Fixed Income Insurance Management

Fixed-income insurance management is based on a dynamic, conviction-based approach integrating both long-term and medium-term views. It covers all segments of the fixed-income markets, from sovereign debt to high yield bonds. The portfolio managers constantly seek opportunities to optimise the current and future actuarial wealth of the portfolio and the market value os assets, while minimising associated risks. Their aim is to seize opportunities to potentially switch positions or anticipate replacing bonds, in order to improve the risk/return profile, from the perspective of criteria prioritised by the client: return on regulatory capital (RORC), non-financial ratings, carbon intensity/footprint trajectory, etc.

1. Define investment framework integrating all of the client's objectives, including exposure to each fixed-income asset class, duration, financial production, long-term yield optimisation based on target duration, maximising yield to maturity at purchase, matching cashflow corresponding to engagements and target financial and non-financial quality.
2. Decide on the investment strategy based on the application of our strategic and tactical insurance views, within a portfolio's fixed-income allocation. We establish year-end views based on fundamental, sentiment, valuation and technical factors (FSVT) analysis, in te different fixed-income segments. the aim of this process is to anticipate and pilot investments/reinvestments and seize potential opportunities to switch positions with a view to improving portfolio positionning and quality.
3. Construct portfolio by selecting issuers/issues, taking into account the current composition of the portfolio and any constraints resulting from objectives and investment timing. Maximising yield to maturity at purchase, provision and potential default risk control and non-financial piloting, while optimising return on regulatory capital (RORC).
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, market SCR, liabilities, “reserve de capitalisation”, premiums / discounts and non-financial objectives, etc.