Athene Announces Block Reinsurance Transaction with Sony Life in Japan

Rhea-AI Summary

Athene (NYSE: ATH), a subsidiary of Apollo Global Management, has announced a significant block reinsurance transaction with Sony Life Insurance in Japan. The deal involves reinsuring U.S. dollar-denominated whole life insurance policies, with Swiss Re handling the mortality risk retrocession.

This marks Athene's eighth transaction with Japanese insurers and second block reinsurance deal in the Japanese market. The company has now achieved $19 billion in total reinsurance transaction volume with Japanese cedants since entering the market five years ago.

The partnership leverages Athene's retirement services expertise and Apollo's asset management capabilities to provide capital solutions for Japanese insurers and safe yield options for Japanese retirees.

Positive

• Reached $19 billion in total reinsurance transaction volume with Japanese cedants
• Partnership with top-rated Japanese insurer Sony Life expands market presence
• Risk mitigation through Swiss Re's retrocession of mortality risk
• Strategic expansion in Japanese market with eighth transaction across seven cedents

Negative

• None.

Insights

Insurance Reinsurance Specialist

Athene strengthens its Japanese market presence with Sony Life deal, reaching $19B in transaction volume while offloading mortality risk.

Athene's newest block reinsurance transaction with Sony Life represents a significant expansion of the company's Japanese market presence. This marks their eighth transaction with Japanese insurers and second block reinsurance deal since entering the market five years ago, bringing their total Japanese reinsurance volume to approximately $19 billion.

The strategic structure of this transaction deserves attention. Athene will reinsure Sony Life's US dollar-denominated whole life policies but has arranged to retrocede all mortality risk to Swiss Re. This arrangement allows Athene to focus on what they do best - managing long-term retirement assets - while transferring the insurance mortality risk to a specialist reinsurer.

This transaction pattern highlights Athene's evolving business model in Japan. By leveraging parent company Apollo's asset management capabilities and their own strong balance sheet, Athene has positioned itself as a capital solutions provider for Japanese insurers looking to optimize their financial positions. The company is effectively functioning as an institutional asset manager for Japanese insurance liabilities, particularly focusing on dollar-denominated products that Japanese insurers may find challenging to manage efficiently on their own balance sheets.

The deal reflects broader trends in Japan's insurance market, where insurers face yield challenges in the domestic market and are increasingly looking for capital relief and asset management solutions for certain product blocks. For Athene, these transactions provide access to stable, long-term liabilities that match their retirement-focused business model.

Transaction marks Athene’s second block reinsurance transaction and eighth transaction with Japanese insurers since entering the market five years ago

Athene crosses $19 billion of reinsurance transaction volume with Japanese cedants, driven by balance sheet strength, growth capital and alignment with Apollo

WEST DES MOINES, Iowa, Sept. 29, 2025 (GLOBE NEWSWIRE) -- Athene, the leading retirement services company and subsidiary of Apollo Global Management, Inc. (NYSE: APO), has announced that it intends to enter a block reinsurance transaction with Sony Life Insurance Co. Ltd. (“Sony Life”), a top-rated Japanese insurer. As part of this transaction, Athene will reinsure an in-force block of U.S. dollar denominated whole life insurance policies and will enter into an agreement with leading reinsurer Swiss Re to retrocede all mortality risk associated with the block.

“Japanese insurers are increasingly turning to more tailored solutions and flexible capital to enhance their financial strength and advance policyholders’ goals,” said Katie Daly, EVP and Global Head of M&A, Reinsurance and Pensions at Athene. “Our retirement and capital expertise put us in a strong position to address needs unique to the Japan market.”

“Apollo and Athene’s growing presence in Japan is a direct result of our differentiated model’s ability to bring in capital to support Japanese policyholders,” said Yasuo Kashiwagi, Head of Japan at Apollo. “The combination of balance sheet strength and world-class asset management capabilities fits well with deeper shifts underway in Japan and enables us to provide safe yield solutions to Japanese retirees and savers in an aligned way.”

This transaction marks Athene’s eighth reinsurance transaction across seven cedents, and second block reinsurance transaction with Japanese insurers since entering the market five years ago. This brings the total transaction volume of Athene’s reinsurance transactions with Japanese cedants to approximately $19 billion. Athene’s robust balance sheet, strong capital profile, and alignment with Apollo help to make it a partner of choice to the Japanese retirement market.

About Athene
Athene is the leading retirement services company with over $400 billion of total assets as of June 30, 2025, and operations in the United States, Bermuda, Canada, and Japan. Athene is focused on providing financial security to individuals by offering an attractive suite of retirement income and savings products and also serves as a solutions provider to corporations. For more information, please visit www.athene.com.

Contact
Alyssa Castelli
Director, External Relations
+1 646 768 7304
alyssa.castelli@athene.com

Forward-Looking Statements

This press release contains, and certain oral statements made by Athene's representatives from time to time may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks, uncertainties and assumptions that could cause actual results, events and developments to differ materially from those set forth in, or implied by, such statements. These statements are based on the beliefs and assumptions of Athene's management and the management of Athene's subsidiaries. Generally, forward-looking statements include actions, events, results, strategies and expectations and are often identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans,” “seeks,” “estimates,” “projects,” “may,” “will,” “could,” “might,” “should,” or “continues” or similar expressions. Forward-looking statements within this press release include, but are not limited to, statements regarding future growth prospects and financial performance. Although Athene management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. For a discussion of other risks and uncertainties related to Athene’s forward-looking statements, see its annual report on Form 10-K for the year ended December 31, 2024, which can be found at the SEC’s website www.sec.gov. All forward-looking statements described herein are qualified by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. Athene does not undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

FAQ

What is the significance of Athene's reinsurance transaction with Sony Life?

The transaction represents Athene's eighth deal with Japanese insurers and second block reinsurance transaction, marking significant expansion in Japan. It involves reinsuring U.S. dollar-denominated whole life insurance policies with Sony Life Insurance.

How much reinsurance transaction volume has Athene (ATH) achieved with Japanese cedants?

Athene has achieved $19 billion in total reinsurance transaction volume with Japanese cedants since entering the market five years ago.

How is Athene managing the risk in the Sony Life reinsurance transaction?

Athene has partnered with Swiss Re to retrocede all mortality risk associated with the block of insurance policies.

What is Athene's strategy in the Japanese insurance market?

Athene leverages its retirement services expertise and Apollo's asset management capabilities to provide capital solutions and safe yield options for Japanese insurers and retirees.

How many reinsurance transactions has Athene completed in Japan?

Athene has completed eight reinsurance transactions across seven cedents in Japan, including two block reinsurance transactions since entering the market five years ago.