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...“The role of reinsurance, particularly offshore reinsurance, is making [it] even harder to regulate an already opaque life insurance sector,” he added....
...Many UK businesses with large pension schemes have offloaded them to life insurance companies....
...The so-called pensions lifeboat takes over the assets and liabilities of failed companies’ pension schemes....
...Shinichiro Funabiki, chief executive of Mitsui Sumitomo Insurance, told the Financial Times the company had decided to focus its investment plans on the UK because of London’s primacy in analysing complex...
...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 annuity is an insurance policy against outliving one’s assets,” said Brendan Curran, SSGA’s US head of defined contribution....
...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....
...Private capital investors have acquired more than $900bn in life and annuity assets in western Europe and North America, according to McKinsey & Company....
...and workplace insurance products such as pensions....
...Insurance group Prudential’s new business profit rose by about 45 per cent to $3.1bn last year, as its core business in Hong Kong continued to recover from the impact of coronavirus restrictions....
...Other insurers, such as Prudential, also stopped offering the products. In 2019 Standard Life was fined £30mn for mis-selling annuities to customers over the phone between 2008 and 2016....
...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....
...Annuities work well where a reliable income is needed, and higher rates are available (as in late retirement). But their inflexibility and complex pension rules means they must be treated with care....
...company....
...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...
...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....
...This means that offloading liabilities, and the assets backing them, to insurance companies is becoming a viable option for more businesses....
...As you say, though, the annuity market has improved recently and so it is sensible for anyone approaching retirement, or even those who have started to draw benefits, to give the purchase of an annuity full...
...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....
...Annuity-holder runs against PE firms’ insurance subsidiaries could lead to sudden and heavy withdrawals from banks....
...PIC’s £39bn in insurance obligations and £44bn investment portfolio is a meaty opportunity for Apollo’s “retirement services” business, which specialises in annuities....
...On the regulatory side, the forum said it was considering what it called a “sandbox” idea, where the industry and its regulator, the Bank of England’s Prudential Regulation Authority, could “discuss and...
...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....
...In a speech earlier this year, the Bank of England’s Prudential Regulation Authority, which oversees insurance companies, called for moderation “in the face of considerable temptation” to do deals....
...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....
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