Athene carrier profile

Who Athene is in the annuity market

Athene Annuity & Life Company writes from West Des Moines, Iowa, and has grown into one of the largest annuity issuers in the country. Its distribution is heavily independent, and its shelf splits cleanly into two very different review problems: rate-driven MYGA contracts, and feature-driven indexed contracts with income benefits.

• —Large-scale multi-year guaranteed annuity issuance at competitive declared rates
• —Indexed contracts with built-in lifetime income benefits and no separate stated rider fee
• —Iowa domicile, where a substantial share of US annuity capacity is written
• —Affiliation with a large alternative asset manager on the investment side

MYGA contracts reduce to three questions

A multi-year guaranteed contract has no index, no benefit base, and no rider. That leaves the credited rate, the term, and the renewal decision at maturity — which is why these contracts frequently score well on Cost and Riders and stand or fall on Rate and Fit.

The single largest avoidable loss in this category is a missed maturity window. Contracts typically allow a short period to withdraw, renew, or complete a 1035 exchange without a surrender charge; after it closes, the contract often renews automatically at a declared rate well below the original.

A benefit with no stated fee still has a price

Where an indexed contract includes a lifetime income benefit at no explicit charge, the economics are funded through the crediting terms the carrier declares on the index options.

The way to see that price is to compare declared caps and participation rates on the income-bearing contract against a rate-only contract from the same carrier and vintage. The gap is the embedded cost of the benefit.

Market value adjustments cut both ways

Many Athene contracts apply a market value adjustment to withdrawals above the free amount before the term ends. This is not a penalty; it is an interest-rate adjustment that can increase or decrease the amount paid depending on how rates have moved since issue.

In a falling-rate environment an MVA can work in the owner's favour. It still has to be quantified rather than assumed.

What to check on a Athene contract

• —The exact maturity date on a MYGA and the length of the renewal window
• —Whether a market value adjustment applies to any planned withdrawal
• —The renewal rate offered at term end against current market rates
• —On indexed contracts, whether the income benefit has been activated and at what age

Questions owners ask

What is Athene's A.M. Best rating?

Athene Annuity & Life Company is recorded in the AnnuityScore carrier network with an A.M. Best financial strength rating of A+ (Superior). Ratings change over time and are published by A.M. Best.

What happens when an Athene MYGA reaches the end of its term?

Most contracts open a short window in which the owner can withdraw, renew, or complete a 1035 exchange without a surrender charge. If the window closes without instruction, the contract generally renews at the carrier's declared renewal rate.

Does an Athene income rider cost anything?

Some designs carry no separate stated rider charge. The benefit is instead funded through the caps and participation rates declared on the index options, which is an indirect cost rather than a line item on the statement.