Conning Analyzes Evolving Investment Strategies in Life Insurance Industry
Conning has released an analysis titled 'The Next Phase of Life Insurance Investing,' which explores how life and annuity insurers are adapting their investment portfolios amid changing interest rates, increased competition, and portfolio complexity. The report highlights a shift away from long-term bonds—down to 72% of invested assets since 2016—and the growing use of structured securities (now at 26% of bond portfolios), commercial mortgage loans, and Schedule BA assets. The analysis emphasizes that investment strategy is becoming more critical for insurers as they balance return objectives with liquidity needs, capital efficiency, risk management, and asset-liability alignment. Matt Reilly, Managing Director at Conning, noted the importance of disciplined portfolio construction in navigating these evolving dynamics. The report concludes that insurers must evaluate strategies within broader financial contexts including liabilities, governance, and investment capabilities. Conning is a long-standing firm supporting institutional investors with insurance-related solutions and research.
Topics: capital_management investment_portfolios life_insurance structured_securities