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It’s time we had the money talk, say 66% of Americans, who believe open conversations about money are the key to financial freedom. But taboos remain.

This is according to Empower’s new research, Money Talks, which shows that Americans surveyed are constantly planning (64%) and dreaming (58%) about their future, and thinking about finances (61%. But that’s where it goes silent.

Over six in 10 (62%) people don’t talk about money. Mum’s the word with their family (63%), friends (75%), and even with their spouse/partner (46%), though millennials and Gen Z are twice as likely to say they’re an “open book,” compared to older generations (28% vs. 13%).

Many people would rather discuss politics (43%) and death (32%) than their finances (24%).

Candid ‘money talks’ can provide financial freedom

This refusal to talk about money may be costing them their dreams, the survey said. A majority of people believe more candid “money talks” have the power to change the world: 66% remark that open conversations can help people build generational wealth, improve the gender wage gap (62%) and over half say that money conversations could improve workplace transparency (56%).

Among the key findings of Money Talks :

Money is the monster under the bed in many homes – and it’s time to turn on the lights: More than half of Americans surveyed say they never talked about finances growing up (52%), and 1 in 4 learned that it’s not polite to talk about money. Another 35% of Americans say they were taught to never ask someone how much money they make. Respondents report being raised without practical, critical money lessons like budgeting (32%), saving for retirement (21%), negotiating a salary (18%), or investing (17%).
There’s no such thing as a pot of gold at the end of the rainbow, but when it comes to money, it’s much easier for Americans to believe in magic: 71% of Americans have purchased a lottery ticket and 1 in 4 millennials turn to a fortune teller for advice; yet, only one third of Americans have spoken with a financial advisor.
Taking time to talk about money counts, but people would do almost anything to change the subject: A quarter of Americans (29%) would rather wait in line at the DMV, sit on jury duty (27%) or miss a flight (26%) than tell a stranger how much money they have. Nearly a quarter (24%) would rather go on a blind date, and 18% would prefer to give a big presentation at work than share their financial statements with their friends.
Financial knowledge is power – and many Americans could benefit from taking stock: Just six in 10 Americans know their own net worth (58%), and only 38% know their partner’s. More people are familiar with Elon Musk’s net worth (28%) than their own family’s (24%). Having clarity around a full financial picture (40%), talking to an advisor (36%), and financial education (34%) can be critical to achieving financial freedom, the survey said.

Why the hesitation to talk about money

Carol Waddell

So, why are so many Americans reluctant to talk about something that has such a major impact on their daily lives? The way many Americans approach their finances often goes back to foundational conversations they had (or avoided) when it comes to money, explained Carol Waddell, president of Empower personal wealth.

A quarter of Americans say they were taught that it’s impolite to talk about money growing up. For example, Waddell said, “our study found that while 41% report having a piggy bank, only 32% say they were taught how to budget, and the vast majority (79%) of people say they never spoke about how much is “needed” to be financially secure.”

Eight in 10 Americans (83%) admit to making at least one money mistake, with not saving enough for the future (41%), accumulating too much debt (36%), and not having an emergency fund (34%) being the most common. Some 18% say they missed out by not investing in a 401(k), she added.

Salary can be a difficult topic to navigate, and 68% of Americans say they avoid having uncomfortable money conversations at work, noted Waddell. While overall 33% of Americans don’t feel comfortable in asking for a raise, men are 15% more likely to feel comfortable in asking for more money than women (74% vs. 59%).

In addition, Waddell pointed out, while they might not speak up over the water cooler, millennials and Gen Z are eager for more transparency when it comes to compensation. Over half of Gen Z (53%) and millennials (58%) say they would share their salary information on their LinkedIn.

Getting people to talk about money

Despite their initial hesitation, a majority of people believe more candid “money talks” have the power to change the world – from helping to build generational wealth to improving the gender wage gap and workplace transparency, Waddell said.

“One way to help people start talking more openly about money is to reassure them that they’re not alone in their questions: 66% believe that open money conversations can help more people achieve financial freedom,” she added. “Now’s a great time to start.”

The full “Money Talks” report with more findings exploring what’s next in life, work and play can be found on The Currency.

