Prime's investment philosophy is based on the principle that the primary mission of our insurance company clients is providing insurance. The investment strategy must enhance the ability to grow their insurance business and meet all of their policyholder claim obligations. A balance must be struck between limiting risk using shorter duration or higher credit quality bonds versus maximizing investment yield with longer duration or lower credit quality bonds.

We use a flexible asset liability management (ALM) approach tailored to each client. Primary accounting measurements such as statutory, GAAP, or economic values are main considerations. Prioritizing the evaluation of a company as a going concern versus a run off is important. For many companies, spending the time to understand future cash flows from new business can lead to a portfolio structure that improves investment income and provides liquidity for operational needs. Portfolios are constructed with maturity structures that use a combination of cash flow and duration targeting of assets to liabilities.

A thoughtful asset liability strategy can balance the needs of providing cash flow to meet liabilities, limiting volatility of capital, and maximizing investment yield and income.