Investment strategies for insurers over the past few years have been driven by market actions and insurer reactions. According to Dan Mainolfi, a Managing Director and Portfolio Manager at Conning, insurers have added complexity to their investment strategies, including more equities, and reduced expectations going forward.
On a standalone basis, Mr. Mainolfi says insurers need to reconsider adding some risk in individual strategies, from vehicles like emerging market debt and commercial mortgages. But, he notes, when you consider the diversification most insurers employ, the overall risk is at an acceptable level.
Mr. Mainolfi says Conning’s approach is “solutions-driven and needs-based.” Conning begins by understanding the client’s needs. Conning models the client’s unique needs, while taking into account their businesses, their liabilities, their risk preference, as well the goals of their stakeholders. The result is a unique solution customized to the client’s needs.
Conning believes success is more than simply outperforming a total return benchmark. While important, investment strategies attempt to solve multiple goals simultaneously. Conning tends to have a medium- to long-term horizon to their views, all grounded in a belief in analysis and diversification…the bedrock of Conning’s investment philosophy.
For more on institutional investing for insurance carriers, visit the Conning website.