Athene at a Glance: Rates, Products and Reviews

Athene, established in 2009 by James Belardi, former president of SunAmerica Life Insurance Company, has quickly become a major player in the annuity and retirement income industry. Known for its innovative annuity products, Athene merged with Apollo Global Management in 2022, significantly enhancing both its scale and financial strength. The combined company now boasts over $650 billion in assets, positioning Athene to provide robust retirement solutions and meet the evolving needs of consumers in a competitive market.

Athene offers four types of annuities: immediate annuities, fixed annuities, fixed index annuities (FIAs) and registered index-linked annuities (RILAs). Only registered index-linked annuities are regulated as securities while all other Athene annuity products are regulated as insurance products.

Athene Activate is a single-premium income annuity with a variety of options for income frequency and payout types.

The minimum premium required for the annuity is $10,000. The maximum age limits are set at 90 years for period certain contracts, 85 years for single or joint life contracts and 80 years for all other types. At the time the contract is issued, you can choose a cost of living adjustment ranging from 1% to 5% per year. Additionally, one-time withdrawal options are available for in-force contracts, but they are subject to specific limits and eligibility requirements.

Athene’s multi-year guaranteed product, the Athene MYG, offers terms of three, five and seven years. It can be purchased with or without a market-value adjustment provision. The minimum initial premium required is $5,000, while additional premiums can be as low as $1,000, with a maximum limit of $100,000 within a 12-month period.

Additional premium payments will earn a fixed rate for the first year and will reset on the contract anniversary, though the rates will never drop below the minimum guaranteed rate. The contract allows for annual withdrawals of up to 10% without incurring surrender charges and includes a confinement waiver and a terminal illness waiver. Additionally, this product is available with a return of premium option.

Like the Athene MYG, the Athene MaxRate offers terms of three, five and seven years; however, it must include a market-value adjustment. The minimum premium is set at $10,000, while additional premium payments can start at $1,000. These additional premiums will earn a fixed rate for the first year. The contract also permits annual withdrawals of up to 10% without surrender charges and includes both a confinement waiver and a terminal illness waiver.

All fixed index annuities guarantee to never earn less than 0%, securing your principal. All products have minimum premiums of $10,000.

The Athene Amplify 2.0 is a single premium product with a minimum investment of $10,000, providing flexibility for customers seeking market exposure with limited risk. It offers guaranteed terms of one, two or six years, featuring a 10% buffer on five different indices or a 20% buffer exclusively on the S&P 500. The product incurs an annual fee of 0.95% and includes provisions for 10% surrender-free withdrawals each year, along with confinement and terminal illness waivers.

Additionally, the Amplify 2.0 is available as a no-fee alternative. This option eliminates the 0.95% annual fee but results in lower caps and participation rates on performance.

Athene provides a diverse range of annuity products suitable for a variety of investors, with the exception of traditional variable annuities. The company’s robust financial strength positions it as an appealing option for both conservative and growth-oriented investors across all 50 states. Athene’s status as a top seller of annuity products is bolstered by its extensive selection.

Beyond consumer annuities, Athene also operates in areas such as reinsurance, institutional pension risk transfers and insurance acquisitions. The support from Apollo Global Management has significantly enhanced Athene’s capital, enabling the company to diversify its offerings beyond the retail consumer market.

Athene provides competitive fixed annuity rates, which have played a significant role in their sales success during the 2020s. While they may not always offer the highest rates in the market, their strong financial security is a significant advantage for customers. When selecting an annuity provider and product, it’s essential to consider the balance of rates, financial stability and flexible options to find the right fit for your needs.

Rates on fixed index and registered index-linked annuities differ based on product type, encompassing various guarantees, bonuses and underlying indices. Conducting direct comparisons between products is important to assess which offerings best align with your retirement and income objectives.

Strong and stable credit ratings, along with a robust balance sheet, are indicators of a well-managed insurance carrier. Since annuities are solely backed by the financial strength of the issuing insurance company, selecting one with a proven and secure track record is essential.

Athene has earned strong ratings from all four major rating agencies that assess the financial stability of insurance and annuity companies. The company maintains a stable balance sheet and a solid earnings base, ensuring its ability to support policyholder claims.

As of June 2024, Athene reported total assets of $332 billion, while its parent company, Apollo Global Management, reported assets under management totaling $651 billion. This merger has resulted in a combined company with enhanced assets, broader reach and improved credit ratings compared to pre-merger levels. Athene’s leadership team brings over 160 years of collective experience to the table. According to industry analysis published by LIMRA, Athene was the leading seller of fixed index annuities from 2020 to 2022.

The standard measure of client satisfaction in the insurance and annuity industry is the National Association of Insurance Commissioners (NAIC) Complaint Index, which provides an annual report on all insurers. This report compares the number of complaints against a specific insurer with the overall industry average.

In Athene’s most recent report (2023), the NAIC Complaint Index is set at a baseline of 1.0. A score of 2.0 indicates that the insurer has received complaints that are twice as high as the industry average, while a score of 0.5 suggests that the complaints are half as high as the industry average.

Athene’s annuity division received a below-average score on the 2023 J.D. Power Customer Satisfaction Index Ranking, which assesses overall customer satisfaction among insurance companies and annuity providers. Athene achieved a score of 782 on a scale of 1,000, falling short of the study average of 800. The company was ranked 13th out of 17 providers in the survey.

When considering Athene annuities, it’s essential to weigh their advantages and disadvantages. As a prominent player in the annuity market, Athene offers a variety of products designed to meet diverse financial needs. Understanding the pros and cons can help you make an informed decision about whether an Athene annuity aligns with your retirement and investment goals.

For consumers seeking their first or next annuity, Athene presents an appealing option thanks to its strong financial standing and diverse product offerings. The wealth of information available online simplifies the process of exploring their products. With a variety of contracts and flexible options, Athene caters to a broad range of consumers, making it easier for individuals to find a solution that suits their needs.