AB's dedicated insurance portfolio management team is relatively new in formation but has already had some success in executing for clients over the past 18 months.

The team consists of seven professionals, averaging 20 years of investment experience and is led by Gary Zhu, who has a long history in managing insurance investment needs. Together the team has been focused on helping insurance clients deal with the implications of NAIC RBC, Solvency II, optimizing total return subject to book yield orientation and asset/liability management.

Last year provided one successful outcome when AB was able to reposition a large, complex portfolio for a US life insurance company within stringent book yield targets, duration requirements, RBC thresholds and concentration limits. In doing so it reinvigorated what was a traditional life insurance portfolio of treasuries and investment grade corporates into a diversified mix of IG corporates, securitized assets, emerging market debt, high yield bonds and preferred stock.

The repositioning resulted in a 50 plus basis point pickup in book yield in a low rate environment while making sure it was compliant with all guidelines and highly diversified across various fixed income asset classes while still maintaining a significant allocation to illiquid assets.