2020: Life-Annuity Liabilities - Growing Interest in a New Asset Class



Price : $1,750.00



The life-annuity industry has seen the emergence of a new type of insurer and reinsurer focused on acquiring and managing liabilities. Companies outside the industry, such as asset managers and private equity funds, have formed new platforms, with some insurers beginning to partner as well. The study examines the business model development, financial performance, the role of reinsurers, and growth potential.



 1. Introduction

 2.     Executive Summary

 3.     The Liability Platform Landscape

²     Liability Platforms Emerge

²     Ownership

²     Business Model, Domicile, and Structure

²     Looking Ahead, a Mixed Outlook

²     Conclusions

  4.     Driving the Interest in Life-Annuity Liabilities

²     Focusing on the Core Creates Supply

²     Platform Drivers Creating Demand

²     Conclusions

  5.     Why Focus on Annuities?

²     Annuities’ Favorable Capital Treatment

²     Annuity Product Design

²     Conclusions

  6.     Sizing the Life-Annuity Liability Market

²     Liability Sources

²     Market-Sizing Liability Sources

²     Conclusions

  7.     Liability Platform Profitability and Performance

²     Comparing and Understanding Profitability and Performance

²     Liability Consolidation Platform Profitability

²     Origination Platform Profitability Analysis

²     Conclusions

  8.     Liability Consolidation Methods

²     Merger & Acquisition and Part VII Transfers

²     Reinsurance

²     Conclusions

          Appendix 

Introduction

The life-annuity industry has seen the emergence of a new type of insurer and reinsurer focused on acquiring and managing liabilities. These new companies have been formed by a variety of investors whose primary business has been outside the insurance industry. Chief among these have been asset managers and private equity funds, though recently some insurers have begun to partner in the formation of these platforms.

This study analyzes the development of these new platforms. It focuses on:

  • the business model and organizational structure
  • why these platforms have emerged
  • why they focus on annuities more than life insurance
  • the financial performance of these platforms
  • the potential for continued growth in acquiring liabilities
  • the key role reinsurance has played in this development