Some State Lawmakers Troubled by Private Equity’s Growing Life & Annuity Stake
July 19, 2022 by Allison Bell
State lawmakers are wondering what they should think about the growing role of private equity fund owners in the life insurance and annuity sector.
Members of the National Council of Insurance Legislators, a group for state lawmakers with an interest in insurance, recently held a well-attended session on the private equity ownership issues today, at an NCOIL meeting in Jersey City, New Jersey.
McKinsey consultants reported in February that private equity funds and similar types of investors controlled, or were in the process of acquiring control over, about $620 billion in U.S. life and annuity assets, or 12% of U.S. life and annuity assets, according to Kentucky state Rep. Joe Fischer, a Republican, who presided over the private equity fund session.
Wink’s Note: Interesting piece on concerns about private equity (PE)-owned insurance companies…
Leslie Scism of The Wall Street Journal says that some PE-owned insurers “don’t have staying power.” Her suggestion? Increase oversight of ALL insurance companies.
Why were lawmakers talking about Executive Life, when it comes to PE-owned insurers? Find out why. – sjm