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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 five insurers and reinsurers belong to the A-Cap group, and together held $11.5bn of assets at year end....
...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...
...About 20 states have also set up defined contribution plans for workers at small companies and the self-employed....
...Announcing the group’s 2023 results on Wednesday, Simões said the business had “demonstrated resilience in challenging markets to achieve record new business volumes” in corporate pension deals, UK annuities...
...Private capital investors have acquired more than $900bn in life and annuity assets in western Europe and North America, according to McKinsey & Company....
...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....
...The latter category was 62 per cent of group recorded revenue in 2023, up from 54 per cent in 2020....
...Some analysts think there could be scope for the new CEO to announce a share buy-back but others think the group is still more likely to put capital to work in extra bulk annuity deals....
...Just Group saw sales leap by 54 per cent to £470mn and Legal & General reported a 27 per cent rise to £575mn....
...By 1739, when the South Sea Company stopped engaging in slave trading, the bounty held annuities issued by the company valued at £204,278 — equivalent to about £443mn today....
...People close to 777 said the group and the reinsurer had an “aggressive” investment strategy....
...It also allows an increasing chunk of sponsors to exit the business altogether, transferring assets to bulk annuity insurers in “buyout” deals....
...Zurich, one of Europe’s biggest insurers, struck a deal to sell its German legacy life insurance back book — including annuity and endowment products — to Viridium in 2022....
...And at retirement a single large pot will attract better annuity rates and access to a wider range of post-retirement options....
...Bulk annuity transfer deals have also boomed. Higher interest rates reduce company defined-benefit-scheme funding deficits, making transfers to insurers more affordable. Just Group is well placed....
...So it’s perhaps no surprise that insurance companies are reporting much bigger sales of annuities....
...The appeal of annuities lies in their predictability. But in an era of high interest rates, distant cash flows are suddenly less valuable....
...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...
...Here’s why the states believe their move would protect retirees, widows and orphans relying on annuities and other insurance products. 2....
...This included companies with legacy final salary pension schemes. Long-term gilt yields of about 4.5 per cent are now the highest since 2010....
...Elkann, his grandfather’s anointed successor, had already been gifted 25 per cent of the company....
...Companies looking to do these so-called bulk annuity deals need to make the assets as attractive as possible to potential buyers....
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