Athene Holding Ltd. · NYSE:ATH/PA
Athene — Q3 2024 Earnings Presentation
37 slides from Athene's earnings presentation, Nov 5, 2024
Slide 1: Apollo Global Management, Inc. Third Quarter 2024 Earnings
Apollo Global Management, Inc. Third Quarter 2024 Earnings
Slide 2: Third Quarter 2024 Financial Highlights
3Q'24 Per Share YTD'24 Per Share GAAP Financial Measures ($ in millions, except per share amounts) Net Income Attributable to Apollo Global Management, Inc. Common Stockholders $787 $1.30 $3,018 $4.96 Segment and Non-GAAP Financial Measures ($ in millions, except per share amounts) Fee Related Earni
Slide 3: Consolidated Statements of Operations
(In millions, except per share amounts) 3Q'23 2Q'24 3Q'24 YTD'23 YTD'24 Revenues Asset Management Management fees $462 $462 $476 $1,328 $1,376 Advisory and transaction fees, net 157 267 181 482 617 Investment income (loss) 292 278 230 882 910 Incentive fees 18 47 35 59 108 Retirement Services Premiu
Slide 4: Delivered strong third quarter results across Asset Management and Retirement Services
Delivered strong third quarter results across Asset Management and Retirement Services • Record FRE of $531 million driven by strong growth in fee related revenues and disciplined expense growth • Second highest quarter of SRE totaling $856 million, reflecting robust organic growth trends and solid
Slide 5: Segment Income
($ in millions, except per share amounts) 3Q'23 2Q'24 3Q'24 YTD'23 YTD'24 Management fees $648 $672 $710 $1,845 $2,034 Capital solutions fees and other, net 146 208 159 422 508 Fee-related performance fees 40 52 57 102 155 Fee-related compensation (212) (240) (238) (635) (698) Non-compensation expen
Slide 6: Segment Income Excluding Notable Items
($ in millions, except per share amounts) 3Q'23 2Q'24 3Q'24 YTD'23 YTD'24 Management fees $648 $672 $710 $1,845 $2,034 Capital solutions fees and other, net 146 208 159 422 508 Fee-related performance fees 40 52 57 102 155 Fee-related compensation (212) (240) (238) (635) (698) Non-compensation expen
Slide 7: Segment Details
APOLLO Segment Details
Slide 8: Asset Management: Fee Related Earnings
• Management fees increased 10% year-over-year driven by robust growth in Credit management fees, reflecting strong capital formation across Athene and third-party clients, as well as solid levels of capital deployment • Second highest quarter of capital solutions fees on record driven by broad-base
Slide 9: Asset Management: Assets Under Management
Total AUM ($bn) Fee-Generating AUM ($bn) $523 $631 $733 $400 $496 $598 $123 $135 $135 Credit Equity 3Q'22 3Q'23 3Q'24 $394 $468 $551 $331 $398 $479 $63 $70 $72 Credit Equity 3Q'22 3Q'23 3Q'24 Perpetual Capital AUM ($bn) $314 $352 $430 $229 $261 $320 $45 $49 $54 $40 $43 $56 Athene Athora Other 3Q'22
Slide 10: Asset Management: Inflows
$31 $39 $38 $42 $9 $19 $21 $22 $20 $20 $17 $20 $2 Asset Management Retirement Services 4Q'23 1Q'24 2Q'24 3Q'24 • Robust total gross inflows of $42 billion during the third quarter and $151 billion over the last twelve months • Inflows from Asset Management of $22 billion in the third quarter include
Slide 11: Retirement Services: Spread Related Earnings
• Spread Related Earnings, Excluding Notables increased 6% year-over-year primarily due to strong net organic growth trends • Spread Related Earnings included an 8.2% annualized return in the third quarter from Athene's alternative investment portfolio; considering management's long- term expected a
Slide 12: Retirement Services: Net Spread
(% of average net invested assets) 3Q'23 2Q'24 3Q'24 % Change vs. 3Q'23 YTD'23 YTD'24 % Change vs. YTD'23 Fixed income and other net investment income 4.57% 4.82% 4.96% 39bps 4.39% 4.82% 43bps Alternative net investment income 7.75% 5.73% 8.19% 44bps 7.46% 7.69% 23bps Net Investment Earnings 4.76% 4
Slide 13: Retirement Services: Portfolio & Spread Highlights
Higher net cost of funds on new business vs. run-off 1.24% 0.13% 0.12% (0.11)% 0.02% 1.40% 2Q'24 3Q'24 Investment Portfolio Highlights Retirement Services Net Spread Bridge (QoQ) Retirement Services: Portfolio & Spread Highlights 1. As of September 30, 2024, 97% of $182 billion of available for sale
Slide 14: Retirement Services: Inflows and Earnings Growth
Retail: Continued strong annuity sales activity in the quarter reflecting leading market share, growing product offerings, and expanding distribution Flow Reinsurance: Third quarter activity reflected increased competitive dynamics Pension Group Annuities: Closed one transaction during the quarter F
Slide 15: Principal Investing Income
• Realized performance fees of $331 million in the third quarter reached the highest level since 2021, reflecting a few sizeable monetizations within flagship private equity • Realized principal investing compensation of $464 million year-to-date translates to a compensation ratio of 72%, which is w
Slide 16: Performance Fee AUM and Dry Powder
