Athene Holding Ltd. · NYSE:ATH/PA
Athene — Q1 2024 Earnings Presentation
38 slides from Athene's earnings presentation, May 2, 2024
Slide 1: Apollo Global Management, Inc. First Quarter 2024 Earnings
Apollo Global Management, Inc. First Quarter 2024 Earnings
Slide 2: First Quarter 2024 Financial Highlights
1Q'24 Per Share LTM 1Q'24 Per Share GAAP Financial Measures ($ in millions, except per share amounts) Net Income Attributable to Apollo Global Management, Inc. Common Stockholders $1,403 $2.31 Segment and Non-GAAP Financial Measures ($ in millions, except per share amounts) Fee Related Earnings (“FR
Slide 3: GAAP Income Statement (Unaudited)
(In millions, except per share amounts) 1Q'23 4Q'23 1Q'24 Revenues Asset Management Management fees $414 $444 $438 Advisory and transaction fees, net 155 141 169 Investment income (loss) 452 150 402 Incentive fees 15 21 26 Retirement Services Premiums 96 3,586 101 Product charges 198 226 238 Net inv
Slide 4: Delivered solid first quarter results across both businesses
Delivered solid first quarter results across both the Asset Management and Retirement Services businesses • FRE of $462 million driven by solid growth in fee related revenues • SRE of $817 million driven by robust organic growth and strong profitability • Combined, FRE and SRE totaled $1.3 billion i
Slide 5: Segment and non-GAAP earnings summary
($ in millions, except per share amounts) 1Q'23 4Q'23 1Q'24 LTM 1Q'23 LTM 1Q'24 Management fees $577 $635 $652 $2,206 $2,555 Capital solutions fees and other, net 138 116 141 488 541 Fee-related performance fees 27 44 46 85 165 Fee-related compensation (211) (200) (220) (790) (844) Non-compensation
Slide 6: Earnings excluding notable items
($ in millions, except per share amounts) 1Q'23 4Q'23 1Q'24 LTM 1Q'23 LTM 1Q'24 Management fees $577 $635 $652 $2,206 $2,555 Capital solutions fees and other, net 138 116 141 488 541 Fee-related performance fees 27 44 46 85 165 Fee-related compensation (211) (200) (220) (790) (844) Non-compensation
Slide 7: Segment Details
APOLLO Segment Details
Slide 8: Asset Management Segment
($ in millions, except per share amounts) 1Q'23 4Q'23 1Q'24 % Change vs. 1Q'23 LTM 1Q'23 LTM 1Q'24 % Change vs. LTM 1Q'23 Management Fees Yield $379 $422 $440 16.1% $1,462 $1,662 13.7% Hybrid 57 63 61 7.0% 220 248 12.7% Equity1 141 150 151 7.1% 524 645 23.1% Total management fees 577 635 652 13.0% 2
Slide 9: Asset Management: Assets Under Management
Total AUM ($bn) Fee-Generating AUM ($bn) $513 $598 $671 $373 $438 $501 $54 $59 $64 $86 $101 $107 Yield Hybrid Equity 1Q'22 1Q'23 1Q'24 $376 $445 $506 $311 $368 $425 $24 $28 $29 $41 $48 $53 Yield Hybrid Equity 1Q'22 1Q'23 1Q'24 Perpetual Capital AUM ($bn) $302 $341 $395 $218 $248 $293 $55 $51 $52 $29
Slide 10: Asset Management: Inflows
$35 $33 $32 $40 $16 $20 $10 $20 $19 $13 $20 $20$2 Asset Management Retirement Services 2Q'23 3Q'23 4Q'23 1Q'24 $57 $131 $75 $128 $157 $140 $32 $31 $38 $71 $55 $66 $6 $37 $18 $28 $37 $48 $63 $72 $7 $72 Asset Management Retirement Services 2019 2020 2021 2022 2023 LTM 1Q'24 ($ in billions) Asset Manag
Slide 11: Retirement Services: Spread Related Earnings
• Spread Related Earnings grew 19% year-over-year driven by robust organic growth, strong new business profitability, higher floating rate income, and higher alternative net investment income • Spread Related Earnings, Excluding Notable Items in the first quarter included a 9.1% return on Athene's a
Slide 12: Retirement Services: Net investment spread
• Fixed income and other net investment income benefited from higher on-the-margin deployment quarter-over-quarter, although the impact was not fully recognized in the first quarter given the timing of certain sizeable asset purchases that closed near quarter-end • Cost of funds increased quarter-ov
Slide 13: Retirement Services: Inflows and growth
Retail: Strong activity, including record quarterly sales from fixed indexed annuities, underwritten to attractive returns with continued progress on distribution expansion within financial institutions Flow Reinsurance: Strong first quarter driven by continued growth of current platforms and furthe
