"This paper outlines our framework for assessing equity returns, uses that framework to explain historical U.S. and international equity returns, contextualizes the 10-year outlook using the drivers of past returns, and highlights the implications for investors’ portfolios."
"Low yields and tight credit spreads pose quite the challenge for insurers who are beholden to fixed income investments. And, with economic and public-health uncertainty likely to be the norm for the foreseeable future.
In this environment, we would argue that insurers need to think even harder about how fixed income can best meet the needs of their business."
Insurers and Reinsurers: Ignoring ESG Factors Poses Reputational Risk
by A.M. Best's Special Report
"AM Best surveyed (re)insurers to seek their feedback on how the industry considers environmental, social and governance (ESG) factors. The survey found widespread recognition among respondents that the insurance industry has a pivotal role to play in the ESG arena, and that understanding ESG factors is crucial to the industry’s long-term viability."
Ideas for Insurers in Today’s Low-Rate Environment
via Western Asset Management
"As this “lower-for-longer” period persists, insurers are faced with the problem of continual book-yield decay and what is generally described as the difficult choice between accepting lower yields (thus lower profitability) and reaching for yield but taking on additional risk."
Trends With U.S. Insurers’ Bond Acquisitions and Dispositions
via NAIC
"Life companies accounted for the majority of the industry’s bond acquisition and disposition activity for the first three quarters of 2019 and 2020, followed by property/casualty (P/C) companies."
"The future of sustainable investing requires balancing goals and interests of stakeholders. It is critical to the sustainability of investing, serving society by improving long-term outcomes."
Disclaimer: The information contained herein has been obtained from sources believed to be reliable, but the accuracy of information cannot be guaranteed.