The “Money Talks” report is based on survey responses conducted by The Harris Poll on behalf of Empower from Jan. 3-10, 2023. It surveyed 2,000 Americans ages 18+ and included data from the Empower Personal Dashboard.

Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at amseka@INNfeedback.com. 

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Equitable Holdings Inc., the global diversified financial services company, said its operating earnings fell 22% in the first quarter of 2023 compared to the same period a year ago, with net income of $177 million versus $530 million a year ago.

The company said its assets under management also slipped a bit, down 8% to $864 billion. Quarterly earnings per share badly missed most Wall Street estimates, coming in at $0.96 per share, against consensus predictions of $1.19 per share.

Insurance sector cited for earnings’ lag

Company executives posited a variety of reasons for the financial results, particularly an underperforming insurance sector, soaring interest rates, inflation, and “volatility in mortality and lower alternatives performance.”

Still, the company said it returned $286 million to shareholders in the quarter, including $72 million of quarterly cash dividends and $214 million of share repurchases, which were in line with its 55-65% payout target. Moreover, the company intends to increase its quarterly dividend in the second quarter from $0.20 per share, to $0.22

It also noted that Equitable’s holding company is sitting on a pile of cash and liquid assets, more than three times its minimum target, giving it a strong balance sheet and the ability to weather any economic stresses. It credited the healthy cash position on strong risk management and hedging programs and its diversified sources of cash flows in its wealth management and retirement businesses.

Given the market environment we prefer to have a buffer at the holding company until this uncertainty clears up,” said Equitable’s chief financial officer, Robin M. Raju.

Well positioned for market stress

He said the company is well positioned for periods of market stress with a conservatively positioned and high-quality investment portfolio, which is A2-rated with fixed maturities that are 96% investment grade.

“We expect mortality rates will normalize, and so far in April it’s in line with expectation,” Raju said.

Raju said the company’s wealth management business, Equitable Advisors, is the fastest growing business segment in the company, with earnings jumping from $58 million in 2021 to $101 million in 2022, Its “core inflows” in its retirement, asset and wealth management business contributed $3.2 billion.

Overall, it was numbers like those that made the company comfortable with its position despite falling quarterly Equitable Holdings earnings.

On Wall Street, Equitable stock fell more than 6%, to 22.99 per share, from a high of $31.60 in March.

Doug Bailey is a journalist and freelance writer who lives outside of Boston. He can be reached at doug.bailey@innfeedback.com.

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Even though the COVID-19 public health emergency in the U.S. is scheduled to end May 11, the World Health Organization jumped in today to declare that COVID-19 is no longer a global health emergency.

WHO declared the COVID-19 the outbreak to be a public health emergency of international concern in January 2020, about six weeks before characterizing it as a pandemic. The virus continues to evolve and spread and remains a global health threat, but with cases on the decrease, COVID-19 is at a lower level of concerns, WHO officials said.

Meanwhile, Rochelle Walensky, head of the Centers for Disease Control and Prevention, announced she will resign on June 30,  saying the waning of the COVID-19 pandemic was a good time to make a transition

There have been more than 765 million confirmed Covid-19 cases since the start of the pandemic, according to WHO data. Nearly 7 million people have died. Europe has had the most confirmed cases overall, but the Americas have reported the most deaths. About 1 in 6 total deaths have been in the US.

The U.S. public health emergency ends on May 11.

Some post-health emergency changes to expect

What does this mean for Americans? Here are some policy changes to expect.

