Insurers get an edge from hedge funds in 2021
The life/annuity segment saw its dollar exposure to hedge funds rise in 2021 by 14.0%, to $6.1 bn, and the property/casualty segment by 0.9% to $6.7 bn, following several...
Life insurers
Life/annuity insurers lead surge into private equity investments
Roughly 58% of the insurance industry's exposure to private equity is through investments in leveraged buyout funds, according to a new AM Best report. Among insurers, MassMutual was most...
Annuity providers report 1Q2022 performance
Jackson National Life reported almost $200 million in sales of its new registered index-linked annuity in the first quarter. Equitable's RILA, launched over a decade ago, took in about...
Fed’s stability report assesses life insurers
Over the last decade, life insurers increased the share of risky, illiquid assets on their balance sheets, according to the Federal Reserve's annual Financial Stability Report.
Net income of stock life/annuity firms tripled in 2021: AM Best
'The persistent drag from low interest rates continues to impact margins, but ongoing growth in general account invested assets has pushed investment income higher,' said Best's analysts.
Life/annuity industry moving toward equilibrium: AM Best
The life/annuity industry is approaching an equilibrium between companies seeking 'to build a less capital-intensive business' and those with 'a capital-intensive business appetite,' the ratings agency said.
For Jackson National Life, 2021 was a pivotal year
In reporting its fourth quarter and full-year 2021 results, Jackson National Life marked its separation from Prudential plc, its listing on the New York Stock Exchange, and $3.2 billion...
A Policy Dynamo Touts ‘Dynamic Pensions’
Bonnie-Jeanne MacDonald, an actuary and retirement policy expert at Canada's National Institute on Aging, claims that a non-guaranteed lifetime income tool could generate more income than any annuities. Tontines,...
‘Creeping inflation’ could hurt life insurers: AM Best
'Inflation could increase skepticism of a potential customer’s ability to afford life and annuity products, especially in the middle market,” said an AM Best analyst.
De Santo to lead New York Life
Craig De Santo is and will remain president of New York LIfe when he becomes CEO next April. Ted Mathas, CEO for the past 14 years, will serve as...
One Life Insurer’s Pivot to Private Assets
American Equity Investment Life’s ‘AEL 2.0’ strategy is designed to help it thrive even in a low yield environment. Allocating up to 40% of its money to ‘private assets’...
New RBC capital factors will affect insurer investment policy: AM Best
A new Best’s Special Report, “Navigating the New NAIC Risk-Based Capital Factors,” states that insurance companies likely will see increased required capital for bonds.
Northwestern Mutual Life rolls out PX (Planning Experience) Adviser Interface
In this blogpost from McKinsey, chief distribution officer Tim Gerend and chief customer officer Christian Mitchell explain the process of rolling out a new adviser/client interface that facilitates the...
Large US life/annuity insurers continue to de-leverage: AM Best
Total debt outstanding decreased by approximately $8 billion (or 8.1%) to $91.4 billion at year-end 2020. Prudential Financial reduced its total debt obligations by $6.3 billion in 2020, the...
Six major life insurers report second quarter financials
Here are second quarter results from six publicly held life/annuity companies: AIG, American Equity Investment Life, Brighthouse Financial, Equitable Holdings, Lincoln Financial and MetLife.
Number of PE-Owned US Insurers Jumped 31% in 2020: NAIC
A new report from the National Association of Insurance Commissioners describes the investment holdings of the growing population of insurers--mostly life insurers--that are owned wholly or in part by...
‘Double Down or Get Out’
If you haven't done so already, t's time to consider how the low interest rate environment has transformed the life/annuity business over the past ten years. And to assess...
Insurers increase their private equity holdings: AM Best
Low interest rates, mild inflationary environments and the prospects for higher investment yields are tailwinds for private equity investments. But financial stress in the markets or severe public...
Big drop in net income for publicly traded life/annuity firms in 2020
A $4.7 billion realized investment loss on derivatives for Prudential Financial was the main driver of the drop in its net income, according to a new report from ratings...
Life Insurers face “The Great Call”: Larry Rybka
Isn't it time for someone to say something loud about the damage (seen and unseen) inflicted on traditional life insurance companies--and their strategic partners and customers--in recent years? Larry...
