Asset management solutions

Here's my problem. We recognize that in order to improve our investment results we need outside expertise. But we need someone who understands the complexities of asset management in the insurance industry. Any solutions?

Harleysville Asset Management, an affiliate of Harleysville Group, is a uniquely qualified organization with years of investment management expertise. For insurers. By insurers. All designed with the goal of improving your results.

Even the smallest carriers can access the highly trained professionals at Harleysville Asset Management. We're prepared to serve equity accounts of $1,000,000 or more, and fixed income accounts of $5,000,000 or more. And because we're part of the Harleysville Insurance network, you know we are stable, reliable and can offer the resources and know-how that are unmatched in the industry.

Our investment strategy

We adhere to the following investment strategy:

Manage the investment portfolios conservatively and prudently to complement and support the underwriting operations. In doing so, maximize after-tax investment income with fixed maturities and achieve growth in surplus and equity securities consistent with the investment policy.

Add value to the organization with a disciplined long-term approach through an informed and talented staff, state-of-the-art systems, fundamental research, superior Wall Street coverage and a network of outside contacts. On an ongoing basis, search for opportunities with the intent to exploit market inefficiencies. Constantly follow yield curve shifts, sector relationships, supply/demand opportunities and undervalued/overvalued situations, and, with the support of internal investment systems, act quickly when opportunity presents itself.

Investment management for insurers, by insurers

What distinguishes Harleysville Asset Management from the competition?

Simple. We know the insurance industry. You now have direct access to this exceptional team of industry-tested investment professionals, offering you a strong blend of insurance experience and investment management expertise.

The investment staff of Harleysville Asset Management (a chief investment officer, two portfolio managers, two analysts, two investment accountants and three administrative assistants) are the same professionals responsible for managing $2.7 billion in assets for The Harleysville Insurance Companies. All investments are managed "in-house." We have extensive experience in managing a widely diversified portfolio of core asset classes that include taxable and tax-exempt fixed income and equity investments.

We follow a simple, disciplined approach to successful investing that consists of an informed and talented staff, superior Wall Street coverage, and use of the best information systems available.

Exceptional historical performance

While past performance is no guarantee of future results, Harleysville's investment results have proven to be superior.

Fixed income strategy

Investments must complement and support underwriting operations, while, at the same time, maximizing after-tax investment income. Funds allocated to the fixed income portfolio are be conservatively invested and emphasis is placed on safety of principal, liquidity and after-tax yield. Safety of principal is attained by purchasing investment-grade securities possessing either stable or improving credit trends, along with proper industry and geographical diversification. In making fixed maturity commitments, consideration is given to the direction of interest rates, the slope of the yield curve and the relative value of sector relationships. Total return is monitored and compared against appropriate indices.

Equity strategy

Harleysville Asset Management employs a bottom-up, disciplined long-term approach to equity management. Portfolio construction through superior stock selection and industry weightings is key. We invest primarily in large capitalization companies with stable earnings growth. We focus on high-quality, well-managed companies with positive developments at reasonable prices. Equity strategy involves state-of-the-art investment technology, combined with skillful analysis using fundamental research techniques and a network of Wall Street industry analyst contacts. Our time horizon averages three to five years, which translates into a low annual turnover ratio of 20-33 percent.

Other investment services:

NAIC Securities Valuation Office (SVO) filings
Risk-based capital calculations
FASB 115 analyses
Asset liability evaluations
Insurance accounting plans (Schedule D)

For more information

Call Harleysville Asset Management at (215) 256-5030 to learn more about these exceptional services. Or contact us via e-mail: assetmanagement@harleysvillegroup.com.