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CFA Level 3
Portfolio Management and Wealth Planning

Investment Objective of Insurance Companies

Very Easy Institutional Portfolio Mgmt Insurance Companies

XYZ Mutual Insurance Company has a primary objective of ensuring sufficient liquidity to meet its policyholder liabilities while maximizing returns on its investment portfolio. To achieve this, the company primarily invests in government bonds and high-quality corporate bonds. Which of the following best describes the primary investment objective of the insurance company?

Hint

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