Athene outlook raised by AM Best

Bermuda-based long term insurer Athene has had its ratings outlook raised from stable to positive by ratings agency AM Best.

The agency also said it had affirmed the financial strength rating of A (Excellent) and the long-term issuer credit ratings of “a+” (Excellent) of the members of Athene Group (Athene).

It said Athene is the consolidation of the organization’s US operating companies, along with its affiliated reinsurance companies domiciled in Bermuda.

It added that it had revised the outlooks to positive from stable and affirmed the Long-Term ICR of “bbb+” (Good), the Long-Term Issue Credit Ratings and the indicative long-term IRs of Athene Holding (Bermuda). Athene Holding operates as the holding company for the U.S. and Bermuda operations.

"The ratings reflect Athene’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management," AM Best said.

"The positive outlooks reflect a continuing trend of Athene’s improving balance sheet strength. AM Best views Athene’s consolidated risk-adjusted capitalization as strongest, as measured by Best’s capital adequacy ratio, and supported by favourable financial flexibility.

"Athene has demonstrated its ability to access capital markets and maintains additional access to capital and liquidity through a revolving credit facility, Federal Home Loan Bank borrowing capacity, and a shelf registration statement, as well as uncalled capital commitments from Athene Co-Invest Reinsurance Affiliates (ACRA) investors.

"The 2022 merger with Apollo Global Management is expected to have a longer-term positive impact on Athene’s financial flexibility."