Coverage of COVID-19 tests without cost sharing. During the public health emergency, enrollees in Medicare, Medicaid, CHIP and private health insurance received coverage of COVID-19 tests and testing-related services without cost sharing (and, for commercial enrollees, without prior authorization requirements). With the conclusion of the emergency comes the end of no-cost COVID-19 testing for many patients, including the eight free at-home tests Medicare beneficiaries and commercially insured patients were eligible to receive each month.
Expiration of Section 1135 waivers. Section 1135 waivers relax numerous federal requirements for health care providers that participate in the federal Medicare or Medicaid programs and also for state Medicaid agencies. Among the many “blanket” 1135 waivers issued by the Centers for Medicare & Medicaid Services are waivers that enable alternative sites of care, clinician practice across state lines, staffing flexibilities for hospitals and long-term care facilities, and the ability for hospitals to establish skilled nursing facility “swing beds.”
Waiver of the three–day rule. Medicare normally will cover an extended stay in a skilled nursing facility stay only if it follows a hospital inpatient stay of at least three consecutive days. During the public health emergency, CMS waived this three-day requirement. This waiver will expire at the end of the emergency.
COBRA coverage: During the national emergency, people leaving group health plans had more than a year to elect COBRA and pay their first premium. However, beginning June 9, 2023, COBRA deadlines will revert to 60 days to elect COBRA and then 45 days to pay the first premium.
Employer-sponsored enrollment periods: Special enrollment periods for employer-sponsored health plans will once again be limited to 30 days, or in some cases 60 days. The limited enrollment windows were not applicable during the national emergency, but will return on June 9, 2023.

Some COVID-19 changes will remain the same

However, some health-care changes related to COVID-19 will remain the same after the public health emergency ends.

Vaccines and boosters. Consumers will continue to have access to free COVID-19 vaccines and boosters. That is true whether they have original Medicare, a Medicare Advantage plan, a Marketplace plan, Medicaid or coverage through an employer. (Grandfathered health plans, however, do not have to cover the full cost of vaccines). Consumers will need to comply with in-network restrictions to avoid costs, though.
Telehealth access. Most consumers with a marketplace plan or employer coverage will experience minimal or no changes to their telehealth access and coverage after the public health emergency ends.

Medicaid unwinding began April 1

Despite the May 11 date for ending the public health emergency, those who became eligible for Medicaid coverage as a result of pandemic-related legislation were still subject to disenrolling from coverage in April.

States that received extra Medicaid funding under a 2020 COVID-19 relief bill had to agree to pause beneficiaries’ eligibility verifications. The continuous enrollment in Medicare was set to end when the public health emergency is over.

Under the $1.65 trillion federal spending bill approved by Congress in December, states could begin disenrolling people from Medicaid in April even if the public health emergency designation remains in place. Many of those who will lose coverage are likely to qualify for coverage under the Affordable Care Act, according to public-health officials and advocates.

As many as 18 million people could lose Medicaid coverage, according to estimates from the Urban Institute.

The Department of Health and Human Services is providing outreach and guidance to assist states in redetermining the eligibility of their Medicaid beneficiaries. HHS announced it would permit state Affordable Care Act marketplaces to launch a special sign-up window for people who lose Medicaid to help prevent gaps in coverage.

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Lincoln Financial Group completed another difficult quarter financially, but executives touted last week’s $28 billion reinsurance deal as a crucial rebound move for the insurer.

The Radnor, Pa.-based insurer will cede approximately $28 billion of in-force [guaranteed universal life], MoneyGuard and fixed annuity statutory reserves to Fortitude Re. Lincoln will continue to service and administer the reinsured policies.

The deal is expected to improve Lincoln’s capital position and help free up cash flow.

Lincoln expects “to generate $300 to $500 million of free cash flow this year, before the impact of the reinsurance transaction and to execute on initiatives to further improve ongoing free cash flows in 2024 and beyond,” said CEO Ellen Cooper during a Wednesday morning call with analysts.

Christopher Neczypor is the chief financial officer for Lincoln. In response to a question, he conceded that the insurer included the fixed annuity block in the reinsurance deal to get it done.

“Where we landed was the optimal mix for us and the transaction was a combination of MoneyGuard, fixed annuities, and GUL and that’s what ended up making the most sense for us,” Neczypor said.

Another earnings loss

Lincoln endured several difficult earnings reports in a row, in particular, reporting a $2.6 billion loss in the third quarter 2022 due to a one-time charge against its life insurance reserves. In the quarter ending March 31, Lincoln reported a net income loss of $881 million, compared to a $1.4 billion profit in the year-ago quarter.

It has been a tough first year for Cooper, who succeeded longtime CEO Dennis Glass in May 2022. The Lincoln stock price is down nearly 65% in one year, and dropped 6% Wednesday upon the first-quarter earnings release.

It all led to an existential question posed by Erik Bass of Autonomous Research in the first question of the Q-and-A portion of the call.

