Strategic Insurance Investors

Strategic Insurance Investor

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A-CAP Management

Strategic Provider of Insurance Investment Solutions

A-CAP Management (ACM)

A-CAP Management “ACM” is the asset management arm of A-CAP. ACM formally launched in April 2014 as an SEC registered investment advisor. As of 12/31/21, ACM manages $4.9B of assets.

ACM aims to provide a cost effective way for small to mid-size insurance companies to rapidly gain exposure to less liquid and new asset classes that are generally outside the scope of traditional insurance company asset managers.

Our overriding goal is to positively impact an insurance company’s financial position and support their long term stability and growth through:

Maintaining credit quality and matching asset liability profiles
Strengthening the insurance company balance sheet
Maintaining or improving return on capital
Supporting long term stability and growth with acute sensitivity to insurance regulatory, accounting and capital issues
Spreading cost-of-team across other similarly situated insurance companies

Investment Goals

A-CAP Management understands the challenges insurance companies face because not only do we manage the assets of our parent company’s carriers, but our experts also serve in various roles within our affiliated carriers. We use this insight to creatively drive their investment management strategy. Our overall goal is to invest in assets that yield in excess of liability yield (and pay a return on capital to our investors) by:

Minimizing Risk

A-CAP Management believes Liquidity Risk is the best risk for insurers to take as Insurance assets and liabilities are not marked to market for capital charge purposes (other than if an impairment is required), Insurance liabilities have longer average lives than assets typically, and some portion of the insurance company will be in liquid assets should cash need to be raised (~20%). In today’s environment, interest rate asset yields are less than liability yields, making interest rate risk a bad risk for insurance companies to take on. Credit risk is a bad risk for insurance companies to take as defaults cannot be planned for and are always realized losses to surplus.

Satisfying Insurance Constraints

There are several regulatory constraints placed on an insurance company’s investment capabilities. A-CAP Management executes specific investment strategies in order to satisfy these constraints.

Prefunding a Funeral

Pre-funding a funeral is setting aside money today so that the money will be there when you need it. It is especially important since funeral expenses, like everything else, increase over time. But if you have pre-funded, many funeral homes will actually lock in today’s prices on many goods and services you select. That way, your family may have little or no additional expense when the time comes to carry out the prearranged funeral services.