Life-Annuity Value Creation Strategies: Reorganization and New Players
Conning—U.S. Life-Annuity Industry Reorganizes to Create Value
(Hartford, CT) January 7, 2019—The U.S. Life-Annuity industry has been redefining itself to respond to pressures and build value, according to a new study by Conning.
“Life and annuity insurers have enjoyed almost a decade of positive statutory income following the recession of 2008,” said Terence Martin, a Director, Insurance Research at Conning. “Over that time, insurers have pursued both organic and inorganic growth strategies to increase net income. Organizational repositioning has been a particular focus--especially for stock insurers--resulting in mergers and acquisitions, and in insurers shedding unwanted books of business.”
The Conning study, “Life-Annuity Value Creation Strategies: Reorganization and New Players” analyzes the inorganic strategies that insurers have used over the last decade to increase net income and create value for their policyholders and stockholders.
“We analyzed insurer repositioning actions that, in aggregate, impacted more than 25 percent of U.S. Life-Annuity industry assets and premium as of the end of 2017,” said Steve Webersen, Head of Insurance Research at Conning. “That analysis found that the key drivers of repositioning activities were regulatory pressure, shareholder pressure, and pressures from annuity volatility. Insurer exits from certain lines and businesses have created opportunity for new entrants to provide capacity to absorb increasingly complex closed blocks of business. For many of these new entrants, the attraction to the life-annuity industry has been the ability to buy and grow asset management businesses.”
“Life-Annuity Value Creation Strategies: Reorganization and New Players” is available for purchase from Conning by calling (888) 707-1177 or by visiting www.conningresearch.com.
Conning (www.conning.com) is a leading investment management firm with approximately $134 billion in global assets under management as of September 30, 2018.* With a long history of serving the insurance industry, Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, award-winning risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
*As of September 30, 2018, 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.