Insurance

Our work with health, life and property/casualty insurers spans more than 30 years[1]. We have specialized expertise and deep experience in building customized investment strategies for insurance companies.

 Our experience working with insurance companies has taught us that no one insurance company is the same. Each entity typically operates under different regulatory regimes and operational constraints. The organizational philosophy and operating outlook for the entity will dictate risk tolerance and return targets. In today’s market, some insurance companies are de-risking, while others are adding incremental risk. This is coupled with a challenging business outlook for the health insurance industry in general. We believe it is critical to frame any discussion regarding asset allocation for an insurance company relative to these challenges and opportunities.

Insurance Consulting Team

Our Insurance Consulting Team is accustomed to filtering matters of investment strategy through the complications of regulatory requirements, accounting and impairment treatments, and risk-based capital considerations. Our work with insurance companies of all types and sizes has provided a unique opportunity to understand regulatory requirements that vary from jurisdiction to jurisdiction. We also conduct peer-benchmarking analysis on a project basis.

Philosophy and strategy

We believe in breaking down the often traditional silos that separate investments from operations by:

  • Establishing explicit goals for investment returns and identifying specific, measurable and relevant minimum goals for metrics such as Risk-based Capital (RBC), reserve requirements, etc.
  • Analyzing liabilities by reviewing current trends, sensitivity factors (e.g., interest rates), claim histories, claim expectations and volatility
  • Combining the operational outlook (absolute results coupled with volatility) and corporate strategy (pricing, etc.) with liability analysis and established investment and statutory goals to create an appropriate portfolio
  • Continually presenting clients with our best investment ideas, knowing that at times, operational stress, organizational risk tolerance, statutory accounting treatment or liquidity will be a deciding factor for investment.

A full suite of services

From investment research to advice and execution, Pavilion offers a full suite of services for insurance companies. Explore our services.

 

[1] Stratford Advisory Group, Inc. formed in Chicago, Illinois as a full-service investment consulting and advisory firm.  Pavilion Financial Corporation acquired Stratford Advisory Group, Inc. in 2011 and changed the name to Pavilion Advisory Group Inc. in 2012. Brockhouse Cooper started a consulting division in 1987 and in 2012, the division became Pavilion Advisory Group Ltd.