Athene Life Re, a unit of Athene, has signed a reinsurance agreement with The Lincoln National Life Insurance Company, part of Lincoln Financial Group.
The agreement enables Athene Life Re to reinsure an 80% quota share of a $9.6bn in-force block of fixed deferred and fixed indexed annuities.
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Around $7.7bn of statutory reserves will be ceded to Athene Life Re under the agreement.
Athene Life Re could later cede a minority share of the liabilities from this deal to an affiliate.
Athene CEO Jim Belardi said: “Following the flow reinsurance treaty announced last year, we are pleased to deepen our partnership with Lincoln Financial Group through this block reinsurance transaction on business that is well understood by Athene.
“This is further evidence that Athene is well positioned and accepted as a solutions provider of choice because of our expertise, our strong capital position, and our ability to successfully close transactions that build long-term shareholder value.”
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By GlobalDataOverall, Athene has deployed around $700m for the deal. This includes capital to support the block alongside a ceding commission paid by Athene Life Re.
The company expects the deal to be accretive to its 2019 adjusted operating income per share.
In a separate move, Athene secured the board nod for a new authorisation to buy back up to $250m of its common stock.
“This new share repurchase authorisation is consistent with our flexible and opportunistic approach toward managing shareholder capital,” Belardi stated.
