(Bloomberg) -- Insurers that have been supporting portfolioswith credit risk to counter low interest rates should considerdiversifying with alternatives such as private equity, assetmanager Conning & Co. said.
“We’re getting toward the end of the credit cycle, getting to anarea where you have a lot of risk, then adding more,” ScottDaniels, head of investment advisory at the Hartford,Connecticut-based company, said in a phone interview Wednesday. “Wedon’t think that’s the best plan.”
Hedge funds, master limited partnerships and commercialmortgages should all be considered for the investment mix, Danielssaid. Allstate Corp. and American International Group Inc. areamong insurers that have allocated resources toward private equityand other alternatives while coping with low interest rates.
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