Brookfield Reinsurance is considering entering Britain’s pension insurance industry and is “open to an acquisition to bolster growth,” according to a new report from Reuters.
Citing people familiar with the matter, Reuters said that Brookfield’s reinsurance affiliate is “scanning the market for potential deals to access the bulk annuities space, where possible targets could include companies like Just Group and Pension Insurance Corporation.”
These same people reportedly told Reuters that the considerations are still in the early stages and that there is no certainty that Brookfield will proceed with the move.
Reuters noted that the potential move is part of a broader trend where deal houses such as Brookfield and Apollo Global Management have in recent years pushed into the life insurance and annuities industry in search of long-term capital to invest.
The report added that for Brookfield, a UK deal would mark its first investment outside of North America through its reinsurance arm.
It’s no secret that the UK bulk annuity market has been booming, with a recent Aon report noting that 2023 is expected to be a record-breaking year, surpassing the previous peak of £43bn, as it has already seen a record £21.1bn of business in H1.
