Investing in an index implies a high degree of diversification, but in fact weighting by market capitalisation means indexes such as the S&P 500 are dominated by their largest stocks, to a quite surprising degree, as Jack Meskunas of Oppenheimer explains.
Barclays Corporate Banking is the platinum sponsor of this year’s Bermuda Captive Conference. Ahead of the event, Captive International sat down with James Morris, head of UK insurance and captive banking, to discuss how Barclays is supporting the sector.
Captives and individual clients alike have been awestruck by the recent moves in the markets. With the COVID-19 coronavirus outbreak quickly becoming a pandemic, just as an oil price war broke out between Saudi Arabia and Russia, markets have experienced a perfect storm. Oppenheimer’s Jack Meskunas attempts to put recent market moves into perspective.
Nearly 100 years ago, the first single parent captive insurance companies were formed onshore in the UK. There has been tremendous evolution in the captives industry, but there has not been as much progress with the captive investment portfolio, says Callan’s Sara Hakim.
It is only a matter of time before a more simplified approach to longevity swaps becomes more prevalent, Robus Insurance (Guernsey) directors Kate Storey, Frank Oldham and David Riley, explain.
Many captives remain fixated with investing in fixed income products, but that should not mean a lack of financial flexibility, says Stephen Price of RBC Dominion Securities.
Healthcare captives continue to show positive growth in Cayman, but outsourcing functions from these entities must be done with due care, says Philip Alexander of RSM.
Captives can provide value to their affiliated groups and be an intrinsic part of business owners’ exit strategy calculus—or just as easily a burden, says Matthew Queen of Venture Captive Management.
Multi-asset strategies can provide an attractive investment approach for captive insurance companies, as Andries Hoekema, global head of insurance segment, HSBC Global Asset Management, explains.
Innovative risk transfer will influence the future of the captive insurer as a business model, as Marcus Schmalbach of BlockART Institute explains.