InsuranceAUM.com

Due Dilly Episode 3: Mutual of Omaha and Shelter Growth Capital – A Partnership in Residential Loan Investing

In this episode of the InsuranceAUM.com podcast, John Patin steps in as the guest host and welcomes two distinguished guests: Justin Mahoney, co-founder and senior portfolio manager of Shelter Growth Capital Partners, and Bryan Lentz, director of public and private structured securities at Mutual of Omaha Insurance Companies.

They dive into the intricacies of residential credit within insurance portfolios, exploring the evolution of the asset class, and its unique risk-reward dynamics. Justin and Bryan share insights into their organizations, how they evaluate residential credit opportunities, and the strategic partnership between Shelter Growth and Mutual of Omaha.

The conversation touches on the role of direct lending in residential credit, the macro and micro perspectives on the housing market, and the importance of customizable solutions for insurance companies. The episode concludes with engaging personal insights from Justin and Bryan, adding a touch of personality to the in-depth discussion.

Episode 201: CMLs in 2024: A repriced market with attractive opportunities?

In this episode of the InsuranceAUM.com Podcast, Stewart Foley hosts Greg Michaud, Head of Real Estate Finance at Voya, for an in-depth discussion on commercial mortgage loans (CMLs) in 2024. They explore whether the repriced market offers attractive opportunities. Greg shares insights from his extensive background in real estate finance, including his early career as a draftsman and appraiser, and his current responsibilities overseeing the sourcing, underwriting, and management of commercial real estate loans at Voya.

The conversation delves into the current state of the office sector, highlighting the stress due to oversupply and liquidity issues, particularly in urban areas. Greg discusses the differences between urban and suburban office properties, noting the potential for suburban offices to be repurposed into mixed-use developments. They also address challenges in the multifamily sector, including rising expenses and interest rates, and emphasize the importance of experienced borrowers in successfully navigating the market.

Greg shares his views on where the best opportunities lie in the real estate market, pointing to preferred equity, mezzanine, and rescue capital for distressed apartments as particularly promising areas. They also discuss the attractiveness of secondary and tertiary markets, the evolving industrial sector, and the potential for open-air storage solutions. Greg concludes with key takeaways for investors, emphasizing the importance of high-quality assets and experienced operators in capitalizing on current market conditions.

This information is proprietary and cannot be reproduced or distributed. Certain information may be received from sources Voya Investment Management considers reliable; Voya Investment Management does not represent that such information is accurate or complete. Certain statements contained herein may constitute "projections," "forecasts" and other "forward-looking statements" which do not reflect actual results and are based primarily upon applying retroactively a hypothetical set of assumptions to certain historical financial data. Any opinions, projections, forecasts and forward looking statements presented herein are valid only as of the date of this document and are subject to change. Voya Investment Management is not soliciting or recommending any action based on any information in this document.

Episode 200: Challenges and Opportunities in the Current PE Market with Northleaf Capital Partners’ Matt Shafer

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley discusses the challenges and opportunities in the current private equity (PE) market with Matt Shafer, Managing Director, Head of Capital Solutions & US Private Equity at Northleaf Capital Partners. Matt shares his insights into the PE landscape, drawing from his extensive experience and his role at Northleaf.

Matt starts by providing a bit of background about himself, growing up in Oneida, New York, and his first job at a local sandwich shop. He also shares what makes insurance asset management so appealing to him, highlighting the complexity and the collaborative nature of working with sophisticated investors in the industry.

The conversation then delves into Northleaf's story, outlining its growth from a small Canadian firm within TD Bank to a significant player in the private markets with over $24 billion in capital. Matt discusses Northleaf's focus on middle-market investments and the benefits of working with experienced private equity sponsors. He explains the firm's strategic partnership with Power Corporation of Canada, which has enhanced their capabilities and offerings, particularly for insurance clients.

Stewart and Matt explore the secondaries market, emphasizing its growth and the benefits it offers to investors, such as J curve mitigation and diversification. Matt also touches on the importance of structured equity in providing non-control capital to private equity-owned businesses, especially in today's higher interest rate environment. He outlines how Northleaf's structured equity solutions can support growth while offering attractive risk-adjusted returns.

Episode 199: Sustainable Infrastructure Credit: the time is now

A multi-decade opportunity for Insurance Investment Portfolios

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley talks with Jorge Camiña, Partner and Head of Denham Sustainable Infrastructure Credit, about the growing opportunities in sustainable infrastructure credit. Jorge emphasizes how global commitments to energy transition and the U.S. Inflation Reduction Act are creating a multi-decade investment landscape, particularly appealing for insurance portfolios.

Jorge explores the benefits of sustainable infrastructure credit, including its resilience, inflation protection, and yield enhancement. He explains how these assets align with insurers' long-term liabilities and provide a stable, attractive return profile. The conversation also touches on the challenges and opportunities for insurance companies to access this market, particularly in light of the changing role of traditional lenders like commercial banks.

Listeners will gain insights into how Denham Sustainable Infrastructure Credit is navigating this evolving landscape and how insurance companies can strategically implement these investments to future-proof their portfolios while contributing to global decarbonization efforts.

 

Episode 198: A Deep Dive into EMD with Aegon AM’s Jeff Grills

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley is joined by Jeff Grills, CFA, Head of US Cross Markets and Emerging Markets Debt at Aegon Asset Management, to delve into the evolving landscape of emerging markets debt (EMD). Jeff shares his extensive experience in EMD, highlighting the growth and maturation of the asset class over the past few decades. They discuss the periods when EMD was most attractive for insurance investors and explore the factors driving its current appeal, including high yields and improved credit quality.

