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Conning nudges insurers toward private equity, hedge fund risks

Insurers that have been supporting portfolios with credit risk to counter low interest rates should consider diversifying with alternatives such as private equity, asset manager Conning & Co. said.

By Sonali Basak | Updated on August 06, 2015
Scott Daniels, head of investment advisory at Conning & Co., said a hypothetical portfolio with 20% allocated toward alternative assets instead of equities or bonds was more valuable to insurers over a five-year period. (Image: Shutterstock)

(Bloomberg) — Insurers that have been supporting portfolios with credit risk to counter low interest rates should consider diversifying with alternatives such as private equity, asset manager Conning & Co. said.

“We’re getting toward the end of the credit cycle, getting to an area where you have a lot of risk, then adding more,” Scott Daniels, head of investment advisory at the Hartford, Connecticut-based company, said in a phone interview Wednesday. “We don’t think that’s the best plan.”

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