Investments

  • Steamship recorded a combined investment gain of US$39.3 million, a 3.5% return on assets (excluding fees). This excludes a currency gain of US$7.6 million on assets held to match the currency exposure in claims liabilities.
  • The portfolio has remained largely static throughout the year with some rebalancing during the year and an allocation to emerging market debt in the fourth quarter. The matching portfolio, held to back the net claim liabilities of Steamship, is comprised of highly rated government and corporate bonds, managed on a buy-and-maintain basis, with management of overall portfolio duration. This portfolio is used to provide collateral for the reinsurance obligations of the Trust to SMUA and SMUAB.
  • The remaining surplus portfolio was principally invested in absolute return bond funds, global equities, hedge funds of funds and high quality debt instruments. This allocation aims to deliver appropriate risk-adjusted returns within the risk appetite set.