Athene Holding Ltd. · NYSE:ATH/PA
Athene — Debt Investor Presentation (November 2023)
31 slides from Athene's debt investor presentation, Nov 9, 2023
Slide 1: Athene Fixed Income Investor Presentation
Athene Fixed Income Investor Presentation November 2023
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”). Unless the context requires otherwise, references in this presentation to “Apollo" and "AGM" refer to Apollo Global Management, Inc., together wi
Slide 3: Key Credit Highlights Indicate Winning Strategy Remains the Same
3 Key Credit Highlights Indicate Winning Strategy Remains the Same ASSET PORTFOLIO IS HIGH-QUALITY AND GENERATES SAFE INVESTMENT GRADE YIELD Athene has consistently delivered strong net spread generation with lower credit losses versus peers 3 ATHENE HAS BUILT A FORTRESS BALANCE SHEET Highly-rated a
Slide 4: Athene has a Distinct Credit Profile Within Apollo
4 Athene has a Distinct Credit Profile Within Apollo $631 billion Assets Under Management ~$21 Billion Regulatory Capital2 A+ from S&P, Fitch; A1 from Moody’s; A from AM Best3 ASSET MANAGEMENT RETIREMENT SERVICES $47 Billion Market Capitalization1 4,000+ Employees Globally Solutions across the alter
Slide 5: Athene is a Leading Retirement Services Business
5 Athene is a Leading Retirement Services Business… As of September 30, 2023, unless otherwise noted. 1. Year to Date industry rankings per Life Insurance Marketing and Research Association (LIMRA) as of June 30, 2023. Provides attractive savings products that help make guaranteed retirement income
Slide 6: Which Has Diligently Built Diversified Organic Growth Capabilities
$3 $9 $4 $11 $13 $18 $28 $37 $48 3 3 5 5 7 7 8 9 21 22 4 2 4 6 2 6 8 2 3 6 6 14 11 9 3 8 12 10 5 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E 6 …Which Has Diligently Built Diversified Organic Growth Capabilities 1. LIMRA YTD data as of 2Q’23 2. Credit Suisse data for full year 2021. Funding ag
Slide 7: Athene Continues to Demonstrate Strong Momentum
Record YTD organic inflows driven by robust retail annuity issuance, strong pension group annuity inflows, and flow reinsurance momentum 7 Athene Continues to Demonstrate Strong Momentum Note: Athene metrics are net of the non-controlling interests in ACRA, as of or for the nine months ended Septemb
Slide 8: Note: Athene metrics are net of the non-controlling interests in ACRA, as of September
8 Note: Athene metrics are net of the non-controlling interests in ACRA, as of September 30, 2023. 1. Relates to Athene’s primary insurance subsidiaries; represents ratings from AM Best "A", Fitch "A+", S&P "A+" and Moody’s "A1". 2. Represents the aggregate capital of Athene's US and Bermuda insuran
Slide 9: …That Outperform…
11.9% 9.1% 9 Note: Athene metrics are net of the non-controlling interests in ACRA. AA-/A+ Rated Companies are: PFG (A+), GL (AA-), MET (AA-), and PRU (AA-). 1. AA-/A+ Rated Company metrics as of June 30, 2023 per SNL Financial. 2. Refers to Athene adjusted debt-to-capital ratio as of September 30,
Slide 10: Athene is a Scaled and Highly-Rated Retirement Services Business
$451 $424 $261 $193 $135 $123 $112 $99 $94 $64 $55 $48 $43 MET PRU Athene CRBG LNC GA BHF PFG EQH JXN AEL F&G UNM 10 Athene is a Scaled and Highly-Rated Retirement Services Business Note: Data as of September 30, 2023, except invested assets for Global Atlantic which is as of June 30, 2023. Athene i
Slide 11: Strong Capital and Liquidity Profile
11 Strong Capital and Liquidity Profile Note: Athene metrics are net of the non-controlling interests in ACRA, as of September 30, 2023, unless otherwise noted. 1. The consolidated risk-based capital ratio of our non-US reinsurance and US insurance subsidiaries is calculated by applying NAIC risk-ba
