KKR, Blackstone, Apollo Buying Insurance Companies Explained
Private equity firms (Apollo, KKR, Blackstone, Brookfield) have acquired major U.S. life and annuity carriers because the carriers long-duration liabilities are an ideal funding source for the PE firms private credit platforms. Apollo owns Athene; KKR owns Global Atlantic; Blackstone has strategic partnerships with Corebridge and others. The transactions are economically motivated and have generally strengthened acquired carriers capital positions, though they have changed the asset mix toward private credit.
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
Quick answer
Private equity firms acquired insurance carriers because their economic models complement each other:
- Insurance carrier = long-duration liabilities (annuity contracts, life policies) that need to be invested in matching long-duration assets.
- Private equity firm = origination engine for long-duration private credit, but historically constrained by short-duration LP capital.
Pairing them creates a vertically integrated platform: insurance customers fund the carrier general account, which buys assets originated by the PE firm credit platform, generating fee income for both the carrier and the PE firm.
The major deals
| PE firm | Insurance platform | Year | Approx. assets |
|---|---|---|---|
| Apollo | Athene (founded then merged) | 2009 / 2022 | $300B+ |
| KKR | Global Atlantic | 2021 (initial), 2024 (full) | $150B+ |
| Brookfield | American Equity Investment Life | 2023-2024 | $80B+ |
| Blackstone | Corebridge (partnership), F&G (asset mgmt) | 2021-ongoing | ~$200B AUM mandate |
| Sixth Street | Talcott Resolution | 2021 | $95B+ |
| Carlyle / various | AIG Life & Retirement (Corebridge IPO) | 2021-2022 | $370B (Corebridge) |
| Thomas H. Lee | AmeriLife (distribution, not carrier) | 2020 | Distribution platform |
Why this matters for buyers
Two practical effects on the buyer:
- Better rates. The vertically integrated model lowers the carrier net cost of capital, which translates into higher MYGA rates and higher FIA cap rates than mutual or traditional stock carriers typically offer.
- Different asset mix. The carrier holds more private credit and less public investment-grade debt. Capital adequacy is regulated identically, but the underlying risk profile is different.
Neither effect is inherently bad. It does mean carrier vetting includes looking at the AM Best rating rationale commentary on asset quality, not just looking at the letter.
Is the annuity you're looking at actually the best one available?
Send your email and I'll send what it really guarantees, what the surrender schedule costs you, and the two or three carriers paying more for the same guarantee. If it's already a good fit, I'll tell you that.
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Historical context: why this happened
Three forces converged in the post-2008 environment:
- Ultra-low interest rates (2009-2022) made traditional insurance investment portfolios uneconomic. Carriers needed higher yields to fund product rates.
- Banks pulled back from middle-market lending after Dodd-Frank, creating space for private credit originators.
- PE firms hit the natural limit of LP-funded private equity and needed permanent capital sources to keep growing AUM.
Insurance carriers solved all three problems simultaneously. Apollo purchase of Athene set the template; KKR, Blackstone, Brookfield, and others followed.
How regulators have responded
State insurance regulators and the NAIC have tightened rules in response to PE-influenced asset mixes:
- Asset adequacy testing: more rigorous stress scenarios on private and structured assets.
- Reserve credit for reinsurance: heightened scrutiny on offshore reinsurance arrangements common in PE-owned structures.
- RBC factor updates: higher capital charges on lower-rated CLO tranches and private credit.
- Disclosure requirements: more granular reporting of affiliated investments.
The regulatory framework has not classified PE-owned carriers as a separate risk category. Standard NAIC rules apply.
How to actually evaluate a PE-owned carrier before buying
- Pull the carrier AM Best rating and Comdex. Require A- and 80+ at minimum.
- Read the AM Best rating rationale specifically for commentary on asset risk and affiliated investments.
- Check the most recent RBC ratio. Above 400% is healthy.
- Confirm the carrier state of domicile. Some PE-owned carriers are domiciled in Iowa or Bermuda; understand which regulator oversees the entity.
- For FIA purchases, request the carrier renewal-rate history on similar product series.
- State guaranty fund cap applies identically regardless of ownership.
Common misconceptions
“PE bought the carriers to flip them.” No. The model is to hold the insurance balance sheet permanently as a funding source for the PE firm broader credit platform.
“PE-owned carriers are unregulated.” They are state-regulated insurance entities subject to identical NAIC rules. Holding company is separate from regulated subsidiary.
“PE firms strip capital out.” Dividends from regulated subsidiaries require state approval and are capped. The asset stripping narrative is not supported by post-acquisition capital data at major PE-owned carriers.
“PE-owned MYGA rates are higher because the products are riskier.” Partly true on asset risk, mostly false on contract risk. The state guaranty fund backstop is identical.
When the answer changes
- For MYGA buyers: Treat PE ownership as a verification item, not a disqualifier. Rate, term, carrier rating, state cap.
- For FIA buyers: Add the renewal-rate history check. PE ROE pressure can drive aggressive renewal-cap reductions over time.
- For income-rider buyers: The carrier needs to be solvent in 20-30 years. Capital trajectory matters more than current rating.
Frequently Asked Questions
Related reading
- PE-owned carriers safety concerns
- Is a MYGA from a PE-owned carrier still safe
- AM Best Rating Explained
- How to vet an annuity carrier
- MYGA Carrier Reviews
Get an independent safety review on your specific carrier or bank
Talk to Hans Goldstein, a licensed independent insurance producer.
Safety questions look simple until you read the contract. Carrier ratings change. State caps change. FDIC ownership categories are tricky at higher dollar amounts. Get a written independent review before you commit principal to a multi-year contract.
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Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This is general education, not a personal recommendation or an offer of any product. Rates, ratings, state guaranty caps, FDIC rules, and tax treatment change frequently. Always confirm current values against the most recent carrier or bank disclosure documents and the actual contract before purchasing. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers. The producer specific appointment status with any carrier discussed may vary, and this article is not an endorsement or representation of carrier appointment. No compensation has been received from any carrier or bank in connection with the publication of this article. Always read the actual contract and consult a licensed advisor before purchasing any annuity, CD, or other financial product. Past performance does not predict future returns. AM Best ratings, Comdex scores, and tax treatment are subject to change. Historical bank and insurance failure outcomes described herein are based on publicly available regulatory and news sources and may include minor inaccuracies; do not rely on this article as a primary source.