After much speculation, the sale of Aviva Life USA has finally been announced, and, according to a company statement, Aviva will come out of the deal stronger and better capitalized. The statement indicated the deal will boost Aviva’s capital surplus coverage ratio, reduce the group’s credit risk exposure, and reduce sensitivity to market volatility.
Chris Littlefield, President and CEO of Aviva USA, said, “We look forward to becoming a part of Athene. When the transaction closes in mid-2013, our current location in West Des Moines (Iowa) will serve as U.S. operations headquarters for a newly named entity called Athene USA.”
Athene Life & Annuity Co. is based in Bermuda and domiciled in the US as a Delaware corporation. It also recently acquired Presidential Life which primarily sells fixed annuities and life insurance as well as accident and health insurance products. Its current ratings are AM Best “B++” (5), Fitch “BBB+” (8), and Weiss “D+” (10), with a Comdex of 47. Prior to the announcement of the sale, Aviva Life & Annuity Co. was rated “A” (3) by AM Best, “A-” (7) by Standard & Poor’s, “Baa1” (8) by Moody’s, and “C+” (7) by Weiss, with a Comdex of 74.