Athene Holding Ltd. 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Athene Holding Ltd. on June 1, 2018. The filing details a material definitive agreement entered into on the same date involving the Company's wholly owned subsidiaries, Athene Life Re Ltd. (ALRe) and Athene Annuity & Life Assurance Company (AADE).
Key Financial Metrics and Transaction Details
- Reinsurance Block Size: The agreements cover approximately $19 billion in aggregate reserves from Voya Insurance and Annuity Company (VIAC) and ReliaStar Life Insurance Company (RLI).
- Ceding Commission: Athene Reinsurers paid an aggregate ceding commission of approximately $396 million.
- Reinsurance Structure: ALRe assumed an 80% quota share on a modified coinsurance basis, while AADE assumed a 20% quota share on a partial coinsurance and partial modified coinsurance basis.
- Investment and Financing: Athene made a $75 million minority equity investment in VA Capital and provided $150 million in debt financing to Venerable Holdings, Inc.
Material Changes and Strategic Moves
The primary material change is the acquisition of a significant block of fixed and fixed indexed annuity liabilities from VIAC and RLI. This transaction coincides with a strategic financial relationship with VA Capital, a consortium led by affiliates of Apollo Global Management, Crestview Partners, and Reverence Capital Partners, which now owns Venerable Holdings, Inc. (the parent of VIAC).
Outlook, Risks, and Management Commentary
The filing does not provide specific forward-looking guidance, management commentary on future performance, or a detailed discussion of risks and contingencies beyond the description of the transaction itself. The filing focuses strictly on the execution of the reinsurance agreements and the associated capital deployment.
Key Facts for Investor Verification
- Verify the impact of the $396 million ceding commission on the Company's immediate cash flow and liquidity position.
- Confirm the specific terms of the $150 million debt financing provided to Venerable and the $75 million equity stake in VA Capital.
- Assess the long-term profitability and risk profile of the $19 billion block of fixed and fixed indexed annuity liabilities assumed.
- Review the ownership structure of VA Capital and the roles of Apollo Global Management, Crestview Partners, and Reverence Capital Partners.