A.M. BestTV: Hedge Fund Performance Has Insurers Reducing Exposure

OLDWICK, N.J.--(BUSINESS WIRE)-- In this A.M.BestTV episode, A.M. Best’s Jason Hopper, senior industry analyst, said that insurance organizations with hedge fund holdings, or those contemplating getting into the hedge fund asset class, may be rethinking their position. Click on http://www.ambest.com/v.asp?v=hedgefunds1216 to view the entire program.

A recent A.M. Best special report states that without a meaningful increase in interest rates, insurers have limited choices for investing new dollars from maturing securities and new business premiums to maintain targeted risk-adjusted returns. To access a copy of this Best’s Special Report, titled, “Hedge Fund Performance Has Insurers Reducing Exposure,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=255634.

Hopper described the differences between the various hedge fund strategies and said with returns that are more volatile, insurers are paying much more attention to fee structure.

Recent episodes of A.M.BestTV include:

• Global Reinsurance 2017 Outlook – Negative: A.M. Best Director Greg Reisner discusses A.M. Best’s negative outlook of the global reinsurance sector and the new market realities: http://www.ambest.com/v.asp?v=reinsuranceoutlook1216.
• U.S. Life/Annuity 2017 Outlook – Negative: A.M. Best Director Thomas Rosendale talks about the reasons behind an outlook revision to negative for the U.S. life/annuity sector: http://www.ambest.com/v.asp?v=lifeannuity1216.
• U.S. Property/Casualty, Commercial Lines 2017 Outlook – Negative: A.M. Best Senior Director Michael Lagomarsino explores the factors causing a negative outlook hold-over in 2017 for the U.S. property/casualty commercial lines segment: http://www.ambest.com/v.asp?v=pccommercial1216.
• U.S. Property/Casualty, Personal Lines 2017 Outlook – Stable: A.M. Best Senior Director Greg Williams talks about how market forces and technological advancements are reshaping the industry: http://www.ambest.com/v.asp?v=pcpersonal1216.
• U.S. Health 2017 Outlook – Negative: A.M. Best Senior Director Sally Rosen addresses the negative outlook on the U.S. health insurance industry, citing the pressure on insurers’ earnings: http://www.ambest.com/v.asp?v=health1216.
• U.S. Life Reinsurance 2017 Rating Outlook – Stable: A.M. Best Director William Pargeans says the U.S. life reinsurance segment outlook is stable due to acceptable liability risk and a conservative investment approach: http://www.ambest.com/v.asp?v=lifereinsurance1216.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Company, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

View source version on businesswire.com: http://www.businesswire.com/news/home/20161222005457/en/

A.M. Best
Lee McDonald, +1 908-439-2200, ext. 5561
Group Vice President, Publication and News Services
[email protected]

Source: A.M. Best

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