Conning Viewpoint: As Equity Volatility Challenges Portfolios, Modeling May Help Insurers Better Understand Equity’s Long-Term Value

August 08, 2022

Second in Series of Viewpoints Examining How Firm’s Modeling Software and Expertise Helps Insurers Develop Holistic Enterprise Solutions

HARTFORD, CT – August 8, 2022 – Leading global investment management firm Conning has posted a Viewpoint highlighting how modeling techniques may help insurers better understand the potential long-term value of equities, given rising concerns about higher volatility. The article is the second in Conning’s “Risk Matters” series, developed to illustrate how the firm’s proprietary modeling capabilities and expertise helps insurers develop holistic enterprise solutions.

“Despite current equity market conditions, we remain convinced that many insurers would benefit from exposure to stocks and other growth assets over the long term,” said Matt Reilly, a managing director in Institutional Solutions and the report author. “And a number of insurers should consider expanding their equity holdings.”

Reilly notes significant inconsistencies in investment strategies across the industry. For example, P&C firms vary widely in their asset allocations, remarkably so for companies that have more in common than not. However, insurers with larger equity exposures have benefitted significantly from the allocations over the longer term, he said.

“Our analysis illustrates the value that higher equity allocations can have for the industry in aggregate, but each company is unique with regards to its underwriting risk, risk tolerance, rating and regulatory considerations and state regulations.” Reilly said.

Conning’s strategic asset allocation (SAA) process helps clients develop diversified investment strategies customized to their specific needs and risk tolerance, leveraging proprietary software such as our GEMS® Economic Scenario Generator and FIRM® Portfolio Allocator.


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Conning ( is a leading investment management firm with almost $191 billion in global assets under management as of June 30, 2022.* With a long history of serving the insurance industry, Conning supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.

*As of June 30, 2022, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited (CHL) and Cathay Securities Investment Trust Co., Ltd. (SITE). SITE is a separate entity under Cathay Financial Holdings Co., Ltd which is the ultimate controlling parent of all Conning entities. The CHL CEO sits on the Board of SITE and helps oversee the business.


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