Filed Under:Markets, Company News

Conning: Life insurers are revising investments

The Conning study analyzes life industry investments for the period 2008-2012 for the industry as a whole, by insurer size, and for five peer groups.
The Conning study analyzes life industry investments for the period 2008-2012 for the industry as a whole, by insurer size, and for five peer groups.

The U.S. life insurance industry is shifting its investment allocations as liquidity pressure has eased, according to a new study by Conning.

“In 2012 life insurers shifted allocations to reduce holdings in common and preferred stock and increased cash, short term bonds and Schedule BA assets,” says Mary Pat Campbell, analyst at Conning. “We view these shifts as an attempt by life insurers to both increase yield and minimize volatility.

“Direct holdings in real estate and mortgages also saw significant increases due to both improved valuations and increased allocations, Campbell adds. All fixed income asset classes saw growth as well.”

The Conning study, Life Insurance Industry Investments: A New Perspective on Asset Allocations and Assets,” analyzes life industry investments for the period 2008-2012 for the industry as a whole, by insurer size, and for five peer groups. The study combines a discussion of strategic issues facing the life insurance industry with a detailed examination of its investment profile.

“Though the industry gross book yield as a whole has been decreasing for some time, there is a wide distribution of yield results in the 2008-2012 study period,” says Steve Webersen, director of research at Conning. “Some insurers have maintained a consistently higher yield relative to the industry average.

“Through various analytical approaches and analyzing company groupings, we discovered there were several roads that led to higher yielding portfolios,” he adds.

 

 

Featured Video

Most Recent Videos

Behind the scenes with Vicki Gunvalson [VIDEO]

Provided by LIFEHEALTHPRO

In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI

Provided by LIFEHEALTHPRO

Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's

Provided by LIFEHEALTHPRO

An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Protesters Disrupt WellPoint Annual Meeting

Provided by LIFEHEALTHPRO

Hecklers call for more disclosures of information about political contributions.

Related resources

More Resources

Comments

Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Close
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.