S&P Upgrades Athene’s Operating Companies

August 19, 2018 | 0 Comments

S&P Global Ratings [S&P] upgraded the financial strength ratings of Athene Holding Ltd.’s [AHL] operating companies to ‘A’ from ‘A-.’ S&P also upgraded the rating on Athene Holding to ‘BBB+’ from ‘BBB.’ The outlook of these credit ratings is ‘Stable.’

“This upgrade reflects our stellar financial results and will accelerate the strong momentum of our business,” said Jim Belardi, CEO of Athene. “We have achieved significant growth and greater diversification while prudently managing risk.

“We believe this ratings upgrade will further strengthen our multi-channel distribution model, and we look forward to establishing new partnerships and engaging as a financial solutions provider to a broader market.”

S&P cited Athene’s improved business diversification as the primary reason for the improved rating.

“Historically, Athene’s business has been concentrated in retail annuities, which made up over 85% of deposits in 2014. Since then, management has successfully diversified into flow reinsurance and pension risk transfers.”

The rating agency also noted, “The improved business diversification drives the overall improvement in our view of its competitive position and business risk profile.”

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