Canada-based funding firm Brookfield is trying to foray into the UK’s rising pension insurance coverage trade, reported Reuters citing sources.
By way of its unit Brookfield Reinsurance, the corporate is planning to make acquisitions to drive development.
The sources stated Brookfield is on the lookout for potential acquisitions to enter the majority annuities trade.
Bulk annuities are a kind of insurance coverage, wherein the liabilities of an organization’s pension plan are transferred to an insurer.
Potential targets might be companies equivalent to Simply Group and Pension Insurance coverage Company.
As discussions are nonetheless within the preliminary stage, it’s nonetheless unsure whether or not the plan can be materialised.
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In 2021, Brookfield separated its reinsurance division right into a separate publicly traded firm.
Nonetheless, the division nonetheless contracts its previous dad or mum to supply administrative and managerial providers.
As a part of the providers settlement, Brookfield invests belongings created by Brookfield Reinsurance in North America.
Simply Group, Pension Insurance coverage Company, and Brookfield all declined to touch upon the event.
The technique aligns with a bigger development, the place deal homes equivalent to Brookfield and Apollo International Administration have lately moved into the life insurance coverage and annuities market in pursuit of long-term capital to speculate.
As per early 2022 estimates by McKinsey & Co, personal buyers at the moment handle greater than $900bn in life and annuity belongings in Western Europe and North America.
In July this yr, Brookfield Reinsurance sealed a $4.3bn deal to accumulate the remaining stake in American Fairness Funding Life Holding Firm.