Athene Holding Ltd. · NYSE:ATH/PA
Athene — Investor Presentation (April 2023)
30 slides from Athene's investor presentation, Apr 7, 2023
Slide 1: Overview of Athene's Corporate Structure April 2023
Overview of Athene’s Corporate Structure April 2023
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”). Unless the context requires otherwise, references in this presentation to “Apollo," "AGM" and "AGM HoldCo" refer to Apollo Global Management, I
Slide 3: Post-Merger Structure of Apollo Global Management
3 Post-Merger Structure of Apollo Global Management As of December 31, 2022, unless otherwise noted. Please refer to page 30 of this presentation for the definition of Assets Under Management. 1. Apollo’s preferred shares are listed on the NYSE as AAM PrA and AAM PrB for the Series A and B shares, r
Slide 4: Key Takeaways for Athene's Structure, Subsidiary Capital, and Ratings
4 Key Takeaways for Athene’s Structure, Subsidiary Capital, and Ratings Note: All figures above are as of 12/31/2022. 1. Gross regulatory capital includes noncontrolling interest in Athene Co-Invest Reinsurance Affiliate (“ACRA”). 2. The consolidated risk-based capital ratio of Athene’s non-US reins
Slide 5: Athene's Key Subsidiaries are in Bermuda, Iowa, and Delaware
Third-Party Investors (“ADIP”) 5 Athene’s Key Subsidiaries are in Bermuda, Iowa, 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 the state insur
Slide 6: Athene Has Many Regulatory Constituencies, Iowa is Group Supervisor
6 Athene Has Many Regulatory Constituencies, Iowa is Group Supervisor 1. Represents the financial strength ratings of Athene’s primary insurance subsidiaries. • U.S. GAAP SEC reporting (e.g. Form 10-K and 10-Q) • 10-K includes audit by Deloitte • Dedicated quarterly financial supplement posted on in
Slide 7: Why is Athene in Bermuda?
7 Why is Athene in Bermuda? • Athene is a full U.S. taxpayer post-merger with Apollo • Athene’s Bermuda presence allows it to efficiently establish vehicles that provide tax-efficient means for third-party foreign capital to invest in support of insurers • Athene’s reserving standards are substantia
Slide 8: Athene Provides Reinsurance Clients Option to Face U.S. or Bermuda
8 Athene Provides Reinsurance Clients Option to Face U.S. or Bermuda Note: A complete organizational structure is available in Schedule Y of Athene’s annual U.S. statutory filings, available from SNL Financial and the state insurance regulators. When reinsurance clients choose to face Athene’s U.S.
Slide 9: Athene Utilizes Normal-Course Reinsurance Practices
9 Athene Utilizes Normal-Course Reinsurance Practices 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 mitigate c
Slide 10: Policyholders Benefit from Combined Strength of All Entities
10 Policyholders Benefit from Combined Strength of All Entities Note: All metrics as of December 31, 2022 as reported to respective regulatory constituencies. A complete organizational structure is available in Schedule Y of Athene’s annual U.S. insurance statutory filings, available from SNL Financ
Slide 11: Putting it All Together: Athene is Very Well Capitalized
11 Putting it All Together: Athene is Very Well Capitalized 1. Adjustment for capital outside of US insurance companies and Bermuda entities, including Athene’s $1.0 billion investment in Athora, which is assumed to also be subject to U.S. capital charges. 2. Gross regulatory capital includes noncon
Slide 12: Frequently Asked Questions
12 Athene’s Corporate Structure – Frequently Asked Questions Question Commentary Why does Athene have reinsurance operations in Bermuda? • Bermuda provides Athene an efficient means to raise third-party capital to support new and existing policyholders. Non-U.S. investors are more likely to invest c
Slide 13: Frequently Asked Questions (cont.)
13 Athene’s Corporate Structure – Frequently Asked Questions (cont.) Note: All metrics as of December 31, 2022 unless otherwise disclosed. 1. Gross regulatory capital includes noncontrolling interest in Athene Co-Invest Reinsurance Affiliate (“ACRA”). Question Commentary Why does Athene use intercom
Slide 14: Frequently Asked Questions (cont.)
14 Athene’s Corporate Structure – Frequently Asked Questions (cont.) Note: All metrics as of December 31, 2022 unless otherwise disclosed. 1. Represents ratings for primary insurance subsidiaries. 2. See slide 11 for the definitions of Bermuda RBC and Consolidated RBC. 3. Statutory capital is also r
Slide 15: Frequently Asked Questions (cont.)
