Voya Financial Completes Annuities Transaction FRIDAY, JUNE 1, 2018. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at The Outlook also reflects the expectation that any future acquisitions would be structured and financed in a way that would not, for a sustained period of time, negatively impact the company’s financial profile or its conservative approach to financial management. Venerable’s business model rests on a foundation of robust capitalization. The level will fluctuate as excess capital is carried to support future growth; KBRA expects that it will not fall below CTE95, plus a buffer.
All Rights Reserved. Further disclosures relating to this rating action are available in the U.S. Information Disclosure Form referenced above. NEW YORK--(BUSINESS WIRE)-- Voya Financial, Inc. (NYSE: VOYA) announced today that it has completed the sale of its Voya Insurance and Annuity Company (“VIAC”) subsidiary and divested substantially all of its variable, fixed and fixed indexed annuities. Concurrent with the VIAC sale to Venerable, Voya said it will sell, through reinsurance, about $19 billion worth of its individual fixed and fixed indexed annuities to Athene. ... Patrick D. Lusk President and CEO, VIAC Pat is President and CEO of Voya Insurance and Annuity Company * (" VIAC "), the operating company for Ve... Jun 13, 2019.
Although the block is well-seasoned, it remains virtually impossible to hedge policyholder behavior. Kroll Bond Rating Agency (KBRA) assigns an insurance financial strength rating (IFSR) of A- to Venerable Holdings, Inc.’s (VHI) primary subsidiary, Venerable Insurance and Annuity Company (VIAC), and a debt rating of BBB to four series of VIAC’s surplus notes. Conservative capital management is focused on fulfilling obligations to policyholders, and financial performance is measured by growth in excess capital. The company also faces potential execution risk related to its growth through acquisition strategy. VIAC will be acquired by Venerable Holdings, Inc., a newly formed investment vehicle owned by a consortium of investors led by Apollo, Crestview and Reverence. The liquid asset portfolio as of March 31, 2020 was over $2.8 billion. Additionally, the company is exposed to counterparty credit risk through both its derivatives counterparties and its reinsurance partners, although this is well-mitigated with quality counterparties and/or collateral. Information on the meaning of each rating category can be located Former Voya Closed Block Variable Annuity Business Launches Today as Standalone Company"This transaction demonstrates our strong belief in the attractiveness of the annuity business and the substantial growth opportunity it represents," stated "We now begin our journey with an experienced and talented team of professionals, well-prepared to meet our financial and business goals," said In connection with the transaction that was completed today, Athene will reinsure approximately Copyright © 2020 PR Newswire Association LLC. Specifically, during the market stresses of 4Q2018 and 1Q2020, VIAC’s programs led to increases in excess capital. KBRA views the company as uniquely positioned to serve as a leading industry solution for the consolidation of VA blocks, but acquisition activity inherently gives rise to execution risk. Also supporting the ratings are the company’s risk management and hedging programs, which have produced a strong track record over its two-year history. At the same time, KBRA assigns an issuer While the team has to-date successfully executed on the acquisition and subsequent management of Voya’s CBVA, the company is just two years into its life cycle and has yet to execute on additional acquisitions. The Stable Outlook reflects KBRA’s expectation that Venerable will continue to successfully execute on its risk management and hedging programs, in turn allowing it to maintain strong capitalization and liquidity.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the U.S. Information Disclosure Form located KBRA notes that the payout annuity block’s asset allocation tends to be less liquid and higher yielding. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. VIAC’s company action level risk-based capital ratio as of March 31, 2020 was 736%, which is well above regulatory and creditor requirements. Despite significant market volatility, excess capital increased 84% from $612 million at Venerable’s inception on June 1, 2018 to over $1.1 billion at March 31, 2020. Venerable is a privately held company with business operations based in West Chester, Pennsylvania and Des Moines, Iowa. In the transaction, Voya will divest Voya Insurance and Annuity Company (VIAC), the insurance subsidiary that has primarily issued Voya’s variable, fixed and fixed indexed annuities. Venerable was created by a consortium of investors ... CEO of VIAC, the operating company for Venerable. The ratings reflect a highly experienced management team and, at the operating company, the continuity inherent in Voya Financial’s (Voya) closed block variable annuity (CBVA) leadership team moving to Venerable and continuing to perform the same functions as they did at Voya.