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.