“Do you still want to be one of the biggest sellers of life insurance?” Bass asked. “Or do you want to narrow the focus of the products of either what you sell or what you’re retaining on your balance sheet?”

Cooper returned to the Fortitude Re deal to frame her response.

“We recognize that we have an in-force business that is legacy,” she said. “It has a fair amount of pressure as it relates to free cash flow and also as it relates to our GAAP earnings. At the same time we feel really good about all of the businesses that were putting on the books.”

As it relates to life insurance, that “capital-efficient product mix” includes more indexed universal life and less term, Cooper explained.

Lincoln’s Life Insurance segment reported a loss of $13 million compared to income of $23 million in the prior-year quarter. The decrease was “primarily driven by the run-rate impact from the company’s third quarter 2022 annual review of DAC and reserve assumptions and lower alternative investment income, prepayment income and base spreads, partially offset by an improvement in COVID-19 mortality experience,” the insurer said in a news release.

Total life sales for the quarter were $130 million compared to $155 million in the prior-year quarter.

Annuity sales up

Annuities reported income from operations of $274 million, down 14% compared to the prior-year quarter. The decrease was “primarily due to lower fee income driven by unfavorable capital markets, partially offset by a favorable tax adjustment in the current quarter,” Lincoln reported.

Total annuity deposits of $3.2 billion were up 17% from the prior-year quarter as sales growth in fixed annuities and indexed variable annuities “more than offset” a decline in sales of traditional variable annuities, the release said. Net outflows were $331 million in the quarter compared to net outflows of $525 million in the prior-year quarter.

Average account balances for the quarter of $146 billion were down 9% from the prior-year quarter, primarily driven by unfavorable capital markets, the release said. Variable annuities with living benefits represented 46% of total annuity account balances, a decrease of four percentage points compared to the prior-year quarter.

Lincoln reported strong results from its Group Protection segment as well, thanks to declining impacts from COVID-19.

Group Protection reported income from operations of $71 million in the quarter compared to a loss from operations of $46 million in the prior-year quarter. The increase was primarily driven by improved disability underwriting results and lower COVID-19 mortality claims, the insurer said.

Group Protection sales for the quarter were $128 million, up 22% compared to the prior-year quarter. Supplemental Health products represented 24% of total Group Protection sales, compared to 9% in the prior-year quarter, Lincoln reported.

Insurance premiums of $1.3 billion in the quarter were up 7% compared to the prior-year quarter.

InsuranceNewsNet Senior Editor John Hilton 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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Jackson National is continuing the slow pivot away from variable annuities – a poorly performing product in the current economy – amid bottom-line financial struggles.

Jackson reported a net income loss of $1.5 billion in the first quarter. Adjusted operating earnings of $271 million were down 28% from the first quarter of 2022, “reflecting the decline in annuity account values and higher interest crediting rates on variable annuity fixed rate options,” the insurer said in a news release.

Total annuity sales of $3.1 billion in the first quarter were down 35% from the year-ago quarter. Variable annuity sales were down 46% compared to the first quarter of 2022, “primarily due to the decline and volatility in equity markets and shifting consumer preferences in a higher interest rate environment,” Jackson said.

Executives stressed the positive as the Denver-based insurer seeks to retrench amid market volatility and rising interest rates. Jackson has long been a market leader in the sales of variable annuities, a product line that recorded its lowest annual sales since 1995.

“We continue to maintain a strong financial position with substantial liquidity and are on track to reach our 2023 key financial targets,” said Laura Prieskorn, president and CEO. “We had a strong start for capital return in the quarter and remain confident in our long-term prospects for continued success.”

Jackson shares down

Investors do not share the enthusiasm for Jackson’s long-term future. Company shares dived 20% at market opening Wednesday. Analysts on a morning conference call were also skeptical. Alex Scott, equity research analyst, insurance for Goldman Sachs, noted the “pretty optimistic commentary” while adding that “the flows overall, including variable annuities, are still negative this quarter.”

Scott pressed executives on why Jackson will be able to take advantage of opportunities in the large and growing retirement planning market.

Scott Romine, president of Jackson National Life Distributors, talked about the diversified product mix Jackson offers, as well as its strong distribution network.

