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Subsequent Events
3 Months Ended
Mar. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events

On April 5, 2019, the Company decided not to establish a new insurance subsidiary in Dublin, Ireland to service the needs of its insurance customers in the European Economic Area post-Brexit and therefore withdrew its application to the Central Bank of Ireland to establish a new insurance subsidiary in Dublin as previously announced. The Company intends to service customer needs through Lloyd’s of London’s Brussels Subsidiary and the Company’s other bespoke arrangements. Depending on political agreements as part of Brexit negotiations regarding Solvency II equivalence for the United Kingdom, the Company believes that its insurance business will be largely unaffected by Brexit.

In April 2019, following the completion of the Merger, Apollo Asset Management Europe PC LLP (“AAME”) was engaged as the investment manager for certain of our subsidiaries in Bermuda and the U.S. to provide centralized asset management investment advisory and risk services for the portfolio of investments of such subsidiaries pursuant to the investment management agreements (“IMAs”) that have been entered into with AAME. AAME is registered in England and Wales and is authorized and regulated by the Financial Conduct Authority in the United Kingdom under the Financial Services and Markets Act 2000 and the rules promulgated thereunder for the primary purpose of providing a centralized asset management and risk function to European clients in the financial services and insurance sectors. Pursuant to the IMAs, AAME may engage sub-advisors or delegates to provide certain of the investment advisory and management services to our subsidiaries. In this regard, AAME is able to leverage its relationships with other Apollo-affiliated investment advisors in a sub-advisory capacity, pursuant to which AAME has mandated its affiliates, Apollo Management International LLP (“AMI”) and Apollo Capital Management L.P. (“AMC”), to invest in asset classes in which they have investment expertise and sourcing capabilities, such as middle market loans, commercial mortgage loans, structured products and short term secured investments.

Under each of the IMAs, AAME will be paid an annual investment management fee (the “Management Fee”) which will be based on a cost-plus structure. The “cost” is comprised of the direct and indirect fees, costs, expenses and other liabilities arising in or otherwise connected with the services provided under the IMAs. The “plus” component will be a mark-up in an amount of up to 25% determined based on an applicable transfer pricing study. The Management Fee will be subject to certain maximum threshold levels, including an annual fee cap of 15 bps of the total amount of investable assets. Affiliated sub-advisors, including AMI and AMC, will also earn additional fees for sub-advisory services rendered. For a more detailed description of these arrangements, refer to Item 13 “Certain Relationships and Related Transactions, and Director Independence” included in the Company’s Amended Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC.

See “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” included in this report.