Private Equity Is Changing the Game for Life & Annuity Actuaries

Taylor Dever 
Managing Director, USA at Acumen Group

A growing trend that is being felt across the industry, especially by actuaries, is the pace at which private equity firms and asset managers have been buying or backing insurance companies.

Assets under management by private equity and alternative asset managers nearly tripled from 2016 to 2022 and are estimated to exceed $10 trillion globally as of 2024, with a significant portion flowing into insurance and retirement markets.

The top US PE firms will be very familiar to anyone with knowledge of the life & annuity industry – Blackstone, KKR, The Carlyle Group, and Apollo all have had a major impact on the landscape of the industry in recent years.

As someone who provides actuarial recruiting and contract support to PE-backed carriers, traditional carriers, and even directly in the PE space, I’ve noticed a shift in what these firms want from actuaries, and how the roles themselves are evolving.

What Is Different?

Working at a PE-owned insurer or reinsurer comes with a few key differences when compared to a carrier without PE involvement.

• Teams are smaller, and things move fast. You’re expected to make an impact quickly.
• Investment strategy is more central. Actuaries are frequently pulled into ALM, reinsurance strategy, and capital efficiency.
• Roles are broader. Some actuaries are doing a mix of valuation, modeling, and deal support depending on the current workload and where help is needed.
• You might report to people with a finance or investment background

For the right person, it’s a great opportunity to accelerate your career. But it may not be for everyone.

What This Means for Your Career

These firms are looking for actuaries who can go beyond just technical work. If you can think strategically, understand capital flow, and communicate with non-actuaries (think investments, finance, M&A, etc.), you’ll stand out.

It also opens up career paths you might not have considered:

• Working on reinsurance deal modeling
• Supporting M&A activity
• Helping drive ALM and capital decisions

You’ll probably need to be comfortable being uncomfortable, but the learning curve can launch you forward fast.

The Global Angle

This trend isn’t just in the US. A lot of the action is happening in Bermuda and Cayman, where many of these firms set up reinsurance arms to support the US blocks of business.

If you’re based in the US, you might find yourself collaborating with offshore teams or even considering relocation. There are major opportunities for actuaries who are open to working globally (or remotely for global teams).

Thinking About a Move?

Here are some things to consider:

• Culture: These firms can feel more like startups (fast-moving and focused heavily on results/metrics).
• Pay: Comp packages can be very competitive and will likely be more variable than traditional companies due to bonuses or equity components.
• Skills: Outside of the traditional actuarial skillset, companies may put more emphasis on communication skills, business acumen, and exposure to Capital/ALM aspects of the business.

There are no signs of this trend slowing down, and it is changing the work, compensation, and careers of many actuaries.