5th Annual DWS Insurance Gathering - “Policies in the Crosshairs”

September 23-24, 2024 Charleston, SC

Click here for more information

Solvency II Review and Long-Term Equity Investments: A New Era for Private Equity and Infrastructure Investments?

Research report - April 2024

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IN FOCUS Replay - Were U.S. bond investors just thrown a curveball?

Original Date: March 6, 2024. For financial professionals only.

U.S. High Yield for Insurance Companies

Evaluating the high yield landscape for insurance investors

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IN FOCUS Replay - CMBS and Regional Banks: A wave of concern?

Original date: January 2024

DWS wins two Insurance Asset Risk Awards in the Americas

Equity manager of the year

DWS wins two Insurance Asset Risk Awards in the Americas

Real asset manager of the year

DWS is a pioneer in global insurance asset management. Our commitment and expertise in the insurance market dates back to 1929 when we first established a comprehensive partnership approach to develop customized investment solutions and programs for insurers.

Top 5

Ranked by global assets under management.* [1]

1980

Formalized our insurance investment platform

10

Key insurance centers globally

>200

Insurance clients

1929

First engagement with an insurance investor

25

Investment offices in locations around the world

Global reach with regional focus

Our footprint spans geographies and client types, with investment professionals located in key insurance centers around the world. This, along with a diverse business mix, allows DWS to execute sophisticated custom solutions on a regional level with a specific insurer perspective.

Assets under management

Total DWS AUM
DWS AUM — USD $990billion /EUR €896 billion globally 
USD $180.6 billion /EUR €163.4 billion
Managed for general accounts
USD $48.3 billion /EUR €43.7 billion
Unit-linked and similar insurance products

 

Source: AUM as of December 31, 2023.

*2023 edition of the Insurance Investment Outsourcing Report. DWS ranks no. 5 overall for AUM managed globally for third-party insurance general accounts. No fee was paid by DWS to participate.


USD $180.6 billion/EUR €163.4 billion under management in General Account assets

Charts with different strategies, company types and locations DWS does insurance business

Source: DWS as of December 31, 2023. Totals may not sum due to rounding. For illustrative purposes only.

Spectrum of investment solutions

Insurance fixed-income is at the core of our clients’ investment programs and our insurance asset management platform as well. A dedicated Insurance Fixed Income Portfolio Management team can be complemented by a broader set of investment capabilities across asset classes and risk spectrum, in both active and passive structures.

  SAA & Solvency Framework   Product Innovation
Insurance fixed-income
Multi asset
Alternatives & non core
Unit-linked & variable annuities
  • History in both core and non-core fixed-income across investment and non-investment-grade sectors
  • Insurance solutions & analytics
  • Solvency capital framework
  • Liquidity optimization
  • Real Estate Equity & Debt
  • Infrastructure Equity & Debt
  • Private Equity
  • Private Credit
  • Direct Lending
  • Listed Equity
  • Market leader in Germany for Unit-Linked life insurance products*
  • Passive and Active Products & Solutions
  • Products with controlled volatility
  • Life-cycle & hybrid products
       
DIGITAL SOLUTIONS
Customized and model portfolio development
PASSIVE
Xtrackers ETFs & Institutional passive mandates  |  Passive “building blocks” for the four steps above
ESG
Unique ESG Engine**  |  Investment overlay and risk management  |  Responsible investment opportunities

 

As of December 31, 2022

*Source: Fondspolicen Spezial, Fonds Professionell percentage of market share, 2022

** Source: DWS developed an engine, which is our proprietary software that aggregates data from multiple third-party commercial providers of ESG data, as well as data from several non-governmental organizations, to arrive at various ESG solutions (e.g., assignments of ratings to investment positions and sovereigns). The ESG engine is operated by DWS International GmbH, a German affiliate of DIMA, a U.S. registered investment adviser. DIMA's portfolio managers have access to ESG solutions produced by such German affiliate and may use such ESG solutions in managing client accounts. Please see Part II of the adviser's Form ADV for additional information regarding ESG issues.

Lifecycle of an insurance program — The three disciplines form a dynamic relationship

 

DWS insurance team members, from Solutions and Structuring, Coverage and Relationship Management, to Portfolio Management and Investment Specialists, actively collaborate to deliver insurers a cohesive and comprehensive investment experience.  While the approach can vary by region, the objective is always the same—to deliver a bespoke investment program based on an insurer’s unique risk and return preferences.

