Athora Life Re's rating affirmed

Bermuda-based Athora Life Re has had its A- rating affirmed by agency AM Best, which singled out its "robust operating result" and 18% return on equity in 2023. 

Athora Life Re and Athora Ireland, which also had its A- rating affirmed, are subsidiaries of Bermuda-based Athora Holding, which was spun off from life re/insurer Athene six years ago and concentrates on the European life and annuity market. The ratings outlook is stable. 

AM Best said 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 73 billion euros of assets under management and administration through operations in Bermuda and Europe. 

"The group has an appetite for further expansion, especially in geographies where it already has a presence," AM Best said. "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."

AM Best said the ratings reflected Athora’s consolidated balance sheet strength, which AM Best assessed as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. 

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, AM Best said. 

"Athora’s balance sheet strength assessment takes into account its solid financial flexibility, having demonstrated good access to debt markets and bank facilities," AM Best said. "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."

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