Episode 112: 2023 Insurance Outlook with Wellington Management’s Tim Antonelli

In this insightful episode of the InsuranceAUM.com podcast, host Stewart Foley sits down with Tim Antonelli, Managing Director, Insurance Strategist, and Portfolio Manager at Wellington Management, to explore the unique market dynamics shaping insurance investing in 2023. With Tim’s recently published paper, 2023 Insurance Outlook: Resolve to Solve with a Restocked Toolkit, as a guide, the discussion delves into the shifts in yield dynamics following the volatile 2022, which brought elevated yields and a reshaped market landscape.

Tim emphasizes the need for insurers to adopt a solutions-oriented mindset, examining governance, flexibility, and responsiveness within portfolios to capitalize on swift, dislocated market opportunities. The conversation also touches on adapting to an evolving capital market environment, fine-tuning illiquid allocations, and assessing the credit quality of portfolios amidst potential recession risks. Additionally, Tim discusses why insurers should pivot equity strategies from growth to value, and he highlights the importance of evolving ESG integration, what he calls “ESG 2.0,” which includes forward-looking metrics such as science-based targets and implied temperature rise.

This episode provides timely insights for insurers aiming to enhance portfolio resilience, respond to elevated interest rates, and manage risks in a transformed market.