Canada-based investment company Brookfield is looking to foray into the UK’s growing pension insurance industry, reported Reuters citing sources.
Through its unit Brookfield Reinsurance, the company is planning to make acquisitions to drive growth.
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The sources said Brookfield is looking for potential acquisitions to enter the bulk annuities industry.
Bulk annuities are a type of insurance, in which the liabilities of a company’s pension plan are transferred to an insurer.
Potential targets could be businesses such as Just Group and Pension Insurance Corporation.
As discussions are still in the preliminary stage, it is still uncertain whether the plan will be materialised.
In 2021, Brookfield separated its reinsurance division into a separate publicly traded company.
However, the division still contracts its old parent to provide administrative and managerial services.
As part of the services agreement, Brookfield invests assets created by Brookfield Reinsurance in North America.
Just Group, Pension Insurance Corporation, and Brookfield all declined to comment on the development.
The strategy aligns with a larger trend, where deal houses such as Brookfield and Apollo Global Management have recently moved into the life insurance and annuities market in pursuit of long-term capital to invest.
As per early 2022 estimates by McKinsey & Co, private investors currently manage more than $900bn in life and annuity assets in Western Europe and North America.
In July this year, Brookfield Reinsurance sealed a $4.3bn deal to acquire the remaining stake in American Equity Investment Life Holding Company.
