Best’s News & Research Service - June 11, 2019 10:06 AM (EDT)
AM Best Comments on Credit Ratings of Athora Holding Ltd.’s Subsidiaries Following its Announced Acquisition of VIVAT N.V.
- June 11, 2019 10:06 AM (EDT)
London //BestWire// - AM Best has commented that the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Ratings of “bbb+” of Athora Holding Ltd.’s (Athora) subsidiaries, Athora Life Re Ltd. (Bermuda) and Athora Ireland plc (Ireland), remain unchanged following the recent announcement by Athora that it has agreed to acquire VIVAT N.V. (VIVAT), the Dutch life insurance operations of Anbang Group Holdings Co. Limited.
Athora entered into a definitive agreement to acquire VIVAT on Thursday, 6 June 2019. NN Group N.V. has partnered with Athora and will acquire VIVAT’s non-life operations, whilst Athora will retain VIVAT’s life insurance and asset management activities.
Athora’s agreement to acquire VIVAT is in line with the company’s strategy to acquire European life insurance liabilities in which the associated investment assets can benefit from Athora’s investment management capabilities. The addition of VIVAT’s EUR 56 billion of consolidated assets and 2.2 million policyholders will bring Athora’s consolidated assets to EUR 70 billion and its number of policyholders to approximately 3 million. However, the acquisition will not be held by, and is not significant for, Athora’s rated subsidiaries.
The scale of the acquisition is consistent with the capital already committed by Athora’s shareholders, and Athora intends to establish further capital commitments from its shareholders to continue the group’s development. AM Best regards the sale of VIVAT as reflecting the circumstances of its owner and views both VIVAT and the continuing Athora group as well-capitalised.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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