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...Fast-growing private capital managers such as Apollo have in recent years pushed aggressively to create high-yielding assets for insurance companies....
...Mick McAteer, co-founder of the Financial Inclusion Centre think-tank and a former FCA board member, said the stress-test plan was “very welcome”....
...The Bank of England’s Prudential Regulation Authority, which supervises insurers, declined to comment....
...So-called superfunds have emerged as a cheaper option for employers looking to offload pension plans without paying a premium for a full insurance buyout....
...Their demands are intended to protect retirees, widows and orphans relying on annuities and other products from the insurers....
...It is a key differentiator,” he said, adding that Prudential was announcing a new set of corporate values in the coming weeks that had been co-created with employees....
...Built for comfort, not speed is a good slogan for annuities — an insurance product offering retirees steady, long-term income....
...The demand drivers for long-term savings, for retirement, for protection, are very much intact, and they are only going to increase in my view as we move forward,” he said....
...“The annuity is an insurance policy against outliving one’s assets,” said Brendan Curran, SSGA’s US head of defined contribution....
...A wave of corporate pension deals, in which the insurer takes over the assets and liabilities of company schemes, lifted the retirement division, while the retail business dimmed slightly because of a lower...
...“Standard Life’s re-entry provides a welcome boost to the annuity market and gives further choice to those in need of a guaranteed income in retirement,” said Helen Morrissey, head of retirement analysis...
...Private capital groups have swept into life insurance since the financial crisis, with firms as big as Apollo, Blackstone and KKR either acquiring life insurers — providers of annuities and other products...
...Companies looking to do these so-called bulk annuity deals need to make the assets as attractive as possible to potential buyers....
...And at retirement a single large pot will attract better annuity rates and access to a wider range of post-retirement options....
...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....
...Annuity-holder runs against PE firms’ insurance subsidiaries could lead to sudden and heavy withdrawals from banks....
...Retirement Line....
...Savers have also been drawn to the security of an annuity income at a time when investments in stocks and bonds, the mainstays of most retirement portfolios, have been battered by concerns about high inflation...
...Pension freedoms introduced a significant element of risk into retirement. When an annuity is purchased or a scheme pension secured, the retirement pot is converted into a guaranteed income stream....
...Portfolios of private assets are being dumped by so-called defined benefit pension schemes — funds offering members a set amount in retirement — as they try to prepare themselves for a buyout by an insurance...
...AM Best, a rating agency that specialises in insurance, has raised concerns about the quality of assets held by 777 Re, which are invested to support annuity contracts sold by A-Cap and another insurer,...
...Experts predict hundreds of billions of pounds of liabilities will transfer from company balance sheets to insurance companies as part of a multiyear shift that will redraw the UK’s retirement landscape....
...Some bulk annuity providers such as Aviva and Legal & General are part of broader groups offering other types of insurance and investments but PIC, founded in 2006, is a privately owned specialist in the...
...High inflation has provided a boost to the UK’s retirement sector, as rising pay awards increase the amount that people are putting into their pension, according to FTSE 100 life insurance group Phoenix....
...on buyout groups’ attempts to trust-build with prudential regulators....
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