December 6, 2006
| Contact: | Anne Steinberg or James Briggs Kitchen Public Relations, LLC 212-687-8999 anne@kitchenpr.com or jbriggs@kitchenpr.com |
Conning Research: Life Insurers - Especially Variable Annuity Providers -- Adopting New Capital and Risk Management Measures
Hartford, CT, December 6, 2006 - Traditional methods of measuring capital, risk and value creation no longer adequately serve the variable annuity insurer due to the complexity of new guaranteed benefits, according to a new study by Conning Research and Consulting, Inc. As a result, managers are developing alternatives as they pursue growth in the retirement market.
"Variable annuities, with their market-dependent benefits and guarantees, are at the forefront of complexity and change in the life industry," said Scott Hawkins, analyst at Conning Research & Consulting, Inc. "Companies that succeed at gathering retirement assets will improve their evaluation and management of the capital that offsets the financial risks generated by these benefits."
The Conning Research study, "Capital and Risk in Variable Annuities: The Rise of Economic Value and Beyond" looks at variable annuity companies to explore issues related to capital, risk and value creation in the insurance industry.
"For variable annuity providers, managing capital and risk increasingly moves beyond allocating financial resources to satisfy regulatory concerns, to becoming a basis for strategic decision making," said Stephan Christiansen, director of research at Conning Research. "Insurance companies must effectively manage two types of capital-regulatory capital for determining solvency, and economic capital to support strategic decision making. The good news is that there is interdependency between the two; effectively managing regulatory capital improves the company's economic capital."
"Capital and Risk in Variable Annuities: The Rise of Economic Value and Beyond" is available for purchase from Conning Research & Consulting, Inc., by calling (888) 707-1177 or by visiting the company's web site at www.conningresearch.com.
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 50 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.
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