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Private equity firms acquire major U.S. life insurers

Private equity firms acquire major U.S. life insurers

Money Moves

Alternative asset managers reshape how Americans save for retirement

February 12th, 2026: Brighthouse Shareholders Approve Merger

Overview

Brighthouse Financial shareholders voted on February 12, 2026, to approve a $4.1 billion all-cash acquisition by Aquarian Capital, making the company the latest major U.S. life insurer to exit public markets for private equity ownership. The deal—at $70 per share, a 37% premium to the unaffected stock price—continues a decade-long trend of alternative asset managers acquiring insurers that hold Americans' retirement savings.

What began with Apollo Global Management's creation of Athene during the 2008 financial crisis has become a fundamental restructuring of the U.S. insurance industry. Private equity and alternative asset managers now control insurers with more than $700 billion in assets, drawn by the 'permanent capital' that annuity premiums provide and the opportunity to invest those assets in higher-yielding private credit. Regulators are increasingly scrutinizing whether these new owners take more risk with policyholders' money than traditional insurers did.

Play on this story Voices Debate Predict

Key Indicators

$4.1B
Brighthouse acquisition value
All-cash transaction approved by shareholders on February 12, 2026
$243B
Brighthouse total assets
Assets that will move from public company to private equity ownership
2M+
Brighthouse policyholders
Number of annuity contracts and life insurance policies in force
$700B+
PE-controlled insurance assets
Total insurance assets now controlled by private equity and alternative managers

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People Involved

Rudy Sahay
Rudy Sahay
Leading Brighthouse acquisition
 Eric Steigerwalt
Eric Steigerwalt
Continuing as CEO post-acquisition

Organizations Involved

Brighthouse Financial
Brighthouse Financial
Life Insurance and Annuity Company
Acquisition by Aquarian Capital pending regulatory approval

One of the largest U.S. providers of annuities and life insurance, serving more than 2 million policyholders with approximately $243 billion in total assets.
Aquarian Capital
Aquarian Capital
Private Equity / Alternative Asset Manager
Acquiring Brighthouse Financial

Alternative asset manager focused on insurance and retirement solutions, backed by Mubadala Capital and RedBird Capital Partners.

Timeline

  1. Brighthouse Shareholders Approve Merger

    Shareholder Vote

    Brighthouse Financial stockholders vote to adopt the merger agreement at a special meeting. The transaction now awaits antitrust clearance and insurance regulatory approvals in Delaware, New York, and Massachusetts.

  2. Aquarian Announces Brighthouse Acquisition

    M&A Announcement

    Aquarian Capital announces definitive agreement to acquire Brighthouse Financial for $70 per share in an all-cash transaction valued at approximately $4.1 billion.

  3. Aquarian Raises $1.5 Billion

    Financing

    Aquarian Capital raises nearly $1.5 billion from Mubadala Capital and other investors to expand its insurance and credit businesses.

  4. KKR Takes Full Ownership of Global Atlantic

    Industry Milestone

    KKR acquires the remaining 37% of Global Atlantic for $2.7 billion, making it a wholly owned subsidiary. Global Atlantic's assets under management have grown to $158 billion.

  5. Apollo Completes Athene Merger

    Industry Milestone

    Apollo completes its $11 billion merger with Athene, bringing the annuity provider fully in-house and making Athene the largest U.S. issuer of annuities with $236 billion under management.

  6. KKR Announces Global Atlantic Acquisition

    Industry Milestone

    KKR agrees to acquire retirement and life insurance company Global Atlantic in a deal initially valued at $4.7 billion, gaining access to $72 billion in assets.

  7. Brighthouse Begins Trading on Nasdaq

    Corporate Action

    Brighthouse Financial completes its separation from MetLife and begins trading under ticker symbol BHF with more than $223 billion in total assets.

  8. MetLife Announces Brighthouse Spinoff

    Corporate Action

    MetLife announces plans to separate its U.S. retail life insurance and annuity business to reduce regulatory scrutiny and capital requirements tied to variable annuity products.

  9. Apollo Creates Athene During Financial Crisis

    Industry Milestone

    Apollo Global Management establishes Athene Holding to acquire distressed annuity blocks, pioneering the private equity-insurance model that would reshape the industry.

