A.M. BestTV: U.S. Health Insurers Become More Aggressive Investors, Say A.M. Best Analysts
Sep. 04, 2018
OLDWICK, N.J.--(BUSINESS WIRE)--Sep 4, 2018--In this A.M. BestTV episode, Jennifer Asamoah, financial analyst, and Jason Hopper, associate director, industry research and analytics, both of A.M. Best, said health insurers' investments have included more non-traditional assets and higher-risk bonds. Click on http://www.ambest.com/v.asp?v=healthinvestments818 to view the entire program.
The make-up of the U.S. health insurers’ investment portfolio has undergone a sizeable growth over the last decade. Asamoah highlighted what has driven that growth.
“The health industry has seen a sizable growth in invested assets, averaging 8% annually with a shift to non-traditional asset classes,” said Asamoah. “The challenge of the low-interest environment has compelled many carriers to consider these non-traditional asset classes as a means to boost their overall investment income. Also, the growth trend is driven by national players, such as Kaiser, which accounted for 22% of the segment’s assets, as well as the top five carriers, which accounted for 44% in 2017.”
Hopper spoke about whether the shifts have resulted in improved investment income.
“Overall, gross investment income per asset has been relatively consistent. From a broader perspective, investment income as a whole has been around one-quarter of total net operating gains over the last 10 years. Growth and investment income have moved within tandem with overall operating performance,” he said.
To access a copy of this special report, titled, “U.S. Health Insurance Companies Expanding Investment Options,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=276604
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SOURCE: A.M. Best
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PUB: 09/04/2018 08:31 AM/DISC: 09/04/2018 08:31 AM