Slide 14: Retirement Services Net Spread Bridge and Investment Portfolio
1.41% 0.06% 0.14% (0.12)% (0.05)% 0.03% 1.47% 4Q'23 1Q'24 Higher cost of funds from floating rate hedging actions and in-force business Investment Portfolio Highlights Retirement Services Net Spread Bridge (QoQ) • 97% of Athene’s fixed income portfolio1 is invested in investment grade assets • Apoll
Slide 15: Principal Investing
• Realized performance fees of $94 million remained muted as monetization activity from sizeable flagship private equity funds (Fund VIII & IX) continues to be prudently delayed amid a challenging exit environment • Compensation ratio of 77% for the twelve months ended March 31, 2024 reflects a peri
Slide 16: Performance Fee-Eligible AUM and Dry Powder
$81 $47 $81 Yield Hybrid Equity • Performance Fee-Eligible AUM of $209 billion increased 14% year-over-year primarily due to third-party Asset Management fundraising, particularly for Fund X • Performance Fee-Generating AUM of $138 billion increased 21% year-over-year due to positive investment perf
Slide 17: Investment Performance Highlights
Investment Performance Highlights Net Accrued Performance Fee Receivable2 (QoQ) Appreciation / gross returns 1Q'24 LTM 1Q'24 Yield Corporate Credit1 2.9% 11.9% Structured Credit 3.8% 15.4% Direct Origination 3.9% 18.8% Hybrid Hybrid Value 4.0% 16.2% Credit Strategies and Accord 3.3% 12.6% Equity Fla
Slide 18: HoldCo & Asset Management Summary Balance Sheet Highlights
HoldCo & Asset Management Summary Balance Sheet Highlights1 Financial Strength Ratings ($ in millions, except per share amounts) 4Q'23 1Q'24 Cash and cash equivalents $2,746 $2,466 Investments, net 2,561 2,583 Net accrued performance fees receivable2 1,507 1,560 Net clawback payable3 (75) (85) Debt
Slide 19: Supplemental Details
APOLLO Supplemental Details
Slide 20: Total AUM roll-forward
($ in millions) Yield4 Hybrid Equity Total Beginning Balance $480,452 $62,463 $107,861 $650,776 Inflows 36,658 1,360 1,817 39,835 Outflows2,3 (17,987) (706) (1,666) (20,359) Net Flows 18,671 654 151 19,476 Realizations (4,737) (507) (2,398) (7,642) Market Activity 6,218 1,051 1,125 8,394 Ending Bala
Slide 21: Retirement Services flows and invested assets
• Third-party capital enables Athene to grow in a highly capital efficient manner, supporting nearly 30% of Athene's gross new business volume in the first quarter • A new reinsurance agreement with Catalina on a portion of Athene's retail annuity business supported 5% of this growth ($ in millions)
Slide 22: Share Reconciliation
Share Reconciliation 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Total GAAP Common Stock Outstanding 567,394,604 566,809,153 567,565,120 567,762,932 569,003,922 Non-GAAP Adjustments: Mandatory Convertible Preferred Stock1 — — 15,999,683 15,564,983 14,524,381 Vested RSUs 12,781,851 12,771,092 12,502,457 22,072,379
Slide 23: Reconciliations and Disclosures
Reconciliations and Disclosures
Slide 24: Fund performance by vintage
(in millions, except IRR) Vintage Year Total AUM Committed Capital Total Invested Capital Realized Value Remaining Cost Unrealized Value Total Value Gross IRR Net IRR Equity: Fund X 2023 $ 19,992 $ 19,877 $ 3,522 $ 645 $ 3,165 $ 3,766 $ 4,411 NM4 NM4 Fund IX 2018 34,294 24,729 20,853 11,467 15,244 2
Slide 25: Condensed Consolidated Statements of Financial Condition: Assets
($ in millions, except share amounts) 4Q'23 1Q'24 Assets Asset Management Cash and cash equivalents $2,748 $2,473 Restricted cash and cash equivalents 2 2 Investments 5,502 5,599 Assets of consolidated variable interest entities Cash and cash equivalents 62 323 Investments 1,640 2,279 Other assets 1
Slide 26: Condensed Consolidated Statements of Financial Condition: Liabilities and Equity
($ in millions, except share amounts) 4Q'23 1Q'24 Liabilities Asset Management Accounts payable, accrued expenses, and other liabilities $3,338 $3,425 Due to related parties 870 825 Debt 3,883 3,856 Liabilities of consolidated variable interest entities Other liabilities 1,145 1,867 Retirement Servi
Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures
