Executive panel tackles ‘awkward’ and evolving competitive relationships

CHICAGO – The popular executive roundtable featured an eclectic group of often competitive companies Monday at the LIMRA 2022 Annual Conference.

The resulting conversation went beyond the scripted fare typically heard at such industry events.

"Could get awkward," quipped Bryan Adams, CEO of Integrity Marketing Group, as moderator Mary Jane Fortin, chief commercial officer at Thrivent, asked Lincoln Financial Group CEO Ellen Cooper about consolidation activity.

Integrity continues to disrupt the traditional insurance model with its voracious acquisition activity.

"It's going to take a little more than that, Bryan," Cooper said good naturedly as attendees laughed.

Integrity develops annuity products with carrier partners and markets them through its nationwide distribution network. The company works with approximately 500,000 agents and advisors serving more than 11 million clients annually. In 2022, Integrity said it expects to help place almost $20 billion in new sales and oversee more than $30 billion of assets under management and advisement through its RIA and broker/dealer platforms.

Cooper, who took over from longtime Lincoln CEO Dennis Glass in May, stressed those partnerships in her response.

"Organizations like Bryan's are providing the tools and the resources, processes, platforms for distribution areas and they are also are really recognizing the customer," she said. "I actually think that that can be complementary to what we're doing."

Adams and Cooper were joined on the panel by Gilles Dellaert, global head of Blackstone Insurance Solutions, and Jennifer Fitzgerald, CEO and co-founder of PolicyGenius.

About private equity

Dellaert took a turn on the hot seat when the discussion turned to the surging interest by private equity firms in insurance companies.

"Gilles, you're not off the hook," Fortin joked. "What's going on [with] private equity? You know, 10 years ago AM Best reported private equity held 1% of our assets. Ten years later, it's 10%."

Blackstone is an active player in the insurance space. The firm recently invested $500 million in Resolution Life as part of a broader deal to help the insurance company raise $3 billion in new equity capital commitments. Last year, Blackstone bought Allstate Life Insurance Co. in a $2.8 billion deal.

Firms such as Blackstone, KKR and Apollo Global Management are attracted to insurers for the steady stream of assets that can be invested. Insurers are eager partners in many of the deals as they seek higher returns unavailable in traditional safe money investments due to low interest rates.

Still, regulators and consumer advocates are concerned by the private equity control of what are the retirement assets for millions of Americans. Dellaert stressed the evolution of Blackstone from a private equity firm into other areas, such as real estate, as well as its tested ability to underwrite a variety of different risks.

"We'd like to be able to serve multiple clients," he said. "As Brian said, we'd like partnerships with multiple people. And we didn't want to ultimately own or control or become an insurance company."

Blackstone is "very transparent" about how it is investing its balance sheet and backing its assets, he added.

Attracting young people

Fitzgerald helped found PolicyGenius in 2014 and the online insurtech startup calls itself an "insurance marketplace." The company attracted strong investment and says it has helped over 30 million people shop for insurance and placed over $150 billion in coverage.

Along the way, PolicyGenius has attracted young talent away from traditional insurers, a fact Fitzgerald acknowledged with an awkward chuckle.

"Giving them an alternative model that allows them to do what they love and they're very motivated by helping clients get financial protection," Fitzgerald said. "They love giving advice. They love talking about financial wellness with their clients. You just don't want to sell one carrier's product or have to build a book business."

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.

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