Asset Allocation

We believe an enterprise approach is the right approach to develop an investment strategy for an insurance company. Bringing together a custom built financial model of your company with your specific risk tolerance and our current capital market assumptions, we craft a optimal strategy to suit your firm's unique characteristics.

Portfolio Review

We monitor our client's portfolios on an ongoing basis to ensure that an objective third party is reviewing the portfolio risk exposures. Modeling the portfolio at the CUSIP level also allows us to participate in discussions with portfolio managers in a meaningful way as our portfolio information is as complete as their own. We use this monitoring process to:

• Evaluate credit risks
• Analyze interest rate risk
• Independent compliance review
• Monitor performance

Manager Services

We perform a variety of services to ensure an ongoing dialogue with your asset manager.

• Structure Analysis to determine the optimal manager structure for your objectives
• Evaluation - An annual detailed review of your manager(s) against a group of realistic alternatives based on our CAPPS approach(Clients, Assets, Performance, Personnel and investment process, Systems and services)
• Search

Peer Analysis

We create a custom insurance peer universe based on characteristics important to you, such as asset size, regulatory environment, competitive relationships and more. Using security level data where available, we analyze your peer companies’ portfolios to enables management and the BOD to understand their relative risks. As a starting point, we analyze:

• Total return relative performance
• Asset allocation exposures
• Fixed income sector and credit risks
• Interest rate risk
• Investment returns versus industry

Risk Analytics

Because risk can be defined in many different ways, We work with management and the BOD to make sure a risk tolerance is identified and can be quantified. This definition feeds into our strategic asset allocation work but also is useful in identifying the most appropriate form of risk monitoring. Types of risk analysis we perform include:

• Enterprise Risk
• Credit Risk
• Structured Securities Risk
• Interest Rate Risk
• Value at Risk (VAR)

Performance Measurement

WellsCanning works proactively with you to evaluate your performance, focusing on:

• Historical performance of managers versus benchmarks
• Contextual performance versus peers
• Forward Thinking measurement of performance

Developing Internal Analytics

Where clients want to build an internal toolset to assess their investment strategies, we can work with you to develop and/or build upon internal models that help answer various investment questions. Examples include customized risk management analysis, development of automated dashboards, and specialized sector analysis.

This process typically involves determining how best to answer the question, working alongside a programmer (to develop the system) and management (to ensure applicability).

Board Education

We believe that a well-informed management and Board provide better oversight of your company’s strategies. A core part of our value added services is to develop a client specific schedule of educational deliverables. These deliverables can take a variety of forms from 10-15 minute segments at Investment Committee meetings to all day seminars for staff or Directors.

Additionally, we make it a goal to provide our clients with new investment ideas and to assist them in assessing any ideas brought to them from other sources. At the Board level, education regarding a potential asset class focuses on their role as fiduciaries.

Mergers & Acquisitions

If you're thinking of acquiring or merging with another insurer, WellsCanning can work with your due diligence team during this process. We will complement the actuarial work by making sure that the asset side of the prospective firm is being valued correctly and the risk of unforeseen negative investment results is understood.

The process includes a CUSIP level analysis of the investment portfolio, and subjects each security to credit screens, an assessment of the integrity of the security's structure, and the overall appropriateness of the portfolio given the liability structure.

401(k) & DB Services

Due to our independent relationship, WellsCanning can objectively evaluate your company’s retirement program and tailor our services to best meet your needs. These evaluations include an initial review of your current provider and plan offerings, 401(k) fund line up and mapping recommendations, fund performance and more. From the perspective of a DB plan, we can review the asset allocation and quantify the implications of different portfolio structures.