Insurance companies stand poised to combat the challenges of persistently low interest rates, tight investment grade credit spreads, and economic uncertainty by taking advantage of opportunities in public and private credit markets. Mary Anne Guediguian, account manager in the financial institutions group, Chitrang Purani, portfolio manager in the financial institutions group, and Christian Stracke, global head of credit research, discuss trends identified by  PIMCO’s Secular Outlook, “Escalating Disruption,” and their investment implications for insurance companies. PIMCO’s base-case outlook for low rates and more volatility, coupled with tight current valuations, requires insurers to be nimble and ready to diversify their credit exposures in the pursuit of stable risk-adjusted income to support policyholder liabilities.

Q: Persistently low interest rates have created significant challenges for insurance companies. How has this affected insurance company risk-taking? 

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The Author

Mary Anne Guediguian

Account Manager, Insurance

Christian Stracke

Global Head of Credit Research



The continued long term impact of COVID-19 on credit markets and global economic activity remains uncertain as events such as development of treatments, government actions, and other economic factors evolve. The views expressed are as of the date recorded, and may not reflect recent market developments.

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