Investment Insights
December 08 2021

New Frontiers: Helping Insurers Find Investment Opportunities in Today's Low-yield Environment

15 min read

David Hong, CFA, FSA, Vice President, TD Asset Management; Scott Henshaw, CFA, Vice President & Director, TD Asset Management; David Tallman, CFA, Vice President, TD Asset Management 

The current prolonged low interest rate environment has been challenging for many insurance companies. As a result, it is now more important than ever before that insurers make sure they are considering the broadest investment opportunity set possible – including assets found in the private markets. Private market assets have long been a key ingredient within the largest insurance companies' general fund portfolios. Given their attractive risk-adjusted returns and diversification benefits, we believe insurers of all sizes should seek more optimal strategic asset mixes by including private market assets.