Citigroup hired Conning Asset Management to run $8 billion in insurance assets belonging to several Citigroup subsidiaries, confirmed Sal Correnti, Conning's CEO. Conning, which now manages $62 billion, will manage the insurance assets of Citigroup's Primerica Life Insurance, American Health & Life Insurance and CitiFinancial International. Each subsidiary's assets will be managed as separate portfolios, Mr. Correnti said, but he declined to identify the types of investment strategies that Conning will use to manage the assets. The money had been managed by Citigroup's Insurance Investment unit.
As part of the arrangement, Conning will also add 20 employees that ran the assets at the three Citigroup subsidiaries. David Miller, former portfolio manager and head of the Citigroup Insurance Investment team, will now be a managing director at Conning and will be responsible for the Citigroup portfolios. Also, John Calcagni, former head of investment accounting and reporting for Citigroup Insurance Investments, will now be head of Conning's accounting and reporting team. The remaining Citigroup employees will join Conning's existing high-yield, emerging markets and private placement fixed-income teams and will work out of Conning's Hartford offices, said Mr. Correnti.
Mark Supic, a spokesman for Citigroup, did not return calls for comment.