Building an insurer's investment portfolio is as much art as science. (Photo: iStock/Bigstock)
The economic stress and market disruption from the COVID-19 pandemic in early March weighed heavily on property & casualty insurance company investment portfolios, but they have since recovered. However, moving forward in a time of less certainty will require bold and innovative thinking. Most are already skilled in the disciplines needed for success, but sober analysis, critical thinking, and carefully measured actions of another "P&C" sort – patience and caution – may also be valuable in preparing portfolios for the post-pandemic environment.
|Confusion at the outset
The general confusion and uncertainty in the early days of the pandemic demanded a great deal of patience from portfolio managers as they sorted through the risks. Equity markets plummeted while credit spreads widened significantly. Holding extra liquidity was a prudent step in the face of such uncertainty — but should companies shed investment risk too?
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
