AM Best Comments on Ratings of Athora Holding’s Subs Following Announced Acquisition of Closed Life and Pension Portfolio
- July 14, 2022 01:59 PM (EDT)
London //BestWire// - AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Athora Holding Ltd.’s (Athora) subsidiaries, Athora Life Re Ltd. (Bermuda) and Athora Ireland plc (Ireland), remain unchanged following Athora’s recent announcement that it has agreed to acquire a EUR 19 billion closed life and pension portfolio, via a carve-out acquisition, from a German subsidiary of AXA S.A.
Athora entered into a definitive agreement to acquire the portfolio on 14 July 2022. The transaction is expected to close in late 2023, subject to regulatory approval. At year-end 2021, Athora had EUR 79 billion of assets under administration (AuA) and 2.3 million policyholders. The AXA transaction will add approximately EUR 19 billion of AuA and 0.9 million policyholders. Athora is also in the process of completing its acquisition of Amissima Vita S.p.A. (Italy) and a portfolio transfer to acquire Belgian life insurance liabilities from the NN Group N.V., which are expected to close during 2022, and contribute approximately EUR 10 billion of AuA. None of the liabilities acquired in these transactions will be held directly in either of Athora’s rated subsidiaries.
The transaction is in line with the group’s strategy to acquire European life insurance liabilities in which the associated investment assets can benefit from Athora’s investment management capabilities, and is not expected to have a material impact on the key solvency or leverage metrics of Athora or its rated subsidiaries. AM Best will closely monitor the execution of the transaction and its impact on the Athora group.
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AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.