PriyaPatel
TLDR:
Brookfield, a global private capital group, is set to launch a new insurance entity in the UK to take advantage of British companies looking to transfer their pension plans. The move aligns with a broader trend of private capital groups expanding into the life insurance sector globally.
Summary:
Brookfield, one of the world’s largest private capital groups, is planning to establish an insurance entity in the UK to tap into the market of British companies seeking to offload their pension plans. The increase in interest rates has made it financially viable for companies to transfer their pension liabilities and assets to insurers. Brookfield’s insurance business has filed with the Bank of England’s Prudential Regulation Authority to set up a new insurer.
Last year, Brookfield considered bidding for Pension Insurance Corporation but the valuation was not feasible. The firm is entering a market dominated by large bulk annuity providers such as Phoenix Group and Legal & General. Brookfield’s insurance operation has its own balance sheet and controls over $100bn in assets under management. The move by private capital groups into the corporate pension market aligns with a broader trend of expanding into the global life insurance sector.
The application process can take at least six months, and regulatory questions may arise about Brookfield’s investment approach in managing pension schemes. The arrival of new players like Brookfield in the market is seen as a way to accommodate the impending wave of corporate pension deals. Both Brookfield and the Bank of England have declined to comment on the matter.
