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, in one of the most significant structural shifts in the sector.
Market snapshot
- Market size
- ~$601B
- Growth
- ~3.7%CAGR (2017–22, nominal)
- Companies
- ~910 firms
77.1% of firms have fewer than 20 employees: 702 micro-businesses, below most mandates.
- 20–99
- 5727%
- 100–499
- 5526%
- 500+
- 9646%
A spread-and-investment business: carriers earn on the gap between investment returns and long-duration policyholder obligations, which makes the investable float the prize. Private equity and alternative-asset managers (Apollo/Athene, KKR/Global Atlantic, Blackstone/Corebridge) have aggressively acquired and reinsured life and annuity blocks for permanent capital, one of the sector's most significant structural shifts. Revenue is premiums and annuity considerations.
NAICS 524113, 525190. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.
Business model & economics
Revenue model
Premiums and spread on investing long-duration liabilities
Key economics
- Revenue per firm
- $660,147,226
- Revenue per employee
- $1,995,105
- Employees per firm
- 341.8
- Recurring revenue
- High
- EBITDA margin
- Spread- and investment-driven
- Capex intensity
- Low
long-duration policy obligations
Characteristics
- Scale-driven: payroll is only 7% of revenue, so the cost base is assets, not headcount
- Moderate strategic-buyer pool: 96 firms exceed 500 employees, so a scaled asset has buyers, but not many
- Spread business on long-duration liabilities and float.
- PE/alternative managers acquiring blocks for permanent capital.
- Investable float is the strategic prize.
NAICS 524113, 525190. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.
M&A deal context
Who’s acquiring
- PE & alternative-asset managers
- Annuity/life consolidators
- Reinsurance-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
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