($ in millions) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 LTM 1Q'23 LTM 1Q'24 GAAP Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders $1,010 $599 $660 $2,732 $1,403 $(550) $5,394 Preferred dividends — — 22 24 24 — 70 Net income (loss) attributable to non-controlling interests 5
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Measures (annual)
Year ended December 31, ($ in millions) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 GAAP Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders $168 $134 $403 $616 $(42) $807 $120 $1,802 $(1,961) $5,001 Preferred dividends — — — 14 32 37 37 37 — 46 Net income (los
Slide 29: Reconciliation of GAAP to Non-GAAP Financial Measures - cont'd
Reconciliation of GAAP to Non-GAAP Financial Measures - cont'd 28 ($ in millions) 4Q'23 1Q'24 Investments, at fair value $ 1,489 $ 1,469 Equity method investments 1,072 1,116 Other1 — (2) Investments, net $ 2,561 $ 2,583 ($ in millions) 4Q'23 1Q'24 Performance allocations $ 2,941 $ 3,014 Incentive f
Slide 30: Athene GAAP to non-GAAP reconciliation
Year ended December 31, ($ in millions) 2014 2015 2016 2017 2018 2019 2020 2021 Net income available to Athene Holding Ltd. common stockholders $ 471 $ 579 $ 773 $ 1,358 $ 1,053 $ 2,136 $ 1,446 $ 3,718 Preferred stock dividends — — — — — 36 95 141 Net income (loss) attributable to non-controlling in
Slide 31: Net invested assets reconciliation
($ in millions) 1Q'24 Total investments, including related parties $ 254,239 Derivative assets (7,159) Cash and cash equivalents (including restricted cash) 16,825 Accrued investment income 2,332 Net receivable (payable) for collateral on derivatives (4,293) Reinsurance impacts (1,358) VIE assets, l
Slide 32: Definitions: Segment Income
• “Segment Income”, or “SI”, is the key performance measure used by management in evaluating the performance of the asset management, retirement services, and principal investing segments. Management uses Segment Income to make key operating decisions such as the following: ▪ decisions related to th
Slide 33: Definitions: Adjusted Net Income and AUM
• "Adjusted Net Income, Excluding Notable Items" represents ANI with an adjustment related to our Retirement Services segment to exclude notable items. Notable items include unusual variability such as actuarial experience, assumption updates and other insurance adjustments. We use this measure to a
Slide 34: Definitions: Performance Fee-Eligible AUM
• “Performance Fee-Eligible AUM” or “PFEAUM” refers to the AUM that may eventually produce performance fees. All funds for which we are entitled to receive a performance fee allocation or incentive fee are included in Performance Fee-Eligible AUM, which consists of the following: • “Performance Fee-
Slide 35: Definitions: Gross Capital Deployment and Gross IRR
• “Gross Capital Deployment” represents the gross capital that has been invested by the funds and accounts we manage during the relevant period, but excludes certain investment activities primarily related to hedging and cash management functions at the firm. Gross Capital Deployment is not reduced
Slide 36: Definitions: Net IRR
• "Net IRR" of accord series and the European principal finance funds represents the annualized return of a fund after management fees, performance fees allocated to the general partner and certain other expenses, calculated on investors that pay such fees. The terminal value is the net asset value
Slide 37: Footnotes
Retirement Services Flows & Invested Assets (page 20) 3. Gross inorganic inflows represent acquisitions and block reinsurance transactions. On November 6, 2023, Athene entered into an agreement with a Japanese counterparty, effective October 1, 2023, pursuant to which it agreed to reinsure a block o
Slide 38: Forward-Looking Statements
Forward-Looking Statements In this presentation, references to “Apollo,” “we,” “us,” “our” and the “Company” refer collectively to Apollo Global Management, Inc. and its subsidiaries, or as the context may otherwise require. This presentation may contain forward-looking statements that are within th