Athene Group's Ratings Reaffirmed by AM Best: Strong Financial Position

AM Best has reaffirmed the Financial Strength Ratings (FSR) of A+ and Long-Term Issuer Credit Ratings (Long-Term ICR) of "aa-" for Athene Group’s U.S. and Bermuda entities, citing a stable outlook.

This reaffirmation by AM Best underscores Athene's strong balance sheet and operational results, solidifying its standing in the insurance sector. Athene Holding Ltd., which oversees both U.S. and Bermuda operations, also retained its Long-Term ICR of "a-," with a stable outlook across all ratings. The stability of these ratings suggests confidence in Athene's strategic financial management and enterprise risk framework.

Robust Capital Management

Athene's ratings reflect its effective capital management approach. Evaluated against Best's Capital Adequacy Ratio (BCAR), the company's risk-adjusted capitalization remains robust. AM Best cited Athene's financial flexibility, driven by capital market access and prudent borrowing facilities. The firm's liquidity is backed by its relationships with the Federal Home Loan Bank and uncalled capital commitments, which are crucial in weathering unfavorable market conditions.

Investment Strategy Insights

While Athene's investment portfolio includes significant allocations to less-liquid and Level III assets, potential market risks are mitigated by industry-aligned default rates. This strategic diversification supports its positive earnings and operational profitability, driven by favorable yields and maintained leverage ratios within industry norms.

Market Position and Strategy

Athene's business profile demonstrates resilience, navigating competitive challenges through strong distribution channels in the retail market and strategic issuance of funding agreements. While the company has reduced its pension risk transfer activities, it continues to lead in the retail annuities sector, particularly in Japan, aligning with broader industry trends.

Key Credit Ratings and Outlooks

• Athene Holding Ltd.: "a-" (Excellent) on senior unsecured notes; "bbb" (Good) on perpetual preferred stock.
• Indicative Long-Term ICRs: "a-" (Excellent) for senior unsecured debt; "bbb+" (Good) for subordinated debt; "bbb" (Good) for junior debt and preferred stock.

These affirmed ratings play a crucial role for insurance professionals assessing Athene's financial health and strategic outlook. AM Best continues to serve as a global leader in insurance credit ratings, offering data analytics essential for stakeholders in the industry to make informed decisions.