Athene Holding Ltd. · NYSE:ATH/PA
Athene — Investor Presentation (June 2024)
33 slides from Athene's investor presentation, June 2024
Slide 1: Overview of Athene's Corporate Structure
Overview of Athene’s Corporate Structure June 2024 Update
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any security of Athene Holding Ltd. (“Athene”). This presentation is not intended to constitute a solicitation of any insurance policy or contract or application therefor. Unless the context re
Slide 3: Key Takeaways
Key Takeaways 1 Athene is a U.S. domiciled corporation and conducts most of its • U.S. entity RBC 392%1 new business via its U.S. subsidiaries • Full U.S. taxpayer 2 Athene has internal reinsurance operations in Bermuda which • Allows Athene to raise third party foreign capital efficiently have cons
Slide 4: Apollo and Athene Maintain Separate Capital Structures and Credit Profiles
Apollo and Athene Maintain Separate Capital Structures and Credit Profiles GLOBAL MANAGEMENT Ordinary Shares 4,500+ Publicly Listed Employees ASSET via NYSE: APO Globally RETIREMENT MANAGEMENT SERVICES ASSET MAN AGEMEN T $651 Billion A / A2 / A ~$26 Billion A / A1 / A+ / A+ Assets Under Rated by Fit
Slide 5: Athene's Key Subsidiaries are in Iowa, Bermuda, and Delaware
Athene’s Key Subsidiaries are in Iowa, Bermuda, and Delaware Holding Company Athene Holding Ltd. On December 31, 2023, AHL (Holdco) (“AHL”) redomiciled from Bermuda to Delaware Bermuda Insurance Subsidiary Delaware U.S. Insurance Subsidiary Athene benefits from strategic capital sidecars (ACRA 1 & 2
Slide 6: Bermuda Entities Allow Athene to Raise Third Party Capital Efficiently
Bermuda Entities Allow Athene to Raise Third Party Capital Efficiently • Sidecar vehicles provide tax-efficient means for third-party foreign capital to invest and support growth • Athene maintains substantially the same reserve, capital and risk standards as its U.S. subsidiaries • The Bermuda Mone
Slide 7: Athene Uses Normal-Course Reinsurance to Support Growth
Athene Uses Normal-Course Reinsurance to Support Growth • In modified (“ModCo”) and funds-withheld (“FWH”) coinsurance, asset and liability risks are transferred. The reinsurance client maintains legal possession of the assets backing the liabilities. This provides additional protection against the
Slide 8: Policyholders Benefit from Combined Strength of All Entities
Policyholders Benefit from Combined Strength of All Entities • Clients benefit from Athene’s aggregate capitalization, including $19.0 billion1 of capital in Bermuda • All reinsurance treaties between affiliates are approved in accordance with relevant regulatory requirements, where applicable • Reg
Slide 9: Asset Classes and Investment Quality are Consistent Across Geographies
Asset Classes and Investment Quality are Consistent Across Geographies Invested Assets Shown in Athene U.S. Statutory Filings1 Bermuda and Other Invested Assets2 Alternatives Other Other Alternatives 2%3 3%3 Cash 6% 7% 4% Cash CMBS 4% 11% RMBS Corporate and 3% CMBS 75% 25% Corporate and Gov't Gov't
Slide 10: Athene Has Many Regulatory Constituencies; Iowa is Group Supervisor
Athene Has Many Regulatory Constituencies; Iowa is Group Supervisor Key Constituents Key Deliverables & Disclosures Big 4 Independent • U.S. GAAP SEC reporting (e.g. Form 10-K and 10-Q) Registered Public • 10-K includes audit by Deloitte Athene Holding Ltd. Accounting Firms • Dedicated quarterly fin
Slide 11: Athene is Very Well Capitalized
Athene is Very Well Capitalized Summary of Total Capitalization ($B) Statutory Capital to Reserves U.S. Entities Total Adjusted Capital $5.8 Bermuda Entities Capital & Surplus $19.0 Athene Holding Limited & Other1 $1.3 11.6% Gross Regulatory Capital2,3 $26.2 10.6% Less: ACRA Noncontrolling Interests
Slide 12: Corporate Structure FAQs
NVATHENE Corporate Structure FAQs
Slide 13: Frequently Asked Questions
Frequently Asked Questions Question Commentary • Bermuda provides Athene an efficient means to raise third-party capital. Investing in a Bermuda reinsurance entity provides non-U.S. investors a more tax efficient means to invest capital that supports Athene’s policyholders. While Bermuda is enacting
Slide 14: Frequently Asked Questions
Frequently Asked Questions Question Commentary 2. What is the impact to Athene from • On December 27, 2023, Bermuda announced it is enacting a 15% corporate income tax. Bermuda's enactment • Because of the new Bermuda Corporate Income Tax Act (CIT), Athene recorded a new net DTA of $1.8B on a GAAP b
Slide 15: Frequently Asked Questions
Frequently Asked Questions Commentary • Effective December 31, 2023, Athene's parent company, Athene Holding Ltd., redomiciled from Bermuda to the state of Delaware. As a result, Athene Holding Ltd. is a U.S. corporation. 4. Did Athene Holding • Athene Holdco redomiciled to simplify its corporate st
Slide 16: Frequently Asked Questions
Frequently Asked Questions Question Commentary • Intercompany reinsurance is a common practice in the insurance industry. Intercompany reinsurance allows insurance companies to pool risk into and diversify risks within particular entities. It strengthens the creditworthiness of the entire group by m
Slide 17: Frequently Asked Questions
Frequently Asked Questions Question Commentary • The analysis is in the early stages and subject to robust deliberation by the NAIC. 8. Would NAIC changes to asset adequacy / • Athene conducts quarterly cash flow testing on a legal entity basis, including all Bermuda entities, as well as on a consol