15 Athene’s Corporate Structure – Frequently Asked Questions (cont.) Note: All metrics as of December 31, 2022 unless otherwise disclosed. 1. The Bermuda RBC ratio is calculated by applying the NAIC RBC factors to the statutory financial statements of Athene’s non-US reinsurance subsidiaries on an a
Slide 16: Frequently Asked Questions (cont.)
16 Athene’s Corporate Structure – Frequently Asked Questions (cont.) Note: All metrics as of December 31, 2022 unless otherwise disclosed. 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. insu
Slide 17: Frequently Asked Questions (cont.)
17 Athene’s Corporate Structure – Frequently Asked Questions (cont.) Note: All metrics as of December 31, 2022 unless otherwise disclosed. 1. Bermuda RBC ratio calculated by applying NAIC RBC factors to the Statutory Financial Statements of AHL's non-U.S. reinsurance subsidiaries, on an aggregate ba
Slide 18: Frequently Asked Questions (cont.)
18 Athene’s Corporate Structure – Frequently Asked Questions (cont.) Note: All metrics as of December 31, 2022 unless otherwise disclosed. Question Commentary Athene pays a dividend to Apollo, can the dividend be adjusted? • Athene intends to pay regular common share dividends to its parent company
Slide 19: Frequently Asked Questions (cont.)
19 Athene’s Corporate Structure – Frequently Asked Questions (cont.) Note: All metrics as of December 31, 2022 unless otherwise disclosed. 1. Represents ratings for primary insurance subsidiaries. Question Commentary Who is Athene’s regulator? • The Iowa Insurance Division (IID) is Athene’s group su
Slide 20: Frequently Asked Questions (cont.)
20 Athene’s Corporate Structure – Frequently Asked Questions (cont.) 1. 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 What are the major differences between Regu
Slide 21: Appendix
Appendix
Slide 22: Regulatory Financials of Key Entities
22 Regulatory Financials of Key Entities Note: Variances will arise from prescribed accounting basis treating between U.S. and Bermuda. 1. Adjustment for other insurance entities and intercompany reporting. 2. “AHL Bermuda and Subsidiaries” includes Athene Life Re, Athene Annuity Re, and Athene Life
Slide 23: U.S. Statutory Filings – Where to Find Total Assets
• Standalone U.S. Entity Assets (4Q 2022) Total regulatory assets are reported on the key statutory financial pages 23 U.S. Statutory Filings – Where to Find Total Assets AAIA Q4 2022 Insurance Statutory Filings AADE Q4 2022 Insurance Statutory Filings Link: 4Q 2022 U.S. Regulatory Filings Link: 4
Slide 24: U.S. Statutory Filings – Where to Find ModCo Reserves
AADE 2022 YE Insurance Statutory Filings 24 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 12/31/2022 • AADE Mod
Slide 25: U.S. Statutory Filings – Where to Find ModCo Reserves
25 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 2022) Reserves ceded to affiliates are disclosed annually in Schedule S Part 3 2 $103.8 billion
Slide 26: U.S. Statutory Filings – Where to Find Capital and Surplus
26 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 2022 Q4 Annual Insurance Statutory Filings AADE 2022 Q4 Annual Insurance Statutory Filings $2.3 billion of Capital and Surplus a
Slide 27: Bermuda Statutory Filings – Capital & Surplus
27 Bermuda Statutory Filings – Capital & Surplus Link: 4Q 2022 Athene Life Re Bermuda Regulatory Filings. 1. Eliminations of subsidiaries including ALRe, ACRA and others. • Athene Life Re Capital & Surplus (4Q 2022) Athene Life Re’s capital & surplus is reported to the Bermuda Monetary Authority,
Slide 28: U.S. Statutory Filings – Where to Find Capital and Surplus
28 U.S. Statutory Filings – Where to Find Capital and Surplus • Standalone U.S. Entity Disclosure (4Q 2022) 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 subsidi
Slide 29: Risk Based Capital (RBC) Disclosure in SEC Filings
29 Risk Based Capital (RBC) Disclosure in SEC Filings • Annual Disclosure of RBC Ratios (2022) Athene discloses the Risk Based Capital (“RBC”) of both its U.S. and Bermuda entities annually in its 10-K1 4 Link: 2022 Athene 10-K. 1. Bermuda RBC ratio calculated by applying NAIC RBC factors to the S
Slide 30: Non-GAAP Measures & Definitions
Non-GAAP Measures & Definitions 30 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