InsuranceAUM.com

Episode 146: Executive Spotlight: Ken McCullum, Executive Vice President and Chief Risk Officer of the Principal Financial Group

In this episode of the InsuranceAUM.com podcast, host Stewart Foley welcomes Ken McCullum, Executive Vice President and Chief Risk Officer of Principal Financial Group. Ken shares insights into the evolving role of a CRO, addressing the risks and challenges faced by insurers today, including the ongoing impacts of COVID-19 on mortality and morbidity, economic uncertainty, and the importance of strong asset-liability management. With 144 years of history, Principal's approach to risk management emphasizes a steady hand through market cycles and the ability to thrive while taking well-understood risks.

Ken also explores key topics such as liquidity management, the rise of private markets, and the need for thoughtful strategic asset allocation. As the first CRO featured on the podcast, Ken provides valuable perspectives on how insurers can balance risk-taking and resilience in a rapidly changing environment. He also shares personal reflections, offering advice on the value of taking calculated risks and highlighting the importance of strong teamwork and leadership within his organization.

Episode 145: ETF Use by Insurers, with Ben Woloshin of SSGA and Raghu Ramachandran of S&P Dow Jones Indices

In this episode of the InsuranceAUM.com podcast, Stewart Foley hosts an insightful discussion on insurance companies' use of Exchange Traded Funds (ETFs). Joining the conversation are Ben Woloshin, Head of SPDR Insurance at State Street Global Advisors, and Raghu Ramachandran, Head of US Insurance Asset Channel at S&P Dow Jones Indices. Together, they explore the significant 23% drop in insurance holdings of ETFs in 2022, the first of its kind since insurers began investing in ETFs. The episode covers key factors driving the decline, such as market valuations and asset allocation decisions, while delving into how ETFs serve as strategic tools for liquidity, sector exposure, and interim beta for insurance companies.

The conversation also touches on how insurance companies are leveraging ETFs for fixed income and equity exposure, regulatory updates, and the growing trend toward using ETFs for securities lending. Both Raghu and Ben emphasize the versatility of ETFs as tools that enhance portfolio management and risk-taking strategies in a changing market landscape. They offer valuable insights on how insurers can effectively integrate ETFs into their investment strategies, particularly with the evolving regulatory framework and market conditions in 2023.

Episode 144: State of the States with Conning’s Karel Citroen

In this episode of the InsuranceAUM.com Podcast, Stewart Foley, CFA, talks with Karel Citroen, Managing Director and Head of Municipal Credit Research at Conning, about the evolving landscape of municipal bonds. They delve into Conning's annual State of the States report, which ranks states based on 13 credit indicators, revealing how economic trends and demographic shifts influence state credit quality. Karel discusses the key drivers behind their recent decision to revise the state credit outlook from stable to declining, touching on factors like lower tax revenue growth, inflation's impact on sales taxes, and state policy changes.

Karel also highlights the complexities facing states as they navigate evolving population patterns and infrastructure needs. With insights into migration trends, fiscal discipline, and relative value in state credit rankings, this episode provides valuable perspectives for insurance investors managing municipal bond portfolios. Whether you're interested in the credit quality of states or looking for guidance on navigating local government debt, this conversation offers important takeaways.

Episode 143: David Golub of Golub Capital on Private Credit

In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, sits down with David Golub, President of Golub Capital, for an engaging discussion on private credit and its role in the investment strategies of insurance companies. David shares his background, from his early days in New Rochelle to his leadership at Golub Capital, one of the pioneering firms in middle market lending. He explains Golub Capital's focus on making loans to private equity-backed companies and highlights the firm's guiding principles, including the importance of relationships and maintaining a competitive edge in the private credit space.

David also offers valuable insights into the current U.S. economic landscape, shaped by Golub Capital's access to financial data from hundreds of middle market companies. He discusses trends in revenue and EBITDA growth, the challenges posed by rising interest rates, and why private credit continues to offer attractive risk-adjusted returns for insurance investors. Whether you're interested in learning more about Golub Capital’s investment philosophy or seeking practical advice on navigating private credit markets, this episode provides a wealth of information for insurance investment professionals.

Episode 142: Energy, Cleantech, and the Insurance Industry with Sara Chamberlain and Jason Blumberg of the Energy Foundry

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley, CFA, is joined by Sara Chamberlain and Jason Blumberg, co-founders of Energy Foundry, to discuss the intersection of energy, cleantech, and insurance. As pioneers in climate tech venture capital, Sara and Jason share insights into how their early-stage investments are driving innovation in areas like energy, mobility, water, and waste. They dive into the critical role insurance companies can play in supporting cleantech solutions, particularly as extreme weather events impact claims and predictive models across the industry.

The conversation covers real-world examples of innovations that can benefit insurers, including advanced materials for stronger, lower-emission concrete and energy-efficient building technologies. Sara and Jason also discuss the broader landscape of climate tech, including how recent legislation like the Inflation Reduction Act is driving new opportunities and what the next decade might hold for cleantech adoption. Whether you're interested in the future of sustainable investing or how technology can help mitigate climate risk, this episode offers valuable insights.