Slide 12: Rating Agency Commentary
“Risk-adjusted capitalization is at the strongest level, as measured by Best's Capital Adequacy Ratio. Strong historical growth in premiums and deposits across its retail, institutional reinsurance, and pension risk transfer markets. Stable liability profile with concentration in retirement products
Slide 13: Peer Comparison
Total Invested Assets ($B)1 $208 $193 $94 $99 LTM Operating Income ($M)2 $3,055 $3,077 $2,414 $1,942 Leverage (Company)1 13.3% 27.2% 25.0% 21.6% Ratings1 A1/A+/A+ A2/A+/NR A1/A+/NR A1/A+/NR RBC Ratio (Consolidated)3 416% 411% 425% 406% 5-year FABN Secondary Credit Spread-to-US Treasury4 T+190 T+135
Slide 14: Athene Utilizes Numerous Sources of Capital to Grow Earnings Generation & Capital Release
• Athene Holding Ltd. (AHL) Series A-E Preferred Equity – $2.9B issued to date • AHL Senior Debt – $3.4B outstanding • Targeting a conservative mid-teens adjusted debt-to-capital ratio 13.6% 14.7% 14.7% 14.4% 13.3% 3Q’22 4Q’22 1Q’23 2Q’23 3Q’23 • Earnings generation – $3.3B of LTM normalized spread
Slide 15: Strategic Sidecar Supports Athene's Growth with On-Demand Equity Capital
15 Strategic Sidecar Supports Athene’s Growth with On-Demand Equity Capital Note: Past performance is not a guarantee of future results. 1. Includes ADIP called capital, leverage, and reinvested earnings. 2. Represents inflows attributable to ADIP as a percentage of total gross inflows. Apollo/Athen
Slide 16: Strong Track Record of Invested Asset Growth
$111.0 $124.6 $175.4 $210.2 $238.3 $261.2 $111.0 $117.5 $150.2 $175.3 $196.5 $208.1 $25.2 $34.9 $41.8 $53.1 Net Invested Assets Invested Assets Attributable to Sidecars (ADIP) 2018 2019 2020 2021 2022 3Q’23 16 Strong Track Record of Invested Asset Growth 20% CAGR Composition of Athene’s Gross Invest
Slide 17: Disciplined Capital Management Strategy
$9.8 $11.0 $12.1 $13.4 $15.5 $18.3 $20.1 $21.3 $23.2 $25.6 $8.8 $9.1 $9.4 $10.2 $11.2 $13.5 $14.8 $15.6 $16.6 $19.1$0.9 $1.2 $1.7 $2.3 $2.3 $2.3 $2.7 $3.2 $3.2 $1.0 $1.0 $1.5 $1.5 $2.0 $2.5 $3.0 $3.0 $3.4 $3.4 Adjusted AHL Common Shareholder’s Equity Preferred Equity Notional Debt 12/31/2018 6/30/20
Slide 18: Capital Allocation Priorities
18 Capital Allocation Priorities Balance sheet strength determines the capital available to pursue profitable growth opportunities Support Profitable Growth Preserve excess capital at ‘AA’ levels with a mid-teens adjusted debt-to- capital ratio and strong liquidity Maintain Fortress Balance Sheet At
Slide 19: Consistent Investment Management Philosophy
19 Consistent Investment Management Philosophy Target higher and sustainable risk- adjusted returns by capturing illiquidity premia to drive consistent yield outperformance Focus on downside protection given long- dated liability profile and low cost of funding Dynamic asset allocation to take advan
Slide 20: Historical Credit Loss Experience Outperforms Industry
3 6 16 2 16 13 17 10 16 8 21 1. Athene’s Statutory data was adjusted to include impairments and assets in regulatory entities and Bermuda. 2. Represents U.S. statutory impairments per SNL Financial. Industry average includes AEL, AIG, AMP, BHF, EQH, FG, LNC, MET, PFG, PRU, VOYA and Transamerica. 20
Slide 21: High Quality Asset Portfolio Generates Safe Yield
Corporate & Gov’t 42% CML 12% CLO 10% ABS 10% RML 8% RMBS 4% CMBS 2% Cash and Equivalents 4% Alternatives 6% Other 2% Net Invested Assets $208 BILLION3 Note: Net invested assets includes Athene's proportionate share of ACRA investments, based on Athene's economic ownership, but does not include the
