Insurance Companies


Insurance Companies play a vital role in our society: to insure life, property and health against unforeseen adverse events. They have a special responsibility to serve as stewards of the monies of those they insure. This peculiarity puts them at the crossroads between fiduciary responsibility and corporate profitability.

Investment portfolios are the reserves that support the obligations generated by the policies. Ultimately, the characteristics of the policies should dictate how reserves are invested, considering factors such as duration, diversification and systematic risk.

The Board of Directors of an insurance company must comply with its fiduciary duty to conserve and grow the assets of its policyholders in accordance with the insurer’s obligations. Regulating bodies, such as A.M. Best, N.A.I.C., Standard & Poor’s and the State Insurance Commissioner add variables to the process of determining adequate investment policy. Contact one of our advisors for additional information.

CONSULTIVA works closely with the management and boards of insurance companies in articulating a written investment plan that rests on the specific requirements of the company and its policy holders, while honoring the parameters and guidelines established by regulating bodies.

We begin by carefully examining a company’s liabilities, with the help of expert actuaries. Once the characteristics of the liabilities are properly determined, we elaborate a written investment plan that recognizes these characteristics as the compass in determining investment policy and portfolio construction.

This process is solidly based on the prudence that each Board and management team must exercise as fiduciaries.