategies for different portions of the portfolio can allow for plan assets to be used for leverage to grow your business and establish a significant new source of retirement assets for owners.
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