Conning has carved out a niche for itself in insurance asset management. The company scoops the award for the second year in a row through its diligent work at a time when insurers' investment needs are becoming increasingly complex.
Its focus has always been on the unique needs of small and mid-sized insurers, for whom it uses a highly consultative approach focused on education and guidance. The firm also leverages an array of traditional and alternative asset capabilities more commonly used by larger insurers, but less prevalent among smaller firms.
Many of its clients are prioritising access to new strategies and investment skills as one of the leading considerations in their outsourcing choices. Last year, it helped one specialty insurer which had accumulated a significant portfolio of cash that was managed internally and was looking to optimise this.
The client was risk averse, having achieved strong operational performance despite a large cash portfolio, but had not appreciated the risk of inflation.
The firm was open to new ideas, but questioned the need for riskier assets, such as equities. Conning back-tested its recommended strategy against many historical conditions and eventually worked with the client to transition the portfolio from an all cash to one with exposures in MBS, ABS and CMBS, corporate credit and treasuries, and even equities.
Conning also helped an insurer of weather-related incidents, which was outsourcing its investment management to seven managers, to simplify its strategy, particularly in equities. Its solution was to move to Conning's high-dividend equity strategy, along with a select portfolio of ETFs in a multi-week transition.
The asset manager broadened its capabilities in 2023 with its acquisition of Pearlmark Real Estate, a specialist manager of commercial real estate debt and equity. And the future looks even brighter after Generali Investments Holding, the asset management arm of Generali Group, completed the acquisition of Conning in April. Conning says the acquisition will enable it to develop new ways to serve insurers' asset management needs.
