Athene Holding Ltd. · NYSE:ATH/PA
Athene — Q2 2024 Earnings Presentation
37 slides from Athene's earnings presentation, Aug 1, 2024
Slide 1: Apollo Global Management, Inc. Second Quarter 2024 Earnings
Apollo Global Management, Inc. Second Quarter 2024 Earnings
Slide 2: Second Quarter 2024 Financial Highlights
2Q'24 Per Share YTD'24 Per Share GAAP Financial Measures ($ in millions, except per share amounts) Net Income Attributable to Apollo Global Management, Inc. Common Stockholders $828 $1.36 $2,231 $3.67 Segment and Non-GAAP Financial Measures ($ in millions, except per share amounts) Fee Related Earni
Slide 3: GAAP Income Statement
(In millions, except per share amounts) 2Q'23 1Q'24 2Q'24 YTD'23 YTD'24 Revenues Asset Management Management fees $452 $438 $462 $866 $900 Advisory and transaction fees, net 170 169 267 325 436 Investment income (loss) 138 402 278 590 680 Incentive fees 26 26 47 41 73 Retirement Services Premiums 9,
Slide 4: Delivered solid second quarter results across Asset Management and Retirement Services
Delivered solid second quarter results across Asset Management and Retirement Services • Record FRE of $516 million driven by record quarterly fee related revenues • SRE of $710 million driven by strong organic growth trends • Combined, FRE and SRE totaled $1.2 billion in the second quarter, showcas
Slide 5: Segment results: Fee and Spread Related Earnings and Adjusted Net Income
($ in millions, except per share amounts) 2Q'23 1Q'24 2Q'24 YTD'23 YTD'24 Management fees $620 $652 $672 $1,197 $1,324 Capital solutions fees and other, net 138 141 208 276 349 Fee-related performance fees 35 46 52 62 98 Fee-related compensation (212) (220) (240) (423) (460) Non-compensation expense
Slide 6: Results excluding notable items
($ in millions, except per share amounts) 2Q'23 1Q'24 2Q'24 YTD'23 YTD'24 Management fees $620 $652 $672 $1,197 $1,324 Capital solutions fees and other, net 138 141 208 276 349 Fee-related performance fees 35 46 52 62 98 Fee-related compensation (212) (220) (240) (423) (460) Non-compensation expense
Slide 7: Segment Details
APOLLO Segment Details
Slide 8: Asset Management: Fee Related Earnings
• Management fees increased 8% year-over-year driven by robust growth in Yield strategies reflecting increasing contributions from third-party clients and Athene, as well as solid levels of capital deployment • Capital solutions fees reached a new quarterly record reflecting growth across the broade
Slide 9: Asset Management: Assets Under Management
Total AUM ($bn) Fee-Generating AUM ($bn) $515 $617 $696 $376 $450 $521 $56 $62 $70 $83 $105 $105 Yield Hybrid Equity 2Q'22 2Q'23 2Q'24 $381 $462 $522 $314 $383 $440 $25 $28 $30 $42 $51 $52 Yield Hybrid Equity 2Q'22 2Q'23 2Q'24 Perpetual Capital AUM ($bn) $307 $351 $409 $225 $258 $304 $44 $51 $50 $38
Slide 10: Asset Management: Inflows
$33 $32 $40 $39 $20 $10 $20 $22 $13 $20 $20 $17$2 Asset Management Retirement Services 3Q'23 4Q'23 1Q'24 2Q'24 $57 $131 $75 $128 $157 $144 $32 $31 $38 $71 $55 $72 $6 $37 $18 $28 $37 $48 $63 $70 $7 $72 Asset Management Retirement Services 2019 2020 2021 2022 2023 LTM 2Q'24 ($ in billions) Asset Manag
Slide 11: Retirement Services: Spread Related Earnings
• Spread Related Earnings increased 3% year-over-year on a year-to-date basis primarily driven by lower operating expenses and financing costs • Spread Related Earnings, Excluding Notable Items included a 5.7% and 7.4% annualized return in the second quarter and year-to-date, respectively, from Athe
Slide 12: Retirement Services: Net Spread
(% of average net invested assets) 2Q'23 1Q'24 2Q'24 % Change vs. 2Q'23 YTD'23 YTD'24 % Change vs. YTD'23 Fixed income and other net investment income 4.46% 4.66% 4.82% 36bps 4.30% 4.75% 45bps Alternative net investment income 8.53% 9.10% 5.73% NM 7.33% 7.42% 9bps Net Investment Earnings 4.69% 4.89%
Slide 13: Retirement Services: investment yield and cost of funds
