This executive briefing, organised by the Financial Times in association with Invesco, will bring together senior insurers to discuss the economic outlook, explore the emerging opportunities and analyse the risks in a negative yield environment.
FT-Invesco Executive Briefing for Insurers
Diversifying investment opportunities in a negative yield environment
Aviva UK Insurance
Jérôme Jean Haegeli
The global economy faces an uncertain future. The combination of negative yields and intensifying market volatility is putting pressure on insurers to protect and sustain long-term returns. Diversifying portfolios and managing risks have never been more important. Against this economic backdrop, insurers must also assess their sustainable investment strategies to reflect the evolving climate.
Where are the new investment growth opportunities for the insurance industry? How can insurers adjust their asset allocation? As volatility increases in the UK market, which non-UK denominated assets do insurers favour? Will emerging markets continue to have long-term potential? How do insurers incorporate sustainable investment factors into their portfolios?
Agenda - 19th Nov
8:00amRegistration and Networking
Oliver Ralph, Insurance Correspondent, Financial Times
9:05amKeynote interview: How are insurers preparing for an inverted world?
How is the current macroeconomic outlook affecting the insurance industry? How do insurers adapt their strategy in a world of negative yields? Is shifting allocations to more long term, illiquid investments the key to securing yield and delivering returns?
Jerome Jean Haegeli, Chief Economist, Swiss Re
interviewed by Oliver Ralph, Insurance Correspondent, Financial Times
9:35amPresentation: High quality opportunities in Emerging Markets Debt
With the persistent low-yield environment, insurers are increasingly considering Emerging Markets Debt (EMD) as a means to enhance returns. This session will cover:
- The breadth and depth of EMD, that insurance companies can utilise to help tailor their portfolios.
- The opportunity for diversification
- The yields on offer
- The look through volatility and focus on credit risk for investors with fixed time horizon
- Default dynamics
- What insurers need from asset manager to access EMD
Jason Trujillo, Senior Portfolio Manager, Invesco
9:55amPanel Discussion: Diversifying investment opportunities for insurers
As insurers seek less liquid investments to help match their liabilities and meet regulatory requirements, investment diversification becomes increasingly important. With the volatility in sterling higher than ever, non-UK denominated assets such as emerging markets debt, real estate debt, US municipal bonds, senior secured loans become key assets for diversification. Equally, integrating ESG principles to investment decisions are increasingly on the agenda.
- How can insurers heavily invested in sterling diversify their portfolios? Are emerging market currencies a safe haven?
- Which non-UK denominated asset classes are taking the lion’s share of capital? What risks and opportunities do they hold? Which hedging strategies do insurers use the most?
- Social investing in real estate is rising as insurers are investing more in schools, hospitals, police stations rather than investing in commercial properties. How does this affect their investment portfolio?
- ESG ratings are a significant challenge. Numerous organisations publish ratings that can produce widely different scores for the same company. How do insurers select which ESG indices to track and benchmark on?
- ESG organisations mainly focus on rating the traditional assets. How do insurers make sure the non-traditional assets they invest in are ESG friendly?
Ashish Dafria, Chief Investment Officer, Aviva UK Life
Gareth Mee, Partner, EY
Richard Glenn, Head of UK Insurance Distribution, Invesco
Moderated by Oliver Ralph, Insurance Correspondent, Financial Times
Oliver Ralph, Insurance Correspondent, Financial Times
10:45amCoffee and Networking
VIP Complimentary places are available to CIOs, Head of Investments and Head of Manager Selection from UK insurance companies, subject to approval by the Publisher. If this fits your profile, please apply now for a complimentary place.
Oliver Ralph is the Insurance Correspondent at the Financial Times. Prior to this Mr Ralph was Deputy Head of Lex since 2014, specialising in banking, finance and consumer. He has also been a Lex writer and, prior to this, the FT UK Companies Editor. He joined the Financial Times in 2009, having worked at Investors Chronicle from 2000 to 2009 and Euromoney from 1998 to 2000. He graduated from the University of Edinburgh in 1996.
