Athene Holding Ltd. · NYSE:ATH/PA
Athene — Q4 2024 Earnings Presentation
37 slides from Athene's earnings presentation, Feb 4, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings
Apollo Global Management, Inc. Fourth Quarter and Full Year 2024 Earnings
Slide 2: Fourth Quarter and Full Year 2024 Financial Highlights
4Q'24 Per Share FY'24 Per Share GAAP Financial Measures ($ in millions, except per share amounts) Net Income Attributable to Apollo Global Management, Inc. Common Stockholders $1,462 $2.42 $4,480 $7.39 Segment and Non-GAAP Financial Measures ($ in millions, except per share amounts) Fee Related Earn
Slide 3: Consolidated Statements of Operations
(In millions, except per share amounts) 4Q'23 3Q'24 4Q'24 FY'23 FY'24 Revenues Asset Management Management fees $444 $476 $523 $1,772 $1,899 Advisory and transaction fees, net 141 181 205 623 822 Investment income (loss) 150 230 395 1,032 1,305 Incentive fees 21 35 42 80 150 Retirement Services Prem
Slide 4: Fourth quarter results complete a strong year of growth and execution
Fourth quarter results complete a strong year of growth and execution against 2024 targets • Record quarterly and annual FRE of $554 million and $2.1 billion, respectively, driven by strong growth in fee related revenues and disciplined expense growth • Quarterly and annual SRE totaling $841 million
Slide 5: Segment Income summary
($ in millions, except per share amounts) 4Q'23 3Q'24 4Q'24 FY'23 FY'24 Management fees $635 $710 $742 $2,480 $2,776 Capital solutions fees and other, net 116 159 160 538 668 Fee-related performance fees 44 57 53 146 208 Fee-related compensation (200) (238) (227) (835) (925) Non-compensation expense
Slide 6: Segment Income excluding notable items
($ in millions, except per share amounts) 4Q'23 3Q'24 4Q'24 FY'23 FY'24 Management fees $635 $710 $742 $2,480 $2,776 Capital solutions fees and other, net 116 159 160 538 668 Fee-related performance fees 44 57 53 146 208 Fee-related compensation (200) (238) (227) (835) (925) Non-compensation expense
Slide 7: Segment Details
APOLLO Segment Details
Slide 8: Asset Management: Fee Related Earnings
• Management fees increased 12% in 2024 driven by solid growth from Retirement Services clients, strong levels of third-party asset management inflows, as well as solid levels of capital deployment • Capital solutions fees grew 24% in 2024, including a strong fourth quarter that was driven by over 1
Slide 9: Total AUM and Fee-Generating AUM growth
• Total AUM increased $100 billion, or 15%, year-over-year primarily driven by $81 billion of inflows from Asset Management and $71 billion of gross inflows from Retirement Services, as well as mark-to-market appreciation, partially offset by $59 billion of outflows primarily driven by normal course
Slide 10: Gross inflows
$39 $38 $42 $33 $19 $21 $22 $19 $20 $17 $20 $14 Asset Management Retirement Services 1Q'24 2Q'24 3Q'24 4Q'24 • Robust total gross inflows of $33 billion during the fourth quarter and $152 billion over the twelve months ended December 31, 2024 • Inflows from Asset Management of $81 billion in 2024 in
Slide 11: Retirement Services: Spread Related Earnings
• Spread Related Earnings, Excluding Notable Items increased 6.9% in 2024 driven by record organic growth partially offset by lower net spread • Spread Related Earnings included an 8.0% return in 2024 from Athene's alternative investment portfolio; considering management's long-term expected average
Slide 12: Net spread and net investment earnings
(% of average net invested assets) 4Q'23 3Q'24 4Q'24 % Change vs. 4Q'23 FY'23 FY'24 % Change vs. FY'23 Fixed income and other net investment income 4.66% 4.96% 5.00% 34bps 4.45% 4.86% 41bps Alternative net investment income 6.47% 8.19% 9.25% 278bps 7.22% 8.03% 81bps Net Investment Earnings 4.76% 5.1
Slide 13: Retirement Services portfolio and spread highlights
1.40% 0.16% 0.04% (0.15)% (0.05)% (0.03)% 1.37% 3Q'24 4Q'24 Investment Portfolio Highlights Retirement Services Net Spread Bridge (QoQ) Retirement Services: Portfolio & Spread Highlights 1. As of December 31, 2024, 97% of $184 billion of available for sale securities designated NAIC 1 or 2. 2. The c
Slide 14: Retirement Services inflows by channel
Retail: Strong annuity sales activity underwritten to attractive returns, including ~40% of sales coming from Fixed Indexed Annuity/Registered Index-Linked Annuity products in the quarter Flow Reinsurance: Fourth quarter activity reflected growing product offerings and expanding distribution in APAC
Slide 15: Principal Investing Income
• Principal Investing Income grew significantly in 2024 primarily due to greater realized performance fees resulting from increased monetizations of private equity investments and strong performance in Credit strategies • Realized performance fees of $321 million in the fourth quarter were driven by
