Athene moves out of Bermuda

Athene moves out of Bermuda | Insurance Business Asia

Insurance News

Athene moves out of Bermuda

Decision to relocate not expected to affect operations, company says

Insurance News

By
Kenneth Araullo

Reinsurance group Athene Holding Ltd has relocated its holding company to Delaware. This move comes as part of the company’s ongoing strategic developments following its merger with Apollo two years ago.

Athene, the parent company of Athene Life Re Ltd, one of Bermuda’s significant annuity reinsurance firms, made the decision in December. According to a company spokeswoman speaking to The Royal Gazette, the relocation will not impact Athene’s operations in Bermuda.

The decision to move to Delaware aligns with the outcomes of the merger between Athene and Apollo, which resulted in the formation of Apollo Global Management, Inc. This merger created a combined entity focusing on high-growth alternative asset management and retirement services.

Apollo Global Management, Inc.’s shares are listed on the New York Stock Exchange, highlighting its significant presence in the financial market.

The Athene Bermuda Group operates in the financial services sector, specializing in retirement services through its consolidated affiliates. The group engages in business activities with insurance affiliates and third-party ceding companies, which partly reinsure their liabilities through non-US reinsurance affiliates. It also includes US reinsurance affiliates that predominantly issue retirement savings products.

Athene’s relocation – how did it affect its ratings?

Following the announcement of the move, Fitch Ratings has adjusted its assessment of Athene’s financial instruments, specifically downgrading the Long-Term rating of its Series A, B, C, D, and E preferred share issuances from “BBB” to “BBB-.” This change does not impact the current ratings of Athene’s senior unsecured notes and its insurance operating affiliates.

The primary factor driving this downgrade was Athene’s announcement regarding the preliminary steps approved by its board of directors to relocate its holding company from Bermuda to Delaware. The re-domestication has led to a perceived increase in non-performance risk according to Fitch.

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