InsuranceAUM.com

Episode 38: Opportunities across the private credit spectrum

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley, CFA, sits down with Andrew Kleeman (SLC Management), Chris Wright (Crescent Capital), and John Bowman (Crescent Capital) for a deep dive into private credit across the investment-grade and below-investment-grade spectrum.

They discuss key trends, including the growing demand for private credit among insurers, liquidity trade-offs, risk-adjusted returns, and how private credit complements public market investments. The conversation also covers origination, covenant structures, capital charges, and how insurers can optimize their allocations in today’s low-yield environment.

If you’re looking to understand how private credit fits into an insurance portfolio and how it can enhance returns, this episode is packed with valuable insights.

Episode 37: Loomis Sayles Multi-Asset Credit Portfolio: Global Diversification Across Credit-Focused Sectors

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley, CFA, sits down with Andrea DiCenso of Loomis Sayles to discuss the ongoing search for yield in insurance portfolios. With rates at historic lows and central bank activity distorting markets, insurers are looking beyond traditional fixed income to generate attractive risk-adjusted returns.

Andrea shares insights on how a multi-asset credit approach can help insurers navigate global credit markets, taking into account factors like credit cycles, liquidity premiums, and relative value opportunities. She also discusses the role of market fragility indicators, how risk management tools can enhance portfolio positioning, and whether insurers are shifting away from sleeve-based mandates toward more dynamic, opportunistic strategies.

Episode 36: How the Principles for Responsible Investment (PRI) helps insurers get started and make progress in ESG integration

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley, CFA, sits down with Chris Fowle, Director of the Americas for Signatory Relations at PRI, to discuss how insurers are integrating ESG factors into their investment strategies. With growing regulatory focus and stakeholder pressure, insurers are rethinking how ESG considerations impact both their assets and liabilities. Chris explains what it means to be a PRI signatory, how ESG factors influence investment decisions, and why responsible investing is becoming a priority in the insurance industry.

The conversation also covers common misconceptions about ESG investing, the challenges of ESG data and ratings, and recent signatories like Liberty Mutual and MassMutual. Chris shares insights on PRI’s reporting framework and how insurers can take a leadership role in sustainable investing while maintaining strong financial performance.

Episode 35: Compensation in the Asset Management Industry

In this episode, host Stewart Foley, CFA, sits down with Samy Muaddi, EM Debt Portfolio Manager at T. Rowe Price, to explore the complexities and opportunities within emerging market debt. With real bond yields at all-time lows, investors are searching for alternatives, and EM debt offers a compelling risk-return profile. Samy breaks down the landscape, covering sovereign and corporate debt, the role of credit quality, and why insurers are increasingly allocating to this asset class.

They discuss key considerations for insurance investors, including managing capital charges, local vs. hard currency exposure, and how EM debt compares to traditional U.S. high yield and bank loans. Samy also shares insights on inflation, populism in Latin America, and why understanding market access is critical for sovereign risk assessment. Finally, he offers career advice for young professionals looking to break into investment management, sharing lessons from his own journey in the industry.

Episode 34: EMD: An overlooked potential source of yield for insurance investors

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley, CFA, is joined by Damien Buchet of Finisterre Capital and Nick Varcoe of Principal Global Investors to discuss emerging market debt (EMD) and its potential for insurance investors.

They explore how the EMD market has evolved, the diversification benefits it offers, and how insurers can navigate risks, including currency exposure and volatility. The conversation also delves into ESG considerations, sovereign vs. corporate debt, and strategies for optimizing risk-adjusted returns. Whether you're considering EMD for the first time or looking to refine your approach, this episode delivers key insights into how insurance investors can unlock its potential.

Episode 33: Meet Mitch He, CIO of Chesapeake Employers Insurance

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley, CFA, sits down with Mitch He, Chief Investment Officer of Chesapeake Employers’ Insurance, to discuss today’s investment landscape and the challenges insurers face in a low-yield environment. Mitch shares his views on market opportunities, including the role of convertible bonds, CLOs, and high-yield securities, and explains why technology should be treated as an asset class in a diversified portfolio. He also highlights how insurers can hedge medical cost inflation through strategic equity investments and why asset allocation decisions must align with long-term industry trends.

