What We Do

Using our extensive insurance industry experience and investment-focused expertise to provide custom solutions across a variety of services and functions, we specialize in designing, implementing and monitoring “Best Practice” Insurance Asset Management policies, processes and techniques.

Insurance Solutions

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Consulting (Outsourced CHIEF INVESTMENT OFFICER)

  • Investment policy design/revision
  • Investment guidelines design
  • Benchmark construction or revision
  • Strategic asset allocation selection/customization
  • Portfolio optimization, tax efficiency analysis, etc.
  • Transition support and implementation
  • Relationship management
  • Investment program maintenance and control
  • Strategy evaluation, tactical portfolio oversight
  • Performance measurement (risk-adjusted, after tax)
  • High level of fiduciary responsibility: striving to provide conflict-free and balanced advice
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Manager Selection

  • Manager(s) selection from entire manager universe, utilizing PSN Enterprise
  • Guidance and expertise in manager evaluation/selection at manager’s cost
  • Evaluation of client situation (LOB’s, Risk Profile, etc.) and investment requirements
  • Pre-screened insurance asset manager candidates from our proprietary network for review by client
  • Transition support and implementation
  • Relationship management, program maintenance and control, performance measurement (risk-adjusted, after tax)

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Special Projects

  • Current Manager performance evaluation (Risk-adjusted returns and universe comparison)
  • Strategic Asset Allocation Analysis
  • Tactical Portfolio Optimizations
  • Investment Analytics
  • Reinsurance Program Analysis
  • Specialized Reporting
  • LOC vs. Reinsurance Trust Analysis
  • Vendor Selection:
    • Custodian Selection
    • Securities Lending
    • Statutory and GAAP Accounting


Insurance Asset Management


CapVisor believes that the key to an optimized and successful insurance investment program is based upon the:

  • Correlation of your investment strategy with your business objectives and risk tolerance
  • Utilization of a component approach to align assets with underwriting/liability structure along three primary dimensions:
    • Short-term liquidity component
    • Loss reserve component
    • Surplus component
  • Anticipation of changes in your insurance company’s circumstances and securities market trends in order to maximize return and protect portfolio liquidity
  • Enforcement of disciplined tactical portfolio management style utilized in precisely executing strategies
  • Frequent and effective communication of status, progress and results
CapVisor philosophy goals


Key features of our process are based on the following:

  • Allocation of the client's risk budget across Liquidity, Reserve and Surplus portfolio components managing each to its discrete objectives and constraints.
  • Investment managers that can complement demonstrated insurance expertise with institutional–grade analytics (modern portfolio theory (MPT) statistics for risk adjusted, after-tax performance evaluations).
  • Utilization of Asset Liability Management (ALM) techniques to correlate the portfolio structure with the insurers liabilities (reserve portfolio is structured around anticipated cash flows and claims payout patterns to ensure sufficient liquidity and often involves duration matching to provide interest rate risk protection).
Asset management process team

Three Key Steps

Investment Plan Design

  • Understand management objectives
    • Enterprise goals
    • Investment program goals
    • Design/Redesign Investment Policy Statement
  • Analyze company financials, actuarial reports and reinsurance arrangements
    • Liability analysis
    • Determine liquidity requirements
    • Define reserve and surplus components and amounts/percentages
  • Risk budget development
    • Specify objectives and risk tolerance in explicit and actionable terms and embed Investment Guidelines/investment manager constraints
  • Identify “best fit” performance benchmarks or design/blend customized indices


Analysis and Implementation

  • Strategic Asset Allocation optimization/design using appropriate methodology
    • Asset-Only
    • DFA “Lite”
    • Dynamic Financial Analysis (DFA)
    • Tactical portfolio optimization
  • Asset Liability Management (ALM)
  • Tax efficiency optimization
  • Risk adjusted analysis of current investment program returns
  • Revised tactical allocation proposals anticipatory of expected market conditions
  • Investment Manager(s) selection and transition support
    • Active or passive investment management strategy utilization
    • Bond, equity or “balanced” manager and/or liquidity manager
    • Alternatives manager research


Management and Fulfillment

  • Management of the “managers”
    • Monitor and coordinate investment manager(s)
    • Performance measurement (Risk-Adjusted and Nominal)
    • Aggregated manager(s) performance reporting for clients
    • MPT statistical and/or attribution analysis (optional)
    • Scorecard evaluation
    • Investment program review
  • Value-added services (available)
    • Customized reporting
    • Peer group analysis
    • Analytic support (liquidity management, cash flow testing, sensitivity testing, etc.)
    • Reinsurance analysis
  • Value-added services (vendor research and selection)
    • Securities Custody
    • Trusteeship
    • LOC and/or other credit facilities