AM Best has affirmed the ratings of Bermudian-based life insurer and annuities provider Athene Holdings.

Athene’s financial strength rating remains at A and its long-term issuer credit rating at “a”.

The outlook of Athene and its operating subsidiaries remains stable.

AM Best said the ratings of Athene reflect its “very strong” balance sheet, its strong operating performance, neutral business profile and appropriate enterprise risk management.

Offsetting rating factors include the company’s investment portfolio, which includes structured securities and alternative assets and is viewed as more aggressive compared with traditional life insurance companies.

“The company’s strong trend of earnings and organic capital growth has enabled Athene Holdings and its operating companies to strengthen their balance sheets while providing sufficient capital support for growth,” AM Best said.

“Athene has demonstrated a consistent trend of strong profitability and sales growth. This includes recent pension risk transfer growth, solid fixed indexed annuity sales, and the announced acquisition of Voya Financial Inc’s individual fixed and fixed indexed annuity business via reinsurance.

“Athene maintains its position among the leaders in the fixed indexed annuity market.”

The ratings agency noted “the challenges the company faces in managing risks associated with its expanded retail distribution platform and continued rapid growth”.