Athene Holding Ltd. · NYSE:ATH/PA
Athene — Debt Investor Presentation (February 2024)
33 slides from Athene's debt investor presentation, Feb 21, 2024
Slide 1: Athene Fixed Income Investor Presentation February 2024
Athene Fixed Income Investor Presentation February 2024
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. (“AHL” or “Athene”). Unless the context requires otherwise, references in this presentation to “Apollo" and "AGM" refer to Apollo Global Management, Inc., to
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 $651 billion Assets Under Management ~$22 Billion Regulatory Capital2 A+ from S&P, Fitch; A1 from Moody’s; A from AM Best3 ASSET MANAGEMENT RETIREMENT SERVICES 4,500+ Employees Globally Solutions across the alternative risk spectrum Separate capit
Slide 5: Athene is the Leading Retirement Services Business
5 Athene is the Leading Retirement Services Business… As of December 31, 2023, unless otherwise noted. 1. Year to Date industry rankings per Life Insurance Marketing and Research Association (LIMRA) as of September 30, 2023. Provides attractive savings products that help make guaranteed retirement i
Slide 6: Which Has Diligently Built Diversified Organic Growth Capabilities
$3 $4 $9 $11 $13 $18 $28 $37 $48 $63 3 3 5 5 7 7 8 9 21 35 4 2 4 6 2 6 11 2 3 6 6 14 11 10 3 8 12 10 7 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 6 …Which Has Diligently Built Diversified Organic Growth Capabilities 1. LIMRA YTD data as of 3Q’23 2. Credit Suisse data for full year 2021. Fundi
Slide 7: Athene Continues to Demonstrate Strong Momentum
Record gross organic inflows driven by record retail annuity issuance and flow reinsurance inflows, and strong pension group annuity inflows 7 Athene Continues to Demonstrate Strong Momentum Note: Athene metrics are net of the noncontrolling interests, as of or for the year ended December 31, 2023.
Slide 8: Fortress balance sheet metrics
8 Note: Athene metrics are net of the noncontrolling interests, as of December 31, 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 9: Athene versus AA-/A+ rated companies
11.6% 9.3% 9 Note: Athene metrics are net of the noncontrolling interests. AA-/A+ Rated Companies are: PFG (A+), GL (AA-), MET (AA-), and PRU (AA-). 1. AA-/A+ Rated Company metrics as of September 30, 2023 per SNL Financial. 2. Refers to Athene adjusted debt-to-capital ratio as of December 31, 2023.
Slide 10: Athene is a Scaled and Highly-Rated Retirement Services Business
$467 $454 $279 $208 $135 $128 $119 $96 $83 $64 $58 $48 $46 MET PRU Athene CRBG GA LNC BHF EQH PFG JXN AEL F&G UNM 10 Athene is a Scaled and Highly-Rated Retirement Services Business Note: Data as of December 31, 2023, except invested assets for F&G, Global Atlantic and JXN, which are as of September
Slide 11: Strong Capital and Liquidity Profile
11 Strong Capital and Liquidity Profile Note: 2023 RBC ratios are preliminary as of December 31, 2023. Athene metrics are net of the noncontrolling interests, as of December 31, 2023. 1. The consolidated risk-based capital ratio of our non-US reinsurance and US insurance subsidiaries is calculated b
Slide 12: Rating agency commentary
“Risk-adjusted capitalization is at the strongest level, as measured by Best's Capital Adequacy Ratio. Strong historical growth in premiums and deposits across its retail, institutional reinsurance, and pension risk transfer markets. Stable liability profile with concentration in retirement products
Slide 13: Peer comparison of FABN issuers
Net Invested Assets ($B)1 $217 $208 $96 $83 2023 Operating Income ($M)2 $3,107 $3,193 $2,465 $1,603 Leverage (Company)1 14.5% 28.3% 28.1% 21.9% Ratings1 A1/A+/A+ A2/A+/NR A1/A+/NR A1/A+/NR RBC Ratio (Consolidated)1 416% >400% 400-425% 427% 5-year FABN Secondary Credit Spread-to-US Treasury3 T+155 T+
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 – $4.0B notional outstanding • Targeting a conservative mid-teens adjusted debt-to-capital ratio 12.2% 12.9% 14.9% 14.7% 14.5% 2019 2020 2021 2022 2023 • Earnings generation – $3.0B of spread related ear
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. For the year ended December 31, 2023. Represents organic inflows attributable to ADIP as a p
Slide 16: Strong Track Record of Invested Asset Growth
