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A SWOT Analysis will identify internal strengths, weaknesses, external opportunities and threats to each component of your insurance company or risk pool/JPA's investment process.
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Quarterly Investment Review for Insurance Companies and Risk Pools/JPAs: Q2-2023View PDF
Global shares gained in the Q2 with the advance led by developed markets, notably the US, while emerging market stocks lagged behind. Enthusiasm over AI (Artificial Intelligence) boosted technology stocks. Major central banks raised interest rates in the period although the US Federal Reserve elected to stay on hold in June.
US equities ended the quarter higher, with the bulk of the gains made in June. The advance came amid moderating inflation and signs that the US economy remains resilient despite higher interest rates. A revision to Q1 GDP growth indicated expansion of 2% (annualized), substantially more than the previous estimate of 1.3% growth. Underperforming sectors included energy and utilities.
The second quarter of 2023 saw a significant drop in bond market volatility. Government bond yields were on the rise again, although there was some divergence, with the UK and Australia underperforming due to higher-than-expected inflation and a greater resolve by central banks to combat inflation. The Fed was the first to pause in June, leaving rates at 5% to 5.25% after more than a year of consecutive rate increases.