The structured settlement industry is witnessing a notable development as Athene, one of the largest insurance companies in the United States, announces its entry into the structured settlement market. In a recent NSSTA Settle Smart podcast episode, industry leader Eric Vaughn sat with Athene's senior leadership to discuss this development.
A Financial Powerhouse Joins the Industry
What makes this announcement particularly noteworthy is Athene's impressive credentials. As a wholly-owned subsidiary of Apollo Global Management, Athene brings substantial financial strength to the structured settlement space. The company manages $300 billion in gross invested assets and is the number one provider in retail fixed annuities and pension risk transfer business.
The timing of Athene's entry follows their AM Best rating upgrade to A+ in June. The company's structured settlement operations will be headquartered in Iowa, operating through Athene Annuity and Life Company of Iowa – a state recognized for its sophisticated insurance regulation.
Strategic Approach to Market Entry
Athene's leadership team, represented by Richard McEvoy and Sean Brennan, outlined their measured approach to entering the structured settlement market. The company plans to:
- -- Launch operations in the second half of this year
- -- Eventually, offer both tax-qualified and non-qualified products
- -- Provide rated ages over time
- -- Leverage their experience in income solutions and existing operational infrastructure.
- -- Build a dedicated team of industry professionals
Impact on the Structured Settlement Industry
The structured settlement industry, which handles approximately $9.48 billion in premiums and serves 40,000 cases, will see increased market participation with Athene's entry. The company's commitment to innovation, combined with its substantial financial resources and experience in adjacent markets, suggests it could bring fresh perspectives to the industry.
Looking Forward
For legal professionals and settlement planners, Athene's entry represents an expansion of available options for clients. Their stated goal is to become a preferred provider in the industry, focusing on three key areas: providing security to end customers, maintaining target returns, and delivering high-quality customer service
We encourage you to watch the full Settle Smart podcast episode above to gain deeper insights into Athene's plans and vision for the structured settlement industry. The discussion includes detailed explanations of Athene's approach to market entry, their ongoing exploration of quoting software options, and their commitment to serving the structured settlement community.
The conversation between Eric Vaughn and Athene's leadership team offers a valuable perspective on this market development. For settlement professionals looking to stay informed about industry developments, this episode provides essential context for what appears to be a significant market entry.
