Insurance Asset Risk Awards 2021 - UK & Europe

Investment team of the year (re/insurer) - LVFS Internal Investment Team

LVFS Internal Investment Team may be small in number but it does not lack dynamism. And last year's disruption wasn't going to make it deviate from its objectives.

Despite remote working, the team strengthened investment management information, analysis and insight processes, which was fundamental in ensuring resilience during the worst of the market woes in Q1 and then positioned the firm to strongly participate in the recovery during the remainder of the year.

Smoothed Managed Funds, the firm's flagship proposition, was the only product in its sector to maintain smoothing during the crisis whilst other peers snapped their smoothing mechanisms to the detriment of many customers.

Searching for yield in the matching adjustment portfolio, the team designed an innovative structure for standard formula firms to purchase overseas corporate bonds whilst overlaying a series of FX swaps that would additionally optimise the Solvency II SCR.

The team also underwent a significant review of the strategic asset allocations in May and again in December to determine whether they remained fit-for-purpose given the economic challenges (and opportunities) ahead. The Investment Committee approved a number of changes to the firm's house view including new allocations to some innovative sustainable funds.

One of the other highlights of the year was the development of the Responsible Investment Framework, which began in 2019. The framework was adopted and implemented in 2020 despite the market turmoil and covers all assets under management.