Athora Holding Ltd has released its interim financial results for the first half of 2024, covering the period up to June 30.
For the first half of the year, Athora generated €306 million in Operating Capital Generation (OCG), up from €232 million during the same period in 2023. The group’s Bermuda Solvency Capital Requirement (BSCR) solvency ratio improved slightly to 186%, compared to 182% at the end of 2023.
Across its business units, Athora recorded €150 million in cash remittances. Assets under management and administration stood at €72.9 billion, a slight dip from the €73.3 billion reported at year-end 2023.
The company, however, reported a pre-tax loss of €225 million under International Financial Reporting Standards (IFRS), compared to a €59 million profit during the same period last year. IFRS equity and Contractual Service Margin (CSM) totalled €6.7 billion, down from €6.9 billion at the end of 2023, while financial leverage remained stable at 25%.
The group’s credit rating was also maintained at 'A' with a stable outlook.
Athora’s OCG growth was driven by ongoing asset repositioning and expense management initiatives, although these gains were partially offset by the capital requirements for writing new business. The company also reported a 28% increase in new business volumes compared to the same period last year, driven by its operations in the Netherlands, Belgium, and Italy.
Athora Netherlands continued its involvement in the Dutch Pension Risk Transfer market, which remains a key focus area.
In June, Athora issued €750 million in Tier 2 notes, with the proceeds used to support a €284 million Tier 2 Liability Management Exercise (LME) by Athora Netherlands and to prepay €465 million in bank debt. The transaction did not affect leverage but led to improvements in both Athora Group’s BSCR ratio and Athora Netherlands’ Solvency II ratio.
In May, Athora announced the mutual termination of an agreement between its subsidiary Athora Deutschland GmbH and AXA Germany for the acquisition of DBV-Winterthur Life's closed-book portfolio.
The termination followed significant changes in financial market conditions since the deal was signed, and Athora stated it remained committed to pursuing future growth in the German savings and retirement services market.
Athora Netherlands also completed a merger of its operating units, SRLEV N.V. and Proteq Levensverzekeringen N.V., on June 30, 2024, retroactively effective from 1 January. This move is expected to streamline the company’s legal structure and enhance operational efficiency.
Athora recently received regulatory approval for the appointment of former Prudential Plc chief executive Mike Wells (pictured above) as its group CEO.
Wells, who spent 26 years at Prudential Plc, including seven years as CEO, first joined Athora’s management executive committee earlier in the year, following the announcement of his selection in July. Athora described Wells as a seasoned leader with deep experience in the global insurance sector.
Commenting on the results, Wells noted that Athora has continued to execute its strategy across markets, building on the financial and commercial momentum achieved in 2023.
Wells highlighted the financial improvements at Athora Netherlands, which has made remittances to the group for the first time since being acquired in 2020. In the first six months of 2024, Athora received €150 million in remittances, split evenly between March and June, supported by growing levels of recurring OCG.
“Looking ahead, we remain focused on the systematic execution of our strategy. We will continue to pursue disciplined organic and inorganic growth, underpinned by our strong investment, risk and capital management capabilities,” he said.
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