• Fixed income investment yield: increased 16 basis points quarter-over-quarter primarily driven by strong on-the-margin asset deployment, partially offset by the prepayment of certain higher yielding assets and back-end weighted deployment timing within the quarter • Alternatives return: relatively
Slide 14: Retirement Services: Flows and channels
Retail: Strong annuity sales activity underwritten to attractive returns amid continued secular demand for retirement savings products Flow Reinsurance: Second quarter activity reflected client repositioning in the U.S. while pipeline of new Asia Pacific relationships remains robust Pension Group An
Slide 15: Principal Investing Income
• Realized performance fees of $175 million in the second quarter remained relatively light as monetization activity from sizeable flagship private equity funds (Fund VIII & IX) continues to be prudently managed until a more accommodative market backdrop emerges • Realized principal investing compen
Slide 16: Performance Fee-Eligible AUM and Dry Powder
• Performance Fee-Eligible AUM of $213 billion increased 12% year-over-year primarily due to third-party Asset Management fundraising • Performance Fee-Generating AUM of $140 billion increased 15% year-over-year due to positive investment performance across Equity, Hybrid and Yield strategies • Dry
Slide 17: Investment Performance Highlights
Investment Performance Highlights Net Accrued Performance Fee Receivable2 (QoQ) Appreciation / gross returns 2Q'24 YTD'24 Yield Corporate Credit1 2.5% 5.5% Structured Credit 2.1% 6.1% Direct Origination 3.8% 7.8% Hybrid Hybrid Value 4.8% 8.9% Credit Strategies and Accord 2.7% 6.1% Equity Flagship Pr
Slide 18: HoldCo & Asset Management Summary Balance Sheet Highlights
HoldCo & Asset Management Summary Balance Sheet Highlights1 Financial Strength Ratings ($ in millions, except per share amounts) 1Q'24 2Q'24 Cash and cash equivalents $2,466 $2,853 Investments, net 2,583 2,625 Net accrued performance fees receivable2 1,560 1,588 Net clawback payable3 (85) (93) Debt
Slide 19: Supplemental Details
APOLLO Supplemental Details
Slide 20: AUM roll-forward
($ in millions) Yield4 Hybrid Equity Total Beginning Balance $500,604 $63,661 $106,739 $671,004 Inflows 31,420 6,645 933 38,998 Outflows2,3 (12,746) (250) (1,387) (14,383) Net Flows 18,674 6,395 (454) 24,615 Realizations (1,282) (844) (2,182) (4,308) Market Activity 3,318 1,003 621 4,942 Ending Bala
Slide 21: Retirement Services flows by channel
• Held final close for the second vintage of strategic ADIP sidecar during the second quarter with $6 billion of total commitments, nearly twice the size of ADIP I • Third-party capital enables Athene to grow in a highly capital efficient manner and supported 35% of Athene's gross new business volum
Slide 22: Share Reconciliation
Share Reconciliation 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 Total GAAP Common Stock Outstanding 566,809,153 567,565,120 567,762,932 569,003,922 569,535,344 Non-GAAP Adjustments: Mandatory Convertible Preferred Stock1 — 15,999,683 15,564,983 14,524,381 14,528,625 Vested RSUs 12,771,092 12,502,457 22,072,379 1
Slide 23: Reconciliations and Disclosures
Reconciliations and Disclosures
Slide 24: Fund performance by vintage
(in millions, except IRR) Vintage Year Total AUM Committed Capital Total Invested Capital Realized Value Remaining Cost Unrealized Value Total Value Gross IRR Net IRR Equity: Fund X 2023 $ 19,909 $ 19,877 $ 3,522 $ 1,058 $ 3,165 $ 3,703 $ 4,761 NM4 NM4 Fund IX 2018 33,052 24,729 20,853 12,269 15,018
Slide 25: Condensed consolidated balance sheet: assets
($ in millions, except share amounts) 4Q'23 2Q'24 Assets Asset Management Cash and cash equivalents $2,748 $2,854 Restricted cash and cash equivalents 2 2 Investments 5,502 5,697 Assets of consolidated variable interest entities Cash and cash equivalents 62 473 Investments 1,640 1,708 Other assets 1
Slide 26: Condensed consolidated balance sheet: liabilities and equity
