Athene Reinsures $9.6 Billion in Lincoln Annuities

James Belardi, chairman and chief executive officer of Athene Holding Ltd., right, stands on the floor the New York Stock Exchange (NYSE) during the initial public offering of the company's stock in New York, U.S., on Friday, Dec. 9, 2016. U.S. stocks were set for a record as oil powered above $51 a barrel on signs producers are following through with agreed production cuts. The dollar rose toward an 18-month high. Photographer: Michael Nagle/Bloomberg

A unit of Athene Holding Ltd. is now responsible for the obligations owed by a big block of individual annuities written by Lincoln National Life Insurance Company.

Athene Life Re Ltd. announced Monday that it has assumed responsibility for $9.6 billion in fixed deferred and indexed deferred Lincoln National annuities through a 80% quota share arrangement.

Lincoln National is a unit of Lincoln Financial Group of Radnor, Pennsylvania.

Athene is a Pembroke, Bermuda-based reinsurer that was founded in 2009 and now manages about $100 billion in invested assets. Earier this year, Athene closed on a deal to reinsure about $19 billion in fixed and indeed annuity liabilities for Voya Financial.

A reinsurer is a company that provides what amounts to insurance for an insurer.

Through a quota share reinsurance arrangement, a reinsurer agrees to share in a set percentage of the premium revenue and claims associated with part or all of an insurer's business.

Lincoln National has agreed to cede $7.7 billion in statutory reserves to Athene Life Re to support the block of business now being reinsured. Athene said it has "deployed approximately $700 million of capital in aggregate."

Athene said it provided some of the $700 million to support the block, and part to pay a ceding commission to Lincoln National.

"Lincoln will continue to service and administer the in-force policies within the block," Athene said.

Lincoln Financial agreed to an earlier reinsurance treaty with Athene in August 2017. That arrangement, a "flow treaty," covers newly issued Lincoln Financial fixed and indexed annuities.

Jim Belardi, Athene's chief executive officer, said in a statement that Athene understands Lincoln Financial's annuity business well.

The new Lincoln Financial reinsurance treaty "is further evidence that Athene is well-positioned and accepted as a solutions provider of choice," Belardi said.

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Athene Reinsures $9.6 Billion in Lincoln Annuities

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Athene Reinsures $9.6 Billion in Lincoln Annuities

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