According to a new study by Conning, the life-annuity industry has seen changes afoot in the form of alternative capital.
The Conning study, “The Retirement Market Attracts New Entrants: Alternative Capital Moves In,” reveals that investment firms have been acquiring annuity businesses over the past few years.
“We have seen the retirement industry reshaped by asset manager purchases of annuity players over the past few years,” said Scott Hawkins, analyst at Conning. “As many traditional life insurers looked to exit annuity businesses following the financial crisis, these alternative capital players have been making big bets by acquiring those assets. In our research, we sought to understand whether these firms see something in the retirement market that others have missed, or whether perhaps they expect to benefit from structural differences between their model and traditional life insurers.”