A Cayman Islands-based annuity reinsurer is preparing to enter the U.S. retail fixed annuity market — and it told investors that it thinks it can generate about $5 billion per year in annual annuity revenue.
Malibu Life Holdings announced Tuesday that it has agreed to pay Mutual of America $45 million to acquire Mutual of America's TruSpire Retirement Insurance subsidiary.
Malibu Life hopes to complete the acquisition early in 2026 and begin using TruSpire to introduce a new fixed indexed annuity product by mid-2026. The insurer intends to add multi-year guaranteed annuity products and more fixed indexed annuity products in 2027.
"Malibu Life is targeting rapid growth in annual premiums," the company said in the deal announcement.
Malibu Life is controlled by an affiliate of Third Point, a New York-based hedge fund.
What it means: The U.S. retail annuity market is still attracting more players.
Clients may continue to see new issuers eager to help them save for retirement and generate post-retirement income.
Third Point: Third Point was founded in 1995 and now has about $12 billion in client assets under management. Daniel Loeb is its founder and CEO. It formed Malibu Life in 2024, and it plans to help the reinsurer manage its investments.
A fund affiliated with Third Point, Third Point Investors Ltd., acquired Malibu Life in September.
Malibu Life: Malibu Life has a listing on the London Stock Exchange.
Gary Dombowsky, the former chief executive officer of Knighthead Capital Management, is the CEO of Malibu Life.
Malibu Life gave the $5 billion-per-year annuity revenue estimate in 2024, when Third Point Investors was acquiring it.
TruSpire: TruSpire was founded in 1964 and was previously known as Landmark Life Insurance Co.
Mutual of America acquired the Texas-domiciled company from the Jarvis family in 2023 and renamed it TruSpire.
Mutual of America intended to use the company to sell individual annuities and to offer the kinds of big group annuities that employers can use to shed defined benefit pension plan risk.
TruSpire is licensed to do business in 44 states. It has the regulatory approvals it needs to begin selling a fixed indexed annuity, and it has been setting up an annuity distribution network.
TruSpire is a member of the Federal Home Loan Bank system.
The deal also includes a reinsurance affiliate that has its official home in Bermuda.
Credit: Olivier Le Moal/Adobe Stock
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