Investment management has become an indispensable part of the insurance industry. Major insurance companies have established dedicated investment management units to better manage their investment portfolios and generate stable returns. In this article, we will take a look at some of the top insurance companies with large investment management operations and their key business profiles.
MassMutual – A leading life insurer with a sizable investment management arm
Massachusetts Mutual Life Insurance Company (MassMutual) is one of the oldest and largest mutual life insurance companies in the United States. Its investment management subsidiary, Barings LLC, manages over $370 billion in assets. Barings provides investment solutions across public and private asset classes to institutional and wealth management clients globally. Some of its key strategies include fixed income, equities, multi-asset solutions, real estate and alternative investments.
MetLife – Offering investment products and retirement solutions
MetLife is among the top global providers of insurance and employee benefit programs. Its investment management business, MetLife Investment Management (MIM), oversees $557.7 billion in total assets under management as of 2020. MIM offers public fixed income, private capital and real estate investment solutions. It serves institutional investors and retail customers through variable insurance products and retirement solutions.
Prudential – Multi-boutique asset management model
Prudential Financial is one of the top life insurers in the U.S. Its investment arm, PGIM, provides investment management services to institutional and retail clients. It oversees $1.5 trillion in assets under management globally. PGIM operates with a multi-boutique model, offering strategies across fixed income, equities, real estate and alternatives through autonomous investment teams.
TIAA – Focused on retirement market and institutional investors
TIAA is a leading retirement services provider in the academic, research, medical and cultural fields. Its investment management business, Nuveen, oversees $1.2 trillion in assets. Nuveen offers outcome-focused investment solutions designed around ESG principles and client objectives. It mainly serves institutional investors and the retirement market.
Manulife – Expanding rapidly in Asia
Canada-based Manulife is a leading global financial services provider. Its investment management arm, Manulife Investment Management, manages over $821 billion in assets. Its strengths lie in public and private market solutions across equities, fixed income and real assets. Manulife is focused on expanding its wealth and asset management business rapidly across Asia.
The top insurance companies have built sizable investment management capabilities to generate income from insurance premiums and provide investment solutions to customers. Their strategies and product offerings demonstrate how investment management has become an integral business for major insurers.