[Verse 1] Insurance companies juggle cash and promises made Policies sold today, claims paid decades ahead Assets and liabilities dancing through time Matching durations keeps the balance in line Surplus acts like a cushion when storms arrive Protecting policyholders keeps the trust alive [Chorus] ALM - Asset Liability Match Duration gap - close that hatch Surplus strong - weather the swings Interest rate risk - clip those wings ALM - Asset Liability Match Duration gap - close that hatch [Verse 2] Life insurance stretches long, thirty years or more Property casualty shorter, three to five years' score Term life simple, whole life complex with cash value growing Annuities guaranteed, investment returns flowing Each product type brings different liability shapes Matching asset maturities helps avoid the scrapes [Chorus] ALM - Asset Liability Match Duration gap - close that hatch Surplus strong - weather the swings Interest rate risk - clip those wings ALM - Asset Liability Match Duration gap - close that hatch [Bridge] When interest rates climb up high Bond values start to cry But shorter liabilities smile Making profits for a while Convexity bends the curve Immunization helps preserve [Verse 3] Capital allocation models guide where money goes Regulatory capital minimums everyone knows Economic capital measures true risk exposure Risk-based capital ratios maintain composure Surplus optimization balances growth and safety Managing policyholder expectations completely [Chorus] ALM - Asset Liability Match Duration gap - close that hatch Surplus strong - weather the swings Interest rate risk - clip those wings ALM - Asset Liability Match Duration gap - close that hatch [Outro] Surplus management protects the company's core Asset liability matching opens opportunity's door Insurance ALM keeps promises true Balancing risk and return in all that we do
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