Athene Announces Pension Buyout Agreement With Armstrong World Industries
February 24 2020 - 4:30PM
Business Wire
Athene Holding Ltd. (“Athene”) (NYSE: ATH), a leading retirement
services company, announced a pension buyout agreement with
Armstrong World Industries (“Armstrong”) (NYSE: AWI), a leader in
the design and manufacture of innovative commercial and residential
ceiling, wall and suspension system solutions in the Americas.
Under the terms of the transaction, Athene’s wholly-owned
Iowa-domiciled life insurance subsidiary, Athene Annuity and Life
Company (“AAIA”), and Athene’s wholly-owned New York-domiciled life
insurance subsidiary, Athene Annuity & Life Assurance Company
of New York (“AANY”), have agreed to provide annuity benefits for
approximately 10,000 retirees who are currently receiving benefits
from Armstrong’s pension plan. In aggregate, Armstrong is
transferring approximately $1 billion in pension obligations to
Athene.
“We are pleased to have been selected as a trusted partner on
behalf of Armstrong to help reduce the company’s pension risk
through this transaction,” said Sean Brennan, EVP of Pension Risk
Transfer and Flow Reinsurance of Athene. “Our differentiated
investment, actuarial, risk-management, and operational
capabilities combined with our strong balance sheet, position us
well to serve Armstrong and the broader market. Athene is committed
to solutions that help plan sponsors meet their financial
obligations while ensuring the financial security of their plan
participants.”
Under the agreement, AAIA and AANY will each issue a group
annuity contract to Armstrong and individual annuity certificates
to applicable retirees. AAIA and AANY will have direct payment
responsibility for all the liabilities covered in this
transaction.
Athene is a leader within the pension risk transfer industry,
responsible for providing income security for more than 178,000
annuitants representing approximately $12 billion of obligations
globally.
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 $146.9 billion as of December 31,
2019. 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.
Further information about our companies can be found at
athene.com.
Safe Harbor for Forward-Looking Statements
This press release contains, and certain oral statements made by
Athene's representatives from time to time may contain,
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such statements are
subject to risks and uncertainties that could cause actual results,
events and developments to differ materially from those set forth
in, or implied by, such statements. These statements are based on
the beliefs and assumptions of Athene's management and the
management of Athene's subsidiaries. Generally, forward-looking
statements include actions, events, results, strategies and
expectations and are often identifiable by use of the words
“believes,” “expects,” “intends,” “anticipates,” “plans,” “seeks,”
“estimates,” “projects,” “may,” “will,” “could,” “might,” or
“continues” or similar expressions. Factors that could cause actual
results, events and developments to differ include, without
limitation: the accuracy of Athene's assumptions and estimates;
Athene's ability to maintain or improve financial strength ratings;
Athene's ability to manage its business in a highly regulated
industry; regulatory changes or actions; the impact of Athene's
reinsurers failing to meet their assumed obligations; the impact of
interest rate fluctuations; changes in the federal income tax laws
and regulations; the accuracy of Athene's interpretation of the Tax
Cuts and Jobs Act; litigation (including class action litigation),
enforcement investigations or regulatory scrutiny; the performance
of third parties; the loss of key personnel; telecommunication,
information technology and other operational systems failures; the
continued availability of capital; new accounting rules or changes
to existing accounting rules; general economic conditions; Athene's
ability to protect our intellectual property; the ability to
maintain or obtain approval of the Delaware Department of
Insurance, the Iowa Insurance Division and other regulatory
authorities as required for our operations; and other factors
discussed from time to time in Athene's filings with the SEC,
including its annual report on Form 10-K for the year ended
December 31, 2019 and its other SEC filings, which can be found at
the SEC’s website www.sec.gov.
All forward-looking statements described herein are qualified by
these cautionary statements and there can be no assurance that the
actual results, events or developments referenced herein will occur
or be realized. Athene does not undertake any obligation to update
or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to
future operating results.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200224005918/en/
Media Karen Lynn +1 441 279 8460 +1 515 342 3910
klynn@athene.com
Investors Noah Gunn +1 441 279 8534 +1 646 768 7309
ngunn@athene.com
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