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Private Equity’s Opaque World

Motley Fool Money

The Risk of Private Equity Companies Buying Insurance Companies

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There's a huge risk going on in the insurance market, where private equity companies have been purchasing these insurance companies. That could also have some consequences that the finance folks might want to know. Private equity firms may be using that money for riskier investments than insurers traditionally do. If an insurance company fails, it won't necessarily be the private equity firm that has to pay for it, pay for the policies.

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