Athene Holding Ltd. lately accomplished making a $500 million fairness funding in Jackson Nationwide Life Insurance coverage Firm.
In an effort to clarify the deal to buyers, Athene additionally posted a dialogue of its company construction.
For individuals with a deep curiosity in insurer capitalization and reinsurance preparations, Athene offered a have a look at its capitalization and reinsurance preparations.
The Pembroke, Bermuda-based reinsurer additionally addressed a less complicated query, that may have occurred to many abnormal life and annuity brokers: Why are so many insurers placing their head official headquarters within the Caribbean, relatively than conventional U.S. insurance coverage trade facilities, reminiscent of New York Metropolis and Hartford, Connecticut?
Right here’s how Athene answered the query in reference to its personal headquarters location pondering.
Athene says within the company construction information that it desires to promote reinsurance to insurance coverage firms primarily based in Europe in addition to to insurance coverage firms primarily based in america?
Bermuda is a superb place to find an organization that works with each U.S. and European insurers, Athene says.
For america, the Nationwide Affiliation of Insurance coverage Commissioners has designated Bermuda as a “qualified jurisdiction,” and as a “reciprocal jurisdiction” for reinsurance functions, that means that U.S. insurance coverage regulators can have a look at reinsurance from a Bermuda-based firm about the identical approach they may have a look at reinsurance from a Hartford-based firm.
Europe has its personal robust Solvency II insurer monetary stability regulation system. For European Solvency II functions, European regulators have accepted Bermuda for Solvency II equivalency, Athene says.
That designation places “Bermuda on par with European peers when competing for business in the European Union,” Athene says.
Bermuda already has an enormous reinsurance trade, and reinsurers “domiciled” there generated about $150 billion in reinsurance premiums in 2017, Athene says.
When Athene offers a reinsurance treaty for a U.S. primarily based insurer, the insurer and Athene resolve whether or not to have the reinsurance come from a Bermuda-based Athene unit or a U.S.-based unit primarily based on accounting, tax and regulatory issues, Athene says.
If Athene had a dispute with a U.S. insurer, any breaches of contract as a result of failures to pay quantities because of the insurers could be topic to U.S. legislation, and any disputes over funds could be topic to U.S. arbitration guidelines, Athene says.
Athene notes that it posts the important thing monetary filings it recordsdata with the Bermuda Financial Authority right here.
— Learn Athene Has Huge Fish on the Line, on ThinkAdvisor.
— Join with ThinkAdvisor Life/Well being on Fb, LinkedIn and Twitter.