Buying from the Family: Private Equity-Owned Insurers and Their Affiliated Investments
with Stefan Huber, Bella Shan, and Christina Zhu
We show that insurers directly owned by PE conglomerates function as a captive source of capital for affiliated credit activities: 61% of their structured security investments are in affiliated entities, they pay more for these, and these are higher beta investments with worse downsides.
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