“The hallmark of our success has been the depth and breadth of support we offer our distribution partners,” he said. “It’s meaningful advisor engagement. It’s not just a transactional relationship, but rather we focus on building that mutually beneficial long-term relationship.”

Positive sales news

Sales of Jackson’s registered indexed-linked annuities totaled $533 million, up from $199 million in the first quarter of 2022.

Jackson came late to the RILA market in the fall 2021 with the launch of Jackson Market Link Pro and Jackson Market Link Pro Advisory. RILAs caught on with investors over the past decade due to the balance between growth and limited downside the products offer.

As of the end of the first quarter, Jackson had $2.5 billion of account value in RILAs, and added more than 2,500 relationships with new or re-engaged advisors since introducing Jackson Market Link Pro 15 months ago, the company said, including nearly 500 added in the first quarter.

Fixed and fixed-indexed annuity sales in the first quarter totaled $133 million, up from $23 million in the first quarter 2022. In total, annuity sales without lifetime benefit guarantees represented 43% of total annuity sales, up from 33% in the first quarter of 2022, Jackson said.

“We expect this percentage to vary somewhat over time, based on market conditions and consumer demand,” said Marcia Wadsten, chief financial officer at Jackson National Life Insurance Company.

According to Cogent Syndicated’s 2022 Annuity Brandscape Report, Jackson “holds its lead as the firm with the broadest reach and strongest perception among annuity users for offering the best retirement income products according to financial professionals and investors,” Jackson noted.

The report also found Jackson ranks highest by a notable margin for best-in-class service and acting in policyholders’ best interest.

InsuranceNewsNet Senior Editor John Hilton 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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Brighthouse Financial Inc., one of nation’s the largest sellers of annuities and life insurance, reported a net loss of $525 million in the first quarter of 2023, compared with net income of $1.5 billion in first quarter of 2022, blaming the collapse on market conditions and declining hedging values. Total revenue for the quarter fell more than 36%, to $1.28 billion.

Company executives discussing Brighthouse earnings noted that the first quarter generally brings a seasonally high mortality rate, but this year was above normal.

“We had more claims than normal, above the usual $400 to $500 million for the quarter,” said Chief Financial Officer Edward Spehar. “So, from the claims standpoint and reinsurance standpoint, it was worse than a typical quarter.”

Lower ‘run-off’ cited in Brighthouse earnings drop

The company also experienced lower “run-off,” which is a measure of ongoing premiums as a source to pay claims. Its run-off totaled $106 million in the first quarter compared with $236 million in the fourth quarter of 2022.

But executives pointed to big gains in annuity sales, which were up 35% for the quarter over last year, and life insurance, which rose 15% to $23 million, as signs the company is well-prepared to weather ongoing uncertain market conditions.

”We plan to introduce a new life insurance product later this year, which we expect will further diversify and strengthen our life product suite,” said Eric Steigerwalt, Brighthouse Financial’s CEO. “As we execute on our business strategy, we remain diligent in our financial and risk management. maintaining balance sheet strength is imperative in order to support our distribution franchise.”

Execs say strong results delivered

Despite quarterly loss, Steigerwalt said the company delivered strong results and a combined risk-based capital ratio between 460% and 48%, well above its targeted range of 400-450%. He also noted Brighthouse sits on a “robust cash position,” with $1.1 billion of holding company liquid assets.

Brighthouse has been busy buying back its shares to boost its value and maintain a commitment to return capital to shareholders. It repurchased about $62 million of its common stock in the first quarter and an additional $27 million repurchased though May 5, reducing the number of shares outstanding by 44%.

“While we have reduced the level of buybacks to reflect a cautious view on both the market and economic environment, we intend to maintain an active and opportunistic share repurchase program,” Steigerwalt said.

Brighthouse stock, which traded in the 50s in March, has fallen more than 18% this year. In midday trading Tuesday, shares were down 4%, to $41.57 per share.

Doug Bailey is a journalist and freelance writer who lives outside of Boston. He can be reached at doug.bailey@innfeedback.com.

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With protection-focused annuity products selling incredibly well, it’s not surprising that American Equity posted very strong first-quarter sales.

