In the current low-interest rate environment, not having the right investment allocation could lead to a lot of money being left on the table. This was not true in the past, when interest rates were higher. By switching to the right investment policy, many companies could increase total income (including investment gains) very significantly from current levels.

Managing P&C investment portfolios is very different than managing other investment funds. Proper management of the P&C investment portfolio is possible only if capital in the overall P&C balance sheet is allocated correctly across all its lines of business.

Event-driven strategies can generate good income. Their low beta and flexibility make them good candidates for P&C investment portfolios.

Tight monetary policy has resulted in low interest rates. P&C companies must understand this fact and rethink their investment policies.