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...Fast-growing private capital managers such as Apollo have in recent years pushed aggressively to create higher earning assets for insurance companies....
...The company expected net cash flow to turn “consistently positive” in the first half of next year....
...Their demands are intended to protect retirees, widows and orphans relying on annuities and other products from the insurers....
...Private capital managers use Bermudian operations to reinsure life insurance and annuity business from companies that they already own as well as from rivals....
...Bulk annuity sales, as these deals are known, should pick up from around £28bn in 2022 to £80bn by 2027 say pension consultants LCP — good news, you’d think, for insurance companies that specialise in annuities...
...“The big question is, can the PE firms be a trusted owner of a life insurance company?” said Isabelle Santenac, global insurance leader at consultancy EY....
...The loans business is migrating away from the beleaguered banking sector. Long-dated insurance premiums are becoming the funding of choice....
...and workplace insurance products such as pensions....
...Guardian Life Insurance, a lender that owned Robertshaw loans through a so-called collateralised loan obligation, sued the company and the Invesco-led group of lenders in New York state court, arguing that...
...Both are alumni of consultancy McKinsey and came to insurance as outsiders — Wilson’s first job in insurance was at L&G, joining from events company UBM....
...Regulatory scrutiny of the special risks presented by private equity ownership of life insurance companies has climbed, after Italy’s Eurovita — another life insurer majority owned through Cinven funds —...
...The PE insurance company subsidiaries sell annuities, that is, contracts by which individuals exchange a lump sum for a certain level of income over a certain period of time, sometimes the rest of the individual...
...“The annuity is an insurance policy against outliving one’s assets,” said Brendan Curran, SSGA’s US head of defined contribution....
...The reinsurer was at the heart of 777’s “insurance funding model”, according to 2021 pitch documents that said 777 Re sat between third party insurers and 777 portfolio companies....
...London-based PIC has more than 300,000 policyholders amassed through so-called bulk annuity deals, where it takes over pension fund liabilities and the assets backing them from their sponsoring companies...
...Index-linked annuities pay much less initially — in the example above an inflation-linked annuity (based on the retail price index) would pay £4,725 a year....
...Some industry figures welcomed the Edinburgh-based company’s entry into the industry on the basis that increased competition would benefit investors....
...and the fact that an annuity generally died with the holder or their spouse....
...Insurance and savings group M&G has re-entered the bulk annuity market, taking advantage of booming conditions as companies look to offload their pension schemes to insurers....
...for the company)....
...The provider of the pension or annuity assumes responsibility for making the income payments....
...companies....
...company....
...The rise in market rates in the past few years has dramatically improved the funding levels for company pension schemes, meaning a huge swath can now make a so-called bulk annuity deal with an insurer, where...
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