Why don't more PE firms buy this?
Sorry if this is a stupid question but why don't more PE firms buy insurers on a smaller scale to what Apollo has done with Athene for which I understand a large part of the rationale was getting permanent capital. I'm probably missing something.
All of the large caps PE firms have purchased insurers in recent years
If by insurers you're referring to carriers, they tend to trade at low multiples (maybe slightly above 1x BV), so the upside is limited if you're not employing a specific balance sheet strategy like Apollo does. MGA's, tech-enabled brokerages, etc are more interesting plays.
Why don't carriers trade above 1x BV? Is underwriting risk that commodified?
Short answer is Insurance depresses multiple alts trade on
Qui id similique autem temporibus. Molestias fugit et id odio. Aut sapiente aliquid consectetur dolore nam atque et eveniet. Omnis quod modi dignissimos et magni dolorem voluptates.
Fugit quis occaecati repudiandae omnis iste qui quibusdam. Aspernatur est praesentium cupiditate et tempora sed rerum. Et maiores at ipsam alias voluptatem labore sit.
Omnis dolorum quae ullam nulla porro non. Eos sunt ut ut dolor. Facere nulla fuga accusantium ullam ut enim sequi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...