November 06, 2025

By Jonathan Stanley, CFA, Director – Portfolio Management; John Petchler, CFA, Director – Private Placements, and Sam Otchere, Director – Private Placements

 

Private placement securities may offer insurance companies attractive opportunities to enhance portfolio income.¹ They are generally rated investment grade and can provide higher yields and stronger investor protections than comparable public securities of similar quality and duration.

Investors should carefully consider liquidity needs when investing in private placements. Many may be able to exchange a portion of their current liquidity for the potential to capture additional yield; larger insurers often maintain significant exposure to private placements and have developed effective liquidity management strategies. Small- to mid-sized insurers, meanwhile, can benefit from working with experienced investment managers who understand liquidity requirements and have access to meaningful deal flow.

The broad range of maturities available in private placements —often wider than what is offered in public debt markets – are another potential benefit as this flexibility allows insurers to better align maturities with liabilities. In addition, private placements can support portfolio diversification by providing exposure to both U.S. and non-domestic issuers that are generally absent from the U.S. public debt markets

 

 

Click below to continue reading Conning’s Viewpoint, “Private Placements: Aiming for Greater Yields, Downside Protection and Customized Cash Flows."

 

Footnotes
1 Insurers must be qualified institutional buyers with at least $100 million in assets under management to invest in private placements.

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Conning (www.conning.com)  is a leading investment management firm with a long history of serving insurance companies and other institutional investors. Conning supports clients with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America. Conning is part of the Generali Group.

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