US life insurance industry transforms itself through M&A

Bob Garofalo and Laura Bazer of the Insurance team explain the drivers behind all the M&A transactions in the life insurance industry, and what they mean for credit when the buyers are private-equity firms. Plus, Donald Robertson of the Banking team and Jasper Cooper of the Insurance team answer questions about Archegos and the recent cyber attack on insurer CNA.Inside this episode:Donald Robertson of the Banking team and Jasper Cooper of the Insurance team answer questions about Archegos and the recent cyber attack on insurer CNA (begins at 2:11)Bob Garofalo and Laura Bazer of the Insurance team explain the drivers behind all the M&A transactions in the life insurance industry, and what they mean for credit when the buyers are private-equity firms (begins at 6:39)Related content:Banks – Global: Archegos default highlights credit-negative risk opacity in banks’ prime brokerage activities - Credit Suisse and Nomura reported the possibility of incurring significant losses associated with a hedge fund defaultCNA Financial Corporation: Cybersecurity attack disrupts systems including webpage - The cyberattack could increase CNA's expenses and its reputational and regulatory risks, but its profitability and solid capital position mitigate risks. Its ratings are unchanged.Life Insurance – US: Companies transform business models via M&A, prepare for post-COVID world - Disruptions in life insurers' business models causing the sector to focus on what mattersLife Insurance – US: PE-driven M&A: good for life insurance sellers, less so for remaining policyholders - Robust PE capital markets provide strategic solutions for sellers, but policyholders and creditors can be exposed to greater financial risk under new PE owner.