ATHENE HOLDING LTD. COMPLETES ACQUISITION OF AVIVA USA

Transcription

1 ATHENE HOLDING LTD. COMPLETES ACQUISITION OF AVIVA USA PEMBROKE, Bermuda, October 2, 2013 Athene Holding Ltd. ( Athene Holding, and together with its subsidiaries, Athene ) today announced it has completed the acquisition of Aviva USA Corporation and its subsidiaries, including Iowa domiciled Aviva Life and Annuity Company, and New York domiciled Aviva Life and Annuity Company of New York, for $1.55 billion.* Athene also announced that it has completed the sale of Aviva USA s life insurance operations to Presidential Life Insurance Company USA, a wholly owned subsidiary of Commonwealth Annuity and Life Insurance Co. and part of the Global Atlantic Financial Group. Terms of that deal were not disclosed. Following the deal s close, Athene has approximately $60 billion in assets, making it one of the largest fixed annuity companies in the United States. Athene Chief Executive Officer Jim Belardi said: Our acquisition of Aviva USA is a transformative event that significantly increases the scale of Athene s fixed annuity business and we are excited about our prospects for further profitable growth. Aviva s operational capabilities and talented workforce will enable Athene to solidify our position as a market leading provider of retirement solutions to policyholders and distributors. At the same time, we will offer attractive opportunities for employees and create greater value for our shareholders. Aviva USA has been renamed Athene USA, which is the parent for Athene s U.S operations and is now headquartered in West Des Moines, Iowa. Athene Holding is owned by several institutional investors, with its largest shareholder being AP Alternative Assets, L.P. (Euronext: AAA), a closed end, publicly traded permanent capital vehicle managed by Apollo Global Management, LLC, a leading alternative investment manager. *Prior to purchase price adjustments at closing About Athene Holding Ltd. Athene Holding, through its subsidiaries, is a leading provider of products in the retirement savings market. Athene s principal subsidiaries include Athene Annuity & Life Assurance Company and Athene Life Insurance Company, Delaware domiciled insurance companies, Aviva Life & Annuity Company, an Iowa domiciled insurance company, Presidential Life Insurance Company and Aviva Life & Annuity Company of New York, New York domiciled insurance companies, and Athene Life Re Ltd., a Bermuda based reinsurer. Athene Holding provides investment solutions, including tax efficient savings products, to support retirees as well as those saving for retirement. The products offered by Athene include: Retail fixed and equity indexed annuity products Institutional products, such as funding agreements Co insurance and reinsurance arrangements with third party life insurance and annuity providers Further information about our companies can be found at Media contact for Athene Holding Ltd.: Carolyn Sargent, Rubenstein Associates T: (212) , [email protected]

2 Speaking points for your clients and prospects about the Athene acquisition of Aviva Thank you for your continued support as we transition from Aviva USA to Athene USA these are truly exciting times! We know your clients and even some prospects may have questions about this transition. We re confident this transition will be smooth for you and your customers. To help, we ve created a document with key talking points to help you with current clients (front of document) and prospects (back of document). We ll continue to update you as the transition proceeds. Remember to visit the Transitions page on Connect, your agent portal, to access previous communications, contact information, FAQs, and more. Please also continue submitting any questions you have to [email protected]. Thank you again for your on-going support the future together is very bright! Agent use only; Not for use with the general public. 1

3 Possible Client Questions Possible Client Questions What s happening with Aviva USA and Athene? Athene Holdings acquired Aviva USA s annuity and insurance business October 1st as part of its strategy to become an industry leader in fixed annuities. Athene is solely focused on annuities and, with this acquisition, Athene will arguably have the broadest and most innovative annuity portfolio in the industry. What does this mean for Aviva USA? In the short-term, not much actually changes as the previous Aviva USA entity will still be a stand-alone (Athene USA) firm until it is integrated with the broader Athene entity in While it will technically become Athene USA, everything will still be branded as Aviva until early- to mid Should I be worried about my contract and its guarantees? All contractual commitments continue, all regulatory processes that protect clients are adhered to and continue, the insurance company is well capitalized to meet these obligations, plus the approval processes for this acquisition helps ensure the insurance company can continue to meet its obligations. Will my contract change? Will it continue to accumulate/payout? There isn t any change to your contract or to how it will accumulate or payout depending on your situation. As mentioned above, all contractual obligations continue and it is still backed by Aviva Life and Annuity Company to be renamed Athene Annuity and Life Company effective March 1, Will the customer support I get change? No, you will continue to receive excellent customer service. Athene wants to ensure this transition is a smooth as possible so nothing related to customer support should change for you whether that s your online account at MyAviva, the 800# for the call center, or how you receive mailings. In fact, all of this will still be branded as Aviva until early- to mid-2014 at which time it will be rebranded to Athene but other than the name, everything should be the same. 2

