|
|
|
|
|
 |
OPERATING AND FINANCIAL REVIEW / THE COMPANY / DELIVERING VALUE /
 |
JAYNE THORBURN CHIEF INVESTMENT OFFICER
“The active management of our assets
is aimed at delivering security to our
policy holders and return to our
shareholders. The significant growth in
our investment funds has increased the
potential contribution from this source.”
|
|
|
| AMLIN INVESTMENT PANEL |
|
MEMBERS OF AMLIN INVESTMENT PANEL (pictured L–R):
Charles Philipps (Chief Executive), Ian Harwood (Global Head of economics & strategy,
Dresdner Kleinwort Wasserstein), Dominic Pearson (Vice President, Institutional debt sales,
Merrill Lynch), Richard Hughes (Director of Equities, M&G Investments), Jayne Thorburn
(Chief Investment Officer), Richard Hextall (Finance Director)
An investment strategy aligned with that of our
core insurance business and a sound framework
for managing investments, which is capable of
adding value, are the cornerstones of Amlin’s
investment activities.
|
|
| INVESTMENT MANAGEMENT FRAMEWORK |
|
The framework for managing Amlin’s
investments encompasses:
- Strategy, risk appetite and benchmark asset
allocations are agreed by the Board, and
for syndicate funds, by the Board of Amlin
Underwriting Limited;
- Our Chief Investment Officer is responsible for
implementation of strategy, for consideration
of tactical asset allocations to take advantage
of changing market circumstances, and for
overseeing externally appointed fund managers;
- A committee of executives meets monthly
with the Chief Investment Officer to review
performance and to consider recommendations
for tactical asset allocation changes; and
- An Investment Advisory Panel, involving
independent external expertise and executives,
meets quarterly to review strategy in the light
of any changes in the Group’s risk appetite,
economic conditions and the outlook for
differing asset classes.
|
|
| EXTERNAL MANAGERS |
|
Day to day management of assets is out
sourced. The selection of the right partner
is therefore a crucial element of Amlin’s
investment management. We use external
consultants to advise on managers’ strengths
and weaknesses and their ability to add value.
Our current managers, each of which scores
highly, are listed in note 15 to the accounts.
Investment guidelines exist for each manager
specifying maximum exposures to certain asset
classes and their security rating. Managers
are regularly monitored for their performance
against benchmark and for their compliance
with our guidelines.
During 2004 we changed one of our US dollar
bond managers resulting in the appointment of
Western Asset Management.
|
|
| TECHNICAL ASSETS |
|
For our technical, or syndicate, assets our
strategic benchmark is based on matching
assets to liabilities in terms of duration and
currency. Liability duration is regularly
assessed by our in-house actuarial team.
Tactical positions are then taken where these
are felt to be beneficial in terms of the risk/
reward outlook. For example cash will be raised
when a bond market is judged to be expensive,
and therefore vulnerable to capital losses.
We invest the syndicate funds in relatively low
risk liquid assets, principally investment grade
bonds and cash. Our chosen managers have the
scope to invest in corporate bonds and other
structured bonds as well as government
securities, but their performance is assessed
against an all government bond benchmark.
|
|
|
|
|
|
  |
|
|
|
|
