NEW YORK, June 18, 2020 (GLOBE NEWSWIRE) — Apollo International Administration, Inc. (NYSE: APO) (along with its consolidated subsidiaries, “Apollo” or the “Agency”) right now introduced enlargement of its insurance coverage asset administration enterprise, as Athene Holding Ltd. (NYSE: ATH) (“Athene”) has entered into a set annuity block reinsurance transaction with Jackson Nationwide Life Insurance coverage Firm (“Jackson”), a subsidiary of Prudential plc (LSE: PRU), with the assist of Athene Co-Make investments Reinsurance Affiliate (“ACRA”). Underneath the phrases of the settlement, Athene will reinsure a $27 billion in-force block of mounted deferred and stuck listed annuities. Athene can even make a $500 million fairness funding in Jackson, representing an 11% stake within the firm, topic to customary closing situations1.
Apollo’s insurance coverage platform is anchored by everlasting capital car belongings from Athene and different insurance coverage platforms. By means of the primary quarter of 2020 and professional forma for Athene’s transaction with Jackson, extra transactions and inner development, Apollo has added practically $80 billion in insurance-related belongings beneath administration. These inorganic development methods are underpinned by the Apollo strategic relationship, which offers acquisition experience, entry to important fairness capital raised each by Apollo and its insurance coverage purchasers, and Apollo’s means as an funding supervisor to supply extremely rated funding belongings.
Apollo Co-Founder Josh Harris mentioned: “This transaction serves as one other nice instance of the strategic advantages of Apollo’s relationship with Athene and the complete worth Apollo’s insurance coverage platform can deliver to bear. Apollo, together with Athene and different insurance coverage entities, have collectively invested roughly $1 billion to construct out the infrastructure of experience, expertise, regulatory compliance and administration essential to effectively and successfully carry out as best-in-class working firms. This infrastructure mixed with out there capital provides our insurance coverage purchasers what we consider is a major benefit within the market. As our insurance coverage asset administration enterprise continues to develop, we are going to proceed to spend money on these capabilities to serve our purchasers.”
Apollo Senior Managing Director Gary Parr mentioned: “We consider Athene’s most up-to-date deal exemplifies the aggressive benefit of Apollo’s insurance coverage purchasers and why they are often options suppliers to the trade. The transaction portfolio has a excessive share of short-term securities, of which the overwhelming majority can be redeployed over the subsequent 12-18 months into extremely rated, long run investments matching the legal responsibility profile, whereas sustaining a excessive capital place, sturdy rankings and prudent threat administration. Apollo’s funding origination capabilities, which we expect should not simply replicated as a result of price, human capital, experience and scale that’s required for achievement, provides our purchasers confidence in underwriting investments.”
For Apollo, its insurance coverage and everlasting capital car methods are an essential element of the expansion targets set out within the second half of 2019, together with attaining mid-teen percentages in annual development in fee-related earnings over the subsequent 5 years. The Agency expects this transaction can be instantly accretive; nonetheless, as a big share of the belongings in Jackson are anticipated to be redeployed in different high quality belongings over time, the complete monetary impact is predicted to be achieved on a run charge foundation within the second half of 2021.
To study extra about Athene’s transaction with Jackson, go to ir.athene.com.
Apollo is a number one world different funding supervisor with workplaces in New York, Los Angeles, San Diego, Houston, Bethesda, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong, Shanghai and Tokyo. Apollo had belongings beneath administration of roughly $316 billion as of March 31, 2020 in credit score, non-public fairness and actual belongings funds invested throughout a core group of 9 industries the place Apollo has appreciable data and assets. For extra details about Apollo, please go to www.apollo.com.
About Athene Holding Ltd.
Athene, by its subsidiaries, is a number one retirement providers firm that points, reinsures and acquires retirement financial savings merchandise designed for the rising variety of people and establishments in search of to fund retirement wants. The merchandise supplied by Athene embody:
- Retail mounted, mounted listed and index-linked annuity merchandise;
- Reinsurance preparations with third-party annuity suppliers; and
- Institutional merchandise, similar to funding agreements and the belief of pension threat switch obligations.
Athene had whole belongings of $142.2 billion as of March 31, 2020. Athene’s principal subsidiaries embody Athene Annuity & Life Assurance Firm, a Delaware-domiciled insurance coverage firm, Athene Annuity and Life Firm, an Iowa-domiciled insurance coverage firm, Athene Annuity & Life Assurance Firm of New York, a New York-domiciled insurance coverage firm and Athene Life Re Ltd., a Bermuda-domiciled reinsurer. For extra details about Athene, please go to can www.athene.com.
This press launch incorporates forward-looking statements which might be inside the which means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Trade Act of 1934, as amended. These statements embody, however should not restricted to, discussions associated to Apollo’s expectations concerning the efficiency of its enterprise, its liquidity and capital assets and the opposite non-historical statements within the dialogue and evaluation. These forward-looking statements are primarily based on administration’s beliefs, in addition to assumptions made by, and data at the moment out there to, administration. When used on this press launch, the phrases “consider,” “anticipate,” “estimate,” “anticipate,” “intend” and related expressions are meant to determine forward-looking statements. Though administration believes that the expectations mirrored in these forward-looking statements are cheap, it can provide no assurance that these expectations will show to have been appropriate. These statements are topic to sure dangers, uncertainties and assumptions, together with dangers regarding our dependence on sure key personnel, our means to lift new credit score, non-public fairness, or actual belongings funds, the outbreak of the novel coronavirus illness 2019, the affect of vitality market dislocation, market situations typically, our means to handle our development, fund efficiency, adjustments in our regulatory setting and tax standing, the variability of our revenues, web earnings and money circulation, our use of leverage to finance our companies and investments by our funds and litigation dangers, amongst others. We consider these components embody however should not restricted to these described beneath the part entitled “Danger Components” in Apollo’s annual report on Kind 10-Okay filed with the Securities and Trade Fee (the “SEC”) on February 21, 2020 and quarterly report on Kind 10-Q filed with the SEC on Might 11, 2020, as such components could also be up to date sometimes in Apollo’s periodic filings with the SEC, that are accessible on the SEC’s web site at www.sec.gov. These components shouldn’t be construed as exhaustive and must be learn along side the opposite cautionary statements which might be included on this press launch and in different filings. We undertake no obligation to publicly replace or assessment any forward-looking statements, whether or not because of new info, future developments or in any other case, besides as required by relevant regulation. This press launch doesn’t represent a suggestion of Apollo or any Apollo fund.
For buyers please contact:
Gary M. Stein
Head of Investor Relations
Apollo International Administration, Inc.
Investor Relations Supervisor
Apollo International Administration, Inc.
For media inquiries please contact:
International Head of Company Communications
Apollo International Administration, Inc.
1 Using the assist of ACRA, 63% of the whole capital deployment to assist the reinsurance transaction and the fairness funding in Jackson can be funded by third-party buyers, and 37% can be funded by Athene on a standalone foundation.