The Increasing Use of ETFs by Insurance Companies
Last September, we posted a note highlighting the overwhelmingly positive motivation for considering the use of exchange traded funds (ETFs) by insurance companies as a complement to their existing investment portfolio. In short, insurance companies could realize capital efficiencies, reduce balance sheet volatility, foster greater diversification, enhance yield profiles, build competitive advantages, and obtain cost-effective delivery. Today, each of these reasons for considering the use of ETFs is of even greater importance, as we have now entered yet another low-yielding environment where the pressure on insurance investment staffs to efficiently capture incremental yield and add more to the bottom line will remain paramount.
- DATE: July 22, 2019
- TYPE: PDF
Insurance Perspectives September 2018
Insurance companies have been investing in ETFs since 2004, and growth shows no signs of abating. Notable ETF sponsors estimate $300 billion of new money flooding...
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