Lincoln Financial and Guardian Life Insurance Co. of America want to get closer to their assets.
The life and annuity issuers have both agreed to form major relationships with fixed income portfolio managers.
Lincoln is selling a stake to Bain Capital, and Guardian is connecting with Janus Henderson.
Lincoln and Guardian both hope to close their deals by June 30.
What it means: The recent market turmoil and a long-term shift toward investments in private credit deals, private equity deals and other relatively small deals could change how life insurers think about their asset managers.
Increased volatility and the rise of alternative assets could eventually change how ordinary retail clients see relationships with their own insurance agents and financial advisors.
Retail clients might want help finding new ways to invest in alternative assets that zig when the S&P 500 zags.
Lincoln and Bain: Lincoln has agreed to make Bain Capital a "strategic asset management partner."
Bain plans to pay $825 million for a 9.9% stake in Lincoln in connection with the new relationship, Lincoln said.
The life and annuity issuer plans to use some of the cash to "optimize its legacy life portfolio" and expand its abilities to make private equity and private credit investments.
Lincoln will also use the capital to support sales of products such as fixed indexed annuities and multi-year guaranteed annuities that earn profits based on the "spread," or difference, between the rate the issuer pays the annuity owners and the rate the issuer earns on its own investments.
Guardian and Janus Henderson: Guardian, meanwhile, has agreed to form a "strategic partnership" with Janus Henderson and let that company manage $45 billion of its investment-grade public fixed income assets.
The life and annuity issuer will also provide $400 million in financing that Janus Henderson can use to modernize its investment products.
Guardian will get a stake in Janus Henderson through "equity warrants and other economic consideration," the companies said.
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