Growing Pains at Property-Casualty Mutuals - Strategies for Action


Michael Warner
Conning, Inc.

Conning—Property-Casualty Mutuals Have Diversified Growth Options

(Hartford, CT) November 7, 2017—In the past decade, surplus growth at mutuals has far outpaced stock insurer growth, however, premium growth has lagged, according to a new study by Conning.

“As a group, property-casualty mutuals are in strong operating positions, with low leverage, favorable underwriting performance, and solid balance sheet strength,” said Jerry Theodorou, a Vice President, Insurance Research at Conning. “However, top line growth has been challenged by a number of factors, including demographic changes, the war for talent, and a highly competitive and increasingly sophisticated private passenger auto insurance market. The combined impact of these pressures is leading executives at mutual insurers to look beyond current favorable results and consider competitive positioning of mutuals five and ten years hence.”

The Conning study, “Growing Pains at Property-Casualty Mutuals: Strategies for Action” reviews the growth initiatives that mutuals have employed in recent years.

“In recent years, many mutuals have pursued growth through a variety of nonstructural and structural initiatives,” said Steve Webersen, Head of Insurance Research at Conning. “These initiatives range from fundamental operational improvements and affiliations to more complex structural changes such as mergers or demutualizations. We expect mutuals will accelerate their growth and innovation initiatives to remain relevant and strong.”

“Growing Pains at Property-Casualty Mutuals: Strategies for Action” is available for purchase from Conning by calling (888) 707-1177 or by visiting

Conning ( is a leading global investment management firm with more than $117 billion in global assets under management as of September 30, 2017.* 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 offices in Boston, Cologne, Hartford, Hong Kong, London, New York, and Tokyo.                                                                                     

*As of September 30, 2017, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited, and Cathay Securities Investment Trust Co., Ltd. ("SITE"). 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 entities.