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How insurers learned to love asset management

Keith Skeoch’s promotion to the top job at Standard Life shows that insurers are finally starting to appreciate investment expertise

Getty Images
Getty Images

In bygone years, UK life assurance firms and asset managers did not have an easy relationship.

Life executives prized the cash flow derived from writing insurance policies above all else. They knew they needed asset managers to manage their funds, but they were nervous of the risks they took, which sometimes ran counter to the trends used by actuaries to justify their assumptions. To make things worse, asset managers were jolly expensive to employ.

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