Executive Summary Property and casualty (P&C) insurers often focus on three areas of their invested assets: sector, credit and duration. The latter two focus on fixed income, but all areas are connected to a certain extent. Of course, other portfolio characteristics1 play a role as well. However, when we look closer at sector, particularly eligible asset classes, there is a common theme with most P&C companies. In recent years, about 75% to 80% of their holdings were with investment grade core fixed income, including a notable amount of cash and high quality, short duration assets.2 The remaining 20% to 25%3 were with risk assets, led by common stocks. Apparently, these insurers take a “barbell” approach to investing – higher risk positions like equities are offset with relatively lower risk positions like short duration, highly liquid bonds. The result may be an aggregate portfolio volatility risk that is acceptable, but not necessarily balanced across a risk spectrum. This binary view of very high versus very low risk assets may overlook a broader and richer range of complementary opportunities. Moreover, these opportunities are within the low-to-high risk ranges of the barbell, achieve similar portfolio and enterprise risk profile estimates, and increase overall return expectations. In this issue of Perspectives, we will explore the implications of this barbell sector risk-taking approach versus a more comprehensive one that includes a broader range of investment opportunities.