Conning Launches Capability to View Combined Risk in Insurers’ General Account and DB Pension
March 03, 2020
May Help Improve Net Income, DB Plan Funding - and the Bottom Line
HARTFORD, CT – March 3, 2020 — Leading global investment management firm Conning has developed a capability to help insurers address a potential blind spot: the full investment risk of their general account and defined benefit (DB) pension plan separate account assets. Insurers’ inability to see the full picture may lead to missed opportunities to improve net income, pension plan funding and their bottom lines.
A video and a Conning Viewpoint help illustrate that missing the big picture of investment risk may weaken enterprise risk management and lead to inefficient investment strategies. Conning’s solution, based on our deep understanding of insurance and pension asset management, aims at providing insurers a comprehensive view of general account and DB assets.
“We have seen insurers with sizeable annuity business position their DB asset portfolios inconsistently – even counter-productively – with their general account assets,” said Sean Kurian, managing director and head of Conning’s Institutional Solutions group. “Like a pair of prescription glass, our solution can help insurers capture the full view of their general account and pension assets, an important step in developing the holistic, customized investment strategies that can better serve their needs.”
The capability addresses the most vexing problem for insurers: comparing general account assets, which under statutory accounting are treated at amortized cost, with DB pension plan assets, which are evaluated on a total-return basis. “We believe Conning’s analysis is unique in the U.S. insurance market and a testament to our deep institutional investment expertise in both the insurance and corporate pension areas,” Kurian said.
Conning (www.conning.com) is a leading investment management firm with approximately $179 billion in global assets under management as of December 31, 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 December 31, 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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