What's Happening?
Marc Rowan, CEO of Apollo Global Management, has responded to comments made by UBS Chairman Colm Kelleher regarding systemic risks posed by the insurance industry. Kelleher had accused insurers of engaging
in 'ratings arbitrage,' likening it to practices seen before the 2008 financial crisis. Rowan defended the industry, particularly Apollo's subsidiary Athene Holding, stating that their assets are well-rated by major agencies. He acknowledged the importance of addressing systemic risks but argued that offshore jurisdictions pose a greater threat than private letter ratings.
Why It's Important?
The exchange between Rowan and Kelleher highlights ongoing concerns about the stability of the insurance industry, especially as it increasingly involves private equity investments. The debate over ratings and regulatory effectiveness is crucial for investors, regulators, and policymakers who are tasked with ensuring financial stability. Rowan's comments may influence perceptions of risk management within the industry and could lead to calls for more stringent regulatory oversight. This discussion is particularly relevant as the industry navigates complex financial landscapes and seeks to maintain investor confidence.
