Insurers optimistic about their investments in 2026
Insurers remain optimistic about their investments going into 2026, despite heightened market uncertainty.
This marks the fifth year in which Conning surveyed U.S. insurers about their investment focus. Two Conning analysts unpacked the 2026 findings in a recent webinar.
“Markets performed pretty well in 2025 despite Liberation Day and a lengthy government shutdown,” said Matt Reilly, head of insurance solutions at Conning. “Investment performance for insurers has been strong over the last few years.”
Insurer optimism remained high between 2024 and 2026, Conning found, with 79% of insurers surveyed saying they had a positive view of the future in 2026, down only one percentage point from 2024.
Market volatility is insurers’ biggest portfolio concern
But some risks persist, Reilly said.
Market volatility, inflation and recession risk lead the list of insurers’ portfolio concerns over the next 2-3 years. Those concerns were followed by liquidity risk, the domestic political environment and the impact of monetary policy.
The Federal Reserve’s expectation to reduce interest rates further in the next 12 months influences the investment strategy of nearly every insurer surveyed. Meanwhile, more than three-quarters of insurers surveyed said they anticipate an increase in inflationary pressures.
Most insurers expect positive equity returns in 2026, with 65% looking at returns of up to 10% and 19% expecting returns of more than 10%.
Risk appetite persists
Insurers’ risk appetite persists as caution emerges, said Jeremy Lachtrupp, Conning managing director of insurance solutions. More than half of insurers surveyed (57%) said they expect to increase their investment risk in the year ahead. This is a drop from the 62% who reported the same in 2025. More than three-quarters (76%) said they expect to extend their portfolio duration in 2026.
Insurer capital continues to shift beyond traditional fixed income, Conning found. More than half of insurers surveyed said they plan to increase their allocations in areas other than traditional fixed income, including 60% that said they will increase their allocations to asset-based finance and 57% that will raise their allocations to private equity.
Portfolio repositioning is driving higher portfolio turnover, with 73% of insurers reporting higher turnover in 2025.
Interest in private assets continues to increase for insurers, the survey found. Nearly 9 in 10 respondents (88%) expect private assets to exceed 10% of their total portfolio allocation within two years.
Liquidity remains adequate for most insurers, with 76% reporting adequate or excess liquidity.
© Entire contents copyright 2026 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.
Susan Rupe is editor in chief, magazine, for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected].



New $6K deduction could provide tax planning window for retirees
New individual life premium hits record-setting $17.5B in 2025
Advisor News
- Global economy ‘resilient’ in the wake of massive disruption
- Cryptocurrency legislation takes one step forward with bipartisan support
- IRS CEO FRANK J. BISIGNANO VISITS OHIO TO TOUT WORKING FAMILIES TAX CUTS PROVISIONS ON NO TAX ON CAR LOAN INTEREST, NO TAX ON OVERTIME, ENHANCED DEDUCTION FOR SENIOR CITIZENS
- The hidden flaw in insurance AI adoption for advisors and carriers
- Rising healthcare costs impact 401(k) accounts
More Advisor NewsAnnuity News
- MetLife Expands Guaranteed Retirement Income Offering with Innovative Flexible Annuity Option
- How annuities can help protect retirees from financial scams
- MetLife Inc. (NYSE: MET) Climbs to New 52-Week High
- The Standard and Pacific Guardian Life Announce Entry into Agreement to Transition Individual Annuities Business
- AuguStar Retirement launches StarStream Variable Annuity
More Annuity NewsHealth/Employee Benefits News
- Virginia program cuts costs of health insurance under Obamacare
- Retirement, health insurance costs to put pressure on future Baker City budgets
- The United States may be the best place to build universal health care (Opinion)
- PacificSource cuts 97 Oregon jobs amid retreat from health insurance markets
- UPDATED: Hecklers disrupt Hinson rally as Iowa U.S. Senate candidate touts stock trading ban
More Health/Employee Benefits NewsLife Insurance News
- AM Best Affirms Credit Ratings of Halyk-Life, JSC
- AM Best Affirms Credit Ratings of Symetra Financial Corporation and Its Subsidiaries
- AM Best Assigns Credit Ratings to Park Avenue Life Insurance Company
- Nationwide reaches reinsurance agreement with MassMutual on UL policy block
- Best’s Market Segment Report: AM Best Maintains Outlook on Philippines’ Non-Life Insurance Segment at Stable
More Life Insurance News