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Private Equity Is Buying Up Annuity and Life Insurance Policies That May Be Bad for Consumers

But others don t see a five-alarm-fire scenario. Many of the bigger buyers are well-capitalized firms and not all deals are inherently bad, according to some analysts. Policyholders may benefit from potentially higher investment returns in an environment of low interest rates. I don t know if I d say [they re] unfounded, Dafina Dunmore, lead analyst for alternative investment managers at Fitch Ratings, said of the fears. I d say they re overplayed. Watch closely The pace of acquisitions has accelerated since 2014, according to Refinitiv, which tracks financial data. There were 191 private-equity-backed insurance deals last year in the U.S., beating the prior record of 154 set in 2019.

Private Equity Is Buying Up Annuity and Life Insurance Policies That May Be Bad for Consumers

Private Equity Is Buying Up Annuity and Life Insurance Policies That May Be Bad for Consumers
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Chubb disappointed that Hartford decided not to respond to unsolicited buyout proposals

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The Hartford turns down two more Chubb offers

The Hartford on Thursday confirmed it has received and rejected two additional offers from global insurer Chubb Limited, based in Switzerland. “The Hartford’s board of directors, after consultation with its financial and legal advisors, unanimously rejected both proposals, determining that entering into discussions regarding a strategic transaction would not be in the best interests of the company and its shareholders,” The Hartford said. “The board also unanimously reaffirmed its conviction and confidence in The Hartford’s strategic business plan.” Image Christopher Swift Citing its “impressive outlook” and “strong capital position,” the company also announced Thursday that it would increase and accelerate its share buyback program to $2.5 billion over 2021 and 2022.

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