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Insurance

Overview


We have significant experience providing innovative solutions for life, health, property and casualty and reinsurance companies. We combine global knowledge with local expertise, allowing us to provide solutions driven by the unique needs of clients located in North America, Europe and Asia.

Our Approach: How We Partner with Clients


The pillars of our insurance asset management business are as follows:

Breadth of Investment Management Capabilities
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We have extensive experience managing insurance fixed income portfolios across book yield, total return and modified total return strategies. Our insurance investment management team is fully integrated within GSAM’s broader investment platform and devoted to managing customized insurance requirements.

Commitment to Client Experience
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Our front-line relationship management integrates sales and client service. We provide proactive client engagement by conveying the best insights and resources of Goldman Sachs.

Innovative Insurance Solutions
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We have an experienced team of actuaries and PhDs focused on assisting insurers in areas such as strategic asset allocation, asset liability management, peer analysis, capital and tax-efficient investment strategies and regulatory requirements. The team possesses superior modelling and stress-testing capabilities based on Goldman Sachs’ proprietary optimization systems.

Dedicated Accounting Resources
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Our insurance-dedicated accounting team focuses on working with clients to implement accounting policies and procedures that meet insurance accounting standards in accordance with local GAAP, Tax and IFRS.

Ongoing Education and Training
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Knowledge transfer is a key differentiator in our offerings. Through industry white papers and ongoing industry events, we share economic views, changes in investment outlook, ongoing industry issues and new investment strategies to help clients evaluate new investment products.

Reporting
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Insurance client reporting is a significant aspect of our service. We have experience accommodating a broad range of special client reporting needs and have integrated well with bundled and independent providers of statutory reporting services. We deliver comprehensive portfolio and risk analytics through standard and customized reporting packages.

Examples of Our Partnership with Clients


Client Description

A mid-sized Life Insurer

 

Client Objective
  • Manage the multi-asset class portfolios against a liability benchmark
  • Maintain a target yield level, net of expected default losses
  • Deliver sustainable post-tax income in the fixed income and equities portfolios

 

GSAM Solution
  • Ongoing management and oversight of multiple separate investment accounts 
  • Daily interactions with the Insurance Fixed Income team
  • Summary reports generated weekly to provide detailed progress on the client’s various purchase programs
  • Weekly market / portfolio update calls with clients' investment teams
  • Monitor and communicate issuer ratings, maintains credit watchlist
  • OTTI / Impairment analysis


Client Description

A mid-sized non-U.S. Property and Casualty Insurer

 

Client Objective
  • The client engaged GSAM to discuss potential portfolio reallocation and evaluate the impact to capital and tail risk
  • One of the significant constraints is that the one-year portfolio value-at-risk should not exceed the client's capital threshold

GSAM Solution
  • We performed portfolio optimization to maximize expected return per unit of surplus risk, subject to constraints
  • We included model portfolios to illustrate the potential impact on portfolio performance, tail risk and capital
  • The portfolio was redesigned with the goal of increasing returns depending on the level of surplus risk
  • We advised our client to make modest allocations to alternative asset classes in an effort to achieve higher expected returns with greater diversification while also increasing surplus risk and tail risk

Related Strategies


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