Slide 22: Persistent and Predictable Liability Portfolio Provides Long-Dated Funding
Fixed Indexed Annuities 45% Fixed Rate Annuities 26% 2% Funding Agreements 13% Pension Group Annuities 13% $186 BILLION Persistent and Predictable Liability Portfolio Provides Long-Dated Funding Note: Metrics are as of or for the three months ended September 30, 2023. Liabilities composition and wei
Slide 23: Outflow Activity Remains Predictable and Trending Even Better Than Expected
Historical/Projected Annualized Outflow Rates 23 Outflow Activity Remains Predictable and Trending Even Better Than Expected Note: Projections in above table represent a best estimate and actual experience may vary. 1. Represents outflows from funding agreements, pension group annuities, and multi-y
Slide 24: Risk Management is Embedded in Everything We Do
24 Robust risk management framework and procedures underpin focus on protecting capital and aligning risks with stakeholder expectations Risk strategy, investment, credit, asset-liability management (“ALM”) and liquidity risk policies, amongst others, at the board and management levels Stress testin
Slide 25: Athene is Committed to Transparency and Ongoing Disclosure
Athene Financial Supplement will continue to be published quarterly Athene Holding Ltd. will continue to publish 10-K’s and 10-Q’s as a ’34 Act SEC filer Parent company, Apollo Global Management, Inc., publishes 10-K’s and 10-Q’s as a ’34 Act SEC filer Statutory filings for main Athene operating sub
Slide 26: Non-GAAP Definitions
Non-GAAP Definitions In addition to our results presented in accordance with accounting principles generally accepted in the United States of America (US GAAP), we present certain financial information that includes non-GAAP measures. Management believes the use of these non-GAAP measures, together
Slide 27: Non-GAAP Measures & Definitions
Non-GAAP Measures & Definitions 27 Adjusted Debt-to-Capital Ratio Adjusted debt-to-capital ratio is a non-GAAP measure used to evaluate our capital structure excluding the impacts of AOCI and the cumulative changes in fair value of funds withheld and modco reinsurance assets as well as mortgage loan
Slide 28: Non-GAAP Measures & Definitions
Non-GAAP Measures & Definitions 28 Sales Sales statistics do not correspond to revenues under US GAAP but are used as relevant measures to understand our business performance as it relates to inflows generated during a specific period of time. Our sales statistics include inflows for fixed rate annu
Slide 29: Non-GAAP Measure Reconciliations
Non-GAAP Measure Reconciliations (In millions, except percentages) 29 RECONCILIATION OF TOTAL AHL SHAREHOLDERS’ EQUITY TO TOTAL ADJUSTED AHL COMMON SHAREHOLDER’S EQUITY Dec. 31, 2018 June 30, 2019 Dec. 31, 2019 June 30, 2020 Dec. 31, 2020 June 30, 2021 Dec. 31, 2021 June 30, 2022 Sept. 30, 2022 Dec.
Slide 30: Non-GAAP Measure Reconciliations
Non-GAAP Measure Reconciliations (In millions, except percentages) 30 RECONCILIATION OF NET INCOME (LOSS) AVAILABLE TO AHL COMMON SHAREHOLDER TO NORMALIZED SPREAD RELATED EARNINGS Years ended December 31, Twelve months ended September 30, 2023 Nine months ended September 30, 20232018 2019 2020 2021
Slide 31: Non-GAAP Measure Reconciliations
Non-GAAP Measure Reconciliations (In millions) 31 RECONCILIATION OF TOTAL INVESTMENTS, INCLUDING RELATED PARTIES, TO NET INVESTED ASSETS December 31, September 30, 20232018 2019 2020 2021 2022 Total investments, including related parties $ 107,632 $ 129,845 $ 180,541 $ 209,176 $ 196,448 $ 214,953 De
Athene Holding — Debt Investor Presentation (November 2023) on 6ix