Big Take How Private Equity Got Its Hands on Billions in Americans’ Retirement Money
Nov 17, 2025
Alex Rajbhandari, a Bloomberg reporter specializing in the U.S. insurance sector, joins Tom Schoenberg, who covers financial regulation. They delve into how private equity has taken control of life insurers, shifting retirement savings into high-risk investments managed offshore. The discussion highlights the alarming trends in pension conversions, the lack of protections for retirees, and potential systemic risks posed by opaque financial practices. Their insights reveal the precarious future for American retirees amidst evolving regulatory landscapes and legal battles.
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Private Equity Remade Life Insurance
- Private equity transformed sleepy life insurers into vehicles for higher-return private assets after the financial crisis.
- About 139 private-equity-owned insurers now hold roughly $700 billion in U.S. assets, shifting industry dynamics.
Steelworker Woke Up To Annuity Switch
- Retiree Bill Shane learned his Allegheny pension was moved to Athene and became an annuity he didn't understand.
- Athene converted more than $50 billion of pensions into annuities, including $1.5 billion from Allegheny Technologies.
Policyholder Cash Flows Into Private Products
- Athene and similar firms invest pension and premium dollars into affiliated private products that yield more but are less transparent.
- Regulators and retirees worry because those private investments carry higher uncertainty and limited visibility.