Market Overview

A.M. BestTV: U.S. Health Insurers Become More Aggressive Investors, Say A.M. Best Analysts


In this A.M.BestTV episode, Jennifer Asamoah, financial
analyst, and Jason Hopper, associate director, industry research and
analytics, both of A.M. Best, said health insurers' investments
have included more non-traditional assets and higher-risk bonds. Click
to view the entire program.

The make-up of the U.S. health insurers' investment portfolio has
undergone a sizeable growth over the last decade. Asamoah highlighted
what has driven that growth.

"The health industry has seen a sizable growth in invested assets,
averaging 8% annually with a shift to non-traditional asset classes,"
said Asamoah. "The challenge of the low-interest environment has
compelled many carriers to consider these non-traditional asset classes
as a means to boost their overall investment income. Also, the growth
trend is driven by national players, such as Kaiser, which accounted for
22% of the segment's assets, as well as the top five carriers, which
accounted for 44% in 2017."

Hopper spoke about whether the shifts have resulted in improved
investment income.

"Overall, gross investment income per asset has been relatively
consistent. From a broader perspective, investment income as a whole has
been around one-quarter of total net operating gains over the last 10
years. Growth and investment income have moved within tandem with
overall operating performance," he said.

To access a copy of this special report, titled, "U.S. Health Insurance
Companies Expanding Investment Options," visit

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