Why Brookfield And Peers Followed Apollo Into Insurance And What's In It For You

Alexander Steinberg profile picture
Alexander Steinberg


  • Apollo has developed a new model to combine insurance and investing. It is based on structuring retirement liabilities and overperforming in investment-grade fixed income.
  • For Apollo, insurance has become a strategy centerpiece. The company has delivered ~20% CAGR since focusing on insurance.
  • The strategy still seems underappreciated by the market and Apollo appears trading at a significant discount to its fair value.
  • Major peers including Brookfield, Blackstone, KKR, Ares, and Carlyle are replicating elements of Apollo's strategy.
  • Brookfield is following Apollo very closely and allows investing in the strategy on either an asset-light (via BAM) or asset-heavy (via BN) basis.

Business woman holding text insure yourself from wooden blocks

Piotrekswat/iStock via Getty Images

We will start with an ultralaconic recap of the first installment of this series. Please read "How Brookfield and peers make money..." if something in the following section is not clear to you. Building on this recap, I hope to make the

This article was written by

Alexander Steinberg profile picture
Ph. D. and MBA. I worked in executive/management positions for big US companies, then ran my own business for about 15 years, and upon exiting, turned to full-time investing. I primarily manage my own funds and consult a limited number of friends and clients.

Disclosure: I/we have a beneficial long position in the shares of APO, BAM, BN, BRK.B, BX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Due to the possible escalation of the conflict in Ukraine, stocks are riskier than usual.

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