Episode 141: Steve Evans of Artemis.bm Explains the ILS Market

In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, welcomes Steve Evans, owner and Editor-in-Chief of Artemis and Reinsurance News. Steve provides a deep dive into the world of insurance-linked securities (ILS), an area Stewart is eager to learn about. Steve shares his journey from his early career in Ireland and England to founding Artemis, a leading publication in the ILS space. Together, they explore the evolution of ILS, its role in diversifying risk, and how it offers unique opportunities for investors in catastrophe bonds and other securitized insurance risks.

Steve explains how ILS instruments, particularly catastrophe bonds, provide investors with uncorrelated returns and act as a vital risk transfer tool for insurers, reinsurers, and even governments. He discusses key trends, including the growing impact of climate risk and inflation on the market, and how ILS is becoming a mainstream investment class for large institutional investors. This episode offers valuable insights for insurance investment professionals looking to understand the ILS market and its prospects for growth in today’s challenging global environment.

Episode 140: Global Private Markets through a PRISM with Nalaka De Silva of abrdn

In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, welcomes Nalaka De Silva, Head of Private Market Solutions at abrdn, for a deep dive into global private markets. Nalaka shares his unique background as a global citizen, growing up in Africa, and his professional journey, leading private market solutions at one of Europe’s largest asset managers. He provides a comprehensive overview of abrdn’s long history, dating back nearly 200 years, and how the firm manages over $500 billion in assets, with $200 billion focused on insurance portfolios.

Nalaka explains abrdn’s approach to private markets, detailing how his team identifies opportunities across venture capital, private equity, infrastructure, and private credit. He also discusses the importance of risk management and how abrdn’s proprietary PRISM tool helps clients monitor and manage risks within private market portfolios. Whether you’re interested in learning more about infrastructure investing, private credit opportunities, or the future of private markets, this episode provides invaluable insights for institutional investors.

Episode 139: Global Fixed Income and More with Arif Husain, Fixed Income CIO of T. Rowe Price

In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, sits down with Arif Husain, Head of International Fixed Income and CIO at T. Rowe Price, for an in-depth discussion on global fixed income markets. With a card-carrying bond geek in Stewart and Arif's extensive expertise, the conversation explores topics such as U.S. inflation, the Federal Reserve’s interest rate path, and the complexities of global macroeconomic environments. Arif offers insights into the state of fixed income in Europe, Japan, and China, providing guidance on where investors should look for yield while being mindful of volatility and risk.

Arif also shares his views on how rising rates and inverted yield curves are impacting the banking sector and how investors should approach floating rate versus fixed rate allocations in this market. For those seeking income improvement, he highlights emerging markets, securitized credit, and the importance of understanding why yields are available. This episode is packed with actionable insights for insurance investors navigating today’s challenging fixed income environment.

For standard performance and other important information, please click here:  Dynamic Global Bond Strategy Highlight

Returns based on Dynamic Global Bond (USD Hedged) Composite. The Global Unconstrained Bond Strategy/Composite is advertised and marketed under the Dynamic Global Bond Strategy/Composite designation outside of Canada, but should be referred to as the Global Unconstrained Bond Strategy/Composite in Canada.

Episode 138: How can they not know which one’s the brake or the gas? with Mike Ashton, The Inflation Guy

In this engaging episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, welcomes back Michael Ashton, CEO of Enduring Investments, affectionately known as The Inflation Guy. Michael brings his candid insights and deep understanding of inflation, monetary policy, and the Fed's actions, delivering another thought-provoking conversation.

They explore the current state of the economy, discussing whether the Fed will implement one last interest rate hike and what its long-term impacts might be. Michael breaks down the Fed's decision-making process, highlighting the complexities of monetary policy and the evolving nature of interest rate management. They also delve into the recent bank failures and the asset-liability mismatch plaguing certain regional banks, as well as the growing role of private credit amid potential tightening in bank lending.

Additionally, the episode touches on the challenges facing commercial real estate, particularly office space, and what may lie ahead for the sector. With Michael's no-nonsense approach and entertaining commentary, this episode offers valuable insights for insurance investors looking to navigate today’s uncertain economic landscape.

Episode 137: CRE Distressed Investing with Tony Crooks, AEW, Jack Gay, Nuveen, and Reid Liffmann, Angelo Gordon

In this episode of the InsuranceAUM.com podcast, host Stewart Foley dives into the complexities of the current Commercial Real Estate (CRE) market and distressed investing. He’s joined by three industry leaders: Tony Crooks, Managing Director at AEW, Jack Gay, Senior Managing Director and Global Head of Debt at Nuveen Real Estate, and Reid Liffmann, Head of US Real Estate at Angelo Gordon. Together, they unpack the driving factors behind recent large CRE defaults, the challenges posed by rising interest rates, and the impact of office vacancies in major cities. The panel explores how risk and opportunity vary across sectors like office, multifamily, and industrial, offering a comprehensive view of where the market stands today.

The conversation also highlights where smart money should be looking for opportunities in the capital structure, from senior debt to equity. With the pullback in bank lending, our guests discuss the role of insurance companies and other private lenders in filling the financing gap. As the market searches for its footing, this episode provides key insights into how investors can navigate a distressed market, the importance of patience, and why this is a time for disciplined, value-driven investment strategies.