Asset management firms managed $886 billion in external insurance company assets at the end of 2005, according to a new survey from Insurance Asset Manager, an industry newsletter. The survey, which polled 41 asset managers, found the amount of externally managed assets increased roughly 31% from the previous year, as more insurance companies outsourced the investment of general account assets.
A growing number of insurers continue to outsource their assets to fixed-income managers, a trend that is expected to continue, said Alex McCallum, editor of IAM. He added that insurance companies are also diversifying and investing in more equities and alternative investments, which will contribute to the future growth in outsourced assets.
Deutsche Asset Management remained the largest manager of external general account insurance assets, with $142 billion under management, according to the survey. It was followed by BlackRock, with $91 billion; Conning Asset Management, $53 billion; Wellington Management, $50 billion; General Re-New England Asset Management, $45 billion; GE Asset Management, $43 billion; Western Asset Management, $25 billion; Evergreen Investments, $22 billion; AllianceBernstein, $21 billion; and Standish Mellon, $16 billion. Overall, these 10 asset management firms run roughly 80% of the total externally managed general account insurance assets.