"Private equity firms and other alternative asset managers — including Ares Management Corp., Blackstone Inc., Brookfield Corp. and KKR & Co. — are reshaping the once-staid world of life insurance. Over the past decade, they’ve bought, built or partnered with insurers that sell policies and annuities, collectively commanding hundreds of billions of dollars.
In a previous era, life insurers parked their money in the safest corners of the market — mostly high-grade bonds and big-name stocks. But as Wall Street firms expanded into the business, they adopted bolder strategies to boost profits.
Many are shifting liabilities to offshore affiliates subject to less detailed disclosure requirements than in the US. Insurers and those overseas entities are also pursuing higher returns with more sophisticated and potentially less-liquid investments — such as exotic asset-backed securities and other bets tied to private credit or private equity.
Athene has become a trendsetter in other ways. It invests in deals and products from Apollo’s asset management division. It also taps cheap financing from a government-backed system designed to support home loans, which can be reinvested to amplify returns.
Its profits have set off a stampede of imitators, prompting experts — such as researchers at the Bank for International Settlements — to suggest they may be adding risks to the system.""
https://www.bloomberg.com/graphics/2025-america-insurance-part-1/
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