Fixed Income Primer for Insurers & Risk Pools
View PDFMost insurers and risk pools allocate their portfolios heavily towards investment-grade fixed income to account for policy holder obligations, reserves and sufficient risk capital.
Fixed income allocations by insurers and risk pools/JPAs typically range from 70% to 100% of their portfolios depending on regulatory and other constraints.
As such, investing these fixed income assets effectively is a primary objective. To do so, it will be important to understand the various fixed income asset types.