Is My Insurer Owned By Private Equity? What It Means for Your Policy

Written by Ariel Stern Updated November 11, 2025

There’s been increased interest from private equity in insurance companies over the past several years. While a company being owned by private equity does not mean that it is inherently riskier, these companies do not have to be as transparent and may have riskier investment profiles than their public or mutual owned counterparts.

If aninsurance company is affiliated with private equity, you may be wondering how safe it is. This article breaks down how to determine whether an insurer is owned by private equity and what that means for you.

What Does It Mean if An Insurer is Owned by Private Equity?

Before we begin with how to identify if an insurer is affiliated with private equity, let’s first discuss what that means.

An insurance company that is owned by a private equity firm still must have its products licensed in each state and is subject to oversight by the NAIC, including capital and reserve requirements. They can also still participate in State Guaranty Associations

However, there are key differences in how they can invest, their financial transparency, and the insurer's risk profile.

Insurers that are owned by private equity:

• Reduced Transparency — Don’t have to release detailed information about their investments
• May have parent companies domiciled outside of the U.S., which could reduce regulatory transparency
• May Seek Higher Returns — Often seeking higher returns carries more risk

Insurers that are publicly traded or mutually owned:

• Greater Transparency — Must disclose their investment holdings
• Public Scrutiny / Shareholder Voting — shareholders get to vote on their business practices

Whether or not you are comfortable purchasing through an insurer affiliated with private equity has to do with your risk tolerance and transparency requirements.

How to Tell if an Insurer is Owned by Private Equity

This one is not always easy to do, but it can help you be more confident in your opinion about the safety of an insurer.

Look into the company structure to identify if it is owned by or part of the private equity space. While an insurer being owned by a private equity firm is not necessarily bad, private equity firms often invest the insurer’s assets in investments that are riskier than traditional fixed income vehicles.

Some good indicators that an insurer is not owned by a private equity firm are:

• Being a mutual insurance company (these are owned by their policyholders)
• Being a publicly traded company (they must file SEC disclosures with information about their investments and company structure)

An insurer may be affiliated with private equity if:

• Its parent company is not located in the USA
• It does not disclose its holdings in regulatory (or promotional) materials

You can also look at the “About Us” page of an insurance company or search for news about the insurer being acquired by a private equity firm.

The Bottom Line

Being affiliated with private equity does not necessarily make an insurance company risky; however, private equity firms often pursue higher returns, which can carry more investment risk than publicly owned or mutual insurers. Regardless of ownership, all insurance companies are subject to state regulations and must maintain required capital and reserves, providing a layer of protection for policyholders.

While it is not easy, there are a few ways to determine if an insurance company is owned by private equity. With this information, you can decide whether the insurance product they offer is right for you.

References:

• Alberts, D. Hamilton, L. & Sidhu, V. “US State Insurance Regulatory Scrutiny of Private Equity Investors in the Insurance Industry” Mayer Brown. June 24, 2024.
• "State Insurance Regulation". National Association of Insurance Commissioners and The Center For Insurance Policy and Research. 2011
• Wallace, C. “Private Equity’s Growing Role In Insurance: Rewards And Risks” Global Finance. September 8, 2025.