Apollo Investments

 

Apollo Global Management, the alternative asset manager has taken the rout of investing, buying insurance companies and investing the long-term, so called 'perpetual' capital from insurance premiums it receives from its insurance business into its private equity, credit and lending business lines, according to Wolfteam Ltd.'s research

The insurance premiums insure a stable, durable, long-term investment source that can be plowed into other initiatives of Apollo in order to wait for long-term great investment results. This model was pioneered by Warren Buffet and the controlled by him Berkshire Hathaway conglomerate which also owns insurance businesses like General Re, Berkshire Hathaway Life, Geico etc. and invests the insurance premiums it receives from them into its other Berkshire Hathaway's owned businesses like energy or manufacturing and even invests them in public, common stocks.

The durable, long-term nature of insurance premiums bring long-term stability to invest for the long-term in other businesses of Berkshire Hathaway, Apollo Global Management and other alternative asset management firms like KKR, Carlyle and the global alternative assets leader Blackstone, which also invests the insurance premiums into its real estate business line, in addition.

The long-term investments, insurance premiums provide help Warren Buffett's Berkshire Hathaway and Blackstone, Apollo, KKR, Carlyle and other alternative asset management groups achieve better, higher risk adjusted returns from investing and thus unlock their firms' value further.

Warren Buffett's Berkshire Hathaway and Blackstone, Apollo, KKR, Carlyle are all undervalued. Still, in Wolfteam Ltd.'s estimates.