InsuranceAUM.com

Episode 121: Executive Spotlight: Patrizio M. Urciuoli, Head of Strategy and Asset Allocation for Liberty Mutual Investments

In today’s Executive Spotlight episode, host Stewart Foley welcomes Patrizio Urciuoli, Head of Strategy and Asset Allocation at Liberty Mutual Investments. Patrizio shares how Liberty Mutual’s investment philosophy uniquely aligns with its mission as a mutual insurance company, creating capital to meet policyholder needs and support business growth. Drawing on parallels between his lifelong passion for sailing and his approach to strategy, Patrizio explains how clear vision, adaptability, and resilience guide both Liberty Mutual’s investment decisions and his leadership style.

Together, they discuss the current macro environment and the importance of building a flexible portfolio amidst rapid change and tightening credit conditions. Patrizio also shares Liberty Mutual's approach to ESG, emphasizing how incorporating sustainability into investment decisions allows for both smarter risk management and growth opportunities, especially in energy transition. Throughout, Patrizio stresses the importance of cross-functional synergy, showcasing Liberty Mutual’s collaborative approach to navigating today’s complex market landscape.

Episode 120: Liquidity Matters: A Panel of Experts’ Discussion

In today’s episode of the InsuranceAUM.com podcast, host Stewart Foley leads a panel discussion on a critical and timely issue: liquidity and its impact on the insurance industry. Joined by an impressive lineup of experts, including Mike Ashton of Enduring Investments, Bill Poutsiaka, former CIO of AIG’s P&C business, Geoff Cornell, former CIO of Corebridge, and regulatory expert Amnon Levy of Bridgeway Analytics, the panel dives deep into liquidity risk in the wake of recent financial shocks.

The discussion covers insights from Silicon Valley Bank's recent liquidity crisis and the broader implications for insurance companies. Panelists examine how liquidity demands affect asset-liability management, the role of governance, and the significance of stress-testing assumptions under current market conditions. Amnon Levy provides perspective on regulatory evolutions post-Financial Crisis, while Geoff Cornell and Bill Poutsiaka address the critical need for internal risk evaluations that go beyond traditional models.

Tune in to hear their thoughts on navigating today's shifting landscape, managing market volatility, and maintaining a balanced, resilient portfolio.

Episode 119: BDC Bond Masterclass with Radcliffe Capital Management’s Steve Katznelson

In today’s episode, Stewart Foley sits down with Steve Katznelson, Founder and CIO of Radcliffe Capital Management, to explore Business Development Company (BDC) bonds and their potential value for insurance portfolios. Steve explains that BDCs, which invest in diversified, secured loans to mid-market American companies, offer high levels of downside protection due to regulated leverage limits. This unique structure can provide bondholders with significant security, even in volatile markets.

Steve further discusses why BDC bonds, though relatively new, are seeing growing interest as an investment-grade opportunity. With similarities to CLOs but generally higher yields and added protections, BDCs offer an attractive niche for those seeking stable, high-quality returns.

Episode 117: An Interview with Nicos Scordis: A Leading Academic’s Insights on Insurance Asset Management

In this insightful episode of the InsuranceAUM.com podcast, Stewart Foley welcomes Dr. Nicos Scordis, the John R. Cox Ace Limited Chair of Risk and Insurance at St. John's University, to explore the complexities of value creation in insurance asset management. Dr. Scordis, a highly respected academic, shares his unique insights into how insurers create value, diving into the nuanced roles of underwriting, investment strategy, and regulatory constraints in determining an insurer's financial success.

The conversation explores traditional views and challenges in insurance asset management, including how float operates as an investment tool, the option-like nature of insurance contracts, and the pivotal role of underwriting in creating competitive advantage. Dr. Scordis introduces a fresh perspective, emphasizing that investment policy should align closely with underwriting policy to ensure balanced value creation and avoid shifts between policyholder and shareholder benefits. The discussion also highlights investment constraints imposed by regulatory requirements, surplus management, and asset liability matching, illustrating the complexity of achieving portfolio efficiency within these boundaries.

Stewart and Dr. Scordis also tackle the ongoing debate between investing for yield versus total return, noting that regulatory guidelines and business goals often sway the choice. They conclude with an exploration of whether insurers can realistically aim to achieve durable alpha within the industry’s constraints.

Episode 116: Opportunities in EM Debt with Tom Smith of MetLife Investment Management

In this episode of the InsuranceAUM.com podcast, Stewart Foley speaks with Tom Smith, Emerging Market Portfolio Manager at MetLife Investment Management, to explore current dynamics and future opportunities within emerging market debt (EMD). Tom shares his experienced perspective on the macroeconomic factors impacting EM debt, including the aftereffects of the pandemic, inflationary pressures, China’s reopening, and the ongoing conflict in Ukraine. Despite recent volatility, Tom explains that easing pressures could create a more favorable environment for EMD in 2023, with stronger fundamentals seen in emerging market corporate and sovereign debt.

