Annuities and Twinkies??
We’ve all heard the news that Hostess Brands Inc. is nearing a deal to sell its Twinkie brand and other cakes, but who saw Apollo Global Management LLC being the front-runners on this deal? The Wall Street Journal ran an article yesterday by Mike Spector and Rachel Feintzeig taking about this deal. “Apollo, the giant buyout shop co-founded by Leon Black, and Metropoulos, owner of the Pabst Blue Ribbon beer brand, have been looking to partner on a deal for some time. They emerged as the front-runners to snap up Hostess’s cake brands and negotiations between them and the company picked up steam in recent days, leading to the expected deal, people familiar with discussions said”. Apollo made some big waves in the annuity world last month announcing the purchase of Aviva, recently the number two carrier of index annuities. I guess the real question here is, what does this mean for baby boomers and seniors that are either looking at some of Apollo’s insurance carriers for their retirement income, or have even placed their money in those products? One thing for sure is Apollo has had tremendous success with their current investments, and this could benefit all parties.