Pension Risk Management Market: Key Opportunities and Challenges


Michael Warner
Conning, Inc.

Conning—Pension Risk Management Market a Growing Opportunity for Insurers and Asset Managers

--Pension risk management market poised for continued growth

(Hartford, CT) May 10, 2016—The pension risk management market continues to attract attention from defined benefit plan sponsors, insurers, and asset managers, according to a new study by Conning, Inc.

“Plan sponsors have a continued interest in pension risk management, which stems from the ongoing funding volatility and resulting negative impact on balance sheets, long-term financial obligations, and contributions,” said Scott Hawkins, Director, Insurance Research at Conning, Inc. “Plan sponsors’ chief financial officers face uncertainty in planning future funding obligations, and the underfunded defined benefit liabilities are yet another form of long-term financial obligations. Significant funding status volatility can directly affect both credit ratings and the cost of capital.”

The Conning study, “Pension Risk Management Market: Key Opportunities and Challenges” analyzes the pension risk transfer market in the U.S. and U.K., and provides details on the insurers in the U.S. market and the issues insurers face in this developing market. The study also examines key liability-driven investment concepts.

“Insurers and asset managers are well-positioned to help plan sponsors remove or mitigate their pension risk and the funding volatility that creates cash-flow and other management issues,” said Steve Webersen, Head of Insurance Research at Conning. “Insurers have the expertise to assume a plan’s pension liabilities through pension risk transfers using annuity buyouts or annuity buy-ins. Asset managers, meanwhile, can help plan sponsors develop and implement liability-driven investment solutions that can reduce funding status volatility for the plan sponsor that chooses to retain the risk. Our analysis finds continued growth and interest in both solutions.”

“Pension Risk Management Market: Key Opportunities and Challenges” is available for purchase from Conning by calling (888) 707-1177 or by visiting the company’s web site at

About Conning®
Conning ( is a leading investment management company for the global insurance industry, with over $103 billion in assets under management as of March 31, 2016, through Conning, Inc., Goodwin Capital Advisors, Inc., Conning Investment Products, Inc., Conning Asset Management Limited, Conning Asia Pacific, and Octagon Credit Investors, LLC are all direct or indirect subsidiaries of Conning Holdings Limited (collectively, “Conning”) which is one of the family of companies owned by Cathay Financial Holding Co., Ltd., a Taiwan-based company.  The company's unique combination of asset management, risk and capital management solutions and insurance research helps clients achieve their financial goals through customized business and investment strategies. Founded in 1912, Conning provides clients with innovative solutions, leveraging its global capabilities, investment experience, proprietary research and risk management technology. Headquartered in Hartford, Connecticut, Conning also has offices in New York, London, Cologne, Hong Kong, and Tokyo.