Record Annuity Sales Mask Growing Capital Concerns for US Life Insurers

04 March 2026

Despite record annuity sales of $461.3 billion in 2025 and $538.8 billion in industry capital, US life insurers face growing concerns over capital quality and rising leverage. AM Best and regulators warn that soft capital, offshore and affiliated reinsurance, and increased use of sidecars obscure true risk exposure. Investment portfolios are shifting toward private credit and alternative assets, now 38% of total holdings, including higher-risk, below-investment-grade instruments. Problem mortgage loans and complex insurer-asset manager structures add to financial opacity. While premium growth and the aging demographic support demand, structural risks could challenge the sector’s stability in the coming years.

Canada Life Insurance Completes £80 mn Safeway Pension Buy-In

03 March 2026

Canada Life has secured an £80 million bulk annuity buy-in with the Safeway Pension Scheme, covering over 1,800 members and pensioners. This transaction, the scheme’s sixth, transfers investment and longevity risk to Canada Life while trustees retain member administration. Aon and Hymans Robertson advised on actuarial and investment matters, supported by legal teams from Clifford Chance, Gowling WLG, and Canada Life. Early administrative preparation and close coordination with trustees enabled a swift due diligence process. The deal reflects ongoing de-risking strategies and high demand for bulk annuities in the UK market.

SBI Life Insurance: Quiet Rally In India, Hidden Risk For U.S. Portfolios?

02 March 2026

SBI Life Insurance, one of India’s largest private insurers, has seen market repricing after recent regulatory and business updates, affecting U.S. investors indirectly through India-focused ETFs and emerging-market funds. Its growth is driven by State Bank of India’s distribution network, rising insurance penetration, and regulatory clarity, offering exposure to India’s expanding middle-class savings. Unlike U.S. life insurers, SBI Life relies on unit-linked and protection products, making it sensitive to tax or policy changes but providing structural growth potential. For U.S. portfolios, SBI Life adds diversification away from rate-sensitive U.S. financials, though currency and regulatory risks must be considered. Analysts view it as a long-term structural compounder rather than a short-term trading play.