Conning Research: Property-Casualty Insurers’ Investment Strategy Focused on Cycle Management

(Hartford, CT) May 30, 2006 – Cycle management is the key driver of property-casualty (P-C) insurance company investment strategies today, according to a new study by Conning Research and Consulting, Inc.

“Regardless of size or underwriting focus, P-C insurers adjusted their investment portfolios in response to cycles in the underwriting and economic conditions from 2000 to 2004,” said Clint Harris, analyst at Conning Research & Consulting. “We may now be seeing the beginnings of a more profound change in investment strategies as a result of enterprise risk management. However, hard data indicate that underwriting cycle management is still the catalyst behind most changes in allocation among principal investment classes.”

The Conning Research study, “Property-Casualty Investment Survey & Analysis: Emerging Cycle of Opportunities,” analyzes investment conditions and trends in the P-C industry, including a breakdown of investment profiles by size and underwriting peer groups. Conning Research surveyed industry executives in preparing this analysis.

“In 2004 much of the industry appeared to be moving toward higher-return investments as the underwriting cycles softened, bond yields increased, and equity market values grew,” said Scott Daniels, managing director at Conning Research & Consulting. “With a forecast of generally waning hard market underwriting conditions in 2006 and softer conditions in 2007, insurers may focus more on investment returns to keep company profits from sagging.”

“Property-Casualty Investment Survey & Analysis: Emerging Cycle of Opportunities” is available for purchase from Conning Research & Consulting, Inc., by calling (888) 707-1177 or by visiting the company’s web site at

About Conning Research & Consulting, Inc.

Conning provides insurance industry analysis to insurers and industry stakeholders. The Conning name has represented excellence in independent insurance industry research for more than 90 years. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth insights and analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.