Athene Holding Ltd. · NYSE:ATH/PA
Athene — Debt Investor Presentation (August 2023)
29 slides from Athene's debt investor presentation, Aug 16, 2023
Slide 1: Athene Fixed Income Investor Presentation August 2023
Athene Fixed Income Investor Presentation August 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: Athene & AAM Are Consolidated Under AGM Following Merger in 2022
3 Athene & AAM Are Consolidated Under AGM Following Merger in 2022 As of June 30, 2023, unless otherwise noted. Please refer to the appendix of this presentation for the definition of Assets Under Management. 1. As of 8/4/23 2. Represents the aggregate capital of Athene's US and Bermuda insurance en
Slide 4: Athene is a Leading Retirement Services Business
4 Athene is a Leading Retirement Services Business… As of June 30, 2023, unless otherwise noted. 1. Industry rankings per Life Insurance Marketing and Research Association (LIMRA) as of March 31, 2023. 2. Leading combined market share from 2020-2022. Source LIMRA data for full year 2020, 2021, and 2
Slide 5: 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 21 154 2 4 6 2 6 5 2 3 6 6 14 11 9 3 8 12 10 2 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E 5 …Which Has Diligently Built Diversified Organic Growth Capabilities 1. LIMRA data for 1Q’23. 2. Credit Suisse data for full year 2021. Funding agreemen
Slide 6: Athene Continues to Demonstrate Strong Momentum
Record quarterly organic inflows driven by strong retail annuity issuance and record pension group annuity and flow reinsurance inflows 6 Athene Continues to Demonstrate Strong Momentum Note: Athene metrics are net of non-controlling interest in ACRA, as of or for the three months ended June 30, 202
Slide 7: Note: Athene metrics are net of non-controlling interest in ACRA, as of June 30,
7 Note: Athene metrics are net of non-controlling interest in ACRA, as of June 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 insurance entitie
Slide 8: That Outperforms the Competition
10.6% 9.0% 8 Note: Athene metrics are net of the non-controlling interest in ACRA and exclude the recent mandatory convertible preferred equity issuance by Apollo. AA-/A+ Rated Companies are: PFG (A+), GL (AA-), MET (AA-), and PRU (AA-). 1. AA-/A+ Rated Companies metrics as of December 31, 2022 per
Slide 9: Strong Capital and Liquidity Profile
9 Strong Capital and Liquidity Profile Note: Athene metrics are net of the non-controlling interest in ACRA, as of June 30, 2023, unless otherwise noted, and exclude capital from the recent mandatory convertible preferred equity issuance by Apollo. 1. The consolidated risk-based capital ratio of our
Slide 10: Rating Agency Commentary
“Risk-adjusted capitalization is at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). Strong historical growth in premiums and deposits across its retail, institutional reinsurance, and pension risk transfer markets. Stable liability profile with concentration in retirement p
Slide 11: 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 14.1% 13.6% 14.7% 14.7% 14.4% 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 • Earnings generation – $2.5B of normalized spread rela
Slide 12: Strategic Sidecar Supports Athene's Growth with On-Demand Equity Capital
12 Strategic Sidecar Supports Athene’s Growth with On-Demand Equity Capital Note: Past performance is not a guarantee of future results. 1. As of August 6, 2023, Athene has deployed approximately $4 billion of third-party capital from the strategic sidecars. Apollo/Athene Dedicated Investment Progra
Slide 13: Strong Track Record of Invested Asset Growth
$111.0 $124.6 $175.4 $210.2 $238.3 $257.2 $111.0 $117.5 $150.2 $175.3 $196.5 $213.7 $25.2 $34.9 $41.8 $43.5 Net Invested Assets Invested Assets Attributable to Sidecars (ADIP) 2018 2019 2020 2021 2022 2Q’23 13 Strong Track Record of Invested Asset Growth 21% CAGR Composition of Athene’s Gross Invest
Slide 14: Disciplined Capital Management Strategy
$8.8 $9.1 $9.4 $10.2 $11.2 $13.5 $14.8 $15.6 $16.6 $17.0 $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 6/30/2019 12/31/2019 6/30/2020 12/31/2020 6/30/2021 12/31/2021 6/
Slide 15: Capital Allocation Priorities
15 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 16: Consistent Investment Management Philosophy
16 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 17: Historical Credit Loss Experience Outperforms Industry
3 6 16 2 16 8 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. 17 Hi
Slide 18: 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 June 30, 2023, 96% of $129 billion of available for sale securi
Slide 19: Persistent and Predictable Liability Portfolio Provides Long-Dated Funding
$193 BILLION Persistent and Predictable Liability Portfolio Provides Long-Dated Funding Note: Metrics are as of or for the three months ended June 30, 2023. Liabilities composition and weighted average life of funding is based on net reserve liabilities. Gross reserve liabilities include the reserve
Slide 20: Outflow Activity Remains Predictable
Historical/Projected Annualized Outflow Rates 20 2Q Results Illustrate that Outflow Activity Remains Predictable 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-year guarante
Slide 21: Risk Management is Embedded in Everything We Do
21 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 22: 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 23: Key Credit Highlights Indicate Winning Strategy Remains the Same
23 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 24: 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 25: Non-GAAP Measures & Definitions
Non-GAAP Measures & Definitions 25 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 26: Non-GAAP Measures & Definitions
Non-GAAP Measures & Definitions 26 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 27: Non-GAAP Measure Reconciliations
Non-GAAP Measure Reconciliations (In millions, except percentages) 27 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 28: Non-GAAP Measure Reconciliations
Non-GAAP Measure Reconciliations (In millions, except percentages) 28 RECONCILIATION OF NET INCOME (LOSS) AVAILABLE TO AHL COMMON SHAREHOLDER TO NORMALIZED SPREAD RELATED EARNINGS Years ended December 31, Three months ended June 30, 20232018 2019 2020 2021 2022 Net income (loss) available to Athene
Slide 29: Non-GAAP Measure Reconciliations
Non-GAAP Measure Reconciliations (In millions) 29 RECONCILIATION OF TOTAL INVESTMENTS, INCLUDING RELATED PARTIES, TO NET INVESTED ASSETS December 31, June 30, 20232018 2019 2020 2021 2022 Total investments, including related parties $ 107,632 $ 129,845 $ 180,541 $ 209,176 $ 196,448 $ 215,322 Derivat
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