Apollo Announces Further Expansion of its Insurance Asset Management Business

Athene and other transactions along with internal growth to add nearly $80B in pro-forma insurance assets

NEW YORK, June 18, 2020 (GLOBE NEWSWIRE) -- Apollo Global Management, Inc. (NYSE: APO) (together with its consolidated subsidiaries, “Apollo” or the “Firm”) today announced expansion of its insurance asset management business, as Athene Holding Ltd. (NYSE: ATH) (“Athene”) has entered into a fixed annuity block reinsurance transaction with Jackson National Life Insurance Company (“Jackson”), a subsidiary of Prudential plc (LSE: PRU), with the support of Athene Co-Invest Reinsurance Affiliate (“ACRA”). Under the terms of the agreement, Athene will reinsure a $27 billion in-force block of fixed deferred and fixed indexed annuities. Athene will also make a $500 million equity investment in Jackson, representing an 11% stake in the company, subject to customary closing conditions¹. 

Apollo’s insurance platform is anchored by permanent capital vehicle assets from Athene and other insurance platforms. Through the first quarter of 2020 and pro forma for Athene’s transaction with Jackson, additional transactions and internal growth, Apollo has added nearly $80 billion in insurance-related assets under management. These inorganic growth strategies are underpinned by the Apollo strategic relationship, which provides acquisition expertise, access to significant equity capital raised both by Apollo and its insurance clients, and Apollo’s ability as an investment manager to source highly rated investment assets.

Apollo Co-Founder Josh Harris said: “This transaction serves as another great example of the strategic benefits of Apollo’s relationship with Athene and the full value Apollo’s insurance platform can bring to bear. Apollo, along with Athene and other insurance entities, have collectively invested approximately $1 billion to build out the infrastructure of expertise, technology, regulatory compliance and management necessary to efficiently and effectively perform as best-in-class operating companies. This infrastructure combined with available capital gives our insurance clients what we believe is a significant advantage in the marketplace. As our insurance asset management business continues to grow, we will continue to invest in these capabilities to serve our clients.”