Defined terms for the annuity market and lifetime income landscape.
Private credit in insurance general accounts is the practice of allocating a portion of an insurance carrier's general account assets to directly originated or privately placed loans — typically middle-market direct lending, asset-based finance, or other non-traded credit holdings.
PE ownership of insurance carriers is the pattern in which a private equity firm owns or controls a life and annuity insurance company through a holding company structure, with the PE owner directing the carrier's investment strategy, capital management, and reinsurance arrangements.
Profit margin in annuity pricing is the pricing component that represents the carrier's required return on the regulatory capital it must hold against the contract, embedded in the premium or income calculation rather than charged as a separate fee.
Quota share reinsurance is a proportional reinsurance structure in which the reinsurer assumes a fixed percentage of every policy in a defined block of business, taking the same percentage of premium and bearing the same percentage of losses on every individual policy in that block.
Reinsurance is the practice by which one insurance company transfers part of the risk it has underwritten — and the corresponding share of premium — to another insurance company called the reinsurer, in order to manage its risk exposure and capital requirements.
