ALIRT Insurance Research: Recent Trends Involving Privately-Owned Insurers in the U.S. Life Insurance Industry

Earlier this month ALIRT Insurance Research published an in-depth study examining the impact of privately-owned insurers on the U.S. life insurance industry over the past almost two decades.  This report highlights these organizations' growing share of industry assets as well as emerging business strategies, especially around business mix, investment appetite, and the expanded use of reinsurance.

HARTFORD, Conn., July 9, 2026 /PRNewswire/ -- ALIRT Insurance Research latest report, Privately-Owned Insurers in the U.S. Life Insurance Industry, traces the evolution of the industry since the 2008/2009 financial crisis, highlighting how asset managers, investment funds, and private investor groups have become increasingly active in the life insurance and annuity business.

Recent years have seen a wave of life insurer acquisitions, strategic partnerships and investment management agreements involving private investment firms. These developments underscore the central role that privately-owned insurers now play in the U.S. life insurance industry.

This shift has been driven by opportunities to manage insurance company investments, diversify income streams, acquire life insurance organizations at favorable prices, and reinsure blocks of in force life insurance and annuities from companies looking to divest certain business lines.

ALIRT's research reveals that the estimated number of privately-owned life insurers has grown from just 16 in 2011 to 93 by the end of 2025. Their share of total invested assets in the industry has surged from $85 billion (2.5%) to nearly $1.2 trillion (19.8%) over the same period, with direct premiums rising from $10 billion to $161 billion. These insurers have entered the market primarily by acquiring existing companies or blocks of business and/or by utilizing reinsurance strategies, often involving foreign entities, to optimize capital and profitability.

Privately-owned insurers have focused on "spread-based" products, particularly fixed and fixed indexed annuities, leveraging investment strategies that emphasize higher allocations to asset-backed securities and private bonds. This approach has resulted in higher net investment yields compared to the industry average. While these insurers operate with higher asset leverage and make greater use of reinsurance, their risk-based capital ratios and profitability metrics remain generally in line with the broader industry.

The report also notes that, despite concerns among industry participants, policyholder protections do not change with ownership and legal claims for policy benefits remain tied to the issuing insurer, not the parent company. In other words, regardless of the company's ownership, ultimate claims paying ability lies with the issuing carrier.

ALIRT's report concludes that privately-owned insurers are driving growth and innovation in the sector. While their strategies introduce new risks, particularly related to investment complexity and liquidity, their adaptability and success have influenced the broader industry. Regulatory bodies continue to monitor these developments, but no major legal or regulatory changes have (so far) deterred the activity of private groups in the U.S. life insurance market.

For more information or to request the full report, contact ALIRT Insurance Research at [email protected] or visit www.alirtresearch.com.

About ALIRT Insurance Research

ALIRT Insurance Research is an independent financial analysis firm specializing in monitoring insurer solvency and performance trends for institutional clients. Based in Hartford, Connecticut, ALIRT provides analytical insights that assist organizations in managing insurance company exposure and maintaining fiduciary oversight.

SOURCE ALIRT Insurance Research