AM Best revises the outlooks to positive from stable for Athene Holding Ltd. and its subsidiaries, a move that reflects the company’s continuing trend of improvement according to the rating agency.
At the same time, AM Best affirmed Athene’s Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a+” (Excellent).
Athene is the consolidation of the organisation’s US operating companies, along with its affiliated reinsurance companies domiciled in Bermuda.
Additionally, AM Best has revised the outlooks to positive from stable and affirmed the Long-Term ICR of “bbb+” (Good), the Long-Term Issue Credit Ratings (Long-Term IRs) and the indicative Long-Term IRs of Athene Holding Ltd. (Bermuda) – which operates as the holding company for the US and Bermuda operations.
According to the agency, these ratings reflect Athene’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.
AM best also noted that the 2022 merger with Apollo Global Management, Inc. is expected to have a longer-term positive impact on Athene’s financial flexibility.
The rating agency concluded: “Athene’s favourable business profile reflects continued enhancements through additional distribution channels in its retail markets, and expansion of its pension risk transfer (PRT) business in the United States and United Kingdom, its increased issuances of funding agreements and of its flow reinsurance channel in Japan in recent years.
“The company has decreased the portion of liabilities with living benefits over the past several years. Furthermore, the ACRA structures, and the recent PRT deals are expected to be accretive to earnings and available capital.”
