a scoring system that includes relative and absolute benchmarks for easy and accurate measurement.
Good Due Diligence = More Sales This approach, especially the requirement that it be continuous, may go against the grain of traditional point-of-sale practices, but it can reap huge rewards. In ALIRT’s experience, insurance producers who make the effort to implement a more professional approach to insurance carrier oversight garner the attention of trusted advisors
(estate lawyers, CPAs, trust officers, etc.) and their wealthy clients, which can result in more business activity, sales and referrals. This is especially true in this era of growing merger and acquisition activity with the headline risk and ratings dislocations that often ensue. In addition, at a time when the issue of fiduciary duty has seeped into the collective consciousness of buyers — regardless of the ultimate legal requirements — the ability of individual producers and financial institutions alike to show that they are
taking a more disciplined approach to monitoring insurer solvency helps mark them as best-in-class among their peers. In the end, it’s a question of being reactive versus proactive. You can either wait for the next inevitable divestiture/acquisition and react when clients wring their hands over a subsequent ratings downgrade, or you can adopt a disciplined approach to insurance carrier oversight that will make your clients more comfortable, build your reputation among trusted advisors and ultimately put you in the driver’s seat.
U.S. Life Insurance Industry M&A: 2013-2018 Company/Group Name Hartford Financial ING US Sun Life US Aviva U.S. Forethought Financial Group Aviva U.S. Life business Fidelity & Guaranty Life Lincoln Benefit Life Wilton Re Holdings Ltd. SBLI USA Mutual Southland Life Ins. Co. Protective Life Corp. Philadelphia Financial Grp. Colorado Bankers Life Ins. Co. Symetra Financial StanCorp Financial Group Phoenix Cos. Inc. Bankers Life Insurance Co. Guaranty Income Life Ins. Co. Vantis Life Insurance Co. Jefferson National Life Ins. Co. MetLife Inc.’s Retail Life & Annuity Operations Lincoln Benefit Life Fidelity & Guaranty Life Liberty Life Assurance Co. of Boston Liberty Life of Boston’s life insurance and annuity business United Life Insurance Co. AXA’s U.S. operations (including AXA Equitable Life) Hartford Financial ‘s run-off annuity business Voya Financial Inc.’s retail annuity business
Year 2013 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2016 2016 2016 2016 2016 2017 2017
Disposition of Company Sold its VA production/individual life/retirement businesses to Forethought Life/Prudential/Mass Mutual U.S. life insurance business was spun off from ING Group via an IPO and renamed Voya Financial, Inc. Sold to Delaware Life Holdings (renamed Group One Thousand One, LLC (GOTO) in 2017) Sold to Athene Holding Ltd. – Company name changed to Athene Annuity & Life Assurance Acquired by Global Atlantic Financial Acquired via reinsurance by Accordia Life & Annuity Co. (a subsidiary of Global Atlantic Financial) Partially spun off (via an IPO) by parent Harbinger Group Sold to Resolution Life Holdings, Inc. by former parent Allstate Life Ins. Co. Sold to Canada Pension Plan Investment Board Acquired by Prosperity Life Ins. Group, LLC Acquired by privately held Global Bankers Ins. Group Sold to Japanese insurer Dai-Ichi Life Ins. Co. Ltd. Acquired by The Blackstone Group Acquired by privately held Global Bankers Ins. Group Acquired by Japanese insurer Sumitomo Life Ins. Co. Acquired by Japanese insurer Meiji Yasuda Life Ins. Co. Sold to Cayman Island based Nassau Re Acquired by privately held Global Bankers Ins. Group Acquired by privately held Kuvare Holdings Acquired by Penn Mutual Life Acquired (along with its parent, Jefferson National Financial Corp.) by Nationwide Life Ins. Co.
2017
Spun off into separate company Brighthouse Financial (via an IPO)
2017 2017 2018
Sold to privately held Global Bankers Ins. Group. by Resolution Life Holdings, Inc. Acquired by CF Corporation (with backing from Blackstone Group L.P.) after company’s 2013 IPO Acquired by Lincoln National Corp. (LNC)
2018
Acquired (via reinsurance) by Protective Life Ins. Co.
2018
Acquired by privately held Kuvare Holdings
2018
Operations spun off in an IPO
2018 2018
Business (including two insurer subsidiaries) sold to a group of private investors Business (including one insurer subsidiary) sold to a group of private investors
To get our most recent life insurance industry review, which evaluates the current state of the life insurance industry and provides detailed financial data for the ALIRT Life Composite, call 833.266.3393 or visit TheALIRTWay.com.