Loading...
CFA Level 3
Portfolio Management and Wealth Planning

Investment Preferences of Insurance Companies

Very Easy Institutional Portfolio Mgmt Insurance Companies

Insurance companies are essential players in the financial markets, often dealing with diverse types of investments to match their liability profiles. A critical aspect of their operations involves managing portfolios to ensure they can meet future claims. One common investment strategy used by insurance companies involves focusing on assets that provide stable and predictable cash flows.

Which of the following types of investments is MOST likely to be favored by an insurance company due to its cash flow characteristics?

Hint

Submitted6.5K
Correct4.2K
% Correct65%