Fund financing - an opportunity for insurers
In this article we provide a guide to fund financing, and explain why the strategy can be an attractive addition to an insurer’s portfolio.
Insurance
Helping insurers optimize their asset yield and capital efficiency
Insurers have unique investment needs. On one hand they need to generate sufficient returns on their assets to meet long-term commitments to policyholders. On the other, stringent regulation means that any investment risk needs to be balanced against solvency capital requirements and the potential for balance-sheet volatility.
At abrdn, we’ve been helping insurers manage these challenges for almost 200 years. We provide access to a broad range of traditional and non-traditional strategies and asset classes that can help enhance the risk-adjusted return on a portfolio.
At abrdn, we’ve been helping insurers manage these challenges for almost 200 years. We provide access to a broad range of traditional and non-traditional strategies and asset classes that can help enhance the risk-adjusted return on a portfolio.
Key Benefits
Proven partner for insurers
We manage more than $415 billion of assets for insurers worldwide. Our clients include some of the world’s largest life, property & casualty, and reinsurers, as well as regional and local providers. All are supported by our dedicated insurance specialist team with extensive actuarial, reporting and risk- management expertise.
From investment to reporting
We provide investment approaches from pooled to customized portfolios or complete investment outsourcing. We rely on the complete investment universe, including investments in active, quant, multi-asset, private market and alternative investments, to help diversify risk while enhancing potential return.
What we offer our clients
Dedicated insurance team
Our global insurance team is focused on managing relationships and developing innovative asset solutions for our clients. The team includes professionals with specialized skill-sets such as actuarial, risk structuring and investment optimization. This is coupled with in-depth knowledge of the regulatory environment.
With extensive global insurance investment experience and expertise, the team works closely with our clients to build lasting investment solutions that deliver effective outcomes. Through ongoing client engagement, we aim to ensure that these investment solutions continue to meet their needs.
Comprehensive investment solutions
We understand that insurers have specific investment objectives. To help them meet these, we offer a comprehensive range of investment solutions, including:
- pooled products across a wide range of asset classes
- bespoke solutions tailored to individual client requirements
- liability-aware mandates
- modelling, risk management and structured solutions
All of our solutions are supported by global investment capabilities that span a broad spectrum of traditional and non-traditional asset classes. As one of the world’s largest assets managers, we have experienced investment teams covering:
- Fixed income
- Private markets
- Real estate
- Client-driven and multi-manager solutions
- Alternative investment strategies
- Quantitative investing
- Equities
- Multi-asset
- Liquidity
Our wide range of investment solutions is backed by our investment philosophy, disciplined risk management and shared commitment to a culture of investment excellence.
Asset and risk reporting
We understand the regulatory importance of providing detailed and timely reports. Our reporting capabilities include:
- Risk and performance attribution
- Fund and investment analytics
- Asset data reporting.
In addition to this, we offer fund accounting and valuation services; transaction reporting; trade management; asset servicing; and unit pricing.