Athene Holding, a provider of retirement saving products based in Bermuda, has formed a strategic capital solution expected to provide it with up to $4 billion of on-demand, third-party equity capital, to help it pursue various growth initiatives.
Athene Co-Invest Reinsurance Affiliate (ACRA) is a wholly owned subsidiary of Athene that is expected to participate in qualifying transactions by drawing two-thirds of the required capital for such transactions from third-party investors.
Qualifying transactions include block reinsurance, pension risk transfer, flow reinsurance transactions and funding agreements.
ACRA is aimed at helping Athene achieve various business objectives in an accretive manner to shareholders, minimising the potential need for additional primary issuance in future, and eliminating the impact that undeployed, on-balance sheet capital has on key financial measures, such as return on equity.
"We are extraordinarily well positioned with a multi-channel distribution platform that provides sustainable and opportunistic growth with very attractive profitability. Given the growing number of opportunities we see to drive long term value creation, we are excited to announce the formation of a strategic, on-demand capital vehicle that will allow us to achieve a variety of business objectives simultaneously, and in a shareholder friendly manner," said Jim Belardi, CEO of Athene.
Athene Holding, Alternative risk transfer, Bermuda