VIVAT acquisition drives Athora’s turnaround in 2020

Athora Holding returned to profitability in 2020, after making a loss in 2019, with its acquisition of VIVAT providing the backdrop for the improved performance.

Athora reported IFRS profit before tax of €700 million for 2020, turning around the €13 million loss reported in 2019, with the performance primarily attributable to the consolidation of VIVAT, now called Athora Netherlands, following the acquisition in April 2020.

Athora also saw its assets under administration grow to €83 billion in the full year 2020, up from €15 billion in 2019, which it attributed to the “transformative” acquisition of Athora Netherlands. Athora now supports over 2.5 million policyholders.

Athora said it had seen strong organic capital generation in both its Belgian and German businesses of €185 million, compared to €54 million in 2019, supported by asset optimisation and efficiency initiatives.

It also reported an estimated Bermuda Solvency Capital Requirement (BSCR) ratio of 242 percent. It had IFRS total equity of €4.3 billion, compared to €0.6 billion in 2019, largely attributable to the issuance of €2.8 billion of additional equity share capital and IFRS net income.

Michele Bareggi, Athora’s group chief executive officer, said 2020 had been a year of “significant progress and growth for this group, despite pandemic related disruption and challenging financial markets,” and emphasised the contribution of its strategic relationship with Apollo.

He said: “We have completed the first stage of our group’s strategic journey - achieving a critical mass with further potential to grow through the purchase of the second largest life insurer in the Netherlands – and we continue to be focused on supporting local management teams deliver the business case of each business unit including asset redeployment, very focused and effective operations, and selective growth.”

Bareggi added: “I look to 2021 with confidence, secure in the knowledge that we are building the right ecosystem to capitalise on the growth opportunities that are available to our group. Thanks to our strong capital position, strategic relationships and supportive investors who share our long-term vision, we are well positioned to capture these opportunities and continue to deliver more value for stakeholders.”

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