Insurance general accounts shift to diversified assets
The historical model of managing insurance general accounts solely for regulatory capital is giving way to a diversified approach that incorporates structured products and private markets.
The argument
The guest argued that introducing alternative risk and return diversifiers into high-quality fixed-income portfolios has allowed insurance companies to deliver superior performance while still operating within regulatory frameworks. This shift was pioneered by firms like Apollo/Athene and Global Atlantic before being adopted by traditional triple-A rated insurers.
The thesis, stress-tested
✓ What validates it
- ✓Continued outperformance of diversified general accounts versus traditional fixed-income peers
- ✓Increased allocations to private credit and structured products by conservative insurers
▸ Risks discussed
- ▸Regulatory capital requirement changes
- ▸Illiquidity risks in private market assets during credit downturns
Hear it yourself
"And you started getting disparate performance by different insurance company, high quality, like, high rated insurance companies that would have very different performances in their general accounts based on were they willing to introduce different kinds of diversifiers into their portfolios."
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