Slide 18: Frequently Asked Questions
Frequently Asked Questions Question Commentary • The reinsurance treaties between Athene’s U.S. insurance entities and their affiliated Bermuda reinsurers are generally similar to other modified and funds withheld coinsurance reinsurance treaties used between third-parties in the industry. Such rein
Slide 19: Frequently Asked Questions
Frequently Asked Questions Question Commentary 11. Athene pays a • Athene intends to pay regular common stock dividends to its parent company of $750 million per year, consistent with its business plan. dividend to Apollo, can • Management, together with Apollo, periodically evaluates Athene’s busin
Slide 20: Frequently Asked Questions
Frequently Asked Questions Question Commentary 14. Who is Athene’s • The Iowa Insurance Division (IID) is Athene’s group supervisor. Each insurance entity also has a local regulator. Athene’s insurance regulators include regulator? Iowa, Bermuda, Delaware, and New York. • An Internationally Active I
Slide 21: Frequently Asked Questions
Frequently Asked Questions Question Commentary • Three major factors drive the difference between Regulatory Capital and GAAP Adjusted AHL Common Stockholders Equity, at year-end 2023: ($ in billions) 2023 16. What are the major Adjusted AHL Common Stockholder’s Equity $20.41 differences between Add
Slide 22: Appendix
Appendix
Slide 23: Illustrative Flow of Profits
How Athene Manages ModCo Reinsurance Relationships Illustrative example of Reinsurance Fund Flows (80% ‘Modco’) Prior to Reinsurance ($M) Pro Forma for Reinsurance ($M) Reinsurance Cedent Cedent Reinsurer Total System + = Assets & Capital Balance Sheet Balance Sheet Balance Sheet Balance Sheet Gener
Slide 24: Regulatory Financials of Key Entities
Regulatory Financials of Key Entities Pro forma for risk transferred by intercompany reinsurance • On the following pages, screenshots are provided of the location of several key inputs (items #1 thru 4) within public filings: As of December 31, 2023 ($ in billions) U.S. Insurance Entities 1,2 Bermu
Slide 25: U.S. Statutory Filings – Where to Find Total Assets
U.S. Statutory Filings – Where to Find Total Assets 1• Standalone U.S. Entity Assets (4Q'23) Total regulatory assets are reported on the key statutory financial pages AADE 2023 Insurance Statutory Filings $36.6 billion of stat assets at Athene Annuity & Life Assurance Company (“AADE”) as of 12/31/
Slide 26: U.S. Statutory Filings – Where to Find ModCo Reserves
U.S. Statutory Filings – Where to Find ModCo Reserves 2• AADE Modified Coinsurance Reserves (4Q'23) $19.2 billion ModCo general account Reserves ceded to affiliates are disclosed annually in Schedule S Part 3 reserves ceded to Bermuda affiliates at 12/31/2023 AADE 2023 YE Insurance Statutory Filin
Slide 27: U.S. Statutory Filings – Where to Find ModCo Reserves
U.S. Statutory Filings – Where to Find ModCo Reserves 2• AAIA Modified Coinsurance Reserves (4Q'23) Reserves ceded to affiliates are disclosed annually in Schedule S Part 3 AAIA 2023 YE Insurance Statutory Filings $141.5 billion of reserves as of 12/31/2023 ceded to Bermuda affiliates • of which,
Slide 28: U.S. Statutory Filings – Where to Find Capital and Surplus
U.S. Statutory Filings – Where to Find Capital and Surplus 3• Standalone U.S. Entity Disclosure (4Q’23) U.S. insurances companies disclose Capital and Surplus quarterly in statutory filings Athene’s Delaware-domiciled insurance Company “AADE” includes all its U.S. insurance subsidiaries’ capital
Slide 29: Bermuda Statutory Filings – Capital & Surplus
Bermuda Statutory Filings – Capital & Surplus 3• Athene Life Re Capital & Surplus (4Q'23) Athene Life Re’s capital & surplus is reported to the Bermuda Monetary Authority, and posted on Athene’s website Excerpt from Athene Life Re (“ALRe”) BMA Filing (4Q’23) Excerpt from 4Q’23 ALIRT Exhibit Capita
Slide 30: U.S. Statutory Filings – Where to Find Capital and Surplus
U.S. Statutory Filings – Where to Find Capital and Surplus 3• Standalone U.S. Entity Disclosure (4Q'23) U.S. insurances companies disclose Total Adjusted Capital (“TAC”) annually in statutory filings Athene’s Delaware-domiciled insurance Company “AADE” includes all its U.S. insurance subsidiarie
Slide 31: Risk Based Capital Ratio Disclosure Included in SEC Filings
Risk Based Capital Ratio Disclosure Included in SEC Filings 4• Annual Disclosure of RBC Ratios (2023) Athene discloses the Risk Based Capital (“RBC”) of both its U.S. and Bermuda entities annually in its 10-K1 Excerpt from ATH 2023 10-K Link: 2023 Athene 10-K. 1. Bermuda RBC ratio calculated by ap
Slide 32: Athene Discloses Every Individual Asset Backing a Pension Group Annuity
Athene Discloses Every Individual Asset Backing a Pension Group Annuity in a Dedicated U.S. Regulatory Filing • Includes every asset, even if it backed by the substantial Athene capital in Bermuda via reinsurance (HERE) 32
Slide 33: Non-GAAP Measures & Definitions
Non-GAAP Measures & Definitions Assets Under Management “Assets Under Management”, or “AUM”, refers to the assets of the funds, partnerships and accounts to which Apollo provides investment management, advisory, or certain other investment-related services, including, without limitation, capital tha