3.3.4Segment

Life & Annuity Insurance

Life insurance carriers and annuity providers offering individual life, group life, and long-term care coverage.

4
Verticals

Overview

Life & Annuity Insurance covers carriers offering individual and group life, annuities, and long-term-care coverage. It is a large, spread-and-investment-driven business where carriers earn on the difference between investment returns and policyholder obligations across long-duration liabilities.

Private equity and alternative-asset managers (Apollo/Athene, KKR/Global Atlantic, Blackstone/Corebridge, Sixth Street) have aggressively acquired and reinsured life and annuity blocks to gain permanent capital and investable float — one of the most significant structural shifts in the sector.

Market snapshot

Market size
~$601B
Growth
~3.7%CAGR (2017–22, nominal)
Companies
~6,400
FragmentationConsolidating

U.S. Census Bureau 2022 CBP/Economic Census, NAICS 524113 (Direct Life) + 525190 (Other Insurance Funds); revenue is premiums and considerations.

Business model & economics

Revenue model
Premiums and spread on investing long-duration liabilities
Recurring revenue
High — long-duration policy obligations
EBITDA margin
Spread- and investment-driven
Capex intensity
Low
  • Spread business on long-duration liabilities and float.
  • PE/alternative managers acquiring blocks for permanent capital.
  • Investable float is the strategic prize.

M&A deal context

High deal activity

Who’s acquiring

PE & alternative-asset managersAnnuity/life consolidatorsReinsurance-backed platforms

What’s driving deals

  • PE acquisition and reinsurance of life/annuity blocks.
  • Permanent capital and investable-float strategy.
  • Consolidation of legacy blocks.

Verticals in this segment

  • 3.3.4.1Annuity Product Carriers

    Insurance companies issuing fixed, variable, and indexed annuity products.

  • 3.3.4.2Group Life Insurance

    Carriers providing employer-sponsored group life insurance coverage.

  • 3.3.4.3Individual Life Insurance

    Carriers underwriting term, whole, and universal life insurance policies.

  • 3.3.4.4Long-Term Care Insurance

    Carriers providing insurance for nursing home and home health expenses.

Find Life & Annuity Insurance acquisition targets

Search Acquisera’s index for companies classified under Life & Annuity Insurance (3.3.4) and build a targeted deal pipeline.

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