Houlihan Lokey Advises Athene Holding
Houlihan Lokey is pleased to announce that Athene Holding Ltd. (Athene) (NYSE:ATH) has reinsured approximately $19 billion of fixed and fixed indexed annuity liabilities. Houlihan Lokey served as the financial advisor to the special committee of independent directors of Athene's board of directors.
In connection with the reinsurance transaction, Athene has secured the rights to reinsure liabilities that will be created from the subsequent annuitization of certain of Venerable’s (as described below) variable annuities to fixed payout annuities, which are estimated to total approximately $8 billion over the life of the block, ensuring a significant flow of future liabilities for Athene on an annual basis. In addition, the transaction provides Athene with the opportunity to meaningfully augment its organic distribution by pursuing Voya’s existing annuity distribution relationships.
It has also been announced that a consortium of investors, led by affiliates of Apollo Global Management, LLC (NYSE:APO); Crestview Partners; and Reverence Capital Partners, has agreed to purchase Voya Insurance and Annuity Company, including its Closed Block Variable Annuity segment, and create a newly formed standalone entity, Venerable Holdings, Inc. (Venerable), that will administer the fixed and variable annuity blocks. Athene will make a $75 million (subject to closing adjustments) minority equity investment in Venerable to be held as an alternative investment.
Athene, through its subsidiaries, is a leading retirement services company that issues, reinsures, and acquires retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs. The products offered by Athene include retail fixed and fixed indexed annuity products, reinsurance arrangements with third-party annuity providers, and institutional products, such as funding agreements and group annuity contracts related to pension risk transfers. Athene's principal subsidiaries include Athene Annuity & Life Assurance Company, a Delaware-domiciled insurance company; Athene Annuity and Life Company, an Iowa-domiciled insurance company; Athene Annuity & Life Assurance Company of New York, a New York-domiciled insurance company; and Athene Life Re Ltd., a Bermuda-domiciled reinsurer.
Houlihan Lokey served as the financial advisor to the special committee of independent directors of Athene’s board of directors.
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