Privately-Owned Insurers Significantly Grow Share in U.S. Life Insurance Market

Hartford, Conn. – Privately-owned insurance companies have dramatically increased their footprint in the U.S. life insurance market since the 2008 financial crisis, acquiring a substantial share of industry assets and influencing business strategies, according to a new report by ALIRT Insurance Research.

The number of privately-owned life insurers grew from just 16 in 2011 to 93 by the end of 2025. Over the same period, their share of the industry's total invested assets surged from 2.5% ($85 billion) to nearly 20% ($1.2 trillion). Direct premium income for these companies rose from $10 billion to $161 billion.

These insurers have primarily entered the market by acquiring existing companies or blocks of business, often utilizing reinsurance strategies, sometimes involving foreign entities, to optimize capital and profitability. They have focused on "spread-based" products, particularly fixed and fixed-indexed annuities, employing investment strategies that emphasize higher allocations to asset-backed and private bonds, resulting in net investment yields above the industry average.

The report indicates that while these companies operate with higher asset leverage and greater use of reinsurance, their risk-based capital ratios and profitability metrics remain generally in line with the broader industry. Importantly, policyholder protections do not change based on ownership, with claims payment responsibility resting solely with the issuing insurer.

ALIRT Insurance Research concludes that these privately-owned insurers are driving growth and innovation within the sector. Though their strategies introduce new risks, particularly concerning investment complexity and liquidity, their adaptability and success are shaping the market. Regulators continue to monitor these developments, but no major regulatory changes have yet deterred the activity of private groups.