September 2021: Bermuda’s Role in a Changing Annuity IndustryRetirement Income Journal

“Some, like the forensic accountant Tom Gober, are concerned that the offshore deals might be opaque, and lack the checks and balances that exist when unaffiliated counterparts are involved. “While I have seen many different varieties of mechanisms used in affiliated, offshore reinsurance deals, all of those variations resulted in the same outcome: they create an appearance of new, extra surplus that would certainly not be allowed in the regulated insurance company – the ceding company,” Gober told RIJ.”… Read the full article

June 2021: Analysis: Chasing Yield, U.S. private equity firms nudge up risk on insurersReuters

“Private equity firms have spent nearly $40 billion buying U.S. insurance companies in recent years, promising to earn higher returns on the mountains of money that insurers set aside to pay policyholders years or decades from now. The firms are moving some of the money out of traditional low-yield investments such as government bonds into riskier, harder-to-sell assets such as private loans and equity. The shift has caught the eye of regulators and raised concerns about a cash crunch if asset managers had to liquidate large portfolios in a hurry to meet insurance claims.”… Read the full article

June 2020:As insurance companies take over pension plans, are your payments at risk?” – NBC News

…“Joseph M. Belth, professor emeritus of insurance at Indiana University and a longtime authority on the industry, told NBC News that he thinks private equity firms like Apollo are not well-suited to partner with insurance companies.

“I think private equity firms are in it for the quick buck and that is what troubles me,” Belth said. “Policyholders are pawns in the hands of people like [Former Apollo CEO] Black.”… Read the full article

October 2018:Private Equity: Apollo’s Lucrative but Controversial Bet on Insurance” – Financial Times

…“The result of this exercise in financial engineering has been Athene, whose hundreds of thousands of policyholders often had no say in the transfer of their retirement savings to the new and untested vehicle. Its unusual relationship with its original backer, the private equity powerhouse Apollo Global Management, risks creating conflicts of interest that some say could sting Athene’s investors and policyholders in the next market downturn, as the relatively easy returns of the last decade start to recede.” … Read the full article

April 2013:Apollo-to Goldman Embracing Insurers Spurs State Concerns” – Bloomberg

…“When you look at the business model these guys use, where they’re substantially increasing the risk in the bond portfolio, sooner or later, in my opinion, that has to come home to roost,” said Dodd, 55, who helped manage $4 billion before the sale to New York-based Apollo’s Athene Holding Ltd. “All the upside would go to Athene if it worked out. And the downside would go to the annuity holders if it didn’t.” … Read the full article

March 2021:Leon Black Leaves Apollo Executive Roles after Epstein Investigation” – Reuters

July 2020:A $158 Billion CLO Bet Is Putting the Insurance Industry at Risk” – Bloomberg

April 2015:Risky Moves in the Game of Life Insurance” – The New York Times