4 Possible Client Questions Possible Client Questions What if anything will change for me then? As mentioned, what won t change is the insurance company s commitments to your contract and its ability to meet these obligations. Over-time though, the name of Aviva Life and Annuity Company will change to Athene Annuity and Life Company so you will notice websites, correspondence, forms and other communications will be branded as Athene. This will begin in early- to mid Is Athene financially stable? Yes! Like Aviva, Athene is well capitalized and is financially strong. When combined with Athene s existing annuity business, the new organizations: Have been serving American consumers for over 117 years Have nearly 600,000 individual policy-holders Have 25,000 independent agents and 1,400 employees Are managing nearly $60B in assets What about their ratings? Neither Aviva nor Athene can determine what the independent rating agencies perspectives will be. It s important to know that Athene believes they operate their business as an A rated company and the financials support that. Rating agencies also consider a company s newness and any perspectives they have on the firms abilities to integrate. Athene s rating is currently B++ (good) by A.M. Best (their fifth highest rating of 15 such ratings) and is BBB+ (good) by Fitch Ratings (the eighth highest of 21 such ratings). The Aviva USA insurance entities which were acquired by Athene were rated A- by A.M. Best (their third highest rating of 15 such ratings) as of 10/1/13 but changed to B++ as AM Best interprets the impact of the acquisition. The S&P ratings for the Aviva USA insurance entities which were acquired by Athene remained unchanged at A- (their third highest of 12 such ratings) as of 10/3/2013 and are under review in the coming month. How can I find out more? More information will be provided directly to Aviva Life and Annuity Company policy-holders in the coming months. In the interim, you can go to their public website AvivaUSA.com where they have some information about the acquisition, call them at or continue to ask your agent who can work with us to answer any of your questions. 3

5 Prospect Questions Prospect Questions What s happening with Aviva USA and Athene? Athene Holdings acquired Aviva USA s annuity and insurance business October 1st as part of its strategy to become an industry leader in fixed annuities. Athene is solely focused on annuities and, with this acquisition, Athene will arguably have the broadest and most innovative annuity portfolio in the industry. What does this mean for Aviva USA? In the short-term, not much actually changes as the previous Aviva USA entity will still be a stand-alone (Athene USA) firm until it is integrated with the broader Athene entity in While it will technically become Athene USA, everything will still be branded as Aviva until early- to mid Should I be worried about purchasing an Aviva contract right now? All contractual commitments continue, all regulatory processes that protect clients are adhered to and continue, the insurance company is well capitalized to meet these obligations, plus the approval processes for this acquisition helps ensure the insurance company can continue to meet its obligations. Who will be responsible for my contract then if I do buy an Aviva annuity? All contractual obligations continue as issued by Aviva, and your contract is still backed by Aviva Life and Annuity Company to be renamed Athene Annuity and Life Company effective March 1, If I buy an Aviva annuity now, can Athene change what I m promised later? No as the contractual commitment made when you purchase your annuity will continue regardless of the name of the company. While your contract does include provisions that allow for certain standard changes within it (e.g. renewal rates, future income options, etc.), the contract itself cannot and will not change. 4

6 Prospect Questions Prospect Questions Is Athene financially stable? Yes! Like Aviva, Athene is well capitalized and is financially strong. When combined with Athene s existing annuity business, the new organizations: Have been serving American consumers for over 117 years Have nearly 600,000 individual policy-holders Have 25,000 independent agents and 1,400 employees Are managing nearly $60B in assets What about their ratings? Neither Aviva nor Athene can determine what the independent rating agencies perspectives will be. It s important to know that Athene believes they operate their business as an A rated company and the financials support that. Rating agencies also consider a company s newness and any perspectives they have on the firms abilities to integrate. Athene s rating is currently B++ (good) by A.M. Best (their fifth highest rating of 15 such ratings) and is BBB+ (good) by Fitch Ratings (the eighth highest of 21 such ratings). The Aviva USA insurance entities which were acquired by Athene were rated A- by A.M. Best (their third highest rating of 15 such ratings) as of 10/1/13 but changed to B++ as AM Best interprets the impact of the acquisition. The S&P ratings for the Aviva USA insurance entities which were acquired by Athene remained unchanged at A- (their third highest of 12 such ratings) as of 10/3/2013 and are under review in the coming month. What if anything will change for me if I buy an Aviva annuity now? If you purchase an Aviva annuity now, you ll receive an Avivabranded annuity. As mentioned above, this contract will be issued by Aviva Life and Annuity Company. Over-time though, the name of Aviva Life and Annuity will change to Athene Annuity and Life so you will notice websites, correspondence, forms and other communications will be branded as Athene. This will begin in early- to mid How can I find out more? More information will be provided directly to Aviva Life and Annuity Company policy-holders in the coming months. In the interim, you can go to their public website AvivaUSA.com where they have some information about the acquisition, call them at or continue to ask your agent who can work with us to answer any of your questions. 5