Aon, Goldman Sachs Launch Investment Service for Captive Insurers
Aon, Goldman Sachs Launch Investment Service for Captive Insurers
Goldman-Sachs

Re/insurance broker Aon has partnered with Goldman Sachs on a service designed to provide captive insurers with an easy way to identify and access high-quality investments.

The new service will see Aon offer individual strategic advice, fund research and execution services through its global team of investment specialists and practitioners.
 
Goldman Sachs is able to leverage its specially tailored investment platform via its Liquidity Solutions Portal, Mosaic.
 
The two companies describe this new service as a one-stop shop for captives; a way to manage assets, trade Aon-rated funds and view daily portfolio information.
 
Following a launch in Ireland, Aon plans to make the service available in other markets globally.
 
The Aon service will be provided by Aon’s Global Investment practice, working alongside Aon’s Captive & Insurance Management Group (ACIM).
 
At its launch on October 1, a selection of Aon buy-rated mutual funds from four fund managers were available on the platform, with further additions expected as the service expands.
 
Tim Currell, partner and head of Insurance Solutions, Global Investment at Aon, said, “We believe that there are some simple steps that captive insurers can take to improve their expected investment outcomes without increasing risk – and this new service gives them the means.
 
“Since the global downturn in 2008, we have seen some captives favour a low-risk approach to asset management, with some holding a significant portion of their assets in cash deposits.
 
“Given the prolonged low global interest rates over recent years, this has resulted, for some, in low or negative returns with assets potentially losing value in real terms. This challenging dynamic has been accentuated during the COVID-19 crisis.”
 
Michael Siegel, global head of the Insurance and Liquidity Asset Management business at Goldman Sachs, added, “We are excited to partner with Aon and to provide a new range of asset management products from an array of asset managers to Aon’s captive insurance client base.
 
“Market volatility has changed what firms invest in for cash management purposes and how firms invest. We look forward to working with Aon to bring technology solutions to the forefront of liquidity and other risk considerations.”

 

Source: Reinsurance News

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