[Verse 1] Insurance companies take your premiums in Promise to pay when claims begin But between collection and payout day They need to invest in a careful way Assets and liabilities must align Like a balancing act by design [Chorus] Match your assets, match your time ALM keeps everything in line Asset Liability Matching true Duration matching, see it through Regulatory capital standing strong ALM principles all along [Verse 2] Life insurance policies last for years Auto claims come quick, that's clear Long-term bonds for life insurance needs Short-term assets where quick cash feeds The duration of assets and liabilities Must dance together in harmony [Chorus] Match your assets, match your time ALM keeps everything in line Asset Liability Matching true Duration matching, see it through Regulatory capital standing strong ALM principles all along [Bridge] Regulators watch the capital base Making sure there's money in place Risk-based capital requirements set Safety margins you cannot forget Solvency ratios must be met To keep the company out of debt [Verse 3] Interest rate risk is the biggest threat When rates change, portfolios get upset Immunization strategies protect From rate movements we can't predict Credit risk and liquidity too All managed by the portfolio crew [Chorus] Match your assets, match your time ALM keeps everything in line Asset Liability Matching true Duration matching, see it through Regulatory capital standing strong ALM principles all along [Outro] From premiums in to claims paid out Asset liability matching without doubt Keep the balance, meet the need Insurance portfolio management indeed
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