Investment Strategy for Insurance Companies

An institutional investor, an insurance company, is evaluating its investment strategy in light of changing regulations and market conditions. The company has liabilities that require a certain level of stability in returns as it pays out claims. Recently, the investment committee has been considering moving a portion of its fixed income allocation into equities to enhance returns.

Given the nature of the insurance company's liabilities and the investment committee's considerations, which of the following investment strategies would be the most appropriate for the insurance company to adopt?