AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit ratings of “a-” (Excellent) of Bermudian-based Athora Life Re Ltd and Athora Ireland plc.

Both entities are wholly owned subsidiaries of Athora Holding Ltd, the Bermudian-based non-operating holding company of the group.

The outlook of these credit ratings is stable.

The ratings reflect Athora’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile, and appropriate enterprise risk management. The ratings factor in the strategic importance of Athora Re and Athora Ireland to Athora.

Athora’s risk-adjusted capitalisation, as measured by Best’s capital adequacy ratio, was at the strongest level at year-end 2023, the ratings agency said.

AM Best said: “Athora’s BCAR scores are expected to stay comfortably above the minimum required for the strongest assessment over the forecast period, supported by organic capital generation as well as capital drawdowns when needed to fund any prospective acquisitions.

“Athora’s balance sheet strength assessment takes into account its solid financial flexibility, having demonstrated good access to debt markets and bank facilities. The assessment also considers Athora’s sophisticated asset-liability management, which enables the group to control its exposure to interest rate risk arising from its life insurance liabilities and credit risk arising from its private credit portfolio.”

The ratings agency added: “Athora reported a robust operating result in 2023, evidenced by a return on equity of 18 per cent. Prospective operating performance will depend on the group's ability to deliver on its business plans, which is subject to the successful implementation of its investment and hedging strategies, as well as the execution of large transactions.

“Since it was spun off from Athene Holding Ltd in 2018, Athora has established a robust position as a European life insurance consolidator, as well as a savings and pensions provider.

“At year-end 2023, the group had €73 billion (approximately $79.2 billion) of assets under management and administration through operations in Belgium, Bermuda, Germany, Ireland, Italy and the Netherlands.

“The group has an appetite for further expansion, especially in geographies where it already has a presence.”