Tom also discusses why EM corporates stand out with strong balance sheets and lower leverage than their U.S. peers, making them attractive for insurance investors focused on capital preservation. He provides insights into the stabilizing trends in sovereign debt and the potential for spread compression if macro conditions continue to improve. Tom emphasizes the need for a careful, selective approach, highlighting the resilience of certain EM credits and noting that MetLife Investment Management prioritizes capital preservation in their EM strategies.

Episode 115: The Private Credit Landscape with with Bill Bohnsack, President of Oak Hill Advisors

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley talks with Bill Bohnsack, President of Oak Hill Advisors, about the dynamic landscape of private credit. Bill shares insights into how the market is adjusting in early 2023 following the volatility of 2022, highlighting key themes such as inflation risks, credit spreads, and the impact of Fed rate hikes on public and private markets. With substantial private capital to deploy, Oak Hill Advisors is strategically positioned in sectors where they see promising opportunities, including large-cap corporate credit, infrastructure, real estate, and NAV lending. Bill explains that private credit has evolved to fill gaps left by banks and other traditional lenders, providing unique opportunities to capitalize on credit complexity and illiquidity premiums.

Bill also discusses the outlook for distressed investing, noting the potential for increased defaults as companies contend with lingering inflation and higher interest rates. While the distressed market isn’t currently in wholesale territory, Bill anticipates that rising liquidity needs and sector-specific challenges in areas like healthcare and technology could create notable opportunities over the next few years.

Episode 114: Conning’s Risk Assessment Survey of US Insurers, an Interview with Matt Reilly and Scott Hawkins

Welcome back. Thanks for listening. We are talking about a very important Risk Management Survey today that's been done by Conning. And we're joined by Matt Riley and Scott Hawkins.

Episode 113: Inflation, Labor Markets, and the Fed featuring Mike Ashton, the Inflation Guy

In this engaging episode of the InsuranceAUM.com Podcast, host Stewart Foley welcomes back Mike Ashton, aka “The Inflation Guy,” to discuss the Federal Reserve’s current stance on inflation, the effectiveness of monetary policy, and what the future might hold for the economy. Mike shares his thoughts on how the Fed’s strategy has changed, shifting focus from managing money supply to interest rates—a tool that he argues has its limitations and potential risks. He underscores the complexities of using interest rates to manage inflation without precise knowledge of the demand curve, noting that the Fed's approach may yield unexpected outcomes.

Mike and Stewart also explore the role of inflation in managing public debt, debunking the notion that high inflation will ease the U.S. debt burden. They touch on how structural changes, such as near-shoring and labor shortages, may reshape the economy, ultimately empowering labor over capital—a trend that could impact corporate earnings. Lastly, Mike provides his forecast for interest rates and his thoughts on AI's potential effects on the labor market.

Episode 111: Executive Spotlight: Lale Topcuoglu, Managing Director, Head of Credit for Swiss Re Management

In this insightful episode of the InsuranceAUM.com podcast, Stewart Foley sits down with Lale Topcuoglu, Managing Director and Head of Credit at Swiss Re, for an honest and wide-ranging conversation. They discuss the economic landscape of 2023, with Lale sharing her thoughts on "gray swan" risks—the predictable yet often overlooked challenges in credit markets—and the potential fallout from companies over-leveraged in a liquidity-heavy, low-interest rate era. She also explains her approach to fundamental credit analysis in an environment where many investors focus more on macro trends than on balance sheets and cash flow.

In addition to market insights, Lale speaks candidly about the role of networking, her involvement with the Insurance Women's Investment Network (IWIN), and the importance of mentorship in financial services. Lale and Stewart also delve into topics of personal resilience and mental health in the workplace, shedding light on the importance of asking for help and seeking balance in a high-pressure industry.

Episode 116: Private Structured Credit Masterclass with TJ Durkin of Angelo Gordon

Join host Stewart Foley on the InsuranceAUM.com Podcast as he speaks with TJ Durkin, Managing Director and Head of Structured Credit at Angelo Gordon, to unpack the intricacies of structured credit for insurance investors. From ABS to private credit and residential mortgages, TJ shares insights into the evolving opportunities and challenges in today’s markets. Discover how Angelo Gordon’s expertise in both public and private markets enables them to deliver value across structured credit and specialty finance asset classes.

TJ delves into the current state of public and private credit, offering perspectives on how recent market volatility and changing technicals are reshaping investment opportunities. With a focus on housing, specialty finance, and the impacts of macroeconomic trends, this episode provides a comprehensive look at structured credit strategies for insurance investors. If you're looking to understand how insurers can position portfolios in this dynamic environment, this conversation offers actionable insights.