Podcast | Episode #5: Hidden Risks in PE-Owned Life Insurance | Tom Gober of Thomas Gober Forensic Accounting

The podcast examines the increasing risks and decreasing transparency in the life insurance industry, particularly with private equity firms acquiring life insurance companies. Forensic accountant Tom Gober, who has over 40 years of experience, contrasts the traditional, stable investment portfolios of life insurers 40 years ago with today's higher-risk, less transparent practices. He points out that the shift from mutual to for-profit and private equity-controlled companies has led to investments in less liquid instruments and affiliated reinsurance. Gober raises concerns about the use of "mark to make believe" accounting, which allows companies to carry devalued assets at inflated values, and the risks associated with offshore reinsurance, where transparency is limited. He also highlights the potential dangers of deposit-type contracts and the conflicts of interest arising when private equity firms manage the investments of insurance companies.