Strategic Asset Allocation for Life Insurers

This guide outlines Conning's Strategic Asset Allocation (SAA) approach tailored for life and annuity insurers. It emphasizes the importance of a holistic investment strategy that aligns with an insurer's overall business objectives, including liabilities, policyholder behavior, and regulatory requirements. The document details how Conning's SAA framework integrates asset and liability management to optimize investment portfolios while considering various stakeholder needs. It describes the use of the GEMS® Economic Scenario Generator to simulate economic conditions and assess investment strategies. The guide also highlights the significance of duration analysis and peer analysis in evaluating portfolio performance relative to industry standards. Additionally, it discusses risk management techniques, including back-testing and stress testing, to validate investment decisions. The ultimate goal of Conning's SAA process is to enhance returns and mitigate risks, ensuring that insurers can effectively communicate their strategies to stakeholders and achieve their financial objectives.