8 notable trends in the VA business
5. P-E flyers
As life insurers look to shed problematic blocks of legacy variable annuity business, expect private equity buyers and other big investors to jump in. Late last year, Sun Life sold its VA block to Delaware Life, a Guggenheim Partners company. Cigna followed that up when it reached an agreement in February with Berkshire Hathaway Life to have the company assume Cigna’s exposure to up to $4 billion in VA living and death benefits. The move gave hope to the industry that while VAs have proven difficult for some insurers, there’s a buyers market that’s willing to snap up the businesses.