Athene Holding Ltd. · NYSE:ATH/PA
Athene — Investor Presentation (May 2019)
18 slides from Athene's investor presentation, May 7, 2019
Slide 1: Athene Announces Strategic Capital Solution
Athene Announces Strategic Capital Solution Maintaining Opportunistic Focus to Build Shareholder Value May 7, 2019
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”). Certain information contained herein and certain oral statements made in reference thereto may be “forward-looking” in nature. These statements i
Slide 3: The primary driver of long-term shareholder value is efficiency of capital allocation
The primary driver of long-term shareholder value is efficiency of capital allocation.
Slide 4: Capital Allocation is Paramount to Outsized Value Creation
Capital Allocation is Paramount to Outsized Value Creation Significant growth in book value per share reflects our opportunistic approach to capital management and desire for long-term accretion Adjusted Book Value Per Share1 $47.30 $45.59 $38.43 +17% CAGR $32.85 $30.03 $26.55 $21.37 $14.66 $11.49 $
Slide 5: What Are Our Opportunities to Deploy Capital?
What Are Our Opportunities to Deploy Capital? Opportunity Action More than $13 billion of liabilities originated at high ROEs in 2018 More than $27 billion of inorganic growth underwritten to high ROEs in 2018 ~$500 million authorized over the past five months, $147 million completed to date Now ‘A’
Slide 6: What Are Our Targets?
What Are Our Targets? Each year we make decisions on how to deploy the capital we generate Illustrative Annual Capital Generation Statutory ~$1 billion Earnings Sample Text In-Force Run-off ~$1 billion Capital Available ~$2 billion to Deploy As a prudent steward of shareholder capital, we aim for th
Slide 7: Our Opportunity Requires More Capital
Our Opportunity Requires More Capital We see a growing number of opportunities to deploy capital at mid-to-high teens returns, but these opportunities only exist within the constraint of having the capital necessary Capital Need Current Position • Capitalize on industry restructuring as a solutions
Slide 8: We Want to Take Advantage
We Want to Take Advantage We have proven our ability to successfully navigate the tension between retaining opportunistic capital and deploying to generate return Increase Capital Base AND Opportunistically Deploy Significant Capital at High Returns 2017-1Q’19 Capital Deployed Liabilities Added ~$1
Slide 9: How Do We Accomplish Our Goals?
How Do We Accomplish Our Goals? We want to opportunistically deploy capital at high returns while retaining capital for ratings upgrades and to create value amid volatility Option #1: Access Public Markets1 Option #2: Create a Structured Solution Raising additional balance sheet Enables us to… equit
Slide 10: ACRA: Shareholder-Friendly, Strategic Capital Solution
ACRA: Shareholder-Friendly, Strategic Capital Solution Athene Co-Invest Reinsurance Affiliate (“ACRA”) offers significant, long-term, on-demand capital to fund opportunistic growth Targeted On-Demand Capital1 Enhanced Strategic Flexibility $4bn Allows Athene to pursue growth initiatives ACRA enhance
Slide 11: ACRA Will Be Woven Into the Fabric of Athene
ACRA Will Be Woven Into the Fabric of Athene ACRA will be capitalized by Athene and third-party fund investors • ACRA provides on-demand, direct equity capital without 1/3 Capital dilution to shareholders to participate in qualifying Contribution transactions: – All sizable legal entity, block reins
Slide 12: Athene's Earnings Power is Stronger with ACRA
Athene’s Earnings Power is Stronger with ACRA Illustrative accretion to earnings if Athene hypothetically deployed its current capital Scenario #1: Standalone ATH Scenario #2: ATH + ACRA = Increased Flexibility Drives More Accretion ATH deploys $3bn of ATH deploys $2bn ADIP deploys $4bn ATH deploys
Slide 13: ATH and ADIP Investments are Fundamentally Aligned
ATH and ADIP Investments are Fundamentally Aligned ACRA provides an efficient supplement to Athene’s capital base • Public-market-focused investors • Private market investors • Exposure to all aspects of • Exposure generally limited to Athene’s existing and future business ATH ADIP go-forward qualif
Slide 14: Strategic Capital Solution Aligned with Opportunistic Focus
Strategic Capital Solution Aligned with Opportunistic Focus Formation of a long-duration, on-demand capital vehicle has multiple advantages Enhances flexibility to simultaneously deploy capital across multiple Strategic Flexibility accretive avenues Increases buying power amid insurance industry res
Slide 15: Well Positioned with Multiple Sources of Capital
Well Positioned with Multiple Sources of Capital Multi-pronged capital sourcing strategy will create significant value for shareholders ~$1bn ~$1bn ~$1bn ~$2bn ~$4bn Annual Statutory Annual Capital Excess Equity Untapped Debt On-Demand Capital Earnings Release from Run-off Capital Capacity from ACRA
Slide 16: Appendix
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Slide 17: Non-GAAP Measure Reconciliation
Non-GAAP Measure Reconciliation Reconciliation of adjusted book value per share to its corresponding GAAP measure, book value per share March 31, December 31, (In millions) 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Book value per share $ 52.12 $ 42.45 $ 46.60 $ 35.78 $ 28.84 $ 32.26 $ 2
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