Valerie Ge

Technological changes and the decades long low-interest-rate environment have led to increasing complexity in asset management and return pressures, leading to insurance companies seeking external help for all or part of their investments. Along with insurance asset manager survey data, Pensions & Investments aims to paint a clear picture of the insurance industry landscape. Forty-three insurance asset managers participated in the P&I survey and posted worldwide insurance/reinsurance assets under management totaling $6.41 trillion as of Dec 31, 2020.

Due to soaring interest in pension risk transfers from plan sponsors as well as the significant increase in investment outsourcing to third-party money managers by insurers, Pensions & Investments collected insurance data for the first time since 2014.

Search activity for the third quarter of 2021 decreased 9% from the prior quarter and decreased 5.9% from the third quarter of 2020. The number of traditional manager searches decreased 26%, and equity manager searches in particular decreased 50% from the prior quarter. Hiring activity decreased 22.3% from the previous quarter to $72.1 billion. The number of hires decreased 15.2% for the quarter and increased 22.1% from the same period a year ago. The number of hedge fund hires increased 110% from the previous quarter, which accounted for 36.8% of this year's total hedge fund hires through Sept. 30.

Thirty-two money management deals took place in the third quarter of 2021. In the third quarter of 2020, there were 15 transactions. Assets under management involved in the latest quarter's transactions totaled $1.04 trillion, up 167% from $389.5 billion in the previous quarter.

Search activity for the second quarter of 2021 decreased 6.9% from the prior quarter and increased 50.6% from the second quarter of 2020. Service provider searches decreased 17% and equity manager searches increased 25% from the prior quarter. Hiring activity increased 93.7% from the previous quarter to $92.74 billion. The number of hires increased 43% for the quarter and increased 23.1% from the same period a year ago.

Twenty money management deals took place in the second quarter of 2021. In the first quarter, there were 28 transactions. Assets under management involved in the latest quarter's transactions totaled $389.5 billion, down 69% from $1.26 trillion in the previous quarter. There also were 21 deals in the quarter that did not involve money managers.

During the second quarter of 2021, 44 ERISA-related lawsuits were filed and/or updated. Each event represents the involved parties either reaching a settlement or filing an appeal, or a court decision was made. During the second quarter of 2021, 16 stories were written on non-ERISA lawsuits that involve legal prosecution or settlements, and an additional 86 legislation and regulation stories were written.

Search activity for the first quarter of 2021 increased 40.9% from the prior quarter and decreased 20.1% from the first quarter of 2020. Hiring activity decreased 16.7% from the previous quarter to $49.1 billion

Twenty eight money management deals took place in the first quarter of 2021. In the first quarter of 2020, there were nine transactions. Assets under management involved in the latest quarter's transactions totaled $1,262 billion, down 45% from $2,294 billion in the previous quarter.

Search activity for the third quarter of 2020 increased 45.7% from the prior quarter but decreased 15.7% from the third quarter of 2019. Hiring activity increased 36.2% from the previous quarter to $65.47 billion. The number of hires decreased 14.5% for the quarter but increased 12.4% from the same period a year ago.

During the third quarter, 45 ERISA-related lawsuits were filed or updated, including settlements, appeals and court decisions.