NEW YORK--(BUSINESS WIRE)-- Seeking yield in a time of prolonged low interest rates, insurers say they will diversify beyond traditional fixed income into higher return asset classes including high-yield debt, real estate, and emerging market debt. In addition to seeking higher returns, insurers are focused on investing more in their risk management infrastructure in the near term.
These were among the key findings of the GSAM Insurance Asset Management Insurance CIO Survey, “Seeking Return in an Adverse Environment” (available at www.gsam.com/Insurance-CIO-Survey). GSAM Insurance Asset Management retained independent, third-party research firm KRC Research to gather insight into the investment sentiment of CIOs and senior investment decision-makers at 152 insurers globally, representing $3.8 trillion in invested assets.
“Between low rates, a changing regulatory environment and significant market volatility, it is clearly challenging for insurers to produce strong risk-adjusted returns,” said Michael Siegel, GSAM’s Global Head of Insurance Asset Management. “Our study shows that CIOs are addressing the adverse investment climate by rethinking asset allocation, and in many cases, diversifying into new asset classes while also enhancing their risk management systems.”
Key findings of the survey include1:
These results are from the 2012 GSAM Insurance Asset Management Insurance CIO Survey which KRC Research conducted online between May 1 and May 23, 2012.The survey received responses from 152 global senior investment professionals identified by GSAM and invited to participate in the survey. KRC Research compiled and analyzed all data included in this report.
GSAM Insurance Asset Management manages $125 billion in insurance assets as of June 30, 2012 and is ranked among the top 10 insurance asset managers worldwide (based on insurance assets as of year-end 2011; source: Insurance Asset Manager). The group has more than 50 dedicated professionals focused on client relationship management, fixed income portfolio management, insurance advisory services and accounting policy. GSAM’s insurance capabilities include partial to full outsourcing solutions involving traditional fixed income strategies, alternative investments and equities. The group also offers a suite of advisory services including asset liability management, strategic asset allocation, capital-efficient investment strategies and risk management.
Goldman Sachs Asset Management is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which manages $836 billion as of June 30, 2012. Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1988 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.
1 These findings represent an aggregation of responses from respondents of the GSAM Insurance Asset Management Insurance CIO Survey and does not reflect or represent the views or opinions of Goldman Sachs.
Please note that neither Goldman Sachs Asset Management International nor any other entities involved in the Goldman Sachs Asset Management (GSAM) business maintain any licenses, authorizations or registrations in Asia (other than Japan), except that it conducts businesses (subject to applicable local regulations) in and from the following jurisdictions: Hong Kong, Singapore, Malaysia, Korea, and India. This material has been communicated in Canada by Goldman Sachs Asset Management, L.P. (GSAM LP). GSAM LP is registered as a portfolio manager under securities legislation in certain provinces of Canada, as a non-resident commodity trading manager under the commodity futures legislation of Ontario and as a portfolio manager under the derivatives legislation of Quebec. In other provinces, GSAM LP conducts its activities under exemptions from the adviser registration requirements. Investments in securities of the type referenced in this presentation may only be made pursuant to applicable Canadian private placement offering documents, of which this material is not a part. Canadian private placement offering documents will be provided to you upon request for the purpose of any investment you may wish to make in any securities referenced herein. In certain provinces, GSAM LP is not registered to provide investment advisory or portfolio management services in respect of exchange-traded futures or options contracts and is not offering to provide such investment advisory or portfolio management services in such provinces by delivery of this material. GSAM LP and certain of its affiliates may serve as the investment manager or adviser to the investment funds described in this presentation and may be entitled to receive fees in connection therewith. Accordingly, the investment funds may be considered a “related issuer” or “connected issuer” of GSAM LP or certain of its affiliates for purposes of applicable Canadian securities laws. Further information concerning relationships between GSAM LP and its affiliates and the investment funds described in this presentation is included in the applicable Canadian private placement offering documents pursuant to which the investment funds may be offered for sale in Canada. GSAM LP and certain of its affiliates may serve as the investment manager or adviser to the investment funds described in the presentation and may be entitled to receive fees in connection therewith. Accordingly, the investment funds may be considered a “related issuer” or “connected issuer” of GSAM LP or certain of its affiliates for purposes of applicable Canadian securities laws. Further information concerning relationships between GSAM LP and its affiliates and the investment funds described in this presentation is included in the applicable Canadian private placement offering documents pursuant to which the investment funds may be offered for sale in Canada. This material has been issued for use in or from Hong Kong by Goldman Sachs (Asia) L.L.C, in or from Singapore by Goldman Sachs (Singapore) Pte. (Company Number: 198602165W), and in or from Korea by Goldman Sachs Asset Management Korea Co. Ltd., in or from Malaysia by Goldman Sachs(Malaysia) Sdn Berhad and in or from India by Goldman Sachs Asset Management (India) Private Limited (GSAM India). This material has been issued or approved in Japan for the use of professional investors defined in Article 2 paragraph (31) of the Financial Instruments and Exchange Law by Goldman Sachs Asset Management Co., Ltd. This material has been approved by Goldman Sachs International, which is authorized and regulated in the United Kingdom by the Financial Services Authority (FSA). In Germany and Austria this document is presented to you by Goldman Sachs & Co oHG, regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). In France this document is presented to you by Goldman Sachs Paris Inc. et Cie, regulated by the Autorité de Marchés Financiers (AMF). In Switzerland this document is presented to you by Goldman Sachs Bank AG, regulated by the Eidgenössische Finanzmarktaufsicht (FINMA). In Ireland this document is presented to you by Goldman Sachs Bank (Europe) plc, regulated by the Central Bank of Ireland. In Italy this document is presented to you by Goldman Sachs International, Italian Branch, regulated by the Commissione Nazionale per le Società e la Borsa (CONSOB). In Spain this document is presented to you by Goldman Sachs International, Spanish Branch, with the address at Calle Maria de Molina, 6, planta 5, regulated and registered at Comision Nacional Del Mercado de Valores (CNMV) with number 28.
No part of this material may, without GSAM’s prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorized agent of the recipient.
© 2012 Goldman Sachs. All rights reserved. 77781.OTHER.MED.OTU
Goldman Sachs Asset Management
Andrea Raphael, 212-357-0025
Jason Weinzimer, 212-445-8245
Anisha Patel, 44 20 7774 2523
Source: GSAM Insurance Asset Management