Athene Insurance's preferred shares, notably ATH-D, stand out as an attractive investment due to their solid financial backing and impressive coverage ratios. The company, supported by Apollo Global, consistently demonstrates exceptional financial health, which is further validated by recent call activities related to its preferreds. This inherent strength significantly mitigates the risk for preferred shareholders, ensuring a reliable income stream.
A closer look at Athene's financial metrics reveals a robust capacity to meet its obligations. The preferred shares boast a dividend coverage ratio of 26x and a capital coverage ratio of 14x. These figures underscore the company's ample resources, providing a substantial buffer against potential non-payment or default. Furthermore, all ATH preferreds carry a BBB rating and offer competitive yields, making them an appealing choice when compared to other major players in the insurance sector like MetLife and Prudential.
Given the company's strong performance and secure financial standing, maintaining a 'Buy' rating for all Athene preferred shares is justified, with ATH-D being the top recommendation. The stability, attractive yields, and solid backing by Apollo Global make these preferred shares a favorable option for investors seeking dependable income and long-term value in the insurance market.
Investing in financially sound companies like Athene, which prioritize stability and shareholder returns through robust preferred stock offerings, serves as a beacon of responsible and forward-thinking corporate governance. Such opportunities not only foster individual financial growth but also reinforce the broader market's confidence in well-managed enterprises, driving a cycle of positive economic participation and sustainable value creation.