05.13.26

Annuity Boom, Private Capital Surge Define New Life Insurance Era

by: Kenneth Araullo

According to a new ALIRT Insurance Research report, higher interest rates since 2022 have fundamentally reshaped the U.S. life insurance industry. Rising yields boosted profitability and fueled record demand for fixed and fixed indexed annuities, with annual sales growth exceeding 20% from 2022 to 2024. Reinsurance activity also surged, while insurers increasingly invested in less liquid assets such as private credit and mortgage loans. Private equity-backed insurers expanded aggressively through acquisitions and partnerships, especially in annuities and pension risk transfers, while public insurers pursued restructuring and alliances with asset managers. ALIRT expects strong annuity demand, consolidation and alternative investment growth to continue, though evolving regulation could eventually reshape industry trends.

Read the full article on Insurance Business