Athene Holding has successfully completed a transaction with Voya Financial to reinsure approximately $19 billion of fixed and fixed indexed annuity liabilities.
The transaction, which was announced in December 2017, brings Athene’s total invested assets to approximately $100 billion.
The fixed and variable annuity blocks from Voya will be administered by Venerable Holdings, Inc., a newly formed standalone entity that Athene, along with a consortium of investors led by affiliates of Apollo Global Management, has made a minority investment in.
Athene has also secured the rights to reinsure future flow from annuitizations of variable annuities to fixed payout annuities, which will likely generate around $8 billion of flow over the life of the variable annuity block acquired by Venerable.
Jim Belardi, Chief Executive Officer (CEO) of Athene, commented on the deal: “This landmark transaction demonstrates how our expertise and unique, value-added association with Apollo position us to provide customized solutions to take advantage of the ongoing restructuring in the life insurance industry.
“In addition, since we announced this deal last year, the rise in interest rates has made its expected earnings impact even more significant.”