A unit of Athene Holding Ltd. is now responsible for the obligations owed by a big block of individual annuities written by Lincoln National Life Insurance Company.
Athene Life Re Ltd. announced Monday that it has assumed responsibility for $9.6 billion in fixed deferred and indexed deferred Lincoln National annuities through a 80% quota share arrangement.
Lincoln National is a unit of Lincoln Financial Group of Radnor, Pennsylvania.
Athene is a Pembroke, Bermuda-based reinsurer that was founded in 2009 and now manages about $100 billion in invested assets. Earier this year, Athene closed on a deal to reinsure about $19 billion in fixed and indeed annuity liabilities for Voya Financial.
A reinsurer is a company that provides what amounts to insurance for an insurer.
Through a quota share reinsurance arrangement, a reinsurer agrees to share in a set percentage of the premium revenue and claims associated with part or all of an insurer’s business.
Lincoln National has agreed to cede $7.7 billion in statutory reserves to Athene Life Re to support the block of business now being reinsured. Athene said it has “deployed approximately $700 million of capital in aggregate.”