KKR now owns 100% of its World Atlantic enterprise, and it hopes World Atlantic will improve complete annual gross sales to about $20 billion, from about $10 billion per yr at present.
Rob Lewin, KKR’s chief monetary officer, talked in regards to the firm’s imaginative and prescient for World Atlantic at present, throughout a convention name with securities analysts. ”I believe there’s lots of share we will achieve there,” he mentioned.
Alternatives on his goal listing embody promoting massive group annuities to pension plan sponsors that wish to shed pension danger, getting merchandise onto extra distribution platforms and increasing mounted annuity advertising efforts.
“Traditionally, World Atlantic hasn’t been as lively within the longer-duration mounted annuity market,” he mentioned. He expects the corporate to extend gross sales of mounted annuities with give up cost intervals of seven to 10 years.
What it means: Life insurers might face much more brutal competitors for an opportunity to draw your purchasers’ secure cash property.
The backdrop: KKR held the convention name to go over earnings for the fourth quarter of 2023 with the analysts.
KKR is a New York-based asset supervisor that could be finest recognized for its $11 billion of personal fairness funding property, its $1.8 billion in actual property investments and its $2.2 billion in credit score investments.
KKR has additionally owned 63% of World Atlantic, a life and annuity enterprise that was shaped by Goldman Sachs in 2004 and transformed right into a stand-alone enterprise in 2013.
KKR acquired the World Atlantic stake beforehand owned by outdoors traders in January.
The corporate as an entire reported $1 billion in internet revenue for the fourth quarter on $4.4 billion in income, up from $121 million in internet revenue on $2.5 billion in income for the fourth quarter of 2022.