Athene Expands Reinsurance with Sony Life in $19B Japanese Insurance Block Deal
Athene, a Delaware-based retirement services provider and subsidiary of Apollo Global Management, is set to reinsure a block of US dollar-denominated whole life insurance policies from Sony Life Insurance, a Japanese insurer. This transaction involves Athene taking on the insurance block and subsequently retroceding all associated mortality risks to Swiss Re. The deal highlights a growing trend of Japanese insurers seeking customized reinsurance solutions and flexible capital structures to strengthen their financial positions and better serve policyholders.
Athene emphasizes its expertise in retirement and capital management as key advantages in addressing the unique needs of the Japanese insurance market. Apollo and Athene's strategic presence in Japan supports this approach, leveraging balance sheet strength combined with advanced asset management to provide stable yield products geared towards Japanese retirees and savers.
This deal marks Athene’s eighth reinsurance transaction across seven cedents globally and its second block reinsurance agreement with a Japanese insurer within five years, bringing the total transaction volume with Japanese cedants to approximately $19 billion. It underscores Athene's ongoing commitment to expanding its footprint in Japan's reinsurance sector.
Financially, Athene reported robust growth, with record $26 billion gross new business inflows in Q1 2025 and an additional $10 billion organic inflow in April. The company holds $31 billion in regulatory capital and $8.2 billion in deployable capital, supported by $262 billion in net invested assets. Athene completed its corporate redomicile from Bermuda to Delaware in 2024 following its acquisition by Apollo in 2022.
Athene disclosed in August that related party investments constitute 12% of its assets, a relatively conservative level compared to other private equity-backed insurers. This transparency addresses ongoing regulatory scrutiny concerning such investments and risk management practices within the industry.
Overall, Athene’s expanding reinsurance activities with Japanese insurers reflect broader trends in cross-border capital flows, risk transfer strategies, and market adaptation to evolving regulatory landscapes. The company’s financial strength and specialized expertise position it to capitalize on opportunities in global retirement and life insurance markets.