Concerns are mounting over private equity’s role in the life insurance and annuities industry, with critics warning that insurers are transferring large future liabilities to affiliated entities in lenient jurisdictions such as Vermont and Bermuda. These affiliates may not be required to disclose their assets, raising questions about whether policyholder commitments are fully backed. Testimony cited cases involving major liability transfers, including one company reportedly moving $195 billion of $200 billion in liabilities to an affiliate, and another affiliate with $2 billion in liabilities supported by $200 million in assets. Phoenix Life recently failed, causing $2 billion in losses, and state backstops may face capped payout obligations if more insurers fail.