A New Year’s Resolution: I Will Protect My Portfolio from Rising Rates

January 16, 2014 by Joshua A. Magden

As with personal resolutions and renewed avowals, the start of a new year is the perfect time for insurers to revisit the parameters and goals guiding their investment portfolios. Executive SummarySage Advisory’s Josh Magden explains why insurers should consider measured approaches to investment portfolio repositioning in 2014, taking advantage of the income lift from good underwriting results to help them exert control over the timing of their decisions to realize embedded gains.

Executive Summary

Sage Advisory's Josh Magden explains why insurers should consider measured approaches to investment portfolio repositioning in 2014, taking advantage of the income lift from good underwriting results to help them exert control over the timing of their decisions to realize embedded gains.

Particularly for book yield-oriented portfolios, steered by an ethos that tends to involve a more static allocation to fixed income positions, the outset of 2014 offers much to consider. Perhaps more so than at any other time in modern market history, there is an opportunity for insurers to position their portfolios appropriately ahead of upward interest rate changes.