Athene Announces Fixed Annuity Reinsurance Deal With Jackson National Life Insurance Coverage Business – Insurance News Web

18June 2020

Organisation Wire



PEMBROKE, Bermuda– (ORGANISATION WIRE)– Athene Holding Ltd.( “Athene” )(NYSE: ATH), a leading provider of retirement savings items, has actually revealed a fixed annuity block reinsurance transaction with Jackson National Life Insurance Coverage Company( “Jackson”), a leading supplier of retirement products and subsidiary of Prudential plc(LSE: PRU), with the assistance of Athene Co-Invest Reinsurance Affiliate( “ACRA “). Under the regards to the contract, Athene will reinsure a$27 billion 1

in-force block of fixed deferred and fixed indexed annuities. As part of the deal, Athene is making a$500 million equity financial investment in Jackson, representing an 11 %stake in the company, which will assist Jackson to pursue different growth efforts lined up with its business diversification strategy.”We are really happy to announce this equally useful transaction with Jackson, which even more validates our company design and shows the ongoing execution of our inorganic development technique,”said Jim Belardi, CEO of Athene.”This compelling transaction enables us to grow our gross invested assets by approximately 20%with foreseeable liabilities we know well. The deal was underwritten to a return that follows our target for inorganic development, with advantage possible through portfolio redeployment above forecasted levels. Notably, the deal exemplifies Athene’s capability to act as a preferred solutions supplier since of our robust capital position, deep expertise in the retirement services market, and our capability to close transactions that build long-term investor worth.” The transaction is expected to be accretive to Athene’s adjusted operating earnings in 2021 and 2022, with prospective upside as portfolio redeployment happens. Athene expects to release around $1.2 billion of overall capital

in connection with the deal to be contributed over the next 12-18 months, consisting of a further financial investment of capital in connection with portfolio redeployment, along with the equity financial investment in Jackson. Making use of the tactical benefits of ACRA, 63% of the overall capital deployment will be moneyed by third-party financiers, and 37%will be moneyed by Athene on a standalone basis. Pro forma for the deal, along with the business’s recent Series C preferred stock offering, Athene continues to have substantial monetary flexibility and a strong capital position, with excess equity capital of$3.0 billion and overall deployable capital of$7.1 billion.”We are thrilled to be

creating a brand-new relationship with the team at Athene, offered their deep expertise in the US annuity sector and long-term commitment to its development, “said Mike Wells, Group President of Prudential plc.”Athene is a top quality, well capitalised reinsurer and, in coordination with its strategic partner, Apollo Global Management, has structured an appealing transaction which our company believe will benefit all celebrations. This new contract is a crucial step forward in satisfying our tactical goals for Jackson. “”Today’s deals with Athene, a leading franchise in the retirement services market, even more enhance our capital position and enhance our capability to grow,”said Michael Falcon, President of Jackson Holdings LLC.”We value Athene’s investment in Jackson, which is aligned to our common goal of serving the growing population of American savers transitioning into and through retirement.”Jackson

  • will continue to service and administer the in-force policies within the block. The reinsurance arrangement has an efficient date of June 1, 2020. The equity financial investment in Jackson is anticipated to close in July 2020, subject to popular closing conditions and approvals. Credit Suisse is functioning as monetary consultant and Sidley Austin LLP is serving as legal counsel to Athene in connection with this transaction. Athene has posted a supplemental discussion consisting of extra deal details located on its Financier Relations site at ir.athene.com. About Athene Holding Ltd. Athene, through its subsidiaries, is a leading retirement services company that problems, reinsures and acquires retirement savings items created for the increasing number of individuals and organizations looking for to fund retirement requirements. The items used by Athene include: Retail fixed, fixed indexed and index-linked annuity products; Reinsurance plans with third-party annuity service providers; and Institutional products, such as

