Private Equity and Life Insurers

By Fabio Cortes, Mohamed Diaby, Peter Windsor

December 19, 2023

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Format: Chicago

Fabio Cortes, Mohamed Diaby, and Peter Windsor. Private Equity and Life Insurers, (USA: International Monetary Fund, 2023) accessed March 25, 2025

Summary

This Global Financial Stability Note studies the growing trend of private equity (PE) investments into the life insurance industry. PE companies’ investments in life insurers are integral to their strategic growth as PE firms evolve beyond the traditional leveraged buyout transaction to acquire diverse businesses across private credit, structured credit, private real estate funds, and private infrastructure funds. This note reviews the growth in PE investments through the lens of the diverse acquisition incentives and strategies, the consequent changes to asset allocation and investment strategies of the acquired life businesses, and potential prudential and policy implications.

Subject: Asset allocation, Asset and liability management, Credit, Economic sectors, Financial crises, Financial institutions, Financial statements, Insurance, Insurance companies, Money, Public financial management (PFM)

Keywords: Asset allocation, Credit, Financial statements, Global, Global Financial stability note, IMF Library, Insurance, Insurance companies, Leveraged buyout transaction, Life insurance, Life insurance insurance company, Life insurer, PE company, Private credit, Private equity, Private equity company, Private infrastructure funds, Private real estate funds, Structured credit

Publication Details

Pages:

26
Volume:

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DOI:

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Issue:

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Series:

Global Financial Stability Notes No 2023/001
Stock No:

GFSNEA2023001
ISBN:

9798400257612
ISSN:

2791-3112

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