Broad Reach Partners

Broad Reach Capital, LLC.: Insurance Companies

A Disciplined Balancing Act: Investing Insurance Company Capital

Capital and surplus are the lifeblood of an insurance company. They are the fuel that allows insurers to add new business, take on additional risk, secure quality ratings, and protect against the unforeseen.  Providing a sustainable long-term return on capital is critical–often determining whether the insurer is profitable or experiences losses.

Insurers need access to capital advisors with the knowledge and specialized skill sets who can help you navigate through the complexities of investing regulated capital.  At Broad Reach, our deep expertise with captive insurance coupled with four decades of sophisticated investing and asset management makes us uniquely qualified to deliver long term investment results focused on each insurers liability profile and risk budget.

Key Considerations:

  • Maintaining required capacity to pay claims
  • Risk Based Capital Concerns
  • NAIC Ratings and Securities Valuation
  • Preparing for the Risks of Rare and Severe Losses
  • Matching Liabilities with Assets
  • Generating Stable Underwriting Profits
  • Preserving Capital:Purchasing Power

A Thoughtful and Informed Investment Process

1. We begin with an assessment of your general account balance relative to:

  • Overall Asset Balance/Maturity
  • Claims Projections and Tail
  • Liquidity Needs 
  • Written and Earned Premium
  • Risk Based Capital Requirements
  • Schedule D Reporting (If necessary)

 2.  Next we Consider the impacts of the prevailing macroeconomic environment

  • Global Credit Markets
  • Yield Curve and Duration Impacts
  • Geo -Political Concerns

3. We then craft a custom risk budget for building your specific portfolio

  • Yield Target
  • Income Generation
  • Return Projections
  • Draw Down Thresholds

4. We continually monitor and make adjustments based on:

  • Reserve and Surplus Levels
  • Market Dynamics
  • Claims
  • Changes in Premium Revenue

Whether looking for liquidity, income diversification, low correlation, access to alternatives or simply cash enhancements, we will compile the portfolio that will meet your insurers needs.

Asset Classes :

  • Corporate Bonds and Treasuries
  • Municipals
  • Money Markets and CDs
  • ETFs
  • Mutual Funds
  • Alternatives
  • Hedging Strategies

Who We Serve

  • Group Captives
  • Protected and Incorporated Cell Companies
  • Risk Retention Groups
  • Reinsurers
  • Fronting Carriers
captive insurance services