Peer Analysis and Strategic Asset Allocation
Conning is committed to helping clients develop customized investment strategies that address their unique objectives and risk tolerance. Our Strategic Asset Allocation (SAA) discipline is the foundation of our investment approach, leveraging our financial risk models, comprehensive peer analysis and industry expertise. We also offer peer analysis separately as a valued benchmarking tool to help insurers better understand their competitive position.
Peer analysis provides useful insight into trends and opportunities in investment portfolios, underwriting and operation aspects. It can identify if a client is a relative outlier in the industry or versus peers, especially in terms of investment risk. This analysis can help prepare management for possible questions from regulators and rating agencies who often use similar tools.
If you are interested in a peer analysis report for your company, please fill out this form.
Strategic Asset Allocation
Conning’s distinctive approach to developing investment strategies includes examining the portfolio’s role within the insurer’s entire operation, rather than simply focusing on optimizing returns.
Our iterative process starts with developing a deep understanding of a client’s business and competitive landscape. We then turn to our award-winning GEMS® Economic Scenario Generator, which produces an array of economic and capital market scenarios against which we stress test a client’s financial model. This provides stochastic scenarios for a range of paths across a multi-year time frame to optimize company value, not just investment returns.
This process allows us to incorporate assets and liabilities into a single optimization, capturing the impact on business, the investment portfolio and their interdependence that can help us better identify risks and opportunities. Peer analysis helps clients understand how they compare to competitors and portfolios are finalized based on company objectives, time horizons and client comfort with risk.
Matt Reilly, Managing Director | Head of Insurance Solutions