- World Economic Forum(WEF) Global Risks Report 2019 highlights worsening international relations hindering action across a growing array of serious challenges
- Comments on Brexit vote impasse
- Allianz Risk Barometer highlights cyber and concerns around Brexit as as top risks in UK
- Willis Re's Summary of Natural Catastrophe Events 2018 report estimates insured losses from major natural catastrophes at around $71.5bn
- BIBA highlights opportunities for business in 2019 Manifesto
- UK Comprehensive car insurance prices fell by 6% in 2018 says Confused.com/ Willis Towers Watson analysis
- Insurance Europe concerned that the European Commission’s proposal for an ePrivacy Regulation could hamper insurers’ ability to offer innovative insurance policies to consumers expired
- ArgoGlobal collaborating with broker Axieme and digital platform Jobby in Italy to respond to a need for on-demand, pay-as-you-go insurance for temporary and short-term workers expired
- LV= General Insurance successfully deploys Guidewire Core and Data solutions in the largest transformation the business has ever undertaken expired
- Marsh announces that it had placed more than 10,000 risks in 2018 through Placing Platform Limited(PPL)-over 15,000 in total expired
- ZhongAn and Grab to establish joint venture company to enter the digital insurance distribution business in Southeast Asia expired
- Greenlight Capital Re becomes largest shareholder in Chicogo-based MGU AccuRisk expired
9th January 2019
Conning study says US Life-Annuity industry has been redefining itself to respond to pressures and build value
The US Life-Annuity industry has been redefining itself to respond to pressures and build value, according to a new study by Conning.
"Life and annuity insurers have enjoyed almost a decade of positive statutory income following the recession of 2008," said Terence Martin, a director, Insurance Research at Conning. "Over that time, insurers have pursued both organic and inorganic growth strategies to increase net income. Organisational repositioning has been a particular focus-especially for stock insurers-resulting in mergers and acquisitions, and in insurers shedding unwanted books of business."
The Conning study, "Life-Annuity Value Creation Strategies: Reorganization and New Players" analyzes the inorganic strategies that insurers have used over the last decade to increase net income and create value for their policyholders and stockholders.
"We analyzed insurer repositioning actions that, in aggregate, impacted more than 25% of US Life-Annuity industry assets and premium as of the end of 2017," said Steve Webersen, head of Insurance Research at Conning. "That analysis found that the key drivers of repositioning activities were regulatory pressure, shareholder pressure, and pressures from annuity volatility. Insurer exits from certain lines and businesses have created opportunity for new entrants to provide capacity to absorb increasingly complex closed blocks of business. For many of these new entrants, the attraction to the life-annuity industry has been the ability to buy and grow asset management businesses."
The study is available for purchase from Conning by visiting www.conningresearch.com.
Conning Trends(124 articles)