Equity insurance management

Equity insurance management picks quality stocks, harbouring long-term opportunities, fully integrating environmental, social and governance criteria. Quality companies are characterised by their robust long-term business model (strong pricing power, clear growth levers, recognised management quality and recurrent cashflow) and a solid balance sheet, and also have the ability to weather economic cycles with reduced volatility.

  1. Define the investable universe. The first quantitative filter aiming to identify quality stocks, under a proprietary analysis which assesses the quality of the business model, the management and the balance sheet. The selection process is reinforced by an ESG filter, using a proprietary tool, and also by our sector and exclusion policies 
  2. Select stock within the investable universe  is based on fundamental financial and non-financial analysis used to establish a target valuation level and a target price, based on proprietary models.
  3. Construct portfolio. Taking into account the insurance management framework and constantly seeking to optimise management objectives. Investment timing, position calibration and the realisation of capital gains programmes take our anticipated equity trend scenario into account and, depending on our clients’ objectives, also non-financial ratings and the carbon intensity/footprint trajectory, for example.
  4. Pilot and control portfolio. PASS, our key dedicated proprietary insurance management tool enables investments to be simulated and selected, managed and monitored. Multi-dimensional piloting combines accounting and regulatory aspects, financial production, capital gains or losses, provisions for asset depreciation and non-financial objectives.
  • people

    AN ORGANISATION 100% DEDICATED TO INSURANCE

    Within the Insurance department, 7 equity insurance managers. €20 billion in assets under management - source Ostrum AM, December 2023

  • process

    PASS: OUR CUTTING-EDGE INSURANCE PLATFORM

    Manage, simulate, project and monitor portfolios in real time from all investment angles: financial, non-financial, regulatory, accounting, asset/liabilities allocation

  • publication

    DIGITAL REPORTING TOOL

    A dynamic, fully customisable dashboard providing a consolidated, multi-approach detailed view of mandates’ investments and risks

  • Frédéric Leguay

    Frédéric Leguay

    Head of equity insurance

Reading time : 15 min.
INSIGHTS MARKETS
Covered bonds are an essential financing instrument for banks in the euro area. ECB monetary tightening affects the covered bond market directly with the unwinding of CBPP3  holdings and indirectly with the TLTRO  repayment (freeing covered bond collateral). Mortgage loans are the main collateral for covered bonds. Housing has been hit by higher rates so that bank lending to households for house purchase shrunk. Covered bond supply should slow reflecting declining lending flows. Covered bond spreads tend to compare favorably to other similarly low-risk asset classes.
04/26/2024
Reserved for pros
Reading time : 15 min.
INSIGHTS MARKETS
In 2023, equity markets experienced a significant shift with the outperformance of Growth and Cyclical segments, driven by factors such as resilient economic activity, decreasing inflation, and expanded valuation multiples due to the surge in sentiment around generative AI.
04/17/2024
Reading time : 15 min.
INSIGHTS MARKETS
04/16/2024

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