June 2, 2008
| Contact: | Anne Steinberg Kitchen Public Relations, LLC 212-687-8999 anne@kitchenpr.com
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Conning Research: Annuity Industry Fastest Growing Companies--Not Necessarily the Largest
-- Fastest Growers Focus on Attracting and Retaining Assets
(Hartford, CT) June 2, 2008 - The individual annuity industry is dominated by the 20 largest companies, which garnered 81 percent of all individual annuity net premiums in 2007. Yet less than half of those 20 largest firms can be included in the list of fastest growing companies in the market, according to a new study by Conning Research and Consulting.
"While premium scale is always important, it is not by itself a clear indication of competitive ability. In fact, of the 20 fastest growing companies identified in this study, only seven are also in the list of the largest 20 companies in the market" said Scott Hawkins, analyst at Conning Research & Consulting. "With the shift to variable annuities, and the asset management fees they generate, retention of business is equally important."
The Conning Research study, "The Annuity Industry's Fast Growers: Prospering in a Scale-Driven World," identifies the 20 fastest growing companies, and analyzes their operating performance, product portfolios, and distribution channels in comparison to the largest companies in the market.
"In looking at the fastest growing companies in the annuity market, we found that these companies were willing to pay for growth. For example, the Fast Grower companies pay higher commission rates, but also get higher productivity from their distributors," said Stephan Christiansen, director of research at Conning. "Paying for that growth has compressed margins for this group, but their higher net flows should ultimately allow them to spread these costs over a larger asset base producing better long-term returns."
"Annuity Industry's Fast Growers: Prospering in a Scale-Driven World" 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 Research & Consulting provides insurance industry analysis to insurers and industry stakeholders. Its published research includes market coverage of 30 segments of the industry in addition to industry forecasting and identification and analysis of major strategic issues. 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 analyses on a wide range of industry products and issues. The Conning name has represented excellence in independent insurance industry research for 50 years. Conning Research & Consulting is a division of Conning, a provider of asset management and insurance industry research and consulting services to insurers. Conning is headquartered in Hartford, CT.
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