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Conning Releases Groundbreaking 2026 Annuity Industry Study

HARTFORD, Conn., Feb. 12, 2026 – Conning has recently published a significant strategic study titled Transforming an Industry: Asset Manager Backed Insurers. This comprehensive analysis builds upon the 2021 report, re-evaluating the evolution within the annuity sector and highlighting the important role of asset manager-affiliated insurers as they establish themselves as pivotal players in the life annuity market.

The findings of this thorough study underline that these insurers have played a crucial role in transforming the landscape of the annuity industry. By diversifying investment portfolios in pursuit of higher returns and embracing innovative approaches such as private credit as a foundational asset class, they have redefined traditional practices. Furthermore, the utilization of reinsurance has become central to their growth strategies, prompting an increase in regulatory scrutiny linked to these vital structural changes. What initially appeared as a post-financial crisis innovation has matured into a sustainable business model that influences both emerging players and established insurers alike.

According to Scott Hawkins, Managing Director and Head of Insurance Research at Conning, "Asset manager-affiliated insurers have transitioned from perceived disruptors to setting benchmarks within the annuity industry." This transition has enabled them to integrate investment management, reinsurance, and scalable balance sheet strategies, reshaping practices related to annuity liabilities, their management, and pricing. As a result, there has been a noticeable acceleration of convergence within the life annuity sector.

The origins of asset manager-affiliated insurers can be traced back to the aftermath of the 2008 financial crisis, with notable entities like Apollo-owned Athene taking the lead. These insurers leverage their affiliations with asset management firms to harness proprietary investment resources that bolster their annuity liabilities. The report categorized these entities into two primary models: carriers focused on reinsurance that support closed blocks and flow reinsurance, and origination carriers that actively sell new annuity contracts often supported by affiliated reinsurers.

In addition, the study includes private equity-backed insurers into the broader spectrum of asset manager-affiliated players, reporting on similar ownership frameworks and common strategic objectives. Over the years, numerous conventional mutual and publicly traded insurers have also started to adopt various components of these models, highlighting an escalating convergence between both newcomers and established firms.

Key Insights from the Study

This year’s study brings forward several critical insights:
1. Market Overview: A refreshed evaluation of how asset manager-affiliated insurers have transformed the annuity landscape from 2021 to 2026.
2. Asset Diversification Trends: An in-depth examination of how private credit is increasingly being integrated into annuity portfolios.
3. Role of Reinsurance: An analysis of how reinsurance is becoming a vital element in enhancing growth, capital efficiency, and liability management.
4. Regulatory Attention: A discussion on the heightened scrutiny of asset-intensive and offshore reinsurance frameworks.
5. Future Outlook: A forward-looking perspective on potential industry structure and competition trends expected through the end of the decade.

In conclusion, the life annuity industry portrayed by Conning's findings is anything but static. It is shaped increasingly by innovative strategies, competitive investment landscapes, and distinct segmentation between firms. Some firms prioritize scale, investment aptitude, and balance sheet efficiency, while others leverage franchise strength, ratings, and distribution.

The study titled Transforming an Industry: Asset Manager Backed Insurers by Conning is now available for purchase through their official website or by contacting their customer service line at (888) 707-1177.

About Conning

Conning is a prominent investment management firm with a rich legacy in serving the insurance sector. They provide institutional investors—including insurers and pension plans—with a range of investment solutions, risk modeling software, and insightful industry research. Established in 1912, Conning operates investment centers across Asia, Europe, and North America and is a member of the Generali Group.