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PORTFOLIO MANAGEMENT OF INSURANCE COMPANIES IN THE MODERN STOCK MARKET

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PDF: Author(s): Pryanishnikova M. V., Sudarikova I. A.,
Number of journal: 3(56) Date: August 2021
Annotation:

Much attention is paid to the issues of investment activities of insurance companies in general, at the same time the specifics of portfolio investment of insurers in modern stock market instruments in the aspect of recent legislative innovations remain insufficiently studied. The increasing importance of insurers as intermediaries in the stock market and the need to improve the financial results of their activities on the basis of stable growth of investment income indicate the relevance of improving the portfolio management of insurance companies. The analysis shows that the restructuring of the total investment portfolio and the accelerated growth of the insurers’ securities portfolio in the period 2018—2020 were influenced by a significant increase in life insurance reserves and asset spillover from bank deposits. The trend of steady growth of investments in corporate bonds is revealed and the hypothesis of significant differences in the investment strategies of life insurers is confirmed. The key factors influencing the specifics of portfolios formed in the current period include: the composition and structure of insurance liabilities, financial market conditions, and regulatory restrictions. Despite the positive assessment of the revealed dynamics, the need to improve the methods and instruments of insurers’ portfolio management on the stock market with the aim to optimize the risk and profitability of investments was reasoned. At present many insurers carry out extremely conservative policy, have poorly diversified low-yield securities portfolios. In this connection it is offered to raise the level of diversification and profitableness at the expense of expansion of the formed securities portfolios. For the companies with an increased capita surplus, it is advisable to move to a less conservative investment policy. The results of the study are to determine the prospects for the development of investment activities of insurers in the stock market, taking into account the innovations of state regulation, the substantiation of directions to improve portfolio management, including the rationalization of the portfolio structure on the basis of a wider use of modern securities with complex yield parameters.

Keywords:

arbitration, derivatives, portfolio diversification, investment portfolio of the insurer, portfolio management, bonds, financial instruments, hedging, securities wiht comlex yield parameters.

For citation:

Pryanishnikova M. V., Sudarikova I. A. Portfolio management of insurance companies in the modern stock market. Business. Education. Law, 2021, no. 3, pp. 165—169. DOI: 10.25683/VOLBI.2021.56.342.