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Best’s News & Research Service - May 24, 2024 10:37 AM (EDT)

AM Best Affirms Credit Ratings of Athora Holding Ltd.’s Subsidiaries

  • May 24, 2024 10:37 AM (EDT)
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//BestWire// - AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Athora Life Re Ltd. (Athora Re) (Bermuda) and Athora Ireland plc (Athora Ireland) (Ireland). Both entities are wholly owned subsidiaries of Athora Holding Ltd. (Athora) (Bermuda), a non-operating holding company of the group. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Athora’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile, and appropriate enterprise risk management. The ratings factor in the strategic importance of Athora Re and Athora Ireland to Athora.

Athora’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), was at the strongest level at year-end 2023. Athora’s BCAR scores are expected to stay comfortably above the minimum required for the strongest assessment over the forecast period, supported by organic capital generation as well as capital drawdowns when needed to fund any prospective acquisitions. Athora’s balance sheet strength assessment takes into account its solid financial flexibility, having demonstrated good access to debt markets and bank facilities. The assessment also considers Athora’s sophisticated asset-liability management, which enables the group to control its exposure to interest rate risk arising from its life insurance liabilities and credit risk arising from its private credit portfolio.

Athora reported a robust operating result in 2023, evidenced by a return on equity of 18%. Prospective operating performance will depend on the group's ability to deliver on its business plans, which is subject to the successful implementation of its investment and hedging strategies, as well as the execution of large transactions.

Since it was spun off from Athene Holding Ltd. in 2018, Athora has established a robust position as a European life insurance consolidator, as well as a savings and pensions provider. At year-end 2023, the group had EUR 73 billion of assets under management and administration through operations in Belgium, Bermuda, Germany, Ireland, Italy and the Netherlands. The group has an appetite for further expansion, especially in geographies where it already has a presence.

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 Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments. 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.

Holding Companies Ireland Financial Strength Press Release A.M. Best Rating Services, Inc. Bermuda Best's Credit Rating Action Issuer Credit Rating

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