International Insurance Company


  • The company struggled to maintain sufficient net income margin in a low credit spread environment
  • Urgently needed to improve earnings while staying within risk appetite boundaries and protecting solvency 
  • Contemplated  high yield strategies as a solution

Straterix’s analytical solution was used to analyze and optimize company’s balance sheet and income statement:

  • Analyzed the current and various contemplated alternative asset portfolios,  under thousands of scenarios
  • Worked with the client to interpret the outcomes and arrive at robust, optimal allocation strategies
  • Decide on an optimized  investment strategy that is appropriate for a wide variety of market environments
  • Adjust risk limits dynamically to increase earnings within stated risk appetite boundaries
  • Demonstrated that expected returns on high yield indices are lower than treasury yield. This was caused by low credit spreads not covering expected losses in high-yield bonds
  • Client increased yields by giving up some liquidity in their portfolio and, in special situations, investing in high yield