Apollo Insurer Warns Regulators of Conflict Risks at PE-Backed Rivals

Apollo Global Management’s affiliated life-insurance business has warned US regulators that rival private-equity-backed insurers could face conflicts of interest because of the large volumes of related-party assets on their balance sheets, the Financial Times reported. The complaint comes as watchdogs increase scrutiny of how private-equity firms deploy policyholders’ premiums and the extent to which insurers rely on investment vehicles managed by their parent companies. The comments follow Apollo’s creation of a complex fund, devised with finance firm ACS, that is designed to channel insurance capital into higher-yielding private-credit strategies. The manoeuvre highlights the intensifying competition among alternative-asset managers to draw on the fast-growing pool of annuity and life-insurance assets, even as questions mount over transparency and governance in the sector.