The Optimal Investment Portfolio Management for Insurance and Reinsurance Companies in Gulf Cooperation Council (GCC)

Abstract

This study aims to find the optimal investment portfolio management for the insurance and reinsurance companies in GCC. The researcher collected the data from the annual reports of the 30 companies listed in the respective stocks exchange from 2016 to 2020, based on the top five company's GWP from each GCC country as of 2020. Descriptive analysis for each country and each year of the study period was used to find the mean ROI and the average level of the strategic asset allocation; the pairwise correlation was used between the ROI and Libor. The results indicate the mean ROI for the insurance and reinsurance companies, the average level of SAA allocation by country and by year, the investment income has enormous effects on the performance of the insurance and reinsurance companies, the investment allocation to risky assets does not necessarily generate a high ROI, the thirty sampled insurance and reinsurance companies have generated ROI above 3%. This study contributes to the foundation of the investment portfolio management studies for insurance and reinsurance companies in the GCC countries.