PRIVATE EQUITY
August 23, 2023 by NAIC
Issue: Private equity (PE) has an increasing presence in the insurance industry. The relationship between PE and the insurance industry has emerged in two directions. First, U.S. insurance companies—particularly life insurers—invest in PE to increase the return on their balance sheet portfolios. This activity accelerated during the extended period of low interest rates following the 2008 financial crisis and up until late 2021. Second, PE firms are increasingly investing in insurance companies and, in many cases, taking full ownership of the companies.
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