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The market for big deals involving life insurance and annuity issuers was much more active in 2025 than in 2024, according to a new report from analysts at Milliman.
Milliman recorded $28 billion in publicly announced life and annuity deals last year, up 56% from the total it recorded the year before.
Aquarian Holdings topped the list with its $4.1 billion effort to acquire Brighthouse Financial.
"Demographic shifts and persistent demand for retirement, health and protection products continue to attract capital to the sector," the Milliman analysts wrote.
What it means: Milliman believes that life and annuity issuers' relationships with clients still look good to investors.
That will help issuers keep the supply of annuities and other products they offer retirement savers strong.
Private credit: Life and annuity issuers invest in institutional private equity and private credit.
Retail investors have cooled on private assets in recent months, but the Milliman analysts suggested that private asset managers will continue to be active in the life and annuity M&A market, especially in Europe.
Caribbean markets: Some regulators and insurance industry players have wondered whether U.S. life and annuity issuers' growing relationships with reinsurers in jurisdictions like Bermuda and the Cayman Islands make sense.
The Milliman analysts observed that life and annuity dealmaking in Bermuda and the Cayman Islands was strong in 2025 and will stay strong this year.
U.S. and EU regulators already regard Bermuda as having an insurance regulation system comparable to their domestic insurance regulatory systems. The Bermuda Monetary Authority has added more asset and liability disclosure requirements and stress testing requirements, the analysts said.
The Cayman Islands Monetary Authority is working on efforts to update its valuation and stress-testing rules and is making progress toward having "qualified jurisdiction status," the analysts said.
The Cayman Islands' efforts to strengthen its regulatory system will likely support increased dealmaking activity this year, the analysts predicted.
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