News and Updates:Cartwright urges insurers to reconsider bitcoin’s role in strategic portfolios

As institutional thinking around digital assets continues to evolve, a small allocation to bitcoin could offer insurers an opportunity to enhance risk-adjusted returns, diversify exposures, better protect against long-term inflationary pressures, and reduce portfolio counterparty risk.

Arash Nasri, Head of Corporate Treasury, commented: “Insurers are under increasing pressure to generate returns in a high inflation and uncertain economic environment—while maintaining rigorous liability matching and regulatory capital requirements. Although bitcoin may still feel unconventional to some, its characteristics as a finite, decentralised, highly liquid asset with low correlation to traditional markets make it increasingly difficult to disregard. Despite the penal capital requirements, for the right portfolio even a small allocation—typically in the region of 2–5%—can materially improve diversification and long-term return potential, without undermining portfolio stability. Appropriate rebalancing can release investment gains whilst limiting the capital reserves required.

"For the right portfolio, bitcoin offers a credible inflation hedge—particularly given that 40% of all the US dollars in circulation have been created in just the last five years. It’s not about speculation — it’s about informed, strategic asset selection. Bitcoin now deserves a seat at the table in institutional investment discussions.”

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