Slaughter and May is advising Prudential plc on a $500 million equity investment by Athene into its US business alongside a reinsurance agreement

Slaughter and May is advising Prudential plc (Prudential) on the UK and Hong Kong legal aspects of a $500 million equity investment by Athene Holding Ltd (Athene) into its US business alongside a reinsurance agreement.

Athene’s subsidiary, Athene Life Re Ltd, will invest $500 million in Prudential’s US business in return for an 11.1 per cent. economic interest (and a 9.9 per cent. voting interest). Athene Life Re Ltd has also fully reinsured a $27.6 billion in-force portfolio of US fixed and fixed indexed annuity liabilities under a long-term arrangement. The reinsurance agreement is effective as at 1 June 2020. The common equity investment is subject to US antitrust filings, and is expected to complete in July 2020.

Slaughter and May worked alongside Debevoise & Plimpton (who advised on matters of US law) to support Prudential’s in-house legal team, led by Simon Ramage (Director of Group Legal) and Abbe Martineau (Senior Legal Counsel).