Need for Income in Low-Yield Environment Causing Many to Add BBB-rated Bonds
Conning’s Mary Pat Campbell and Cynthia Beaulieu discuss insurance asset-allocation trends, the concerns of rising exposure to riskier bonds, and how portfolio diversification can help improve income and reduce risk.
Pension Funded Status Tracker December 2019
The month of December alone was a good month for the average pension plan as the funded status over the month increased by 2% from 91% to 93%. The asset portfolio increased driven by equities and alternative assets, while liabilities decreased due to an increase in interest rates.
Pension Funded Status Tracker November 2019
During the month of November, the funded status of the average U.S. corporate defined benefit pension increased by 1% to 91% funded. The asset portfolio increased due to strong equity market performance, while liabilities had a slight decrease due to an increase in rates.
Webinar: An Introduction to the CLO Debt & Equity Asset Classes
Conning believes many insurers could benefit from an exposure to collateralized loan obligations (CLOs) but may be hesitant to invest in an unfamiliar asset class. Our affiliates at Octagon Credit Investors are highly experienced CLO investors and managers and have developed this educational webinar on the asset class.
Pension Funded Status Tracker October 2019
Over the course of October, the funded status of the average U.S. corporate defined benefit pension increased by 1% to 90% funded. Investment gains in the growth portfolio was the key driver of asset performance, though liabilities were relatively flat and as a result, the effective discount rate dropped by only two basis points.
Cyber Coverage: What You Don't Know Might Hurt You
The threat of cyber-attacks – attempts by hackers to damage or destroy a computer network or system – continues to grow. So too does the threat of the “silent cyber” risk for insurers: the exposure to claims from polices that were neither intended to respond to, nor priced for, cyber-related events.
Pension Funded Status Tracker September 2019
During the month of September, the average corporate defined benefit pension plan’s funded status increased by 2% to 89% funded. The asset portfolio marginally increased in value, while liabilities decreased in value as a result of increased interest rates.
Pension Funded Status Tracker August 2019
During the month of August the funded status of the average U.S. corporate defined benefit pension fell by 3% to 87% funded. The asset portfolio witnessed mixed returns though increased in overall value over the month and liabilities also increased in value, primarily driven by a large drop in interest rates.
CLOs: A Distinct Income Opportunity in Today's Environment
Fixed-income investors concerned that interest rates will rise might want to consider collateralized loan obligation (CLO) securities. CLOs feature floating interest rates, which may help hedge against rising market interest rates.
Insurance M&A in the First Half of 2019: Taking a Breather
The pace of mergers and acquisitions (M&A) in the insurance industry slowed during the first half of 2019 compared to the same period in 2018. However, we expect more deals as the year progresses. Conning’s Jerry Theodorou offers insights on trends in M&A activity across insurance sectors through the first half of 2019.