On that date, the company's impressive and numerous array of underwriters will be allowed to initiate coverage of Athene Holding and release detailed reports about the company. Athene Holding's strong fundamentals and performance since its $1.08 billion initial public offering indicate that these recommendations and reports will likely be overwhelmingly positive and push shares higher.
Athene Holding, which acquire, issue and re-insure retirement savings products including fixed annuities and funding agreements, is majority-owned by private-equity powerhouse Apollo Global Management.
As the U.S. population ages, the retirement market is also expected to expand, placing Athene Holding in a good position.
In Apollo Global Management's most recently reported quarter, the company disclosed that it advised or managed nearly $72 billion of Athene Holding's assets. Additionally, the parent maintained that 21%, or $15.3 billion, was either invested in investment vehicles and funds managed by Apollo Global Management or sub-advised by it.
This close relationship is likely to continue.
Strategic acquisitions have helped Athene Holding to grow to $87 billion in assets and $73.1 billion in investments. The company entered an agreement to acquire Aviva USA in late 2012, an arm of U.K.-based insurer Aviva, to the tune of 1.1 billion pounds or about $1.8 billion at the time.
Although Athene Holding remains focused on the domestic market, last year the company looked abroad for targets and purchased Delta Lloyd Deutschland, a German life insurance provider.
Although Athene Holding's annual bottom line has been in the black since 2012, in the first three quarters this year, the company nearly doubled revenue to slightly more than $3 billion, while improving net income by 37% to $437 million.
The underwriting team for Athene Holding consists of an impressive lineup of 22 American investment banks, including Bank of America Merrill Lynch, Citigroup, Goldman Sachs and Wells Fargo Securities.
The powerful, and plentiful, group of underwriters along with the size of the deal helped attract investor attention to this IPO. Both Athene Holding's first trading session and subsequent performance have been impressive.
Athene Holdings delivered first day returns of 10.1% and a 3.2% after-market return.
To benefit from the anticipation of the quiet period expiration and the release of reports, investors should accumulate a long position over the remainder of this week and early next week. Investors should then sell shares after the reports are released and coverage is initiated on Jan. 3 and 4.
This article is commentary by an independent contributor. At the time of publication, the author owned ATH.