$131 $89 Credit Equity $220 billion • Performance Fee-Eligible AUM of $220 billion increased 11% year-over-year due to particularly strong growth in performance fee-eligible Credit strategies • Performance Fee-Generating AUM of $143 billion increased 14% year-over-year due to robust capital deployme
Slide 17: Investment Performance Highlights
Investment Performance Highlights Net Accrued Performance Fee Receivable1 (QoQ) Appreciation / gross returns 3Q'24 LTM 3Q'24 Credit Direct Origination 3.4% 14.8% Opportunistic Credit 3.2% 10.2% Multi-Credit 3.3% 11.0% Asset-Backed Finance 3.2% 11.2% Equity Flagship Private Equity 0.3% 7.5% Hybrid Va
Slide 18: HoldCo & Asset Management Summary Balance Sheet Highlights
HoldCo & Asset Management Summary Balance Sheet Highlights1 Financial Strength Ratings ($ in millions, except per share amounts) 2Q'24 3Q'24 Cash and cash equivalents $2,853 $2,666 Investments, net2 2,625 3,137 Net accrued performance fees receivable3 1,588 1,433 Net clawback payable4 (93) (108) Deb
Slide 19: Supplemental Details
APOLLO Supplemental Details
Slide 20: Total AUM Rollforward
($ in millions) Credit4 Equity Total Beginning Balance $561,612 $134,641 $696,253 Inflows 38,642 3,300 41,942 Outflows3 (11,688) (1,317) (13,005) Net Flows 26,954 1,983 28,937 Realizations (2,717) (2,383) (5,100) Market Activity 11,947 1,170 13,117 Ending Balance $597,796 $135,411 $733,207 Three Mon
Slide 21: Retirement Services Flows & Invested Assets
• Third-party capital enables Athene to grow in a capital efficient manner and supported approximately 25% of Athene's third quarter gross new business volume • Outflows decreased quarter-over-quarter, in-line with previously published forecast ($ in millions) 3Q'24 YTD'24 Flows by Channel Retail $9
Slide 22: Share Reconciliation
Share Reconciliation 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 Total GAAP Common Stock Outstanding 567,565,120 567,762,932 569,003,922 569,535,344 565,816,456 Non-GAAP Adjustments: Mandatory Convertible Preferred Stock1 15,999,683 15,564,983 14,524,381 14,528,625 14,531,793 Vested RSUs 12,502,457 22,072,379 18,
Slide 23: Reconciliations and Disclosures
Reconciliations and Disclosures
Slide 24: Fund Performance
(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 Credit: Accord VI1 2024 $ 1,868 $ 1,701 $ 261 $ 72 $ 243 $ 238 $ 310 35 % 20 % Accord I, II, III, III B, IV & V1 Various 375 7,992 6,
Slide 25: Condensed Consolidated Statements of Financial Condition: Assets
($ in millions, except share amounts) 4Q'23 3Q'24 Assets Asset Management Cash and cash equivalents $2,748 $2,666 Restricted cash and cash equivalents 2 3 Investments 5,502 5,860 Assets of consolidated variable interest entities Cash and cash equivalents 62 102 Investments 1,640 2,353 Other assets 1
Slide 26: Condensed Consolidated Statements of Financial Condition: Liabilities
($ in millions, except share amounts) 4Q'23 3Q'24 Liabilities Asset Management Accounts payable, accrued expenses, and other liabilities $3,338 $3,908 Due to related parties 870 709 Debt 3,883 4,082 Liabilities of consolidated variable interest entities Other liabilities 1,145 1,021 Retirement Servi
Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures
($ in millions) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 YTD'23 YTD'24 GAAP Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders $660 $2,732 $1,403 $828 $787 $2,269 $3,018 Preferred dividends 22 24 24 25 24 22 73 Net income (loss) attributable to non-controlling interests (42) 8
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Measures - Annual
Year ended December 31, ($ 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) 2Q'24 3Q'24 Investments, at fair value $ 1,436 $ 1,388 Equity method investments 1,152 1,109 Other investments — 358 Other1 37 282 Investments, net $ 2,625 $ 3,137 ($ in millions) 2Q'24 3Q'24 Performance allocations $
Slide 30: Athene Net Income 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: 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 32: 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 33: 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 34: Definitions: Gross IRR
• "Gross IRR" of accord series, ADIP funds and the European principal finance funds represents the annualized return of a fund based on the actual timing of all cumulative fund cash flows before management fees, performance fees allocated to the general partner and certain other expenses. Calculatio
Slide 35: Definitions: Net IRR
• "Net IRR" of a traditional private equity or hybrid value fund represents the gross IRR applicable to a fund, including returns for related parties which may not pay fees or performance fees, net of management fees, certain expenses (including interest incurred or earned by the fund itself) and re
Slide 36: Footnotes
Retirement Services Flows & Invested Assets (page 20) 6. Represents outflows from funding agreements, pension group annuities, and multi-year guarantee fixed annuities, all of which occur based on defined maturities or substantially lapse upon reaching their contractual term. Amounts may vary on a q
Slide 37: 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