$111.0 $124.6 $175.4 $210.2 $238.3 $278.6 $111.0 $117.5 $150.2 $175.3 $196.5 $217.4 $25.2 $34.9 $41.8 $61.2 Net Invested Assets Invested Assets Attributable to Sidecars (ADIP) 2018 2019 2020 2021 2022 2023 16 Strong Track Record of Invested Asset Growth 20% CAGR Composition of Athene’s Gross Investe
Slide 17: Disciplined Capital Management Strategy
$11.0 $12.1 $13.4 $15.5 $18.3 $20.1 $21.3 $23.2 $23.6 $27.7 $9.1 $9.4 $10.2 $11.2 $13.5 $14.8 $15.6 $16.6 $17.0 $20.5 $0.9 $1.2 $1.7 $2.3 $2.3 $2.3 $2.7 $3.2 $3.2 $3.2 $1.0 $1.5 $1.5 $2.0 $2.5 $3.0 $3.0 $3.4 $3.4 $4.0 Adjusted AHL Common Stockholder’s Equity Preferred Equity Notional Debt 6/30/2019
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 7 14 4 17 16 8 14 7 19 COVID-19 Russia/Ukraine 20 Historical Credit Loss Experience Outperforms Industry Athene1 Industry2 Historical Asset Impairments (annualized, bps) 2019 20203 202220212018 Note: Athene and industry asset impairment data for 2023 pending availability of annual statutory financ
Slide 21: High Quality Asset Portfolio Generates Safe Yield
Corporate & Gov’t 42% CML 12% CLO 9% ABS 10% RML 8% RMBS 4% CMBS 3% Cash and Equivalents 5% Alternatives 5% Other 2% Net Invested Assets $217 BILLION3 Note: Net invested assets includes Athene's proportionate share of ACRA investments, based on Athene's economic ownership, but does not include the p
Slide 22: Alternative Investment Portfolio Spotlight
O t h e r Equity Hybrid Yield Highly Diversified and Strategic • Athene’s $11.7 billion1 alternatives portfolio accounts for ~5% of net invested assets 50% Apollo and Other Fund Investments2 Strategic Origination Platforms Strategic Retirement Services Platforms Alts Portfolio Composition1 20% 22% 8
Slide 23: Persistent and Predictable Liability Portfolio Provides Long-Dated Funding
Fixed Indexed Annuities 42% Fixed Rate Annuities 27% 3% Funding Agreements 13% Pension Group Annuities 13% $199 BILLION Persistent and Predictable Liability Portfolio Provides Long-Dated Funding Note: Metrics are as of or for the three months ended December 31, 2023. Liabilities composition and weig
Slide 24: Outflow Activity Remains Highly Predictable
Historical/Projected Annualized Outflow Rates 24 Outflow Activity Remains Highly Predictable Note: Projections in above table represent a best estimate and actual experience may vary. Outflow rate is calculated as outflows attributable to Athene divided by average net invested assets for the respect
Slide 25: Risk Management is Embedded in Everything We Do
25 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 26: 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 27: 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 28: Non-GAAP Measures & Definitions
Non-GAAP Measures & Definitions 28 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 29: Non-GAAP Measures & Definitions
Non-GAAP Measures & Definitions 29 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 30: Non-GAAP Measure Reconciliations
Non-GAAP Measure Reconciliations (In millions, except percentages) 30 RECONCILIATION OF TOTAL AHL STOCKHOLDERS’ EQUITY TO TOTAL ADJUSTED AHL COMMON STOCKHOLDER’S EQUITY June 30, 2019 Dec. 31, 2019 June 30, 2020 Dec. 31, 2020 June 30, 2021 Dec. 31, 2021 June 30, 2022 Dec. 31, 2022 June 30, 2023 Dec.
Slide 31: Non-GAAP Measure Reconciliations
Non-GAAP Measure Reconciliations (In millions, except percentages) 31 RECONCILIATION OF NET INCOME (LOSS) AVAILABLE TO AHL COMMON STOCKHOLDER TO SPREAD RELATED EARNINGS, EXCLUDING NOTABLE ITEMS Years ended December 31, 2019 2020 2021 2022 2023 Net income (loss) available to Athene Holding Ltd. commo
Slide 32: Non-GAAP Measure Reconciliations
Non-GAAP Measure Reconciliations (In millions) 32 RECONCILIATION OF TOTAL INVESTMENTS, INCLUDING RELATED PARTIES, TO NET INVESTED ASSETS December 31, 2018 2019 2020 2021 2022 2023 Total investments, including related parties $ 107,632 $ 129,845 $ 180,541 $ 209,176 $ 196,448 $ 238,941 Derivative asse
Slide 33: Non-GAAP Measure Reconciliations
Non-GAAP Measure Reconciliations (In millions) 33 RECONCILIATION OF TOTAL LIABILITIES TO NET RESERVE LIABILITIES December 31, 2023 Total liabilities $ 279,344 Debt (4,209) Derivative liabilities (1,995) Payables for collateral on derivatives and securities to repurchase (4,370) Other liabilities (2,
Athene Holding — Debt Investor Presentation (February 2024) on 6ix