Privately-Owned Insurers Transforming U.S. Life Insurance Post-Crisis

A recent report from ALIRT Insurance Research explores how privately-owned insurers have influenced the U.S. life insurance industry since the 2008 financial crisis. This research underscores the pivotal role of asset managers, investment funds, and private investor groups in the life and annuity markets.

The report, titled "Privately-Owned Insurers in the US Life Insurance Industry," reveals a substantial increase in acquisitions, partnerships, and investment management deals involving private investment entities. By the end of 2025, privately-owned life insurers grew from 16 in 2011 to 93, with their share of total invested assets rising from $85 billion (2.5%) to nearly $1.2 trillion (19.8%). Direct premiums also surged from $10 billion to $161 billion.

ALIRT identifies that these insurers typically enter the market through acquisitions of existing companies or insurance blocks. They enhance capital efficiency and profitability by employing reinsurance strategies, including those with foreign entities. The report highlights a focus on managing insurer investments, diversifying income, acquiring life insurers at favorable prices, and reinsuring in-force blocks from companies seeking divestment.

Targeting spread-based products like fixed and fixed indexed annuities, privately-owned insurers leverage investment strategies with higher allocations to asset-backed securities and private bonds. This approach yields a net investment above industry averages, albeit with increased asset leverage and extensive use of reinsurance. ALIRT notes these insurers maintain risk-based capital ratios that align with broader industry standards.

Bermuda has become a major hub for U.S. life and annuity reinsurance, with offshore reinsurance reserves reaching $1.1 trillion by the end of 2024, and Bermuda accounting for over 60% of new cessions in 2023 and 2024. Affiliated reinsurers receive nearly 70% of these reserves, with about 46% involving entities backed by asset managers or private equity.

In May 2026, Treasury Secretary Scott Bessent met with state insurance regulators to discuss offshore reinsurance jurisdictions and risk-based capital treatments. This coincides with the Bermuda Monetary Authority's introduction of stricter disclosure and asset-modeling rules due to the region's growing business volume.

Prominent players following this model include Apollo-backed Athene, KKR-supported Global Atlantic, Brookfield's American National Insurance, and Blackstone's Everlake. Levels of related-party investments vary, prompting regulatory discussions on measuring and capitalizing affiliated exposures.

The National Association of Insurance Commissioners (NAIC) has been monitoring these trends, issuing guidance in the mid-2010s and expanding oversight with measures like Actuarial Guideline 55 in August 2025. This guideline requires insurers to test the adequacy of offshore or captive reinsurance. The NAIC has also revised its bond definition framework, enhancing the Securities Valuation Office's authority to challenge complex assets.

Despite regulatory scrutiny, ALIRT's report assures that policyholder protections remain unaffected by ownership structures, with claims paying abilities tied directly to the issuing insurer. The report concludes that privately-owned insurers sustain growth and innovation, though their strategies introduce new risks related to investment complexity and liquidity. Regulatory bodies remain vigilant, yet private group activities in the U.S. market continue without significant legal or regulatory hindrance.