AM Best Affirms Credit Ratings of Athora Holding Ltd.’s Subsidiaries
24 May 2024 - 4:14PM
Business Wire
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. For more information,
visit www.ambest.com.
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