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This is the latest in a number of recent articles in the trade and consumer press, some of them highly speculative, on the increasing presence of private equity companies in the life insurance industry, specifically in the fixed annuity space.
Athene Annuity & Life Assurance Company ("Athene Annuity") launched its retail annuity business in 2011 with the goal of becoming a market-leading fixed annuity carrier through a combination of organic growth, reinsurance and strategic acquisitions. The acquisition of Aviva USA will make us the number two player in fixed index annuity assets. Our leadership team is among the most experienced in the industry. With over $14 billion in assets and $1.9 billion in equity on a consolidated basis and no debt, our parent company, Athene Holding Ltd., is extremely well capitalized and ideally positioned for future growth. While we receive capital support from private investors, references to traditional private equity are inaccurate as we have been funded primarily through one of Apollo's publicly traded, permanent capital vehicles which do not operate within the finite timeframes typically associated with private equity investments.
The article's focus on "nontraditional" investment strategies also deserves clarification. As president of SunAmerica Life Insurance Company in the 1990s our CEO, Jim Belardi, earned a reputation as one of the industry's most successful investment and risk managers, who provided safe, consistent returns. The core strategies he employed then guide Athene's investment decisions today. We reiterate that Athene Annuity's asset portfolio is liquid, well diversified and of high quality, with over 96 percent of rated securities rated NAIC 1 or 2.
As you know, the life insurance industry is carefully regulated to protect the interests of policyholders. Asset management strategies must pass the scrutiny of these regulators. In addition, a carrier is required to establish minimum reserves by contract type for all guaranteed benefits within its life insurance and annuity contracts; insure that the level of reserves is never less than the cash surrender value of each contract, and maintain sufficient risk-based capital (RBC) to cover all assets and liabilities. With $10.5 billion in assets and RBC of 581%, Athene Annuity exceeds all regulatory minimums and our internal RBC standard is well above base regulatory requirements.
Athene Annuity has a long-term commitment to the fixed annuity space and is committed to providing a safe haven for clients who choose us for their retirement income needs. However, in an environment defined by increasing demand, contracting supply and sustained spread compression, operating sustainably while providing safe, competitive, high-quality products requires a non-traditional, albeit extremely well risk-managed, approach. Our results to date validate our business model and our strategy, and we look forward to meeting the growing demand for fixed annuity solutions in the months and years to come. | | FOR PRODUCER USE ONLY. NOT TO BE USED WITH THE OFFER OR SALE OF ANNUITIES. |
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This e-mail was sent to: DIANA_HOSKINS@LTAMARKETING.COM
This e-mail was sent by: Athene Annuity & Life Assurance Company
2000 Wade Hampton Blvd.
Greenville, SC, 29615, USA
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