OLDWICK, N.J.–(BUSINESS WIRE)–A.M. Best has upgraded the financial strength rating to A- (Excellent) from B++ (Good) and the issuer credit ratings (ICR) to “a-” from “bbb+” of the members of Athene USA Group (AUSAG). The outlook for all ratings has been revised to stable from positive. (See below for a detailed listing of AUSAG’s group members and ratings.) AUSAG is the consolidating rating unit for the U.S. operating companies, which is focused on the fixed indexed and fixed annuity market segments.

Concurrently, A.M. Best has upgraded the ICR to “bbb-” from “bb+” to Athene Holding Ltd (AHL) (Bermuda). The outlook has also been revised to stable from positive. AHL operates as the holding company for the U.S. and Bermuda operations.

The rating actions on the AUSAG group of companies is based on additional cash capital contributed to the company in April 2015 and significant progress toward satisfying the material weakness issue as stated by A.M. Best in a press release dated Oct. 17, 2014, at which time the outlook for the ratings was revised to positive from stable. AUSAG is backed by a strong management team with proven ability to grow capital organically and from new capital generation in the private placement market, as well as the demonstrated ability to integrate Aviva, a much larger entity.

These rating actions further reflect continued solid earnings and the growth in capital, on an absolute and risk-adjusted basis, which has enabled AHL and its operating entities to strengthen their balance sheets while providing sufficient capital support for retail growth. Partially offsetting these positive rating factors are the pressures associated with managing assets in a low interest rate environment.

As a result of these recent rating actions, a positive rating change is unlikely in the near to medium term. Downward rating actions could result if AUSAG experiences operating losses, poor investment performance or holds lower levels of risk-based capitalization at the group level or at any one of the operating companies within the group.

The FSR has been upgraded to A- (Excellent) from B++ (Good) and the ICRs upgraded to “a-” from “bbb+” with the outlook revised to stable from positive for the following members of Athene USA Group:

• Athene Annuity & Life Assurance Company
• Athene Annuity & Life Assurance Company of New York
• Athene Annuity and Life Company
• Athene Life Insurance Company of New York
• Athene Life Re Ltd.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

• Rating Members of Insurance Groups
• A.M. Best’s Perspective on Operating Leverage
• Understanding BCAR for U.S. and Canadian Life/Health Insurers
• Risk Management and the Rating Process for Insurance Companies
• Understanding Universal BCAR

This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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