In 2024, the convergence of insurance, asset management, and private capital continued, further validating their symbiotic relationship, and transforming the traditional landscape of the insurance and reinsurance industry. Strategic acquisitions and collaborations remain proof of this as all parties seek to add as much value as possible.

Life and annuity companies have proven most enticing, attracting private capital to bolster their asset portfolios, ensuring they can meet future pay-out liabilities. These assets are strategically invested to generate returns, resulting in a desirable spread margin for investors.

McKinsey & Company estimate that in Europe, traditional life liabilities total €4.5 trillion, while U.S. life and annuity insurers manage $4.5 trillion in assets, along with additional liabilities from variable annuities and defined benefit plans. 

In 2021, private investors acquired over $200 billion in U.S. liabilities, now, that figure has risen to approximately $600 billion in life and annuity assets. As a result, a flow of private capital into three primary types of reinsurance platforms has become observable: alternative asset management firms partnered with insurers, insurers working with asset managers, and combined asset manager-insurer entities. Strategic in nature, these partnerships are centred on the origination, management, and diversification of assets, in an attempt to defy risk, and catalyse growth. 

https://insights.pgim.com/pdf/PGIM-Annual-Best-Ideas-2024-English-0124.pdf