Bulletin: Athene And MassMutual Intend To Acquire AEL; Too Early To Assess Credit Implications

NEW YORK (S&P Global Ratings) Oct. 1, 2020--Athene Holding Ltd. (BBB+/Stable/--), in partnership with Massachusetts Mutual Life Insurance Co. (MassMutual; AA+/Stable/A-1+), has announced its intent to acquire American Equity Investment Life (AEL; BBB-/Stable/--). Under the proposed offer, MassMutual will retain 20% of the in-force business and reinsure 80% to Athene and ACRA. Athene intends to keep the holding company and assume all of AEL's debt and preferred obligations. Athene currently ranks No. 2 in the fixed-indexed annuity (FIA) market (based on second-quarter 2020 LIMRA data) and is one of the larger block acquisition specialists in the U.S. life insurance market. AEL's sizable presence in the FIA market complements Athene's product portfolio, but at the same time increases its concentration in

...October 1, 2020 NEW YORK (S&P Global Ratings) Oct. 1, 2020--Athene Holding Ltd. (###+/Stable/--), in partnership with Massachusetts Mutual Life Insurance Co. (MassMutual; ##+/Stable/A-1+), has announced its intent to acquire American Equity Investment Life (AEL; ###-/Stable/--). Under the proposed offer, MassMutual will retain 20% of the in-force business and reinsure 80% to Athene and ACRA. Athene intends to keep the holding company and assume all of AEL's debt and preferred obligations. Athene currently ranks No. 2 in the fixed-indexed annuity (FIA) market (based on second-quarter 2020 LIMRA data) and is one of the larger block acquisition specialists in the U.S. life insurance market. AEL's sizable presence in the FIA market complements Athene's product portfolio, but at the same time increases its concentration in spread-based businesses. Athene has recently accessed the senior debt and preferred stock markets with two issuances totaling $1.1 billion ($500 million of senior notes and...

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