Investments / Financials
The WCRA’s investment program is governed by the Investment Policy, which consists of the following components:
- Investment Objectives
- Asset Allocation and Rebalancing
- Policy Benchmark Construction
- Investment Authorizations and Restrictions for Investment Managers
- Roles and Responsibilities
- Investment Manager Evaluation Guidelines
The WCRA’s current assumed investment return is 6.5 percent. This is the discount rate assumed in pricing and loss reserving. The WCRA Investment Policy currently includes asset allocation targets of 40 percent for domestic equities, 20 percent for international equities, 30 percent for fixed income investments, and 10 percent for alternative investments. The WCRA has a very long-term investment horizon, corresponding to the nature of our liabilities. The WCRA’s asset allocation is more similar to a pension plan allocation than a typical insurance company allocation. The WCRA’s asset allocation is based on the investment objectives, which include objectives of assuring that the WCRA has sufficient assets to satisfy its liabilities and of achieving the assumed rate of return.
The WCRA prepares an annual report, which includes audited financial statements and a management discussion and analysis of the financial statements.