Growing from its roots as a regional bank serving the Mid-Atlantic to a full-service coast-to-coast financial services organization, change at PNC has not been limited to its brick-and-mortar footprint.
An evolution of product and service offerings across the enterprise includes captive insurance and advisory solutions offered by PNC Institutional Asset Management® (IAM).
Much like PNC Bank, IAM has grown from an asset manager focused primarily on high-grade fixed income solutions through PNC Capital Advisors, LLC, to today’s full suite of investment management, banking and treasury management solutions. IAM has enhanced these solutions with capabilities such as Outsourced Chief Investment Officer (OCIO) services and Enterprise Financial Modeling to provide clients with forecasting, convenience and adaptability to get the most out of their investments.
“PNC as a whole has experienced incredible growth over the last 20-plus years, and I think what has happened in the insurance asset management space has mirrored that,” said Wade Meadows, head of IAM’s Insurance and Specialized Industries Group. “Our product set has evolved significantly in an effort to provide our captive insurance clients with the tools to efficiently and effectively manage their portfolios.”
IAM’s captive insurance team has also expanded its resources, including more than 15 dedicated Chartered Financial Analysts® and actuaries who serve a portfolio of nearly 300 clients and $21 billion in assets under management and administration.
Release Valve for Daily Investment Management Pressure
With OCIO solutions, investment managers can take advantage of improved risk management and fiduciary oversight, better allocation of resources, more agile decision making, sophisticated investment strategies and enhanced reporting. Previously, these benefits were only available to large commercial insurers. Now, IAM’s captive insurance clients access these resources daily.
“While OCIO as a concept is not new, our focus over the last few years has helped our clients realize cost savings and risk controls that were previously only available to much larger organizations,” said Chris McGoldrick, head of IAM’s OCIO offering.
Four Steps to a Customized Financial Framework
In tandem with the OCIO offering, PNC offers an optimized investment strategy using Enterprise Financial Modeling. While there is no single formula that works for all companies, most financial modeling investment frameworks are based on four key steps:
- Organizational Goals & Objectives
- Enterprise Financial Analysis
- Customized Investment Strategy
- Implementation and Oversight
Enterprise Financial Modeling is an asset-liability study that assesses an organization’s liquidity needs, liability duration considerations, investment risk capacity, and key organizational and financial health projections. Additionally, the process considers the impact of market volatility and different asset allocation profiles on a company’s financial outlook. Ultimately, this rigorous analysis drives the implementation of a tailored investment strategy.
“Decisions that are being made today will impact the financial outcomes for insurance companies for the next 20 years,” said Kimberlene Matthews, IAM’s managing director of Pension and Enterprise Solutions. “Enterprise Financial Modeling is helping us better project how decision-making will impact results so we can create effective, custom solutions for our clients.”
Once implemented, the Pension and Enterprise Solutions team supports our clients’ investment strategies through ongoing monitoring and dialogue to help ensure they remain appropriate for the current liability profile of the captive. Additionally, as the captive sees changes within risk retentions, the introduction of new risk lines, and shifts in capital markets, the team assesses applicable strategy changes, as necessary.
Looking Forward
PNC’s commitment to clients, shareholders and communities has not changed, even as new technologies and fresh ideas help drive continual innovation that pairs experienced advisory and forecasting services with traditional offerings. It’s an effort that has resulted in IAM being recognized as a top OCIO provider and numerous awards for our captive insurance team.
“We are proud of the work, innovation and partnership that helped PNC grow and to serve our clients in the captive insurance space over the last few decades,” Anjanette Fowler, IAM’s managing director of Insurance Solutions said. “But we know this industry will continue to evolve and we must grow with it, so the next 20 years are as impactful as the last.”
