Insurance Companies

Kling & Marsh Wealth Management, LLC believes it is essential that every insurance company use its assets as follows:

1. To create an investment portfolio that is competitive with its peer group.
2. To design an investment portfolio whose structure satisfies the requirements of AM Best, the State Insurance Department, and the NAIC.
3. To manage risk to most efficiently match assets and liabilities.
4. To provide superior long term returns.

To obtain the highest AM Best rating it is advisable to recognize and emulate the portfolios of insurance companies that the world's largest insurance rating agency deems superior, and, most importantly, to create and maintain an investment portfolio that would allow you to compete with your peers. Kling & Marsh Wealth Management, LLC can help you quantify and achieve these goals.

Asset Allocation is not a static event and percentages of stocks versus cash and fixed income can and should vary over time depending on the financial condition of your company and the prevailing market environment. Reaching the desired percentage of each asset should take place over a reasonable time period and should be done so in accordance with a consideration of market conditions, restrictions inherent in the current portfolio's make-up, and the business and statutory needs of the company.

Investment Policy

First and foremost in your endeavor to utilize your asset base to your greatest benefit is to create a comprehensive and defined Investment Policy Statement that governs all aspects of the investment process. Kling & Marsh Wealth Management, LLC has designed an Investment Policy Statement specific to insurance companies, one that can be readily modified to match your individual needs. Before any changes are made to your portfolio it is essential that members of your Finance Committee and Kling & Marsh Wealth Management meet to create and Investment Policy Statement. Kling & Marsh Wealth Management can offer suggestions to answer your particular needs and assist in creating a document that meets the requirements of regulatory agencies.

 Designing and managing an insurance company's assets is a complex task because of the diverse constraints and obligations imposed by the entities mentioned above. Sometimes that which would satisfy one test or prerequisite seems contrary to another. Kling & Marsh Wealth Management can assist you by making investment decisions that best meet these diverse criteria while seeking to maximize the long-term returns of the portfolio.