LONDON–(BUSINESS WIRE)–AM Best noted that the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of the subsidiaries of Athora Holding Ltd. (Athora), Athora Life Re Ltd. (Bermuda) and Athora Ireland plc (Ireland), remains unchanged following Athora’s recent announcement that it has agreed to acquire a €19 billion closed life and pensions portfolio, through an acquisition by carve-out, at a German subsidiary of AXA SA
Athora entered into a definitive agreement to acquire the portfolio on July 14, 2022. The transaction is expected to close in late 2023, subject to regulatory approval. At the end of 2021, Athora had 79 billion euros in assets under administration (AuA) and 2.3 million policyholders. The AXA transaction will add approximately €19 billion of AuA and 0.9 million policyholders. Athora is also in the process of finalizing its acquisition of Amissima Vita SpA (Italy) and a portfolio transfer to acquire the Belgian life insurance liabilities of NN Group NV, which are expected to be finalized in 2022, and bring in around 10 billion euros. euro from AuA. None of the liabilities acquired in these transactions will be held directly in any of Athora’s rated subsidiaries.
The transaction is in line with the group’s strategy to acquire European life insurance liabilities in which the associated investment assets can benefit from Athora’s investment management capabilities, and is not expected to impact significant on the key indicators of solvency or leverage of Athora or its rated companies. subsidiaries. AM Best will closely monitor the execution of the transaction and its impact on the Athora Group.
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