Athene has retained its market position as the number one overall seller of individual retail annuities, AM Best has reported.

Best acknowledged this as it affirmed the financial strength rating of A+ (Superior) and the long-term issuer credit ratings of “aa-” (Superior) of the members of Athene Group.

Athene is the consolidation of the organisation’s United States operating companies, along with its affiliated reinsurance companies domiciled in Bermuda.

In addition, AM Best affirmed the long-term ICR of “a-” (Excellent) of Athene Holding (Delaware) which operates as the holding company for the US and Bermuda operations. Concurrently, AM Best has affirmed the long-term issue credit ratings and the indicative long-term IRs of Athene Holding.

The outlook of all these credit ratings is stable.

AM Best said the ratings reflected Athene’s balance sheet strength, which the agency assessed as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.

The credit ratings agency viewed Athene’s consolidated risk-adjusted capitalisation as strongest, as measured by AM Best’s capital adequacy ratio, supported by favourable financial flexibility, including prudent excess liquidity.

“Athene has demonstrated its ability to access capital markets,” AM Best said. “It maintains additional access to capital and liquidity through a liquidity facility, a revolving credit facility and the Federal Home Loan Bank, by its borrowing capacity and a shelf registration statement, as well as uncalled capital commitments from Athene Co-Invest Reinsurance Affiliates investors.”

Financial leverage metrics supported Athene’s current ratings.

AM Best noted that Athene holds elevated allocations to less-liquid investments, including increased allocations to Level III assets, which could be impacted materially under adverse market conditions, though defaults in its investment portfolio have been in line with industry averages.

“Athene has a track record of consistently positive earnings driven by favourable earning spreads and operating profitability, despite the challenges related to competitive pressures” the agency said. “This is bolstered by favourable net investment yields.”

It added that in recent years, Athene’s favourable business profile reflected continued enhancements through favourable distribution channels in its retail markets, as well continued issuances of funding agreements and wider use of its reinsurance channel in Japan.

AM Best also said that Athene has lessened its activity in the pension risk transfer marketplace in the last couple years, which is in line with the broader industry.