Large Wall Street asset managers are increasingly selling private investments to their own affiliated insurance companies. Affiliated assets reached $413 billion in 2025. This total has doubled since 2020.
Firms like Apollo Global Management and Brookfield Asset Management use insurance arms, including Athene and American Equity, to purchase complex assets. These transactions often involve private credit originated by the parent firm.
The National Association of Insurance Commissioners (NAIC) is heightening scrutiny of these internal synergies. Regulators cite potential conflicts of interest, such as excessive fees or the offloading of underperforming, hard-to-sell assets. These balance sheet risks could ultimately impact policyholders.
Authorities are now enhancing disclosure requirements for these entities. New oversight targets complex ownership structures and the investment management agreements between parent firms and their insurers.