A.M. Best Affirms Ratings of Athene Annuity & Life Assurance Company and Its Subsidiary

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has affirmed the financial strength rating (FSR) of B++ (Good) and issuer credit rating (ICR) of “bbb+” of Athene Annuity & Life Assurance Company (Athene Annuity), formerly Liberty Life Insurance Company. Concurrently, A.M. Best has affirmed the FSR of B++ (Good) and ICR of “bbb+” of Athene Annuity’s subsidiary, Investors Insurance Corporation(IIC). Both companies are domiciled in Wilmington, DE. The outlook for all ratings is stable.

Athene Annuity is Athene Holding Ltd.’s main U.S. operating platform to accept in-force fixed and fixed indexed annuity business primarily from U.S. primary insurers. In addition, the business model calls for an increasing share of new business obtained by retail annuity sales through third party distributors. A.M. Best believes Athene Holding Ltd. has access to capital from its private equity investors to fund its business plan over the medium term. Furthermore, A.M. Best believes Athene Holding Ltd’s investment expertise and strategy will enable Athene Annuity to generate acceptable spreads on both new and in-force annuity business while maintaining adequate capital levels as growth continues. A.M. Best believes Athene Annuity’s statutory profitability will improve as it attains greater economies of scale.

Partially offsetting these positive rating factors are the challenges Athene Annuity faces maintaining acceptable interest spreads over varying economic cycles, continuing its positive, but early, track record of managing risks associated with expanding its retail distribution platform and execution risks associated with future potential acquisitions.

Both companies are well positioned at their current ratings. Upward rating actions could be achieved after Athene Annuity demonstrates a history of profitability and strong financial performance. Downward rating actions could result if negative results to the organization occur from poor investment performance and/or lower risk-based capital levels put into question the viability of Athene Annuity to grow capital through profitable operations.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “BCAR for Life/Health Insurers”; and “Rating Members of Insurance Groups.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.
Anthony McSwieney, 908-439-2200, ext. 5715
Financial Analyst
[email protected]
or
William Pargeans, 908-439-2200, ext. 5359
Assistant Vice President
[email protected]
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
[email protected]
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Co.