The Des Moines, Iowa-based insurer is a big player in the fixed indexed annuity market.

American Equity sold $964 million worth of fixed indexed annuities in Q1, an increase of 23.2% and 9.3% compared to fourth and first quarters of 2022, respectively. Overall annuity sales totaled $1.4 billion.

Compared to the fourth quarter of 2022, FIA sales by American Equity Life in the independent marketing organization channel increased 15.5%, while Eagle Life FIA sales through banks and broker-dealers rose 56.8%.

Big sales are continuing into the second quarter, President and CEO Anant Bhalla told analysts during a call this morning. Second-quarter FIA sales total $600 million through May 5, he said.

“I’ve always said that this is a business of inches, not yards or miles,” Bhalla said, “and you have to win it by inches, in hand-to-hand combat.”

American Equity launched a new AssetShield product with a bonus near the end of the quarter, Bhalla said, adding that it “filled a small hole” in the overall product portfolio.

American Equity reported a first-quarter loss of $156 million, after reporting a profit in the same period a year earlier. The isurer said it had a loss of $2 per share. Earnings, adjusted for non-recurring costs, came to $1.47 per share.

The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.15 per share.

Strong distribution

In 2020, American Equity rolled out a strategy dubbed “AEL 2.0” to boost shareholder returns by contracting investment management out to multiple managers with specialist expertise. The streamlined approach is helping American Equity focus on what it does best and producers are getting it, Bhalla told analysts.

“The minute advisors get it, we then move them through the sales funnel,” he explained. “You get them hooked after three tickets and then you move them to six tickets and then you make them $2 million producers and larger. It’s the ability to wrap that, but in a quiet, disciplined execution and people knowing that we’re profitability focused and there’s enough to go around for everybody.”

Bhalla responded to a question on cap rate changes and what competitors are doing. The cap rate sets the gains the annuity owner earns while ensuring the insurer can make a profit. Cap rates are coming down as interest rates rise.

“I think the 12% cap rates have gone away, which is nice,” Bhalla said. “We’re in the 10 to 11 [percent] range now so you see some cap rates come away. There are one or two very irrational competitors with 15% cap rates, which I don’t understand and will not try to understand.”

American Equity ranked as the highest annuity provider for customer satisfaction in the J.D. Power 2022 U.S. Individual Annuity Study, which Bhalla cited as evidence the insurer is doing right by producers.

“Growing our advisors, our agents that write multi-million dollars with us and stay with us because the time it takes them to write an AEL ticket is a fraction of the time it takes them to write someone else’s ticket is what got us the J.D. Power’s number one ranking,” he said.

Topped forecasts

American Equity posted revenue of $662.5 million in the period. Its adjusted revenue was $561.3 million, which also topped Street forecasts. Six analysts surveyed by Zacks expected $544.7 million.

American Equity shares dropped nearly 30% after disappointing Q4 and full-year 2022 results in February. American Equity continues to be subject to takeover attempts and rumors, and rejected those offers, which is also impacting the stock price.

The stock recovered about half of the losses and was up about 2% overnight upon release of Q1 earnings.

In a Jan. 15 assessment, Seeking Alpha rated AE as “a strong buy” due to its acquisition potential as well as the market for its products. American Equity “offers annuities which are likely to gain attention in the bear market of 2023,” the column noted.

InsuranceNewsNet Senior Editor John Hilton 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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KKR & Co., one of the world’s biggest investment firms, beat Wall Street estimates of its first quarter earnings but they still weren’t good enough to escape the turmoil period in the private equity and real estate sectors, what company executives colloquially called “dynamic in the macro sense.”

KKR’s earnings fell in the first quarter compared to both the prior quarter and year ago periods, to $548.6 million, or $0.81 per share, from $604.0 million, or $1.11 per share in the year-ago quarter.

Executives were quick to point out, however, that management fees, assets under management, private equity business, insurance, infrastructure portfolio, and other investments were up substantially, somewhat cushioning the decline in the real estate sectors.

“While we are all seeing a difficult market for a handful of areas within real estate, our portfolio continues to be heavily weighted towards those assets and themes we are seeing strong fundamentals and cashflow growth,” said Craig Larson, head of investor relations at KKR.

