InsuranceAUM.com

Episode 94: Dividend income: Customizing and thinking tactically

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley dives into the benefits of dividend strategies and how they can serve as an essential component of insurance investment portfolios. Dividend-paying stocks have historically contributed nearly 40% of the S&P 500’s total returns, making them a cornerstone for income generation and long-term growth.

The discussion covers the advantages of dividends in today’s rising interest rate and inflationary environment, highlighting their role in providing income stability, drawdown protection, and a hedge against inflation. Lance Humphrey of Victory Capital outlines key factors for identifying companies capable of sustaining and growing dividends over time, such as profitability, financial stability, and dividend growth. The conversation also explores how customized solutions can align dividend strategies with insurance company needs, including gain-loss management and sector allocation constraints.

Tune in to discover how dividend strategies can enhance income, manage risk, and support insurance portfolios in a dynamic market environment.

Episode 93: Pending Changes for the Capital Treatment of CLOs

In this special edition of the InsuranceAUM.com Podcast, host Stewart Foley is joined by Amnon Levy, CEO of Bridgeway Analytics, and Kevin Croft, professor of practice at Drake University and director of the Kelley Institute for Insurance Innovation. Together, they dive into the timely and critical topic of potential changes in the capital charge treatment for CLOs.

Amnon and Kevin provide expert insights into the regulatory framework, the nuances of CLO structures, and the challenges faced by the NAIC as they consider updating their approach. From the impact of modeling and scenarios to the implications for insurers and the broader capital markets, this conversation offers a comprehensive look at one of the most significant issues facing insurance investors today. Don’t miss this essential discussion for staying informed on the evolving landscape of insurance regulation and investment strategy.

Episode 92: CIO Spotlight: Cameron Black, CFA, CAIA, CFP of BCBS Arizona

On this episode of the InsuranceAUM.com Podcast, host Stewart Foley welcomes Cameron Black, chief investment officer and treasurer of Blue Cross Blue Shield of Arizona, for a deep dive into today’s challenging investment environment. Cameron shares insights into managing portfolios amid rising interest rates, inflation, and policy uncertainties while balancing liquidity and long-term opportunities.

From healthcare cost inflation to public and private asset allocation, Cameron explains how his team strategically positions their portfolio in an evolving landscape. He also reflects on the importance of disciplined decision-making, risk management, and the need for clarity in a time of market volatility. Tune in for a thoughtful discussion on navigating the complexities of insurance asset management today.

Episode 91: The Regulatory Savant - An Interview With Amnon Levy of Bridgeway Analytics

Stewart Foley welcomes Amnon Levy of Bridgeway Analytics to the InsuranceAUM.com Podcast for a deep dive into the complexities of insurance investment regulation. Amnon shares his extensive experience, from working with the Federal Reserve on Basel II to helping design the C1 bond factors, and explains how regulation impacts the strategies and solvency of insurers.

This episode explores the evolving regulatory landscape, including NAIC guidelines, state-level differences, and challenges posed by private equity ownership of insurers. Amnon also discusses the role of technology and innovation in simplifying compliance and fostering efficiency in the industry. A must-listen for those navigating the ever-changing world of insurance asset management.

Episode 90: Senior Secured Middle Market Lending - A Credit-Focused Approach for Insurers

Stewart Foley sits down with Kevin Marchetti, founding partner and chief risk officer of Varagon Capital Partners, to explore the nuances of private debt and sponsor-backed middle market lending. Kevin shares how Varagon focuses on senior secured loans to recession-resilient businesses in sectors like healthcare, critical services, and consumer staples.

The conversation covers the appeal of private debt for insurance portfolios, the benefits of sponsor-backed lending, and strategies for managing risk in volatile markets. Kevin also highlights the importance of lead lender status, capital efficiency strategies for insurers, and Varagon’s disciplined credit approach that aligns with insurers’ risk appetites. A must-listen for insurance investment professionals navigating the shift toward private assets.