The conversation also explores the impact of regulations on insurers’ ability to manage risk and achieve their investment objectives, as well as the growing role of private markets. Mitch shares insights into his unconventional career path, from engineering in China to insurance asset management in the U.S., and offers advice to young professionals looking to build a career in the industry.

Episode 32: Meet The Helper Bees: Long-term Care Insurtech Disruptor with CEO Dr. Char Hu

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley sits down with Dr. Char Hu of The Helper Bees, an insuretech company transforming long-term care with data-driven solutions. As insurers look for ways to manage claims costs while improving care outcomes, The Helper Bees leverages technology to track key health indicators, prevent costly interventions, and keep policyholders independent at home. With rapid growth and increasing engagement with private equity, the company is poised to play a critical role in the future of aging and insurance.

Dr. Hu shares insights on how real-time data collection helps insurers make proactive decisions, the role of home care in the broader insurance ecosystem, and why non-medical factors like mobility and nutrition are just as important as clinical care. Tune in for a fascinating conversation on how technology is reshaping long-term care claims and risk management.

Episode 31: Meet Karyn Williams: The Queen of Risk

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley sits down with Karyn Williams to explore a fresh perspective on risk management. Traditional mean-variance optimization has long been the industry standard, but does it truly help investors during market dislocations? Karyn challenges conventional wisdom, arguing that standard risk models often fail when they are needed most. Drawing from her experience as a CIO and board member, she introduces a new approach—one that simplifies complex risk decisions, improves governance, and aligns with real-world investment objectives.

This conversation delves into risk factors, portfolio efficiency, and the importance of a clear framework that both investment professionals and boards can understand. Discover how rethinking risk can lead to more informed decisions and better outcomes for insurance investors.

Episode 30: Real Estate Investing in the Wake of COVID-19

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley sits down with David Roth, Head of U.S. Real Estate Private Equity at Ares Real Estate Group, to discuss how the real estate market has been reshaped by the pandemic. While some sectors, like industrial and residential, have thrived, others, such as hospitality and retail, continue to face significant challenges. David shares insights on market trends, geographic shifts, and the evolving role of real estate in insurance company portfolios.

As insurers continue their search for yield in a low-rate environment, real estate offers unique opportunities—but selecting the right assets and strategies is critical. David also shares his perspective on why Ares' collaborative approach to real estate debt and equity provides valuable insights and opportunities for investors navigating today’s market.

Disclaimer

These materials are neither an offer to sell, nor the solicitation of an offer to purchase, any security, the offer and/or sale of which can only be made by definitive offering documentation. Any offer or solicitation with respect to any securities that may be issued by any investment vehicle (each, an “Ares Fund”) managed or sponsored by Ares Management LLC or any of its subsidiary or other affiliated entities (collectively, “Ares Management”) will be made only by means of definitive offering memoranda, which will be provided to prospective investors and will contain material information that is not set forth herein, including risk factors relating to any such investment.  Any such offering memoranda will supersede these materials and any other marketing materials (in whatever form) provided by Ares Management to prospective investors. In addition, these materials are not an offer to sell, or the solicitation of an offer to purchase securities of Ares Management Corporation (“Ares Corp”), the parent of Ares Management. An investment in Ares Corp is discrete from an investment in any fund directly or indirectly managed by Ares Corp. Collectively, Ares Corp, its affiliated entities, all underlying subsidiary entities shall be referred to as “Ares” unless specifically noted otherwise. Certain Ares Fund securities may be offered through our affiliate, Ares Investor Services LLC (“AIS”), a broker-dealer registered with the SEC,  and a member of FINRA and SIPC.