    moneying contracts and the assumption of pension threat

    transfer commitments. Athene had overall possessions of$142.2 billion as of March 31, 2020. Athene’s principal subsidiaries include Athene Annuity & Life Assurance Company, a Delaware-domiciled insurer, Athene Annuity and Life Company, an Iowa-domiciled insurance provider, Athene Annuity & Life Guarantee Business of New York, a New York-domiciled insurance company and Athene Life Re Ltd., a Bermuda-domiciled reinsurer. Additional info about our business can be discovered at athene.com. About Jackson National Jackson is a leading company of retirement items for industry experts and their customers. The business and its affiliates use variable, fixed and fixed index annuities developed for tax-efficient growth and circulation of retirement earnings for retail customers, in addition to items for institutional financiers. Jackson is a happy charter member and co-chair of the Alliance for Life Time Income, a not-for-profit 501(c)(6 )company formed and supported by 24 of the US’s monetary services organizations to create awareness and educate Americans about the importance of protected life time earnings. With $297.6 billion in IFRS possessions *, the business prides itself on sound corporate risk management practices and tactical technology efforts. Focused on thought management and education, Jackson supplies industry insights and monetary representative training on retirement preparation and alternative financial investment methods. The company is likewise committed to business philanthropy and supports non-profit organizations concentrated on reinforcing households and producing financial chances in the neighborhoods where its employees live and work. To learn more, go to jackson.com. * Jackson has$297.6 billion in total IFRS assets and $269.5 billion in IFRS policy liabilities set aside to pay mainly future policyowner benefits (since December 31, 2019).

    About Prudential plc

    Prudential plc is an Asia-led portfolio of organisations focused on structural development markets. The business helps people to de-risk their lives and handle their most significant financial issues through life and medical insurance, and retirement and property management solutions. Prudential plc has 20 million customers and is listed on stock market in London, Hong Kong, Singapore and New York City. Prudential plc is not affiliated in any way with Prudential Financial, Inc. a business whose principal place of business remains in the United States of America, nor with the Prudential Assurance Company, a subsidiary of M&G plc, a company included in the United Kingdom.

    Safe Harbor for Forward-Looking Statements

    This press release includes, and certain oral declarations made by Athene’s representatives from time to time may contain, forward-looking declarations within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as changed, and Section 21E of the Securities Exchange Act of 1934, as amended. Such declarations undergo dangers and unpredictabilities that could cause real results, occasions and advancements to vary materially from those stated in, or implied by, such statements. These declarations are based on the beliefs and assumptions of Athene’s management and the management of Athene’s subsidiaries. These declarations include, but are not limited to, statements regarding the accretive nature of the deal and the monetary impact of portfolio redeployment. Typically, forward-looking declarations consist of actions, events, outcomes, strategies and expectations and are often recognizable by use of the words “believes,” “expects,” “intends,” “anticipates,” “strategies,” “looks for,” “estimates,” “projects,” “might,” “will,” “could,” “might,” or “continues” or similar expressions. Factors that could trigger real outcomes, events and advancements to vary consist of, without constraint: the accuracy of Athene’s presumptions and estimates; Athene’s ability to keep or enhance financial strength rankings; Athene’s capability to manage its organisation in an extremely managed industry; regulatory changes or actions; the effect of Athene’s reinsurers failing to satisfy their assumed responsibilities; the impact of interest rate changes; the impacts of the spread of the Coronavirus disease 2019 on financial conditions and the financial markets and the resulting results on Athene’s investment portfolio, liquidity, deployable capital, financial results, threat based capital ratios, insurance policy holder habits and share price; modifications in the federal earnings tax laws and guidelines; the accuracy of Athene’s analysis of the Tax Cuts and Jobs Act; litigation (including class action lawsuits), enforcement examinations or regulative scrutiny; the efficiency of third parties; the loss of essential workers; telecommunication, infotech and other functional systems failures; the continued schedule of capital; new accounting guidelines or modifications to existing accounting rules; basic financial conditions; Athene’s capability to protect its copyright; the capability to keep or acquire approval of the Delaware Department of Insurance, the Iowa Insurance Department and other regulatory authorities as needed for its operations; and other elements discussed from time to time in Athene’s filings with the SEC, including its yearly report on Type 10-K for the year ended December 31, 2019, its quarterly report on type 10-Q for the quarterly period ended March 31, 2020 and its other SEC filings, which can be discovered at the SEC’s website www.sec.gov. All positive declarations described herein are qualified by these cautionary declarations and there can be no guarantee that the actual results, events or developments referenced herein will take place or be realized. Athene does not carry out any responsibility to upgrade or revise positive statements to show altered assumptions, the event of unanticipated occasions or changes to future operating outcomes.


    1 Shows aggregate delivered statutory reserves of roughly $26.7 billion. Under IFRS accounting, Prudential plc’s value of the moved liability portfolio is $27.6 billion.

    +1 441-279-8534 +1 646-768-7309 [email protected] Media Contact: Karen Lynn +1 441-279-8460 +1

    515-342-3910 [email secured] Source: Athene Holding Ltd.

    Source: insurancenewsnet.com

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