Conning Asset Management said Wednesday it has been chosen to manage the assets of Citigroup's insurance affiliates in a move an analyst called a cleaning up of "loose ends" of the insurance business Citi has been leaving.
The Hartford, Conn., company began managing about $8 billion of assets for Primerica Life Insurance Co., American Health and Life Insurance, and CitiFinancial International on Jan. 1.
Andrew Collins, a senior research analyst at Piper Jaffray who covers Citigroup Inc., said the move continues Citi's departure from the insurance business. "Citi is steadily getting rid of all ties to the insurance business," he said. "They have done away with most of their insurance business already. This is just cleaning up some of the loose ends."
Conning is to expand its staff by 20 employees, including Citigroup people and former employees of the divested Travelers Life who had managed assets for the banking company subsidiaries.
David Miller, who formerly headed the portfolio management team at Citigroup Insurance Investments, will be a managing director at Conning responsible for the Citigroup portfolios. John Calcagni is to head Conning's investment accounting and reporting team. He held the same post at Citigroup Insurance Investments.
Conning's assets under management have grown from $23 billion in 2001, when it was bought by Swiss Re, to about $62 billion, including the Citi mandate.
