ATHENE HOLDING LTD. (NYSE:ATH) Files An 8-K Entry into a Material Definitive AgreementItem 1.01Entry into a Material Definitive Agreement.
On June 1, 2018, Athene Life Re Ltd. (“ALRe”) and Athene Annuity & Life Assurance Company (“AADE” and together with ALRe, the “Athene Reinsurers”), wholly owned subsidiaries of Athene Holding Ltd. (the “Company”), entered into reinsurance agreements with Voya Insurance and Annuity Company (“VIAC”) and ReliaStar Life Insurance Company (“RLI”), to which the Athene Reinsurers reinsured a block of fixed and fixed indexed annuity liabilities from VIAC and RLI (the “FA Business Reinsurance Agreements”).ALRe will reinsure an 80% quota share of the ceded fixed and fixed indexed annuity business on a modified coinsurance basis, and AADE will reinsure a 20% quota share of the ceded fixed and fixed indexed annuity business on a partial coinsurance and partial modified coinsurance basis. The aggregate reserves of VIAC and RLI that are subject to the FA Business Reinsurance Agreements as of June 1, 2018 were approximately $19 billion.As consideration for the transactions contemplated by the FA Business Reinsurance Agreements, the Athene Reinsurers paid to VIAC and RLI an aggregate ceding commission of approximately $396 million.
As of June 1, 2018, VIAC is a wholly owned subsidiary of Venerable Holdings, Inc. ("Venerable"), which is a wholly owned subsidiary of VA Capital Company LLC ("VA Capital"). VA Capital is owned by a consortium of investors, led by affiliates of Apollo Global Management, LLC, Crestview Partners and Reverence Capital Partners. On June 1, 2018, the Company made a $75 million minority equity investment in VA Capital and provided $150 million in debt financing to Venerable.
About ATHENE HOLDING LTD. (NYSE:ATH)
Athene Holding Ltd. (Athene Holding) is a Bermuda-based life insurance holding company. The Company is principally focused on the retirement market and whose business, through its subsidiaries, is focused on issuing or reinsuring fixed and equity indexed annuities. Athene Holding’s subsidiaries are Athene Annuity & Life Assurance Company, Athene Life Insurance Company, Investors Insurance Corp, and Athene Life Re Ltd. The products offered by Athene Holding, through its subsidiaries, include retail fixed and equity indexed annuity products; institutional products, such as funding agreements, and co-insurance and reinsurance arrangements with third-party life insurance and annuity providers. Assets of Athene Holding’s subsidiaries are managed by Athene Asset Management LLC.