Episode 89: IG Private Credit: Managing through Change

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley dives into the growing role of investment-grade private credit with insights from Securian Asset Management. With over 50 years of experience managing private credit portfolios, Securian offers a time-tested approach to sourcing, structuring, and managing deals to meet the needs of insurance investors.

The conversation highlights how private credit can provide attractive yield premiums, downside protection through covenants, and diversification benefits compared to public fixed income. The discussion also explores how Securian tailors allocations to meet the unique needs of life and P&C insurers, including duration matching and credit customization. The team explains how consistent deal flow, disciplined underwriting, and deep relationships with issuers and brokers create opportunities in both syndicated and club deals.

Episode 88: A Bank Loan Approach to Insurance Mandates

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley, CFA, sits down with Paul Massaro, Head of Global High Yield and Lead Portfolio Manager for Floating-Rate Strategies at T. Rowe Price, to discuss the evolving opportunities in floating-rate bank loans and high-yield credit. With real bond yields rising for the first time in years, Paul shares his insights on the differences between the bank loan and high-yield markets, emphasizing risk-adjusted returns, sector diversification, and the resilience of these asset classes in volatile market conditions.

The conversation highlights the strategic value of floating-rate bank loans in insurance portfolios, including their defensive positioning, higher recovery rates, and their role as a diversifier within fixed-income allocations. Paul also discusses where his team is finding value in today’s environment, such as shorter maturities, sectors like leisure and travel, and selective opportunities in new issuances. Backed by T. Rowe Price’s rigorous research process, Paul’s perspective provides insurance investment professionals with valuable insights into navigating the challenges of rising rates and heightened economic uncertainty.

Episode 86: Asset-backed Lending Masterclass with Victory Park Capital

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley, CFA, sits down with Connell Haston, partner and head of the Insurance Services Platform at Victory Park Capital, for a masterclass on asset-backed lending. Connell explains how this private credit strategy differs from traditional cash flow lending and why it’s increasingly attractive to insurance investors in today’s market.

The discussion covers the structure of asset-backed loans, including their focus on collateral, dynamic borrowing bases, and risk management through covenants and operational controls. Connell also highlights the key characteristics of these loans—floating-rate coupons, senior secured positioning, and monthly interest payments—that align well with insurance company balance sheets. As insurers navigate rising rates, inflation, and increased macroeconomic uncertainty, Connell shares why asset-backed lending offers a defensive and capital-efficient option for diversifying portfolios while enhancing risk-adjusted returns. This episode is packed with insights for insurance professionals seeking to understand the growing role of private credit in their investment strategies.

Episode 85: Crypto and UST: What Happened?

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley, CFA, dives into the recent collapse of UST and Luna, exploring the mechanics of algorithmic stablecoins and what went wrong. Learn how the failure of UST triggered a death spiral for its ecosystem and caused ripple effects across the broader cryptocurrency market.

The conversation examines the differences between fiat-backed, crypto-backed, and algorithmic stablecoins, highlighting the unique risks of each approach. Stewart and his guest also discuss how events like this influence regulatory conversations, investor sentiment, and market opportunities. Whether you’re navigating crypto for the first time or watching from the sidelines, this episode sheds light on the complexities and lessons of this high-profile crypto disruption.

Episode 84: Infrastructure for Insurers - A Deep Dive with Macquarie Asset Management

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley dives into the critical role of dividend strategies in today’s equity markets. With a focus on high dividend yield and growth, the conversation explores how dividends contribute significantly to total return, provide risk management, and offer a hedge against inflation—key considerations for insurance investors.

Discover insights on identifying quality companies with sustainable and growing dividends, breaking down the metrics that matter, such as profitability, payout ratios, and historical growth. The discussion also highlights a unique approach to sector diversification, targeting opportunities in non-traditional sectors like technology and healthcare, while maintaining a strong emphasis on quality and customization.

For insurance CIOs, the episode covers tailoring dividend strategies to meet specific constraints, including tax planning, gain/loss management, and sector weightings. Tune in for an engaging discussion packed with actionable insights for enhancing income and stability in equity portfolios.