Jeff also provides insights into the challenges and opportunities for insurers when allocating to EMD, particularly in light of global events and central bank activities. He emphasizes the importance of country selection, governance, and understanding the unique risks and rewards associated with this diverse asset class. As the discussion unfolds, listeners will gain a deeper understanding of how to navigate EMD in today’s complex market environment and why it remains a compelling option for insurance portfolios.

The episode wraps up with Jeff sharing some valuable investment wisdom and his thoughts on the broader implications of EMD for insurers. Whether you're new to EMD or looking to refine your strategy, this episode offers a wealth of insights and practical advice.

Episode 197: Wellington Management’s 2024 Insurance Outlook

In this special edition of the InsuranceAUM.com Podcast, host Stewart Foley welcomes back Tim Antonelli, Managing Director, Insurance Multi-Asset Strategist, and Portfolio Manager at Wellington Management, for his fourth appearance. In this episode, they dive into the 2024 Insurance Outlook, where Tim introduces groundbreaking finance theories and strategies for positioning portfolios for the unexpected. They explore unconventional approaches to risk, including a fresh take on diversification and how insurance companies can better prepare for the evolving market dynamics.

Tim shares his insights on doubling down on diversification, but not in the traditional sense. Instead, he discusses cross-asset class, intra-asset class, and implementation diversification, emphasizing the importance of a more nuanced and intentional approach to portfolio management. The conversation also covers the increasing relevance of geopolitical risks and the need for insurers to incorporate these factors into their investment strategies to remain resilient in a rapidly changing world.

As always, Tim's perspective is both thought-provoking and informative, making this episode a must-listen for insurance investment professionals looking to stay ahead of the curve in 2024.

Episode 196: Tips for Ensuring a Smooth 2023 Annual Filing Process

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley is joined by a panel of experts to discuss tips for ensuring a smooth year-end filing process. The episode features Sam Jones, Senior Director of Statutory Reporting at SS&C Technologies, Amnon Levy, Founder and CEO of Bridgeway Analytics, and Scott Kurland, Managing Director and Head of SS&C’s Insurance Solutions Group. Together, they cover the essentials of data management, filing best practices, and key regulatory considerations to help insurance companies navigate the complexities of year-end reporting.

The discussion kicks off with Scott Kurland emphasizing the importance of data integrity and control in managing today’s diverse and complex investment portfolios. Sam Jones then offers practical advice on the filing process, including crucial tips for avoiding common pitfalls. Finally, Amnon Levy delves into the evolving regulatory landscape, highlighting the implications of new guidelines and how insurance companies can stay ahead of the curve.

With a focus on providing actionable insights and strategies, this episode is packed with valuable information for insurance professionals preparing for the year-end reporting season. Plus, listeners are invited to join a follow-up live Q&A session for any further questions.

Episode 195: Infrastructure Equity with Manulife’s John Anderson

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley discusses infrastructure equity with John Anderson, Global Head of Corporate Finance and Infrastructure at Manulife Investment Management and John Hancock Life Insurance. John shares his unique perspective, having experience on both the asset management and operating sides of the insurance business. Together, they explore the role of infrastructure equity in insurance portfolios, highlighting its potential for resilient returns and low volatility, especially during economic downturns.

John delves into the different ways to invest in infrastructure equity, offering insights into regional versus global strategies and the varying risk-return profiles within the asset class. He also addresses the challenges posed by high capital charges and explains how Manulife’s Infrastructure Investment Program has evolved over the years to meet these challenges while delivering value to both the general account and third-party investors.

Listeners will gain an understanding of how infrastructure equity can provide diversification and stable cash flows within insurance portfolios, as well as the impact of the Inflation Reduction Act on renewable energy investments. John’s thoughtful reflections on the industry and his career provide valuable takeaways for anyone interested in insurance asset management.

Episode 194: Residential Debt: A Diversified Income Stream to Write Home About

In this insightful episode of the InsuranceAUM.com Podcast, host Stewart Foley sits down with Eric Atlas, Head of US Residential Debt at Man Group’s Global Private Markets (GPM) division, to discuss the compelling opportunities within residential private credit. Eric brings a wealth of knowledge about the nuances of this asset class, explaining why it is an attractive option for insurance companies seeking diversification and income generation.

The conversation explores the key benefits of residential debt, such as the attractive capital treatment, access to Federal Home Loan Bank financing, and the potential for higher yields compared to traditional agency-backed securities. Eric also delves into the current lending environment, the impact of rising interest rates, and the opportunities arising from the pullback in bank lending. He provides an overview of how Man Group partners with insurers to structure these investments in a way that minimizes the administrative burden while maximizing returns.

For those interested in understanding the unique characteristics of residential debt and how it can fit into an insurance company’s portfolio, this episode offers valuable insights and practical takeaways.

Episode 193: Executive Spotlight: Bill Pieroni, President and CEO of ACORD

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley welcomes back Bill Pieroni, CEO of ACORD, for an engaging Executive Spotlight. Known for his high energy and deep insights into the insurance industry, Bill delves into a range of critical topics including ACORD’s global role in setting industry standards, the unique and extensive research studies conducted by ACORD, and the evolving landscape of insurance technology and M&A.

Bill shares insights from ACORD’s groundbreaking studies, such as the Global Insurance Stock Index and the characteristics of consistent value creators in the P&C sector. He also discusses the dynamics of mergers and acquisitions in the insurance industry, emphasizing the importance of strategic alignment and the pitfalls that can lead to value destruction.

The conversation covers the current state and future of InsurTech, highlighting the challenges and opportunities for insurance companies in keeping up with technological advancements. Bill’s perspectives are both thought-provoking and practical, offering valuable takeaways for insurance professionals and investors alike.