Recognizing the unique requirements of each client, many of our new insurance client engagements lead to the creation of bespoke investment solutions.
Schroders’ insurance asset management group works closely with our clients’ investment and actuarial staff to understand their unique factors, such as commercial requirements, capital position, risk appetite and liability profile. Using this information the team utilizes Schroders’ substantial investment capabilities to design and deliver solutions to meet them. The close partnership we establish with our clients is a distinguishing feature of Schroders’ approach.
Recent client solutions include:
£10 billion ($15bn) portfolio reconstruction for a UK Life Insurer
The client wished to modernize a full suite of equity and balanced-find investment propositions with on and off balance sheet components
- We introduced a modern, risk-premia based multi asset growth strategy
- We introduced innovative investment techniques, such as Advanced Beta equities
- We partnered with the client to revamp its ESG fund range
- We worked with the client to greatly simplify the fund structure, reducing operating complexity and cost
Result: The client was able to improve the investment proposition for its policyholders, whilst reducing fees and costs.
€1 billion ($1.1bn) balance sheet investment for a European Life Insurer
The client had a minimum level of implied guaranteed return to meet but its existing fixed income portfolio did not provide sufficient yield and it considered equities too risky.
- We created an integrated multi asset and fixed income strategy to try to improve returns
- We included a systematic volatility control mechanism to try to moderate risk
Result: The client currently is able to meet customer promises with higher degree of certainty, reducing its capital requirement.
$4 billion balance sheet investment supporting Variable Annuity program for a US Life Insurer
The client wanted to refresh its product proposition for customers
- We introduced a scalable, modern, risk-premia based multi asset growth strategy
- We maintain a high frequency engagement with the client to support a delta hedging program
Result: The client strengthened its distribution proposition with a differentiated product