Conning Viewpoint Examines the Next Phase of Life Insurance Investing

HARTFORD, Conn., Sept. 22, 2026 /PRNewswire/ -- Conning has released a new viewpoint, The Next Phase of Life Insurance Investing: Balancing Opportunity, Complexity and Capital, examining how life and annuity insurers are evolving investment portfolios as changing interest rates, growing competition and increasing portfolio complexity reshape investment decisions.

Drawing on Conning's analysis of life insurer investment portfolios, the viewpoint highlights evolving asset allocations, increased use of commercial mortgage loans and Schedule BA assets, the growing role of structured securities, and differences in CLO utilization between life and annuity carriers.

Since 2016, life insurers' allocation to long-term bonds has declined from 80% to 72% of invested assets, reflecting a broader shift in portfolio construction. Structured securities now represent 26% of industry bond portfolios, with annuity carriers maintaining higher allocations than traditional life insurers.

"Investment strategy may become an increasingly important differentiator for life and annuity insurers as portfolios evolve," said Matt Reilly, a Managing Director and the Head of Insurance Solutions at Conning. "Insurers have access to a broader range of investment opportunities, but must balance return objectives with liquidity, capital efficiency, asset-liability management and risk across the portfolio."

The report explores how insurers are navigating these trade-offs as portfolios become more complex and less liquid assets grow. It concludes that insurers should evaluate investment strategies within the context of liabilities, liquidity, capital, governance and investment capabilities, with disciplined portfolio construction and risk management remaining essential.

To read the full viewpoint, click here. 

About Conning

Conning (www.conning.com) is a leading investment management firm with a long history of serving the insurance industry. Conning supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe, and North America. Conning is part of Generali Investments.

MEDIA CONTACTS:

Alyssa Gittleman
Conning
860-229-2288
[email protected] 

Katrin Lieberwirth
Stanton
646-502-3548
[email protected]

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SOURCE Conning