Athene Holding Ltd. · NYSE:ATH/PA
Athene — Debt Investor Presentation (February 2023)
28 slides from Athene's debt investor presentation, Feb 22, 2023
Slide 1: Athene Fixed Income Investor Presentation February 2023
Athene Fixed Income Investor Presentation February 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," "AGM" and "AGM HoldCo" refer to Apollo Global Management, Inc
Slide 3: Athene and AAM Are Consolidated Under AGM Following Merger in 2022
3 Athene and AAM Are Consolidated Under AGM Following Merger in 2022 As of December 31, 2022, unless otherwise noted. Please refer to page 23 of this presentation for the definition of Assets Under Management. 1. Market capitalization as of February 8, 2023. 2. Represents the aggregate capital of At
Slide 4: Athene is a Leading Retirement Services Business
4 Athene is a Leading Retirement Services Business… 1. YTD industry rankings per Life Insurance Marketing and Research Association (LIMRA) as of September 30, 2022. 2. As of December 31, 2022. Provides attractive products that help make guaranteed retirement income affordable for Americans Stable, p
Slide 5: Diversified Organic Growth Capabilities
5 …Which Has Diligently Built Diversified Organic Growth Capabilities 1. LIMRA data for full year 2020, 2021, and 2022 YTD as of September 30, 2022. 2. Credit Suisse data for full year 2021. Funding agreements are comprised of funding agreements issued under our FABN and FABR programs, funding agree
Slide 6: 2022 Was a Landmark Year for Athene
6 2022 Was a Landmark Year for Athene 1. Financial strength ratings for insurance operating companies. Strength ratings are statements of opinions and not statements of facts or recommendations to purchase, hold or sell securities. They do not address the suitability of securities for investment pur
Slide 7: Note: Athene metrics are net of non-controlling interest in ACRA, as of December 31,
7 Note: Athene metrics are net of non-controlling interest in ACRA, as of December 31, 2022. 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 insurance ent
Slide 8: That Outperforms the Competition
8 1. Athene metrics are net of non-controlling interest in ACRA, as of December 31, 2022. AA-/A+ Rated Companies metrics as of September 30, 2022 or latest available per SNL Financial. AA-/A+ Rated Companies are: PFG (A+), MET (AA-) GL (AA-), and PRU (AA-). 2. Refers to Athene adjusted debt-to-capit
Slide 9: Strong Capital and Liquidity Profile
9 Strong Capital and Liquidity Profile Note: 2022 RBC ratios are preliminary as of December 31, 2022. 1. The consolidated risk-based capital ratio of our non-US reinsurance and US insurance subsidiaries is calculated by applying NAIC risk-based capital factors to the statutory financial statements o
Slide 10: Rating Agency Commentary on Athene
“The A1 rating of Athene’s US and Bermuda-based life insurance companies reflects the company's strong market position in its core insurance products… Other strengths include very good capital levels, modest financial leverage, and strong interest coverage metrics, as well as solid profitability dri
Slide 11: Athene Utilizes Numerous Sources of Funding to Grow
11 Athene Utilizes Numerous Sources of Funding to Grow 1. Statutory earnings have averaged approximately 70-80% of GAAP earnings historically but can vary materially. • Earnings generation o $2.3B of pre-tax spread related earnings (SRE) in 20221 o 20% earnings growth expected in 2023 on a normalize
Slide 12: ADIP Sidecar Supports Athene's Growth with On-Demand Equity Capital
12 ADIP Sidecar Supports Athene’s Growth with On-Demand Equity Capital Apollo/Athene Dedicated Investment Program (ADIP) CAPITAL DEPLOYED SINCE INCEPTION ~$3.1B Direct equity capital to support Athene’s growth TARGETED NET IRR Mid-Teens Greater third-party participation & capital efficiency for Athe
Slide 13: Total Capitalization Mix Highlights Disciplined Capital Management Strategy
13 Total Capitalization Mix Highlights Disciplined Capital Management Strategy 1. Includes both short-term and long-term debt, at notional. $8,303 $8,823 $9,127 $9,445 $10,157 $11,232 $13,471 $14,803 $14,582 $15,210 $839 $1,172 $1,755 $2,312 $2,312 $2,312 $2,667 $3,154 $1,183 $1,000 $1,000 $1,475 $1
Slide 14: Capital Allocation Priorities
