July 10, 2023

Episode 145: ETF Use by Insurers, with Ben Woloshin of SSGA and Raghu Ramachandran of S&P Dow Jones Indices

27 minutes

In this episode of the InsuranceAUM.com podcast, Stewart Foley hosts an insightful discussion on insurance companies' use of Exchange Traded Funds (ETFs). Joining the conversation are Ben Woloshin, Head of SPDR Insurance at State Street Global Advisors, and Raghu Ramachandran, Head of US Insurance Asset Channel at S&P Dow Jones Indices. Together, they explore the significant 23% drop in insurance holdings of ETFs in 2022, the first of its kind since insurers began investing in ETFs. The episode covers key factors driving the decline, such as market valuations and asset allocation decisions, while delving into how ETFs serve as strategic tools for liquidity, sector exposure, and interim beta for insurance companies.

The conversation also touches on how insurance companies are leveraging ETFs for fixed income and equity exposure, regulatory updates, and the growing trend toward using ETFs for securities lending. Both Raghu and Ben emphasize the versatility of ETFs as tools that enhance portfolio management and risk-taking strategies in a changing market landscape. They offer valuable insights on how insurers can effectively integrate ETFs into their investment strategies, particularly with the evolving regulatory framework and market conditions in 2023.

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