Insurance Investment Management

A Tailored Approach

We realize that every insurance company is inherently unique and requires customized investment strategies and services to meet their specific needs.

Winthrop provides a tailored approach to insurance investment management, seeking to complement your capabilities with custom-designed investment programs.

Our team of seasoned professionals can execute both outsourced investment functions and non-discretionary investment solutions under your current investment function. As a boutique firm, we remain accessible and ready to provide insights into our strategies, discuss our economic outlooks and offer resources that advance your investment and operational objectives.

Strategic Asset Allocation
Derivatives and Hedging
Real Estate
Public Securities

Strategic Asset Allocation

Winthrop Capital Management assists our insurance clients through the thoughtful design of a strategic asset allocation. We help our clients to optimize portfolio returns while managing risk within the unique aspects of their insurance investment policy statement and state insurance regulations.

Our proprietary correlation matrix and risk analytics software, WOMBAT™, allows us to provide investment risk modeling capabilities, which can be performed on a portfolio, an aggregate asset class, or individual security basis.

Winthrop has investment specialists in structured securities and credit markets. We utilize proprietary research and analysis to document security characteristics, avoid investment traps in the market, improve portfolio returns, and carefully manage risk.

We deliver our investment services through an exceptional customer service team and offer clients direct access to all investment professionals and real-time access to their portfolios.

Our Approach to Strategic Asset Allocation

Internal Analysis

Strategic Targets

Peer Analysis

Enterprise Financial Modeling

First, we strive to have a deep understanding of our client’s business and competitive landscape.

Then, we identify Strategic Asset Allocation Targets. We work with our clients to customize an investment strategy which is designed to meet the business objectives and risk tolerance established in their investment policy statement.

Next, we evaluate a peer group of similar insurance companies. This allows us to compare in detail portfolio structure and returns relative to industry competitors.

Finally, we model the impact of a range of portfolio investment allocations on the Company’s financial projections and the impact on its Risk Based Capital.

Our Approach to Strategic Asset Allocation

Better Serve Our Clients’ Needs

Enhance Our Investment and Decision-Making Processes

Customize Portfolio Analytics And Reporting To Clients’ Needs

Derivatives and Hedging

Winthrop offers full derivatives hedging outsourcing services on a global basis to life insurers and other financial institutions. Through our team of experienced professionals, we offer quantitative risk management solutions using our proprietary software, WOMBAT™.

Our derivatives capabilities include fund mapping and hedging market exposures in variable annuity blocks; hedging of fixed and equity index annuity options; static and dynamic hedging programs; as well as macro hedges.

Our Approach to Derivatives and Hedging

Derivatives Hedge
Design & Execution

Hedging & Overlay
Services

Options & Futures-Based
Risk Management

Our derivatives expertise includes the management of equity, interest rate, volatility, and exchange rate exposures; and trading of exchanged-traded and OTC vanilla and structured derivatives.

Winthrop provides a wide range of customized hedging and overlay solutions to help clients manage risk and achieve their portfolio management objectives. Winthrop provides portfolio rebalancing and transition management, liability driven investing, and currency and interest rate risk management.

Winthrop has extensive experience in risk management, insurance portfolio management, and derivatives trading. We provide sophisticated options and futures-based risk management strategies to our insurance clients, which can be tailored to meet their specific financial risk management needs.

Real Estate

Where appropriate, investments in real estate, equity, and debt, offer insurance company portfolios additional diversification, as well as improved and capital efficient investment returns on its asset portfolio.

Our insurance clients are able to benefit over time by accessing the long-term growth and income potential of commercial real estate debt and equity.

Through an experienced group of sub-advisors with extensive underwriting resources, our clients are able to gain access to actively managed real estate equity strategies, including core, core plus, and value add and debt strategies, as well as commercial mortgages. These strategies provide:

  • Consistent income over long time horizons
  • Capital efficiency
  • The potential for long-term gains from increasing property values
  • Portfolio diversification

Our Approach to Real Estate Investments

Public Securities

Our investment management team takes a dynamic approach to investing in publically traded securities that seeks to capitalize on market trends, industry shifts and emerging opportunities.

We invest in a range of investment vehicles across the public securities landscape including fixed income, equity and hybrid securities.

Our Approach to Public Securities

Fixed Income

Equities

Hybrid Securities

Every insurance client has different investment objectives which can range from total return to maximizing book income. Our goal is to provide competitive rates of return over a market cycle, while generating stable levels of income in the context of the existing market conditions.

For fixed income portfolios, our investment strategy seeks to maximize risk adjusted returns while being mindful of a targeted level of risk. Our investment strategies are built to consider the insurance company’s operating needs, risk appetite, as well as, loss and income constraints.

We manage fixed income portfolio mandates across multiple sectors, including:

  • Corporate Bonds
  • Agency and Non-Agency Mortgage-Backed Securities
  • Collateralized Loan Obligations
  • Collateralized Mortgage Obligations
  • Residential Mortgage-Backed Securities
  • Commercial Mortgage-Backed Securities
  • Asset Backed Securities
  • Municipal Bonds

Winthrop offers two approaches to managing equity portfolios for insurance companies. First, we offer a large cap blend and dividend income strategy for insurance clients looking for individual security selection.

In addition, we provide a tactically managed equity ETF portfolio designed specifically for insurance companies. The tactically managed equity ETF portfolio intends to capture equity market returns through a liquid, low-cost passive strategy utilizing exchange-traded funds (ETF). Periodic rebalancing helps manage risk and returns.

We invest in hybrid securities, which includes convertible and preferred securities, to enhance long-term portfolio returns. To help achieve these results, we utilize a proprietary valuation model/methodology that identifies undervalued hybrid securities with favorable risk/return characteristics.

Looking for a new career opportunity

We’re always open to the possibility of welcoming like-minded professionals to our team.

Explore career opportunities at Winthrop
“Winthrop’s commitment to excellence means we go beyond the industry standard, crafting investment programs that incorporate sophisticated investment strategies.”
Gregory J. Hahn, CFA
President & CIO
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