Blackstone bets on annuities with $1.84 billion deal for FGL

Blackstone Group LP, the world's biggest private equity firm, is pushing into annuities to expand its investment-management operation.

Funds affiliated with Blackstone, led by Stephen Schwarzman, are part of an investor group that agreed to pay $1.84 billion to buy Des Moines, Iowa-based Fidelity & Guaranty Life, the companies said in a statement on Wednesday.

Wall Street firms have increasingly been pushing into annuities, in which customers deposit cash in exchange for the promise of a guaranteed stream of income. Athene Holding Ltd, which has ties to Blackstone's rival Apollo Global Management LLC, had an initial public offering last year. Apollo helps manage assets for Athene, and Schwarzman's firm will do the same for FGL, which has a portfolio of more than $20 billion.