Athene To Sell Aviva Life Insurance Unit
In a transaction contingent upon its pending acquisition of the US annuity and life insurance operations of Aviva plc, Bermuda-based Athene Holding Ltd. has entered into a definitive agreement to sell, through a reinsurance arrangement, Aviva USA’s life insurance business to Commonwealth Annuity and Life Insurance Co., a wholly owned subsidiary of Global Atlantic Financial Group.
Commonwealth is a Massachusetts domiciled Insurance and Reinsurance Company rated “A-” [stable] by A.M. Best.
Aviva USA’s life insurance business had approximately $10 billion of statutory admitted assets as of December 31, 2012, and includes business written by Aviva Life and Annuity Company and Aviva Life and Annuity Company of New York. The sale, which is expected to close later this year, will occur simultaneously with the closing of the acquisition of Aviva USA by Athene.
“This sale is consistent with Athene’s focus on becoming the leader in the fixed annuity segment of the retirement savings market,” said Jim Belardi, CEO of Athene.
Global Atlantic plans to build a local team in Iowa as part of this acquisition, hiring members of Aviva USA’s Iowa-based team, to manage the life insurance business.
Athene is a leading provider of products in the US retirement savings market. Athene’s principal subsidiaries include Athene Annuity & Life Assurance Company and Athene Life Insurance Company, each a Delaware-domiciled insurance company, Presidential Life Insurance Company, a New York-domiciled insurance company, and Athene Life Re Ltd., a Bermuda reinsurer.
