Apollo Global Management, Inc. (NYSE: APO) (together with its
consolidated subsidiaries, “Apollo” or the “Firm”) today announced
expansion of its insurance asset management business, as Athene
Holding Ltd. (NYSE: ATH) (“Athene”) has entered into a fixed
annuity block reinsurance transaction with Jackson National Life
Insurance Company (“Jackson”), a subsidiary of Prudential plc (LSE:
PRU), with the support of Athene Co-Invest Reinsurance Affiliate
(“ACRA”). Under the terms of the agreement, Athene will reinsure a
$27 billion in-force block of fixed deferred and fixed indexed
annuities. Athene will also make a $500 million equity investment
in Jackson, representing an 11% stake in the company, subject to
customary closing conditions1.
Apollo’s insurance platform is anchored by
permanent capital vehicle assets from Athene and other insurance
platforms. Through the first quarter of 2020 and pro forma for
Athene’s transaction with Jackson, additional transactions and
internal growth, Apollo has added nearly $80 billion in
insurance-related assets under management. These inorganic growth
strategies are underpinned by the Apollo strategic relationship,
which provides acquisition expertise, access to significant equity
capital raised both by Apollo and its insurance clients, and
Apollo’s ability as an investment manager to source highly rated
investment assets.
Apollo Co-Founder Josh Harris said: “This
transaction serves as another great example of the strategic
benefits of Apollo’s relationship with Athene and the full value
Apollo’s insurance platform can bring to bear. Apollo, along with
Athene and other insurance entities, have collectively invested
approximately $1 billion to build out the infrastructure of
expertise, technology, regulatory compliance and management
necessary to efficiently and effectively perform as best-in-class
operating companies. This infrastructure combined with available
capital gives our insurance clients what we believe is a
significant advantage in the marketplace. As our insurance asset
management business continues to grow, we will continue to invest
in these capabilities to serve our clients.”
Apollo Senior Managing Director Gary Parr said:
“We believe Athene’s most recent deal exemplifies the competitive
advantage of Apollo’s insurance clients and why they can be
solutions providers to the industry. The transaction portfolio has
a high percentage of short-term securities, of which the vast
majority will be redeployed over the next 12-18 months into highly
rated, longer term investments matching the liability profile,
while maintaining a high capital position, strong ratings and
prudent risk management. Apollo’s investment origination
capabilities, which we think are not easily replicated due to the
cost, human capital, expertise and scale that’s required for
success, gives our clients confidence in underwriting
investments.”
For Apollo, its insurance and permanent capital
vehicle strategies are an important component of the growth targets
set out in the second half of 2019, including achieving mid-teen
percentages in annual growth in fee-related earnings over the next
five years. The Firm expects this transaction will be immediately
accretive; however, as a large percentage of the assets in Jackson
are expected to be redeployed in other quality assets over time,
the full financial effect is expected to be achieved on a run rate
basis in the second half of 2021.
To learn more about Athene’s transaction with
Jackson, visit ir.athene.com.
About
Apollo
Apollo is a leading global alternative
investment manager with offices in New York, Los
Angeles, San Diego, Houston,
Bethesda, London, Frankfurt, Madrid, Luxembourg,
Mumbai, Delhi, Singapore, Hong
Kong, Shanghai and Tokyo. Apollo had assets under
management of approximately $316 billion as of March 31,
2020 in credit, private equity and real assets funds invested
across a core group of nine industries where Apollo has
considerable knowledge and resources. For more information about
Apollo, please visit www.apollo.com.
About Athene Holding
Ltd.
Athene, through its subsidiaries, is a leading retirement
services company that issues, reinsures and acquires
retirement savings products designed for the increasing number of
individuals and institutions seeking to fund retirement needs.
The products offered by Athene include:
- Retail fixed, fixed indexed and index-linked annuity
products;
- Reinsurance arrangements with third-party annuity providers;
and
- Institutional products, such as funding agreements and the
assumption of pension risk transfer obligations.
Athene had total assets of $142.2 billion as of
March 31, 2020. Athene's principal subsidiaries include Athene
Annuity & Life Assurance Company, a Delaware-domiciled
insurance company, Athene Annuity and Life Company, an
Iowa-domiciled insurance company, Athene Annuity & Life
Assurance Company of New York, a New York-domiciled insurance
company and Athene Life Re Ltd., a Bermuda-domiciled
reinsurer. For more information about Athene, please visit can
www.athene.com.
Forward-Looking Statements
This press release contains forward-looking
statements that are within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements
include, but are not limited to, discussions related to Apollo’s
expectations regarding the performance of its business, its
liquidity and capital resources and the other non-historical
statements in the discussion and analysis. These forward-looking
statements are based on management’s beliefs, as well as
assumptions made by, and information currently available to,
management. When used in this press release, the words “believe,”
“anticipate,” “estimate,” “expect,” “intend” and similar
expressions are intended to identify forward-looking statements.
Although management believes that the expectations reflected in
these forward-looking statements are reasonable, it can give no
assurance that these expectations will prove to have been correct.
These statements are subject to certain risks, uncertainties and
assumptions, including risks relating to our dependence on certain
key personnel, our ability to raise new credit, private equity, or
real assets funds, the outbreak of the novel coronavirus disease
2019, the impact of energy market dislocation, market conditions
generally, our ability to manage our growth, fund performance,
changes in our regulatory environment and tax status, the
variability of our revenues, net income and cash flow, our use of
leverage to finance our businesses and investments by our funds and
litigation risks, among others. We believe these factors include
but are not limited to those described under the section entitled
“Risk Factors” in Apollo’s annual report on Form 10-K filed with
the Securities and Exchange Commission (the “SEC”) on February 21,
2020 and quarterly report on Form 10-Q filed with the SEC on May
11, 2020, as such factors may be updated from time to time in
Apollo’s periodic filings with the SEC, which are accessible on the
SEC’s website at www.sec.gov. These factors should not be construed
as exhaustive and should be read in conjunction with the other
cautionary statements that are included in this press release and
in other filings. We undertake no obligation to publicly update or
review any forward-looking statements, whether as a result of new
information, future developments or otherwise, except as required
by applicable law. This press release does not constitute an offer
of Apollo or any Apollo fund.
Contact InformationFor
investors please contact:Gary M. Stein Head of Investor Relations
Apollo Global Management, Inc. (212) 822-0467 gstein@apollo.com
Ann DaiInvestor Relations ManagerApollo Global Management,
Inc.(212) 822-0678adai@apollo.com
For media inquiries please contact:Joanna Rose Global Head of
Corporate Communications Apollo Global Management, Inc. (212)
822-0491 jrose@apollo.com
________________
1 Utilizing the support of ACRA, 63% of the
total capital deployment to support the reinsurance transaction and
the equity investment in Jackson will be funded by third-party
investors, and 37% will be funded by Athene on a standalone
basis.
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