Willis Re, a reinsurance broker, has had an uptick in calls from life insurers hoping to execute what RIJ calls 'The Bermuda Triangle' strategy, thus removing a millstone and reaping a capital windfall. Willis Re executive Mike Kaster explains.
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 the roles that reinsurers and big buyout firms continue to play in that transformation.
Under the agreement, Ameriprise’s subsidiaries will transfer $8 billion worth of annuity assets and liabilities to Global Atlantic’s subsidiaries. Global Atlantic will pay Ameriprise $700 million for the contracts.
The company said it 'will fully exit US retail fixed annuities— discontinuing new sales of its deferred annuities, payout annuities, indexed annuities—and will pursue strategic alternatives, including divestiture, of the related in-force blocks.'
A new Best’s Special Report, 'Insurance Companies Remain Prime Targets for Private Equity,' notes that the annuity insurers’ business model is a prime target for the new private equity model, offering a reliable revenue stream of invested capital while also offering permanent capital that is stable and positioned for the long term.