New capital keeps flowing into the reinsurance segment, primarily via reinsurers owned by investment managers focused on annuity business, AM Best analysts write. These newer entrants co-insure assets that can be rolled into high-yielding public, private or alternative fixed income products. The post US life/annuity insurers cede $1.74 trillion to reinsurers, 2016-23 appeared first on Retirement Income Journal ..read more

The Prudential Regulatory Authority, the Bank of England's financial regulatory arm, told UK life insurers in late July that it has concerns about the use of 'funded reinsurance' (FundedRe) to help finance big pension risk transfer (PRT) deals—swaps of defined benefit plans for private group annuities. The post British regulators scrutinize ‘FundedRe’ in pension deals appeared first on Retirement Income Journal ..read more

The Cayman Island's "legislative and regulatory regime is less prescriptive and therefore affords prospective Cayman reinsurers greater flexibility to propose a bespoke capital model to our regulator without being significantly constrained by specificities in legislation,' a Cayman law firm wrote. The post The case for affiliated reinsurance in the Cayman Islands appeared first on Retirement Income Journal ..read more

'The ability of insurers to significantly lower the total asset requirement for long-duration blocks of business that rely heavily on asset returns appears to be one of the drivers of the significant increase in reinsurance transactions,” wrote a New Jersey and an Iowa insurance regulator. 'A stunning development,' said one federal official. The post NAIC Urged to Limit ‘Bermuda Triangle’ Strategy appeared first on Retirement Income Journal ..read more

The ERISA Advisory Council recently heard comments on changing the criteria that fiduciaries use when vetting annuity providers in pension risk transfer deals. Athene's vice chairman defended his company's practices. The post Of Athene, Pension Risk Transfers, and Fiduciaries appeared first on Retirement Income Journal ..read more

USAA, a reciprocal insurer, completed reinsurance transactions with Commonwealth Annuity and Life and Fortitude Re, according to its 2021 annual statements. The post USAA inked a pair of reinsurance deals in 2021 appeared first on Retirement Income Journal ..read more

Fortitude Re, a reinsurer backed by The Carlyle Group, a $276 billion private equity firm, is completing its annuity-reinsurance-asset management strategy. Midwest Holdings' life insurer, American Life, has launched a new indexed annuity pegged to an 'ESG' index. The post Fortitude Re, Midwest Holdings pursue ‘triangle’ strategies appeared first on Retirement Income Journal ..read more

Fortitude Re will assume the assets and liabilities of a $31 billion block of Prudential annuities, and pay Prudential $1.5 billion. The block consists mainly of variable annuities with living benefits that Prudential sold before 2011. The post Prudential Sells $31bn Annuity Block to Bermuda Reinsurer appeared first on Retirement Income Journal ..read more

In a pension risk transfer deal, Athene Holding will acquire about $4.9 bn in pension assets and liabilities from Lockheed Martin. But when do these deals become too much about investors and AUM and too little about pensioners? (Photo: Athene Holding CEO Jim Belardi ringing NYSE opening bell in 2016.) The post Athene Takes Another Bite at Pensions Apple appeared first on Retirement Income Journal ..read more

With approximately $2.3 billion in assets under management as of March 31, 2021, Aspida plans to 'underwrite new insurance products, execute reinsurance transactions, and pursue opportunistic acquisitions.' The post Aspida Financial to begin issuing annuities in 2022 appeared first on Retirement Income Journal ..read more