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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....
...A-Cap owns five insurers: Sentinel Security Life, Haymarket Insurance and Jazz Reinsurance in Utah, as well as Atlantic Coast Life Insurance and Southern Atlantic Re in South Carolina....
...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...
...Private capital investors have acquired more than $900bn in life and annuity assets in western Europe and North America, according to McKinsey & Company....
...But debt markets present a bigger opportunity than equity markets and insurance has proved to be a reliable source of fee-paying permanent capital....
...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....
...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....
...This is what happened to Executive Life, then the largest insurer in California, in the early 1990s: policyholders withdrew $4bn after the company announced losses from junk bond investments, and the company...
...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...
...In 2019 Standard Life was fined £30mn for mis-selling annuities to customers over the phone between 2008 and 2016....
...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....
...Other times, that solution creates another problem, and the cycle continues until we create a problem so big and/or diffuse it can’t easily be fixed, and life gets worse for a while....
...capital, it’s possible to buy a purchased life annuity (PLA) using a cash lump sum....
...“People hear pay cheque for life, they think ‘great’. Then they hear the word annuity,” Ackerly said....
...Canada Life reported annuity sales doubling to £441mn in the first half of the year, compared with the same period in 2022....
...This means that offloading liabilities, and the assets backing them, to insurance companies is becoming a viable option for more businesses....
...I have asked our financial adviser if it would be worth my husband buying an annuity with some of his invested Sipp given its mediocre performance and the high annuity rates currently available....
...So it’s perhaps no surprise that insurance companies are reporting much bigger sales of annuities....
...According to SunLife, a life insurance and funeral cover provider, the average cost of a basic funeral in the UK is now £4,141, up from £3,953 the previous year....
...Life insurance is supposedly a stable and predictable business. But Just Group has been buffeted by a blizzard of policy and regulatory changes since it floated in 2013....
...A determinedly pugnacious union achieved the first health insurance benefits in the USA for same-sex couples....
...of Athene, Apollo’s life insurance and annuities subsidiary....
...In the first half of the year, the company completed the £250mn acquisition of Sun Life of Canada UK, and Briggs expects more deals as inflation adds to life insurers’ costs....
...for individual and bulk annuity sales, both boosted by higher interest rates....
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