Interest Rate Risk Management for Insurance Companies

As the Chief Investment Officer of a large insurance company, you are assessing the company's investment strategy in light of upcoming liabilities. The company has a significant portion of its assets invested in fixed-income securities, which provide a steady stream of income to meet insurance claims. However, interest rates have been steadily rising, impacting the value of these securities. Your challenge is to identify the most suitable strategy to manage interest rate risk while ensuring sufficient liquidity to meet immediate claims.

Which of the following strategies would be most effective for the insurance company in this situation?