Investment Objectives of Insurance Companies

As an investment manager for a medium-sized insurance company, you are tasked with designing an investment strategy that meets both the regulatory requirements and the liabilities associated with your policyholders. Describe the primary investment objectives of an insurance company and discuss how these objectives influence the construction of an investment portfolio.

In your response, elaborate on the role of risk management and liquidity considerations in your portfolio decisions, along with the impact of the company's liabilities on its asset allocation.