In the news

Barry Connell, Managing Director and Senior Portfolio Advisor, and Raghu Ramachandran, Senior Portfolio Strategist, collaborated to write an article entitled “Managing Assets in a Growth Market.” This article was published in the second quarter edition of The Physician Insurer, the official magazine of the Physician Insurers Association of America (PIAA). In addition to its regular circulation, the edition will be showcased at this year’s Annual PIAA Conference in Denver, CO, May 15–17.

Mr. Connell’s article takes a look at investment strategies such at asset/liability matching and portfolio immunization, while questioning the measurement of important inputs to this process such as calculation of duration. The article also addresses tactical strategies emphasizing the importance of security selection.

Since insurers typically limit their security selection universe through credit rating restrictions, they have generally not been attentive to the fact that managers have produced superior, consistent returns by focusing on credit review and security selection in their management processes.

Captive Review magazine recently tapped Thomas J. McDonald III, Managing Director and Head of the BBH Insurance Asset Management Group, to write for their January 2002 edition. Mr. McDonald has been involved in the management of investments for captives for over fifteen years. With the benefit of this experience, he identifies the five most common mistakes made by captive owners in the management of their investments in an article entitled “Five Easy Pieces.”

Authoritatively speaking

Raghu Ramachandran was recently invited to provide a comprehensive presentation on Dynamic Financial Analysis (DFA) for insurance analysts at AM Best in Oldwick, NJ. Mr. Ramachandran reviewed DFA’s usefulness in guiding company investment strategy, and assessed the strengths and weaknesses of the analysis process. He provided a framework for analysts to better understand how they should evaluate the efficacy of the process and legitimacy of strategic conclusions based on DFA analysis.

Not just showboating

Tucson, AZ, was the site for this year’s CICA 2002 International Conference on March 3–5. The Captive Insurance Companies Association (CICA) set a new record for attendance, with more than 380 industry professionals.

This year’s difficult market conditions promise to attract interest in the alternative insurance market segment. In addition to attending a variety of educational sessions, conference delegates took full advantage of the opportunity to network among delegates.

Similarly, the 2002 Risk and Insurance Management Society (RIMS) national conference was a spectacular success. Held in New Orleans, LA, on April 14–19, a new attendance record was set, although the exhibitors numbered slightly less than last year. Following BBH’s many collaborative efforts with The State of Vermont, we were invited as a guest vendor in Vermont’s booth, which experienced significant traffic and interest from conference delegates.

Hire and higher

We are pleased to welcome Steven J. Manson, a new associate in our fixed income research group. In addition to quantitative research, Mr. Manson is responsible for enhancing the models supporting MBS trading, (e.g. relative value). Through his work in scenario analysis and portfolio optimization, Mr. Manson will also work to re-design general tools used in the management of our fixed income portfolios.

Mr. Manson has over six years of industry experience, and most recently worked with Bloomberg L.P.’s fixed income group. Mr. Manson has also taught at the Seattle University Albers School of Business and Economics, and the University of Washington Department of Economics. Mr. Manson received his Ph.D. and M.A. in Economics from the University of Washington, and a B.A. in Economics and Applied Mathematics from the University of California.

Carmela Di Meo has joined the Insurance and Institutional Investment Division as Head of Communications. Ms. Di Meo recently earned her M.B.A., with a concentration in marketing and finance, from New York University’s Stern School of Business.

Prior to attending business school, Ms. Di Meo spent six years at Sanford C. Bernstein & Co., Inc., most recently as part of the Institutional Asset Management Consultant Relations Department. Ms. Di Meo earned a B.A. from Long Island University in 1995.