Structuring & insurance analytics

 

Portfolio management

 

Insurance coverage & relationship management

Enterprise Assessment

 

Portfolio Construction

 

Portfolio Analytics

  • Engage with insurance company to define goals including conducting appropriate analysis (SAA/ALM)
  • Accounting, regulation and capital management considerations examined
  • Industry analysis: trends and peer comparisons
 
  • Implement either Strategic or Tactical investment program
  • Customized Insurance Fixed Income is at the core of our allocation focus

 


Depth of Asset Class Capabilities

 

  • Ability to complement high-grade fixed-income with multi-asset solutions in an insurance context that includes non core bond asset classes, equity, alternatives, passive, alternatives, ESG and cash

 


Access to, and interaction with, investment management teams

 
  • Access to proprietary tools and systems developed to provide better analytics and understanding of an investment program considerations
  • Portfolio projections including cash flow and income



Ongoing bespoke Risk Management Reporting

  • Provide bespoke Trade Management and Risk Analytics reporting

 

Establish Investment Framework

   
  • Apply industry parameters, taking into account accounting, regulatory, and capital considerations
   

 

Quantitative Modeling

   

 

  • Utilize optimization tools and techniques to evaluate asset class selection
  • Develop Strategic Asset Allocation program
  • Integrated with Multi-Asset team for portfolio construction
   
 

DWS’s insurance asset management platform partners with insurers of all sizes and types to provide end-to-end solutions across strategic asset allocation, insurance advisory, and portfolio and product structuring.

 

Approach to strategic asset allocation

1. Enterprise assessment

 

2. Establish framework

— Comprehensive review of enterprise and operating environment
— Underwriting environment: Cycle, profit trends, competition, underwriting standards
— Capital position, allocation, efficiency
— Industry and peer research
— Collaboration with management
— Liability profile

— Define constraints and risk/ return metrics
— Primary and secondary objectives: total return/income versus volatility
— External constraints: Regulation, tax considerations, accounting, rating agencies
— Permitted asset classes: iterative process, driven by client
— RBC, BCAR implications

4. Review, revise, recommend

3. Quantitative modelling

— Iterative process to refine client objectives, constraints and recommendations
— Client feedback incorporated into optimization runs: enables a more refined and effective optimization result
— Alignment of recommendation with practical implementation constraints: includes liquidity and market timing considerations

— Flexible quantitative framework to evaluate multiple objectives and solutions
— Development of asset class assumptions: inputs to optimization models
— Quantitative portfolio optimization: in-house, proprietary models are leveraged; multiple objectives and constraints are incorporated

Insurance solutions

Solutions collaboration based on regional focus 

Insurance strategy & advisory

 

Insurance structuring & analytics

 

Insurance portfolio management

— Deep understanding of the investment challenges of insurance companies
— Strategic advice on the structure of business with regard to assets and liabilities
— Expertise in regulatory environment and accounting developments
— Analysis of industry parameters, taking into account accounting, regulatory, and capital considerations
— Peer analysis
  — Bespoke quantitative modeling
— SAA with consideration of regulatory capital requirements
— LDI and ALM solutions
— Advise on hedging structures
— Product development for Unit-linked Life insurance products
— Life-cycle & retirement solutions
  — Long heritage in managing fixed-income portfolios for insurers
— Broad range of insurance customized products and individual investment strategies
— Intense partnership and dialog between our investment professionals and clients
— Various high-end tools for portfolio simulation, analysis and projections including cash flow and income
— Develop and deliver individual and customized insurance-oriented reporting


Off- and on-balance sheet solutions
 

Thought leadership

Perspective library archive

Awards

DWS’s insurance asset management has a history of award recognition over the years across the globe.



Insurance asset management industry awards given to DWS

For more information regarding award criteria, please click here.

Get in touch

Your Insurance asset management specialists around the world

For general contact information, please visit our Contact us page under Profile

paolo.gazzola@dws.com
Paolo Gazzola
Head of Insurance Advisory-EMEA ex-Germany & Austria
fabian.gerlich@dws.com
Fabian Gerlich
Head of Sales-Financial Institutions Group, Germany
thomas.gillmann@dws.com
Thomas Gillmann
Insurance Advisory & Strategy – Asia Pacific
bernie.ryan@dws.com
Bernie Ryan
Head of Insurance Business Development-Americas

1. Insurance Investment Outsourcing Report 2023, data as of FY22

CIO View