Insights

Q2 2017 State of the States Report

05/01/2017

Conning's view is that state credit quality continues to decline. Measures of state credit strength have worsened since our last report in October 2016. State revenue growth is falling short of expenditure growth and as a result state reserves are under pressure.


American Health Care Act May Offer Relief to Health Insurers

05/01/2017

The American Health Care Act (AHCA) that was passed by the House of Representatives on May 4, 2017, which is intended to reform the 2010 Affordable Care Act (ACA), introduces a number of changes to the health care market.


The New Investment Environment: Challenges & Opportunities

02/16/2017

The continuing low interest rate environment has taken its toll on investment results for the life insurance industry. Gross book yield decreased once again for the life-annuity industry. Insurers have been searching for levers to improve their returns, and yet, the interest rate environment has relentlessly pulled yields down.


Conning Chairman & CEO on Risk Forecasting: Best’s Review column

02/01/2017

Conning’s focus on delivering customized investment solutions to insurance clients demands that we understand their unique needs. CEO Woody Bradford notes in February’s Best’s Review that risk forecasting has become increasingly difficult for insurers due to economic and political uncertainty, and suggests they consider modernizing their approach and use a broader set of tools and techniques to create more useful financial models.


Trumping the Credit Cycle? The 2017 Outlook for U.S. Investment Grade Corporate Credit

01/31/2017

Change in the U.S. investment environment is inevitable in 2017 as a U.S. government administration with a new outlook on market forces and government regulation takes control of the levers of power in Washington D.C. The 18th century philosopher and economist Adam Smith wrote about the power of the “invisible hand” of markets in his famous tome, The Wealth of Nations. The past 8 years have been witness to the highly visible hand of increased regulatory oversight, and its power to restrain both markets and potential economic growth.


Does the U.S. Dollar Have Further to Fall?

01/22/2017

Marc Franklin, Asia-Pacific portfolio manager at Conning, discusses the weakness in the U.S. dollar, his outlook for risk assets this year and how markets move on Trump's tweets. He speaks to Bloomberg's Shery Ahn on "Bloomberg Markets." (Source: Bloomberg) 


Tax Cuts, AMT and Munis: Taxes and Municipal Bond Allocation for Property-Casualty Investors

01/16/2017

The potential for lower tax rates under a new administration could have a significant impact on Property-Casualty (P/C) insurers' capacity for municipal bonds, and will certainly affect the tax-equivalent yield (TEY) (makes the yield on a tax-advantaged security comparable to a taxable) multiplier yield.


Liability Driven Investing for Insurance Companies

12/01/2016

In this Q&A, Conning’s Head of Insurance Solutions provides insurers his insights on the use of liability driven investing, including investment strategies that insurers should consider.


Post-Election Pension De-Risking Strategy Considerations

11/28/2016

Based on the pre-election rhetoric, there is little doubt that the president-elect, Donald Trump, is expected to employ a progrowth economic policy that may stimulate US growth and reduce unemployment.