"At PartnerRe, we view investment risk as an integral part of our core business — the assumption and management of risk to achieve superior return on capital. Assuming capital markets risk provides diversification, helps manage volatility and enhances overall returns. Beginning in 2002, we brought the management of investment-grade fixed-income securities in-house. In 2004, we also began the internal management of equities. Of our $10.7 billion total of invested assets, we now manage 95% in-house. This allows us to have a more holistic approach to our business, complementing our reinsurance operations with prudent matching of assets to liabilities. It also gives us the highest degree of control over asset allocation decisions. We invest our substantial cash flows for optimum risk-adjusted returns, and minimize risk through diversification across asset classes and stringent internal controls and processes. The result has been superior returns, regularly beating risk-adjusted benchmarks."