BISA Magazine - Quarter 1, 2017 - 15

Next Step:

E XPANSION
Athene USA to expand distribution through banks
By Andrew Singer

A

thene USA is one of the
nation's largest manufacturers of fixed indexed
annuities (FIAs), but the
West Des Moines, Iowabased company has not distributed its
product through banks-until now.
The company, a subsidiary of Athene
Holding Ltd. ($87 billion in total assets), will shortly be selling its products
through small and regional banks, and
larger institutions too, eventually via
third-party marketing firms (TPMs), and
also directly, CEO Grant Kvalheim told
us in early January.
Until now, Athene USA (formerly
Aviva USA) has distributed exclusively
through independent marketing organizations, or IMOs; it has relationships
with as many as 30,000 independent
insurance agents through those IMOs.
Why banks, and why now?

"Why not?" answers Kvalheim, adding
that banks and broker/dealers are doing
more and more FIA business these days.
"Banks are more important today, and
they have access to customers to whom
we normally don't have access," Kvalheim adds. Financial institutions like
commercial banks and credit unions
have big retail networks, "and they
have gotten better and better at selling
products other than bank products."
Athene USA was the third largest
manufacturer of fixed indexed annuities (sometimes called equity-indexed
annuities) over the first nine months
of 2016. The company only manufactures FIAs and multi-year guaranteed
annuities (MYGAs). Athene Holding
acquired Aviva USA in 2013 from the
UK's Aviva plc.
Does Athene USA's CEO think it will be
difficult to find a place on the shelves

of bank broker/dealers? It will be a
challenge, he admits, but the way you
compete in any channel is to present
consumers with a proposition that
makes sense; this includes service,
reliability, and support. Athene has the
means to deliver its products electronically, too, which is important in the
bank channel (but not critical in the
IMO channel), Kvalheim adds.
In other words, "We can't just show up
and say, 'We're here,'" he says-even if
Athene USA is the nation's third largest
FIA manufacturer.
The company has an A-minus [financial strength] rating across three major
rating agencies (A.M. Best, S&P, and
Fitch). "We have no debt," adds Kvalheim. A recent IPO for parent Athene
Holding raised $1.1 billion, and Athene
Holding is now listed on the New York
Stock Exchange.

15
BISA Magazine



Table of Contents for the Digital Edition of BISA Magazine - Quarter 1, 2017

Table of Contents
BISA Magazine - Quarter 1, 2017 - Cover1
BISA Magazine - Quarter 1, 2017 - Cover2
BISA Magazine - Quarter 1, 2017 - Table of Contents
BISA Magazine - Quarter 1, 2017 - 2
BISA Magazine - Quarter 1, 2017 - 3
BISA Magazine - Quarter 1, 2017 - 4
BISA Magazine - Quarter 1, 2017 - 5
BISA Magazine - Quarter 1, 2017 - 6
BISA Magazine - Quarter 1, 2017 - 7
BISA Magazine - Quarter 1, 2017 - 8
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BISA Magazine - Quarter 1, 2017 - 14
BISA Magazine - Quarter 1, 2017 - 15
BISA Magazine - Quarter 1, 2017 - 16
BISA Magazine - Quarter 1, 2017 - 17
BISA Magazine - Quarter 1, 2017 - 18
BISA Magazine - Quarter 1, 2017 - 19
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BISA Magazine - Quarter 1, 2017 - 28
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BISA Magazine - Quarter 1, 2017 - 31
BISA Magazine - Quarter 1, 2017 - 32
BISA Magazine - Quarter 1, 2017 - Cover3
BISA Magazine - Quarter 1, 2017 - Cover4
https://www.nxtbook.com/nxtbooks/bisa/2017q4
https://www.nxtbook.com/nxtbooks/bisa/2017q3
https://www.nxtbook.com/nxtbooks/bisa/2017q2
https://www.nxtbook.com/nxtbooks/bisa/2017q1
https://www.nxtbook.com/nxtbooks/bisa/2016q4
https://www.nxtbook.com/nxtbooks/bisa/2016q3
https://www.nxtbook.com/nxtbooks/bisa/2016q2
https://www.nxtbook.com/nxtbooks/bisa/2016q1
https://www.nxtbook.com/nxtbooks/bisa/2015q4
https://www.nxtbook.com/nxtbooks/bisa/2015q3
https://www.nxtbook.com/nxtbooks/bisa/2015q2
https://www.nxtbook.com/nxtbooks/bisa/2015q1
https://www.nxtbook.com/nxtbooks/bisa/2014q4
https://www.nxtbook.com/nxtbooks/bisa/2014q3
https://www.nxtbook.com/nxtbooks/bisa/2014q2
https://www.nxtbook.com/nxtbooks/bisa/2014q1
https://www.nxtbookmedia.com