2022 Focus Series Press Release: Group Annuities - Finding the Growth
Conning is Pleased to Announce its Newest Focus Series-
Group Annuities: Finding the Growth
HARTFORD, CT – January 24, 2022 – Group annuities include pure investment products, such as GICs, as well as annuity products similar in design to individual annuities. Group annuities are also purchased by defined benefit plans as part of their pension de-risking strategies.
Looking from the outside, the group annuity line of business appears to have limited growth opportunities. Premium and deposit growth is strong, which in other circumstances would attract new competition. However, competition is limited, with the line being dominated by the largest insurers. So, are there growth opportunities for either established players or new entrants?
The Conning Focus Series report, “Group Annuities: Finding the Growth” examines three areas where group annuity insurers are finding opportunities to increase premiums and deposits.
“Thanks to the passage of the SECURE Act at the end of 2020, one of those opportunities has been in developing new annuity-like income solutions for the 401(k) market,” said Scott Hawkins, a Director with Insurance Research at Conning. “Our analysis finds that insurers are pursuing two different paths to reach that new market.”
“Group annuity insurers have historically been involved in manufacturing institutional investment solutions, and we see that continuing to be a growth area,” added Steve Webersen, Head of Insurance Research. “One area where that has been especially noticeable is in the manufacture and sale of Funding Agreement Backed Securities, which continues to attract new players to that market.”
“Group Annuities: Finding the Growth?” Focus Series report is available for purchase from Conning by calling (888) 707-1177 or by visiting https://www.conning.com/insurance-research.
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Conning (www.conning.com) is a leading investment management firm 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.
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