14 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 15: Athene's Investment Management Philosophy
15 Athene’s 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 advanta
Slide 16: High Quality Asset Portfolio Generates Safe Yield
High Quality Asset Portfolio Generates Safe Yield Note: Net invested assets includes Athene's proportionate share of ACRA investments, based on Athene's economic ownership, but does not include the proportionate share of investments associated with the noncontrolling interest. 1. As of December 31,
Slide 17: Persistent and Predictable Liability Portfolio Provides Long-Dated Funding
Persistent and Predictable Liability Portfolio Provides Long-Dated Funding 1. Calculation based on net reserve liabilities as of December 31, 2022. 2. Non-surrenderable liabilities include buy-out pension group annuities, funding agreements and payout annuities. 3. Other primarily consists of the Am
Slide 18: Risk Management is Embedded in Everything We Do
18 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 19: Athene is Committed to Transparency and Ongoing Disclosure
Athene Financial Supplement will continue to be published quarterly Athene Holding Ltd. (AHL) will continue to publish 10-K’s and 10-Q’s as a ’34 Act SEC filer Parent company, Apollo Global Management, Inc. (AGM) publishes 10-K’s and 10-Q’s as a ’34 Act SEC filer Statutory filings for main Athene op
Slide 20: Key Credit Highlights Indicate Winning Strategy Remains the Same
20 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
Slide 21: Non-GAAP Measures & Definitions
Non-GAAP Measures & Definitions 21 Non-GAAP Definitions In addition to our results presented in accordance with GAAP, we present certain financial information that includes non-GAAP measures. Management believes the use of these non-GAAP measures, together with the relevant GAAP measures, provides i
Slide 22: Non-GAAP Measures & Definitions: Cost of Funds
Non-GAAP Measures & Definitions 22 Cost of Funds Cost of funds includes liability costs related to cost of crediting on both deferred annuities and institutional products as well as other liability costs, but does not include the proportionate share of the ACRA cost of funds associated with the nonc
Slide 23: Non-GAAP Measures & Definitions: Sales and AUM
Non-GAAP Measures & Definitions 23 Sales Sales statistics do not correspond to revenues under 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 annuiti
Slide 24: Non-GAAP Measure Reconciliations
Non-GAAP Measure Reconciliations 24 Total AHL shareholders’ equity (deficit) $ 8,462 $ 8,276 $ 12,365 $ 13,391 $ 14,711 $ 18,657 $ 20,006 $ 20,130 $ 11,149 $ 3,725 $ (1,346) $ 916 Less: Preferred stock — — 839 1,172 1,755 2,312 2,312 2,312 2,667 2,667 2,667 3,154 Total AHL common shareholder's equit
Slide 25: Reconciliation of Total Investments to Net Invested Assets
Non-GAAP Measure Reconciliations 25 Total investments, including related parties Derivative assets Cash and cash equivalents (including restricted cash) Accrued investment income Net receivable (payable) for collateral on derivatives Reinsurance funds withheld and modified coinsurance VIE and VOE as
Slide 26: Reconciliation to Normalized Spread Related Earnings
Non-GAAP Measure Reconciliations 26 Net income (loss) available to Athene Holding Ltd. common shareholder Preferred stock dividends Net income (loss) attributable to noncontrolling interests Net income (loss) Income tax expense (benefit) Income (loss) before income taxes Investment gains (losses), n
Slide 27: Reconciliation of Benefits and Expenses to Cost of Funds
Non-GAAP Measure Reconciliations 27 GAAP benefits and expenses Premiums Product charges Other revenues FIA option costs Reinsurance impacts Non-operating change in insurance liabilities and embedded derivatives, net of offsets DAC and DSI amortization related to investment gains and losses Rider res
Slide 28: Reconciliation of Total Liabilities to Net Reserve Liabilities
Non-GAAP Measure Reconciliations 28 Total Liabilities Debt Derivative Laibilities Payables for collateral on derivatives and securities to repurchase Other Liabilities Liabilities of consolidated VIEs Reinsurance impacts Policy loans ceded ACRA noncontroliing interest Other Total adjustments to arri
Athene Holding — Debt Investor Presentation (February 2023) on 6ix