Apollo-Backed Athene Adds $5.1 Billion of Assets in Delta DealJing Cao
Athene Holding Ltd., the insurer tied to Leon Black’s Apollo Global Management LLC, agreed to buy German subsidiaries of Delta Lloyd NV, as the company extends its geographic reach and adds more funds to invest.
The Delta Lloyd Deutschland business had about 4.3 billion euros ($5.1 billion) of assets as of Sept. 30, Bermuda-based Athene said today. The buyer intends to add staff to support the operations of DLD, which services retirement products and hasn’t sold new policies since 2010, according to a statement posted on the website of Apollo Alternative Assets.
Athene has been pursuing takeovers to help its investment strategy, which includes buying securities backed by commercial and residential mortgages to boost yields. The company took over a U.S. life and annuity business from Aviva Plc in 2013, a year after agreeing to buy Presidential Life Corp.
“We see significant net investment spread opportunities with DLD,” Athene CEO James Belardi said in the statement. “The purchase of DLD provides Athene with an excellent entry point into the German marketplace.”
Athene in April raised more than $1 billion to help fuel expansion. AP Alternative Assets LP, which is managed by Apollo Alternative Assets, is Athene’s largest shareholder, according to a company statement in October.
The deal for Wiesbaden-based DLD is expected to be completed by the third quarter, and the business will operate under the Athene name, according to the buyer. Athene was represented by Linklaters LLP and Ernst & Young.
Delta Lloyd said in a separate statement that the sale will help narrow the focus of the Amsterdam-based company to its main markets in the Netherlands and Belgium.