Insurance, Investments and Group Benefits

Understanding the differences and similarities 

Markets move in different directions at different times, generally called cycles. Different market cycles tend to favour one investment style over another. Understanding how growth and value investment styles differ and where they can work together will help demonstrate how they can both play an integral role in your equity portfolio construction.

Recently, we sat down with SVP and CIO, Paul Holba to get his thoughts on the events that have impacted markets year to date, and where the investment team sees opportunity going forward. In this video, Paul shares:

• How almost 73% S&P500’s returns were attributed to the performance of a handful of companies known as the “Magnificent Seven Stocks”.
• The impacts of the aggressive interest rate hikes by Central banks, what investors can expect and how it could affect their portfolios.
• How staying true to an active management strategy may be instrumental in preserving wealth during a global economic slowdown.

In early June, the S&P 500 rose by more than 20% from its October low, reaching its highest level since April of last year. Often observed as a barometer for the overall health of the U.S. economy, the index’s strong performance generated some optimism with respect to the trajectory of the U.S. economy. However, when considering the market breadth, which refers to the number of stocks that are moving the index, a less optimistic picture emerges.

Insurance companies in Canada paid out 75 per cent more in mental health claims in 2021 compared to 2019 (CLHIA), but disability claims with a mental health component have been on the rise for many years. In this blog, Michelle Cortes, our product manager for long-term disability, interviews Ian Bridgman, Executive Director of The Claim Lab, and Steve Higgins, who oversees the management of disability claims at Empire Life, to discuss how The Claim Lab is helping us manage mental health claims through enhanced predictive analytics. Empire Life was the first insurance company in Canada to work with The Claim Lab. 

In this Off the Cuff video, Ashley Misquitta, CFA, Senior Portfolio Manager and Investment Strategist, shares what it will take for the economy to transition from fossil fuel to more renewable energy-based resources, and where the team see potential investment opportunities.

In a recent advisor webinar with guest speakers Stephen Frank, CLHIA President and CEO, and senior members of the Empire Life claims investigative team, Richelle Feddema and Raman Sharma, our hosts Marc-André Blondeau, regional vice-president of group distribution in Quebec and Eastern Canada, and Michelle Wegner, director of sales enablement at Empire Life, discussed industry efforts to tackle group benefits fraud. In this post, we share some of Marc-André and Michelle's post-webinar conversation with Stephen. Next week, we'll share their conversation with Richelle and Raman. 

In this Off the Cuff video, fixed income senior portfolio manager Albert Ngo discusses inflation, economic growth and possible outcomes for the market.

How pharmacogenomics can prevent drug spend waste

More and more Canadians are taking prescription drugs as chronic disease and mental health problems become more widespread. But prescribing can be a challenge because each person’s unique metabolic profile—informed by their unique genetics—determines which drugs will work and which will not. Empire Life has been working with Pillcheck for three years to help plan members find the right pharmaceutical treatments sooner rather than later, so they can enjoy their lives and return to work without needless delay. For employers, the savings can add up: depending on the diagnosis, drug therapy guided by Pillcheck can save between $350 and $5000 per patient. 

In a recent video, Paul Holba, CIO, reviews the key market events of 2022 and outlook for 2023. He also shares how the team’s investment strategies reflect our cautious view of the environment, but with some positive outlooks and opportunities.

In my last article, I wrote about the benefits of a buy and hold strategy where an investor stayed in the market through the ups and downs of a particular investment.