IAM annual survey affirms growth of asset outsourcing

According to a new survey published by The Insurance Asset Manager, insurance companies continue to rely heavily on external portfolio management, a trend that has its roots in the 2008 financial crisis and is only likely to grow.

58 US firms participated - the most respondents to date - and the survey found that amongst the participants, $1.83 trillion of non-affiliated insurer assets were under management as of Dec. 31, 2011.

Deutsche Insurance headed the primary general account category with $206.80 billion. BlackRock was second, with $204.25 billion, followed by Conning, Wellington Management and Delaware Investment Advisors.

According to David Holmes, a partner with Eager, Davis & Holmes, US insurance general account outsourced assets grew at 17 percent annually from 2009 to 2011, and comprise approximately 12 percent of US insurance assets. Davis went on to say: “our research shows that strong growth has been driven by the quest for investment returns, but also more broadly by the need for specialised strategies, investment expertise, and thought leadership.”