Scenarios

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1

Deal Closes, Brighthouse Operates Under Private Ownership

Regulators in Delaware, New York, and Massachusetts approve the transaction after standard reviews. Brighthouse continues operating as a standalone entity under Aquarian ownership, with Eric Steigerwalt remaining as CEO. The company retains its Charlotte headquarters and brand. This is the expected outcome barring unusual regulatory intervention.

Discussed by: Securities analysts covering Brighthouse; Aquarian and Brighthouse in merger announcement
Consensus —
2

Regulators Impose Conditions on Approval

State insurance regulators approve the deal but require Aquarian to maintain higher capital reserves, limit investment in certain asset classes, or provide enhanced disclosure about affiliate transactions. This would follow the pattern set by New York Department of Financial Services guidance on private equity acquisitions of insurers.

Discussed by: Mayer Brown analysis of state insurance regulatory scrutiny; NAIC guidance on PE acquisitions
Consensus —
3

Regulatory Review Significantly Delays Closing

Given heightened regulatory attention to private equity ownership of insurers—including concerns about offshore reinsurance structures and investment risk—one or more state regulators extends its review, pushing the closing beyond 2026. Extended scrutiny could emerge if regulators examine Aquarian's planned investment strategies or affiliate relationships more closely.

Discussed by: Bloomberg reporting on increased scrutiny of PE-insurance deals; IMF study on PE-influenced insurers
Consensus —
4

Aquarian Becomes Platform for Further Insurance Acquisitions

Following the Brighthouse closing, Aquarian uses the enlarged platform to pursue additional insurance acquisitions, potentially rivaling Apollo-Athene or KKR-Global Atlantic in scale. The $243 billion in Brighthouse assets would provide substantial permanent capital to deploy in private credit and alternative investments.

Discussed by: Deloitte insurance M&A outlook; Private Equity Insights coverage of Aquarian
Consensus —

Historical Context

Apollo-Athene Merger (2021-2022)

March 2021 - January 2022

What Happened

Apollo Global Management agreed to fully acquire Athene Holding—an annuity provider Apollo had created during the 2008 financial crisis—in an $11 billion all-stock deal. The merger brought together a private equity giant and the largest U.S. annuity issuer, creating a combined company with $43 billion in market capitalization.

Outcome

Short Term

Apollo became eligible for S&P 500 inclusion and transformed from a fee-heavy private equity firm to a spread-oriented credit company.

Long Term

Athene now represents roughly half of Apollo's business and manages $236 billion in annuity policies. The model proved so successful that competitors rushed to replicate it.

Why It's Relevant Today

The Apollo-Athene merger established the template that Aquarian is now following with Brighthouse: acquire an insurer with permanent capital from annuity premiums, then invest those assets in higher-yielding private credit.

KKR-Global Atlantic Acquisition (2020-2024)

July 2020 - January 2024

What Happened

KKR acquired retirement and life insurance company Global Atlantic in 2020 for $4.7 billion, initially taking a 60% stake. Four years later, KKR purchased the remaining 37% for $2.7 billion to gain full ownership.

Outcome

Short Term

Global Atlantic's assets under management grew from $72 billion to $158 billion under KKR ownership.

Long Term

Global Atlantic became the platform for KKR's expansion into retirement services, recently attracting a $2 billion investment from Japan Post Insurance.

Why It's Relevant Today

KKR's experience shows how private equity owners can rapidly grow insurance platforms through new business and reinsurance transactions. Aquarian likely sees similar growth potential in Brighthouse.

MetLife Brighthouse Spinoff (2016-2017)

January 2016 - August 2017

What Happened

MetLife announced it would separate its U.S. retail life insurance and annuity business to escape potential designation as a 'systemically important financial institution' under Dodd-Frank and to reduce capital requirements tied to variable annuity guarantees. The new company, Brighthouse Financial, began trading in August 2017.

Outcome

Short Term

MetLife transformed into a less capital-intensive company focused on group benefits. Brighthouse launched with $223 billion in assets.

Long Term

Brighthouse struggled with the same challenges MetLife sought to escape: low interest rates and variable annuity exposures. The stock underperformed, trading around $51 before the acquisition premium.

Why It's Relevant Today

MetLife spun off Brighthouse because public market investors punished capital-intensive variable annuity exposure. Private equity buyers view the same assets differently—as sources of permanent capital with predictable liability profiles.

Sources

(10)
+4
Business Wire InvestmentNews Aquarian Capital Bloomberg Mayer Brown Private Equity Insights Brighthouse Financial Investor Relations Deloitte Bloomberg Aquarian Capital