Despite earnings drop, assets grow

Indeed, the bright spots in the company financial results showed assets under management growing from $503.9 billion at the end of December, to $510.1 billion at the end of March. Revenue of $3.13 billion rose from $2.53 billion in the prior quarter and from $999.4 million in the year-ago quarter.

Insurance revenue surged from $1.84 billion in the fourth quarter of 2022, and $1.16 billion in the first quarter of last year, to $2 billion at the end of March. The company also announced a shareholder dividend increase.

“We increased our dividend to 16 and a half cents per share per quarter, or 66 cents on an annualized basis,” said Larson. “This is now the fourth consecutive year we’ve increased our dividends.”

The company, more formally known as Kohlberg Kravis Roberts & Co., specializes in leveraged buyouts, direct investment, and fund of funds investments. It’s known as a long-term strategist delivering attractive investment returns for patient clients. In fact, in a recent filing with the Securities and Exchange Commission it said about 91% of its assets under management consists of capital that is either not subject to redemption for at least eight years from inception or what it referred to as “perpetual capital.”

Company says it is well positioned for growth

Looking ahead, the company said it was well positioned for growth once the real estate market steadies. KKR executives said it has plenty of working capital and what it calls “dry powder” – $106 billion of uncalled commitments – to put them in good stead for the future.

”Different backdrops do create opportunities, especially for firms like ours, that have substantial locked up capital, a significant amount of dry powder, and a global and highly coordinated investment team with expertise that spans multiple different asset classes,” said Rob Lewin, KKR’s chief financial officer.

Lewin said the company has been especially successful with raising money for its various funds. KKR raised $12 billion of capital in the quarter in private equity, that included the close on a European fund at $8 billion, about 20% larger than its predecessor fund.

“That’s a really great outcome in what is the most challenged part of the fundraising market and now gives us $40 billion of committed capital in total,” Lewin said. “Looking at our active traditional private equity funds across Asia, North America, and Europe, we believe this is the largest active capital base for traditional private equity by a wide margin.”

Wall Street traders, who had predicted slightly worse results for KKR’s first quarter, nonetheless, sent the company’s stock down slightly in mid-day training, to $49.38 per share, down $2.13, or more than 4%.

Doug Bailey is a journalist and freelance writer who lives outside of Boston. He can be reached at doug.bailey@innfeedback.com.

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A Florida judge denied a defense motion for acquittal last week in the fraud trial of Phillip Roy Wasserman, the self-styled “Annuity King.”

Wasserman, who also has a law degree, is handling his own defense, which began late last week. The federal government alleges that he perpetrated a $6.3 million fraud via sales of life insurance and annuity products.

In an email exchange, Wasserman correctly noted that motions for acquittal are rarely granted in the middle of a trial and added that he “expect[s] to be fully acquitted.” Wasserman’s defense will include testimony from a forensic certified public accountant, he added.

Judge Charlene Edwards Honeywell recently approved a $33,615 invoice from WISS & Co. for “expert financial services” on behalf of Wasserman’s defense. On Friday, day 24 of the trial, Wasserman called two former customers who bought his FastLife life insurance policies, as well as a former employee.

According to the government’s amended indictment, Wasserman, also a licensed insurance agent, allegedly worked in tandem with Kenneth Rossman, a Florida certified public accountant and licensed insurance agent, to convince elderly investors to put their money into FastLife.

The three most serious charges – wire fraud, mail fraud and conspiracy to commit wire and mail fraud – all carry maximum sentences of 20 years.

In July 2021, Rossman accepted a plea deal. According to court documents, Rossman pleaded guilty to one count of  conspiracy to commit mail fraud and wire fraud, and one count of “aiding and assisting the preparation and filing of fraud and false tax returns.” The two counts carry a maximum of eight years behind bars.

In exchange for the plea, Rossman “agrees to cooperate fully” with the government “in the investigation and prosecution of other persons, and to testify” during the fraud trial, court documents read.

Rossman took the stand two weeks ago and testified for three days, according to court documents, concluding Tuesday. Wasserman made an oral request for a mistrial the following day, court documents say, which the judge also denied.

InsuranceNewsNet Senior Editor John Hilton 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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