Ashish Dafria is the Chief Investment Officer for Aviva UK Insurance, with over £225bn of assets, and is responsible for defining investment strategy and delivering the investment performance. Previously, he was the Global Head of Research for Aviva Investors, where he led the creation of Aviva’s first cross capital structure (equity and credit) corporate research team, having previously led the establishment of Aviva’s first global credit research team. Before this, he was Aviva Investor’s Head of Credit Research for North America, after joining the firm as a senior analyst.
Prior to joining Aviva Investors, he was a Director with UBS Investment Bank, advising financial sponsors and corporate clients on M&A, capital raising and other strategic and financial transactions. Previously, he was a Senior Ratings Analyst with Crisil (Indian subsidiary of Standard & Poor’s).
Mr Dafria is a CFA charterholder and earned his MBA from the Stern School of Business at New York University, where he graduated at the top of his class. Ashish also holds a Post Graduate Diploma in Management from Indian Institute of Management, Bangalore, India and a Bachelor of Engineering degree from Indore, India.
Jérôme Jean Haegeli
As Group Chief Economist for Swiss Re, Jérôme is responsible for the economic and insurance market research. The economic research functions include the macro and interest rate forecasts and associated consulting services for the Group. He is also the Managing Editor of Sigma.
Previously he was Head of Investment Strategy at Group Asset Management, Swiss Re for nearly ten years. Prior to joining Swiss Re, he was appointed by the Swiss National Bank's Governing Board as the Diplomatic Advisor for Switzerland and their Temporary Alternate Executive Director at the Executive Board of the International Monetary Fund in Washington DC, and was a Senior Economist at the Swiss National Bank, UBS Warburg and Bank Julius Baer.
At the Institute of International Finance (IIF), he is a member of the Council of Asset and Investment Management (CAIM), the Principles Consultative Group, Market Monitoring and Sovereign Risk Committees. At the World Economic Forum, he is a member of the Global Future Council on New Economic Frontiers (previously member of Long-Term Investing Council) and chairs the efforts of the infrastructure working group at the European Financial Services Roundtable (EFR). He is also in the editorial board for the Geneva Association's Papers on Risk and Insurance.
Jérôme holds a PhD in Economics from the University of Basel, an MSc in Economics from the London School of Economics and was a Visiting Fellow at Harvard University's Economic Department.
Richard Glenn leads Invesco’s insurance distribution business and strategy for insurance clients in the UK, a role he has
held since joining in May 2019.
Mr. Glenn has 19 years’ experience of successfully building and managing broad ranging partnerships with insurance
Prior to this role, Mr. Glenn served as Managing Director, Head of Insurance Solutions Group EMEA at Nomura International plc . In this role he was responsible for the product development and origination of financing, reinsurance and solutions activity across the European insurance sector, including with private equity sponsor owners and potential acquirers of life insurance businesses. Prior to his 10 years at Nomura, he held investment banking roles at Lehman Brothers and Barclays Capital working with insurance and other financial institutional clients.
Gareth is a Partner at EY and leads its Global Investment Advisory practice and UK Life Actuarial practice. His investment team provides advisory services to insurance companies’ and pension funds’ investment teams as well as asset managers managing institutional assets. He is passionate about research in the investment market and sits on the Life Insurance Board & Finance and Investment Board of the UK Actuarial profession.
Jason Trujillo is a senior portfolio manager with the Emerging Markets team within Invesco Fixed Income. Jason joined Invesco in 2013. Previously, he was with Lord Abbett as an associate portfolio manager for their Taxable Fixed Income Group. Jason also worked as a senior investment analyst at Duggan Asset Management and also was a vice president for the fixed income division of Nomura Securities International. Jason earned a Bachelor of Science in Business Management from North Carolina State University. He also earned a Masters of Business Administration from The Fuqua School of Business at Duke University.
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