New York financial regulators are studying whether to overturn Athena Insurance Holdings Limited bid for Britain's Aviva PLC, recently hit the insurance part of private equity transactions for the U.S. annuity business, the Wall Street Journal reports.
Athena is a private equity firm Apollo Global Management Company affiliated companies.
New York-based financial services, has launched a review unit, Benjamin Lawsky, managers concerned that private equity investment company's insurance business can be at risk of enterprise annuity holders.
New York agency negotiated a series of more stringent disclosure does not apply to conventional insurance company's capital requirements, and Apollo article said Monday, citing people familiar with the matter. (Link.reuters.com/tep69t)
Athena has agreed to purchase $ 155 million U.S. dollars for the Aviva, last year's U.S. business.
Regulators have expressed concern about the rules that govern insurance companies and private equity firms and other investment company's relationship and suggested that they must be subjected to greater oversight than traditional insurance companies to protect policy holders money.
Investment companies say they follow the same laws and regulations, management of traditional insurance company.
"We fully cooperate", Lawsky institutions, Athena's CEO James Belardi told the "Wall Street Journal." Apollo and Aviva representative declined to comment to the paper.
Fixed annuity is an insurance contract, to ensure that investors monthly minimum payment.
The parties had no immediate comment when contacted by Reuters.
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