Brighthouse Financial Considers Sale of US Life Insurance and Annuity Business

Brighthouse Financial is considering the sale of its U.S. life insurance and annuity business, attracting significant interest from private equity firms, notably TPG and Aquarian Holdings. These firms are positioned to make final bids to acquire the entire operation, while other entities such as Sixth Street and Jackson Financial are interested only in specific parts. This potential sale reflects a growing trend of private equity investment in the insurance sector, particularly within life insurance and annuity providers.

The market has responded positively to the news, with Brighthouse's shares rising 12% in early 2025, outperforming the broader S&P insurance index. This interest underscores a strategic shift among private equity firms seeking to expand their portfolios by integrating insurance operations. The trend signals evolving asset management strategies within the insurance industry, as private capital looks to capitalize on the stable cash flows and growth potential of life insurance and annuity products.

Should the sale proceed, it could set a precedent for similar transactions in the sector, influencing how insurance companies align with broader asset management and investment goals. The move is significant for the U.S. insurance market as it may alter competitive dynamics and encourage further consolidation or restructuring influenced by private equity.

Overall, the activity highlights a transformation in the insurance landscape, where private equity plays an increasingly prominent role in shaping industry structure and investment approaches. This development will be important for insurance professionals to monitor, given its implications for regulatory, compliance, and market strategies moving forward.