FIO Notes Growing PE Insurance Role, Demurs on Action

Treasury’s Federal Insurance Office today issued an annual report replete with data and largely devoid of policy.  However, reflecting strong pressure from Sen. Brown (D-OH) (see Client Report INSURANCE61), the report addresses credit risk transfer and private-equity participation in the reinsurance industry.  FIO notes that the alternative risk-transfer market grew by $3 billion from 2020 to 2021, with both the property & casualty and life & health insurance sectors seeing over ten percent growth in reinsurance, which boosted total sector revenue growth.  It also finds that private equity-owned insurer cash and invested assets grew over 100% over the same period.