Athene Holding Ltd. · NYSE:ATH/PA
Athene — Investor Presentation (June 2024)
33 slides from Athene's investor presentation, Jun 17, 2024
Slide 1: Overview of Athene's Corporate Structure June 2024 Update
Overview of Athene’s Corporate Structure June 2024 Update
Slide 2: Disclaimer
Disclaimer 2 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
Slide 3: Key Takeaways
Key Takeaways 3 As of December 31, 2023, unless otherwise noted. 1. The CAL RBC ratio for Athene Annuity & Life Assurance Company ("AADE"), Athene's parent U.S. insurance company. 2. Excludes Bermuda entities’ investment in U.S. insurance subsidiaries. Includes $4.4 billion of capital and surplus re
Slide 4: Apollo and Athene Maintain Separate Capital Structures and Credit Profiles
4 Apollo and Athene Maintain Separate Capital Structures and Credit Profiles As of December 31, 2023, unless otherwise noted. Please refer to page 33 of this presentation for the definition of Assets Under Management. 1. Gross regulatory capital includes noncontrolling interests in ACRA. Excluding A
Slide 5: Athene's Key Subsidiaries are in Iowa, Bermuda, and Delaware
Third-Party Investors (“ADIP I”) (“ADIP II”) 5 Athene’s Key Subsidiaries are in Iowa, Bermuda, and Delaware Note: Simplified organizational structure is shown. A complete organizational structure is available in Schedule Y of Athene’s annual U.S. statutory filings, available from SNL Financial and t
Slide 6: Bermuda Entities Allow Athene to Raise Third Party Capital Efficiently
6 Bermuda Entities Allow Athene to Raise Third Party Capital Efficiently Apollo Equity Raised for Life Insurance Industry by Domicile Bermuda Entities are Well Capitalized and Transparent Bermuda Rest of World ~$19B 3% 97% Compares to >80% of global industry alternative capital raised in Bermuda1 40
Slide 7: Athene Uses Normal-Course Reinsurance to Support Growth
7 Athene Uses Normal-Course Reinsurance to Support Growth 1. In some cases, the ceding commission can be “negative” such that the reinsurance client pays the reinsurer. 2. The reinsurer may post dedicated assets to a collateral account for the benefit of the reinsurance client to help further mitiga
Slide 8: Policyholders Benefit from Combined Strength of All Entities
8 Policyholders Benefit from Combined Strength of All Entities Note: All metrics as of December 31, 2023 as reported to respective regulatory constituencies. 1. Gross regulatory capital includes noncontrolling interests in ACRA. 2. Intercompany reinsurance from the U.S. to Bermuda is net of reinsura
Slide 9: Asset Classes and Investment Quality are Consistent Across Geographies
Corporate and Gov't 37% Mortgages 23% ABS/CLO 22% RMBS 3% CMBS 4% Cash 4% Alternatives 6% Other 3%3 75% of assets shown in U.S. statutory filings Corporate and Gov't 48% Mortgages 9% ABS/CLO 17% RMBS 3% CMBS 2% Cash 11% Alternatives 7% Other 2%3 25% of assets not shown in U.S. statutory filings Asse
Slide 10: Athene Has Many Regulatory Constituencies; Iowa is Group Supervisor
10 Athene Has Many Regulatory Constituencies; Iowa is Group Supervisor 1. Represents the financial strength ratings of Athene’s primary insurance subsidiaries. Financial strength ratings are statements of opinions and not statements of facts or recommendations to purchase, hold or sell securities. T
Slide 11: Athene is Very Well Capitalized
11 Athene is Very Well Capitalized Note: Numbers may not foot due to rounding. All metrics as of December 31, 2023. 1. Adjustment for capital outside of U.S. insurance companies and Bermuda entities, including Athene’s $1.0 billion investment in Athora, which is assumed to also be subject to U.S. ca
Slide 12: Corporate Structure FAQs
NVATHENE Corporate Structure FAQs
Slide 13: Frequently Asked Questions
Frequently Asked Questions Question Commentary 1. Why does Athene have reinsurance operations in Bermuda? • 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
Slide 14: Frequently Asked Questions
Frequently Asked Questions Note: All metrics as of December 31, 2023 unless otherwise disclosed. 1. Represents the financial strength ratings of Athene’s primary insurance subsidiaries. Financial strength ratings are statements of opinions and not statements of facts or recommendations to purchase,
Slide 15: Frequently Asked Questions
Frequently Asked Questions Commentary 4. Did Athene Holding Company redomicile in the U.S.? • 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. • Athene Holdco redomici
Slide 16: Frequently Asked Questions
Frequently Asked Questions Note: All metrics as of December 31, 2023 unless otherwise disclosed. 1. Gross regulatory capital includes noncontrolling interests in ACRA. 2. Including the non controlling interests. Question Commentary 6. Why does Athene use intercompany reinsurance? • Intercompany rein
Slide 17: Frequently Asked Questions
