its reserves.

Investors Guaranty, formed in 1985, has pioneered the use of financial markets to back insurance underwriting.

The company said it hired Gabelli Asset Management Company (GAMCO) Investors, Inc. to manage "a values equities strategy for statutory reserves, supporting its insurance and other activities''.

GAMCO, which manages funds in excess of $5 billion, invests in undervalued companies that are selling below their intrinsic or private market value.