Bermuda-based Athene Holding Ltd has branched out into the German life insurance market by acquiring Delta Lloyd Deutschland AG (DLD).

DLD is a German subsidiary of Delta Lloyd NV, an Amsterdam-based financial services provider. Terms of the transaction were not disclosed.

Athene’s business is focused on the retirement market and on issuing or reinsuring fixed and equity-indexed annuities.

“We see significant net investment spread opportunities with DLD and believe our core operating principles of policyholder protection, risk management and excellence in asset management match up well with the needs of the German life insurance industry,” said James Belardi, CEO of Athene Holding.

“The purchase of DLD provides Athene with an excellent entry point into the German marketplace.”

DLD is based in Wiesbaden, Germany, and provides retirement savings products to the German market. DLD had assets of approximately 4.3 billion euros ($5.1 billion) as of September 30, 2014.

The transaction is expected to close by the third quarter of 2015, subject to regulatory approvals.

Athene will retain DLD’s employee base and management team and utilise its existing location in Wiesbaden as the headquarters of Athene’s German operations. The company also plans to add positions there to support its German business strategy.

Athene will operate DLD within DLD’s current business model, which has not been selling new business since 2010, and will continue to service its existing customers. DLD will operate under the Athene name after closing, subject to regulatory approvals.

Athene was represented on this transaction by Linklaters LLP in Munich and Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft in Munich.