Investments

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 35 percent for domestic equities, 20 percent for international equities, 15 percent for private equity, 20 percent for fixed income, and 10 percent for private debt. 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.

WCRA Investment Policy

 


Financial Reporting

The WCRA prepares an annual report, which includes audited financial statements and a management discussion and analysis of the financial statements.

WCRA Annual Report