Investment Objectives of Insurance Companies

Insurance companies play a pivotal role in the financial markets, as they are significant institutional investors. They manage large portfolios of assets, which are used to meet the liabilities arising from their insurance policies. Discuss the primary investment objectives of insurance companies and how these objectives influence their portfolio management strategies.

Your response should highlight the key features of insurance companies' investment strategies, such as liquidity needs, risk tolerance, and regulatory considerations. Use examples to support your analysis.