In making a decision to invest in any securities of an Ares Fund, prospective investors should rely only on the offering memorandum for such securities and not on these materials, which contain preliminary information that is subject to change and that is not intended to be complete or to constitute all the information necessary to adequately evaluate the consequences of investing in such securities. Ares makes no representation or warranty (express or implied) with respect to the information contained herein (including, without limitation, information obtained from third parties) and expressly disclaims any and all liability based on or relating to the information contained in, or errors or omissions from, these materials; or based on or relating to the recipient’s use (or the use by any of its affiliates or representatives) of these materials; or any other written or oral communications transmitted to the recipient or any of its affiliates or representatives in the course of its evaluation of Ares or any of its business activities. Ares undertakes no duty or obligation to update or revise the information contained in these materials.

The recipient should conduct its own investigations and analyses of Ares and the relevant Ares Fund and the information set forth in these materials. Nothing in these materials should be construed as a recommendation to invest in any securities that may be issued by Ares Corp or an Ares Fund or as legal, accounting or tax advice. Before making a decision to invest in any Ares Fund, a prospective investor should carefully review information respecting Ares and such Ares Fund and consult with its own legal, accounting, tax and other advisors in order to independently assess the merits of such an investment.

These materials are not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.

These materials contain confidential and proprietary information, and their distribution or the divulgence of any of their contents to any person, other than the person to whom they were originally delivered and such person's advisors, without the prior consent of Ares is prohibited. The recipient is advised that United States securities laws restrict any person who has material, nonpublic information about a company from purchasing or selling securities of such company (and options, warrants and rights relating thereto) and from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities. The recipient agrees not to purchase or sell such securities in violation of any such laws, including of Ares Corp or a publicly traded Ares Fund.

These materials may contain “forward-looking” information that is not purely historical in nature, and such information may include, among other things, projections, forecasts or estimates of cash flows, yields or returns, scenario analyses and proposed or expected portfolio composition. The forward-looking information contained herein is based upon certain assumptions about future events or conditions and is intended only to illustrate hypothetical results under those assumptions (not all of which will be specified herein). Not all relevant events or conditions may have been considered in developing such assumptions. The success or achievement of various results and objectives is dependent upon a multitude of factors, many of which are beyond the control of Ares. No representations are made as to the accuracy of such estimates or projections or that such projections will be realized. Actual events or conditions are unlikely to be consistent with, and may differ materially from, those assumed. Prospective investors should not view the past performance of Ares as indicative of future results. Ares does not undertake any obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise.

Some funds managed by Ares or its affiliates may be unregistered private investment partnerships, funds or pools that may invest and trade in many different markets, strategies and instruments and are not subject to the same regulatory requirements as mutual funds, including mutual fund requirements to provide certain periodic and standardized pricing and valuation information to investors.  Fees vary and may potentially be high.

These materials also contain information about Ares and certain of its personnel and affiliates whose portfolios are managed by Ares or its affiliates. This information has been supplied by Ares to provide prospective investors with information as to its general portfolio management experience. Information of a particular fund or investment strategy is not and should not be interpreted as a guaranty of future performance. Moreover, no assurance can be given that unrealized, targeted or projected valuations or returns will be achieved. Future results are subject to any number of risks and factors, many of which are beyond the control of Ares. In addition, an investment in one Ares Fund will be discrete from an investment in any other Ares Fund and will not be an investment in Ares Corp. As such, neither the realized returns nor the unrealized values attributable to one Ares Fund are directly applicable to an investment in any other Ares Fund. An investment in an Ares Fund (other than in publicly traded securities) is illiquid and its value is volatile and can suffer from adverse or unexpected market moves or other adverse events. Funds may engage in speculative investment practices such as leverage, short-selling, arbitrage, hedging, derivatives, and other strategies that may increase investment loss.  Investors may suffer the loss of their entire investment. In addition, in light of the various investment strategies of such other investment partnerships, funds and/or pools, it is noted that such other investment programs may have portfolio investments inconsistent with those of the strategy or investment vehicle proposed herein.

This may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor’s.  Reproduction and distribution of third party content in any form is prohibited except with the prior written permission of the related third party.  Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content.  THIRD PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THIRD PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES, OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice.

