New Viewpoint Offers Insight on FHLB Programs and Issues for Insurers to Consider

November 06, 2019

New Viewpoint Offers Insight on FHLB Programs and Issues for Insurers to Consider


HARTFORD, CT – November 6, 2019 –Leading global investment management firm Conning has issued a primer to help insurance companies better understand the Federal Home Loan Bank (FHLB) system and how its lending programs may be a valuable financial resource. FHLB programs could help insurers enhance profitability, balance-sheet strength and financial stability.


The Conning viewpoint, "FHLB for Insurers: A Source of Incremental Income in a Time of Lower Yields," is intended to help insurers understand the FHLB system, a collection of 11 regional banks that operate independently, and how some lending programs may work for insurers. Conning helps clients access the opportunities and believes small and mid-size insurers should join attempt to join their larger brethren in taking advantage of FHLB programs.

“Given the ongoing pressures insurers face in this period of low interest rates and rising volatility, the FHLB is an additional financial resource they may want to consider,” said author Matthew Reilly, Director, Institutional Solutions. “However, navigating these variables and weighing the choices can be a complex and time-consuming process, so Conning leverages our long-term relationships with FHLB banks and our proprietary tools and investment framework to assist.”

The Viewpoint offers a high-level view of the typical membership process for FHLB banks as well a detailed look at “spread investing,” a process in which FHLB loans may help insurers potentially generate greater portfolio income.

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Conning (www.conning.comis a leading investment management firm with approximately $171 billion in global assets under management as of June 30, 2019.* With a long history of serving the insurance industry, Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America. 

*As of September 30, 2019, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited, Cathay Securities Investment Trust Co., Ltd. (“SITE”) and Global Evolution Fondsmæglerselskab A/S and its group of companies (the “Global Evolution Companies”).  The Global Evolution Companies are affiliates of Conning.  SITE reports internally into Conning Asia Pacific Limited, but is a separate legal entity under Cathay Financial Holding Co., Ltd. which is the ultimate controlling parent of all Conning controlled entities.

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