Barry M. Connell, Managing Director and Portfolio Advisor to insurance clients at Brown Brothers Harriman & Co., spoke at the American Association of State Compensation Insurance Fund (AASCIF) Finance and Investment Conference on Monday September 23, 2002.

Mr. Connell's topic of discussion was "Asset Allocation in Relation to Unpaid Loss Liability". He highlighted several problems associated with the traditional duration-matching methodology for determining asset allocation, and also pointed out certain deficiencies associated with the more contemporary Casualty Actuarial Society model. Mr. Connell described the BBH&Co. methodology, which encompasses a broader range of asset classes, provides for variability in interest rates over time, and utilizes highly customizable risk and reward measures that can conform better with an insurance company's business objectives than traditional statistical measures. Using the BBH model, Mr. Connell concluded that duration matching is not an optimal strategy. Rather, "DFA" type analysis provides better investment insight. A copy of Mr. Connell's presentation is available on .