($ in millions, except share amounts) 4Q'23 2Q'24 Liabilities Asset Management Accounts payable, accrued expenses, and other liabilities $3,338 $3,638 Due to related parties 870 754 Debt 3,883 4,082 Liabilities of consolidated variable interest entities Other liabilities 1,145 1,728 Retirement Servi
Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures
($ in millions) 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 YTD'23 YTD'24 GAAP Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders $599 $660 $2,732 $1,403 $828 $1,609 $2,231 Preferred dividends — 22 24 24 25 — 49 Net income (loss) attributable to non-controlling interests 151 (42)
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Measures, annual
Year ended December 31, ($ in millions) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 GAAP Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders $168 $134 $403 $616 $(42) $807 $120 $1,802 $(1,961) $5,001 Preferred dividends — — — 14 32 37 37 37 — 46 Net income (los
Slide 29: Reconciliation of GAAP to Non-GAAP Financial Measures - cont'd
Reconciliation of GAAP to Non-GAAP Financial Measures - cont'd 28 ($ in millions) 1Q'24 2Q'24 Investments, at fair value $ 1,469 $ 1,436 Equity method investments 1,116 1,152 Other1 (2) 37 Investments, net $ 2,583 $ 2,625 ($ in millions) 1Q'24 2Q'24 Performance allocations $ 3,014 $ 3,109 Incentive
Slide 30: Athene reconciliation of net income to adjusted operating income
Year ended December 31, ($ in millions) 2014 2015 2016 2017 2018 2019 2020 2021 Net income available to Athene Holding Ltd. common stockholders $ 471 $ 579 $ 773 $ 1,358 $ 1,053 $ 2,136 $ 1,446 $ 3,718 Preferred stock dividends — — — — — 36 95 141 Net income (loss) attributable to non-controlling in
Slide 31: Definitions: Segment Income
• “Segment Income”, or “SI”, is the key performance measure used by management in evaluating the performance of the asset management, retirement services, and principal investing segments. Management uses Segment Income to make key operating decisions such as the following: ▪ decisions related to th
Slide 32: Definitions: Adjusted Net Income and AUM
• "Adjusted Net Income, Excluding Notable Items" represents ANI with an adjustment related to our Retirement Services segment to exclude notable items. Notable items include unusual variability such as actuarial experience, assumption updates and other insurance adjustments. We use this measure to a
Slide 33: Definitions: Performance Fee-Eligible AUM
• “Performance Fee-Eligible AUM” or “PFEAUM” refers to the AUM that may eventually produce performance fees. All funds for which we are entitled to receive a performance fee allocation or incentive fee are included in Performance Fee-Eligible AUM, which consists of the following: • “Performance Fee-
Slide 34: Definitions: Gross Capital Deployment and Gross IRR
• “Gross Capital Deployment” represents the gross capital that has been invested by the funds and accounts we manage during the relevant period, but excludes certain investment activities primarily related to hedging and cash management functions at the firm. Gross Capital Deployment is not reduced
Slide 35: Definitions: Net IRR
• "Net IRR" of accord series and the European principal finance funds represents the annualized return of a fund after management fees, performance fees allocated to the general partner and certain other expenses, calculated on investors that pay such fees. The terminal value is the net asset value
Slide 36: Footnotes
Retirement Services Flows & Invested Assets (page 20) 3. Gross inorganic inflows represent acquisitions and block reinsurance transactions. 4. Gross outflows include full and partial policyholder withdrawals on deferred annuities, death benefits, pension group annuity benefit payments, payments on p
Slide 37: Forward-Looking Statements
Forward-Looking Statements In this presentation, references to “Apollo,” “we,” “us,” “our” and the “Company” refer collectively to Apollo Global Management, Inc. and its subsidiaries, or as the context may otherwise require. This presentation may contain forward-looking statements that are within th