HAMILTON, Bermuda, Aug. 3, 2021 /PRNewswire/ -- Athene Holding
Ltd. ("Athene") (NYSE: ATH), a leading financial services company
specializing in retirement solutions, announced the close of a
significant pension risk transfer (PRT) transaction with Lockheed
Martin (NYSE: LMT), a global security and aerospace leader. Under
the terms of the transaction, Lockheed Martin transferred
$4.9 billion in pension obligations
to Athene. Athene's wholly-owned subsidiaries, Athene Annuity and
Life Company ("AAIA") and Athene Annuity & Life Assurance
Company of New York ("AANY"), have
agreed to provide annuity benefits for approximately 18,000
participants of Lockheed Martin's pension plan who are currently
receiving benefits.
The transaction announced today is the second pension risk
transfer transaction Lockheed Martin has signed with Athene,
following a transaction in 2018 whereby Athene insured
approximately $800 million in pension
obligations for more than 9,000 of Lockheed Martin's retirees and
their beneficiaries.
"We are pleased to have again been selected by Lockheed Martin
to partner with them and help further reduce the company's
outstanding pension risk," said Sean
Brennan, Executive Vice President, Pension Risk Transfer and
Reinsurance at Athene. "As a leader in the pension risk transfer
market, Athene has a track record of completing large-scale
transactions that help plan sponsors meet their pension obligations
while providing income security for their plan participants and
their spouses and beneficiaries. Given Athene's deep expertise in
the long-term management of retirement benefits, the plan
participants covered by this transaction can be confident they will
receive the same pension benefit, on the same schedule, as what
they currently receive."
Under the agreement, AAIA and AANY have each committed to
issuing a group annuity contract to Lockheed Martin and individual
annuity certificates to applicable participants.
"Amid a backdrop of continuing macro recovery, we are seeing
companies place increasing emphasis on reducing pension risk in
order to focus on core business," said Bill
Wheeler, President of Athene. "Athene remains
well-positioned to provide plan sponsors with customized solutions
that achieve their desired de-risking objectives while ensuring the
financial security of their plan participants. This transaction
with Lockheed Martin represents Athene's largest single PRT
transaction to date, demonstrating our leading market position as a
preferred provider of retirement solutions for institutions and
individuals alike."
This large-scale transaction comes as the U.S. pension risk
transfer market has seen a significant increase in transaction
volume beginning in the second half of 2020 and continuing into
2021. The pace of industry activity suggests that 2021 will be the
highest year on record for the U.S. market.
Athene utilized its strategic capital vehicle, Athene
Reinsurance Co-investment ("ACRA"), to support the completion of
this transaction. Athene is a leader within the pension risk
transfer industry, partnering with plan sponsors and intermediaries
on more than $19 billion of
transactions to support more than 300,000 annuitants since entering
the market. To learn more about Athene's PRT solutions, visit
www.athene.com/PRT.
About Athene
Athene, through its subsidiaries, is a
leading retirement services company with total assets of
$205.7 billion as of March 31, 2021 and operations in the United States, Bermuda, and Canada. Athene specializes in helping its
customers achieve financial security and is a solutions provider to
institutions. Founded in 2009, Athene is Driven to Do More
for our policyholders, business partners, shareholders, and the
communities in which we work and live. For more information, please
visit www.athene.com.
About Lockheed Martin
Headquartered in Bethesda,
Maryland, Lockheed Martin is a global security and aerospace
company that employs approximately 114,000 people worldwide and is
principally engaged in the research, design, development,
manufacturing, integration and sustainment of advanced technology
systems, products and services.
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," "should," 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 its
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 Athene's
operations; the delay or failure to complete or realize the
expected benefits from the proposed merger with Apollo Global
Management; 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,
2020, its quarterly report on Form 10-Q for the quarterly
period ended March 31, 2021 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.
Contacts:
Media
Marcia Kent
+1 515 342 3918
mkent@athene.com
Investors
Noah
Gunn
+1 441 279 8534
+1 646 768
7309
ngunn@athene.com
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SOURCE Athene Holding Ltd.