Coronavirus and Public Health Emergency Risks

As of March 17, 2020, there is an outbreak of a novel and highly contagious form of coronavirus (“COVID-19”), which the World Health Organization has declared to constitute a pandemic.  The outbreak of COVID-19 has resulted in numerous deaths, adversely impacted global commercial activity, and contributed to significant volatility in certain equity and debt markets.  The global impact of the outbreak is rapidly evolving, and many countries have reacted by instituting quarantines, prohibitions on travel and the closure of offices, businesses, schools, retail stores, and other public venues.  Businesses are also implementing similar precautionary measures.  Such measures, as well as the general uncertainty surrounding the dangers and impact of COVID-19, are creating significant disruption in supply chains and economic activity and are having a particularly adverse impact on transportation, hospitality, tourism, entertainment and other industries. The impact of COVID-19 has led to significant volatility and declines in the global public equity markets and it is uncertain how long this volatility will continue.  As COVID-19 continues to spread, the potential impacts, including a global, regional or other economic recession, are increasingly uncertain and difficult to assess.

Any public health emergency, including any outbreak of COVID-19 or other existing or new epidemic diseases, or the threat thereof, and the resulting financial and economic market uncertainty could have a significant adverse impact on the Fund, the pricing and fair value of its investments and real estate assets and its subsidiaries, and could adversely affect the Fund’s ability to fulfill its investment objectives.

The extent of the impact of any public health emergency on the Fund’s and its subsidiaries’ operational and financial performance will depend on many factors, including the duration and scope of such public health emergency, the extent of any related travel advisories and restrictions implemented, the impact of such public health emergency on overall supply and demand, goods and services, investor liquidity, consumer confidence and levels of economic activity and the extent of its disruption to important global, regional and local supply chains and economic markets, all of which are highly uncertain and cannot be predicted.  The effects of a public health emergency may materially and adversely impact (i) the value and performance of the Fund and its investments, (ii) the ability of the Fund and/or its subsidiaries to continue to meet loan covenants or repay loans on a timely basis or at all, (iii) the ability of the Fund and/or its subsidiaries to repay their debt obligations, on a timely basis or at all or (iv) the Fund’s ability to source, manage and divest investments and the Fund’s ability to achieve its investment objectives, all of which could result in significant losses to the Fund. 

All unrealized performance information, investment strategy, and targeted returns presented throughout this presentation were prepared as of the dates indicated.  Such information was prepared at such times in good faith based on a number of fundamental assumptions as of such dates, including assumptions relating to the broader economy, macro and applicable micro economic conditions, the geopolitical landscape, interest rates, availability and pricing of credit, liquidity and depth of transactional markets, health, population, and the environment, etc.  With the unprecedented (and to date uncurable) advancement of COVID-19, most of those assumptions at the current time appear to be materially off or in a state of suspension.  Consequently, all unrealized performance information, the portions of the investment strategy which related to targeted returns, and valuations of current investments held within or warehoused for the Fund are at the time of this writing indeterminate, but presumed to be materially lower than those last presented.  While in the medium to longer term the Manager believes the Fund should see attractive opportunities consistent with its larger investment themes and strategy, it will likely take some time for the markets to recover.

In addition, the operations of the Fund, its subsidiaries and investments, the General Partner and the Manager may be significantly impacted, or even temporarily or permanently halted, as a result of government quarantine measures, voluntary and precautionary restrictions on travel or meetings and other factors related to a public health emergency, including its potential adverse impact on the health of any such entity’s personnel.

REF: RE-01551

Episode 29: Putting COVID-19 in the Rearview Mirror: Outlook for Insurance Industry

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley explores the evolving credit landscape for insurers, the impact of COVID-19 on different insurance sectors, and the growing role of ESG in credit ratings. With continued low interest rates, shifting risk dynamics, and regulatory developments, insurers are adapting their investment strategies to meet new challenges.

How are insurance companies positioning themselves in this environment? What trends in asset allocation, fund financing, and reinsurance are emerging? This discussion offers key insights into what insurance investors should be watching as they navigate the road ahead.