Frequently Asked Questions Note: All metrics as of December 31, 2023 unless otherwise disclosed. 1. The risk-based capital ratio of Athene's non-U.S. reinsurance subsidiaries is calculated by applying NAIC risk-based capital factors to the statutory financial statements on an aggregate basis, exclud
Slide 18: Frequently Asked Questions
18 Frequently Asked Questions 1. Absent failure to pay by the U.S. reinsurance client. 2. Once a judgement against an Athene Bermuda reinsurer is obtained in a U.S. court, an Athene U.S. insurer would enforce the judgment in Bermuda. Question Commentary 10. How would Athene’s U.S. entities legally e
Slide 19: Frequently Asked Questions
Frequently Asked Questions Question Commentary 11. Athene pays a dividend to Apollo, can the dividend be adjusted? • Athene intends to pay regular common stock dividends to its parent company of $750 million per year, consistent with its business plan. • Management, together with Apollo, periodicall
Slide 20: Frequently Asked Questions
Frequently Asked Questions Question Commentary 14. Who is Athene’s regulator? • The Iowa Insurance Division (IID) is Athene’s group supervisor. Each insurance entity also has a local regulator. Athene’s insurance regulators include Iowa, Bermuda, Delaware, and New York. 15. What is an IAIG, and what
Slide 21: Frequently Asked Questions
Frequently Asked Questions 1. Includes $4.1 billion of Goodwill from the APO merger. 2. GAAP vs. Regulatory accounting differences driven by GAAP vs. STAT Reserves, GAAP vs STAT Investments, DAC/VOBA, Taxes and other accounting methodology differences. Question Commentary 16. What are the major diff
Slide 22: Appendix
Appendix
Slide 23: How Athene Manages ModCo Reinsurance Relationships
How Athene Manages ModCo Reinsurance Relationships Note: Scenarios are shown on a pre-tax basis. 1. Includes reserve release. 23 Cedent Balance Sheet General Account Assets $218 Assets in ModCo $800 General Account Liabilities $1,000 STAT Capital & Surplus $18 Reinsurance Cedent Balance Sheet Genera
Slide 24: Regulatory Assets and Reserves by Entity, as of December 31, 2023
As of December 31, 2023 ($ in billions) U.S. Insurance Entities 1,2 Bermuda Insurance Entities AADE (Delaware) AAIA (Iowa) Adj.3 Total U.S. AARe Bermuda & Subsidiaries4 ACRA Adj.3 Total Bermuda AHL & Other5 Total Regulatory Assets (as Reported, ex. Funds Held at Ceding Companies)6 $36.6 $202.0 $0.7
Slide 25: U.S. Statutory Filings – Where to Find Total Assets
• Standalone U.S. Entity Assets (4Q'23) Total regulatory assets are reported on the key statutory financial pages 25 U.S. Statutory Filings – Where to Find Total Assets AAIA 2023 Insurance Statutory Filings AADE 2023 Insurance Statutory Filings Link: 4Q'23 U.S. Regulatory Filings Link: 4Q'23 U.S.
Slide 26: U.S. Statutory Filings – Where to Find ModCo Reserves
AADE 2023 YE Insurance Statutory Filings 26 U.S. Statutory Filings – Where to Find ModCo Reserves Note: U.S. insurance statutory filings, available from SNL Financial and the state insurance regulators. $19.2 billion ModCo general account reserves ceded to Bermuda affiliates at 12/31/2023 • AADE Mod
Slide 27: U.S. Statutory Filings – Where to Find ModCo Reserves
27 U.S. Statutory Filings – Where to Find ModCo Reserves Note: U.S. insurance statutory filings, available from SNL Financial and the state insurance regulators. • AAIA Modified Coinsurance Reserves (4Q'23) Reserves ceded to affiliates are disclosed annually in Schedule S Part 3 2 $141.5 billion o
Slide 28: U.S. Statutory Filings – Where to Find Capital and Surplus
28 U.S. Statutory Filings – Where to Find Capital and Surplus Note: U.S. insurance statutory filings, available from SNL Financial and the state insurance regulators. AAIA 2023 Annual Insurance Statutory Filings AADE 2023 Annual Insurance Statutory Filings $3.1 billion of Capital and Surplus at Athe
Slide 29: Bermuda Statutory Filings – Capital & Surplus
29 Bermuda Statutory Filings – Capital & Surplus Link: 4Q 2023 Athene Life Re Bermuda Regulatory Filings. 1. Eliminations of subsidiaries including ALRe, ACRA and others. • Athene Life Re Capital & Surplus (4Q'23) Athene Life Re’s capital & surplus is reported to the Bermuda Monetary Authority, an
Slide 30: U.S. Statutory Filings – Where to Find Capital and Surplus
30 U.S. Statutory Filings – Where to Find Capital and Surplus • 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 subsidiar
Slide 31: Risk Based Capital Ratio Disclosure Included in SEC Filings
31 Risk Based Capital Ratio Disclosure Included in SEC Filings • 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 4 Link: 2023 Athene 10-K. 1. Bermuda RBC ratio calculated by applying NAIC RBC factors
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 33 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