Slide 16: Performance Fee AUM and Dry Powder
• Performance Fee-Eligible AUM of $223 billion increased 11% year-over-year due to strong growth in performance fee-eligible Credit strategies, particularly direct origination, opportunistic credit and asset-backed finance • Performance Fee-Generating AUM of $150 billion increased 17% year-over-year
Slide 17: Investment Performance Highlights
Investment Performance Highlights Net Accrued Performance Fee Receivable1 (QoQ) Appreciation / gross returns 4Q'24 FY'24 Credit Direct Origination 2.4% 12.8% Opportunistic Credit 1.7% 10.2% Multi-Credit 1.1% 8.1% Asset-Backed Finance 2.3% 11.2% Equity Flagship Private Equity 2.5% 7.4% Hybrid Value 6
Slide 18: HoldCo & Asset Management Summary Balance Sheet Highlights
HoldCo & Asset Management Summary Balance Sheet Highlights2 Financial Strength Ratings ($ in millions, except per share amounts) 3Q'24 4Q'24 Cash and cash equivalents $2,666 $2,692 Investments, net 3,137 3,096 Net accrued performance fees receivable3 1,433 1,684 Net clawback payable4 (108) (119) Deb
Slide 19: Supplemental Details
APOLLO Supplemental Details
Slide 20: AUM roll-forward
($ in millions) Credit4 Equity Total Beginning Balance $597,796 $135,411 $733,207 Inflows 30,617 2,268 32,885 Outflows3 (9,909) (2,948) (12,857) Net Flows 20,708 (680) 20,028 Realizations (4,357) (1,764) (6,121) Market Activity 2,240 1,683 3,923 Ending Balance $616,387 $134,650 $751,037 Three Months
Slide 21: Retirement Services flows and invested assets
• Third-party capital enables Athene to grow in a capital efficient manner and supported approximately 31% of Athene's gross new business volume in 2024, including 37% in the fourth quarter ($ in millions) 4Q'24 FY'24 Flows by Channel Retail $7,954 $35,764 Flow reinsurance 1,029 5,573 Funding agreem
Slide 22: Share Reconciliation
Share Reconciliation 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 Total GAAP Common Stock Outstanding 567,762,932 569,003,922 569,535,344 565,816,456 565,738,933 Non-GAAP Adjustments: Mandatory Convertible Preferred Stock1 15,564,983 14,524,381 14,528,625 14,531,793 14,536,019 Vested RSUs 22,072,379 18,438,577 18,
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 Credit: Accord VI1 2024 $ 1,881 $ 1,701 $ 391 $ 185 $ 341 $ 336 $ 521 33 % 20 % Accord I, II, III, III B, IV & V1 Various — 7,992 6,7
Slide 25: Condensed Consolidated Statements of Financial Condition: Assets
($ in millions, except share amounts) 4Q'23 4Q'24 Assets Asset Management Cash and cash equivalents $2,748 $2,692 Restricted cash and cash equivalents 2 3 Investments 5,502 6,086 Assets of consolidated variable interest entities Cash and cash equivalents 62 158 Investments 1,640 2,806 Other assets 1
Slide 26: Condensed Consolidated Statements of Financial Condition: Liabilities
($ in millions, except share amounts) 4Q'23 4Q'24 Liabilities Asset Management Accounts payable, accrued expenses, and other liabilities $3,338 $3,616 Due to related parties 870 710 Debt 3,883 4,279 Liabilities of consolidated variable interest entities Other liabilities 1,145 1,363 Retirement Servi
Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures
($ in millions) 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 FY'23 FY'24 GAAP Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders $2,732 $1,403 $828 $787 $1,462 $5,001 $4,480 Preferred dividends 24 24 25 24 24 46 97 Net income (loss) attributable to non-controlling interests 825 33
Slide 28: Reconciliation of GAAP to Non-GAAP: annual 2014-2023
Year ended December 31, ($ 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) 3Q'24 4Q'24 Investments, at fair value $ 1,388 $ 1,384 Equity method investments 1,109 1,082 Other investments 358 358 Other1 282 272 Investments, net $ 3,137 $ 3,096 ($ in millions) 3Q'24 4Q'24 Performance allocations
Slide 30: Athene net income reconciliation 2014-2021
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 IRR
• "Gross IRR" of accord series, ADIP funds and the European principal finance funds represents the annualized return of a fund based on the actual timing of all cumulative fund cash flows before management fees, performance fees allocated to the general partner and certain other expenses. Calculatio
Slide 35: Definitions: Net IRR
• "Net IRR" of a traditional private equity or hybrid value fund represents the gross IRR applicable to a fund, including returns for related parties which may not pay fees or performance fees, net of management fees, certain expenses (including interest incurred or earned by the fund itself) and re
Slide 36: Footnotes
Retirement Services Flows & Invested Assets (page 20) 7. Represents outflows from funding agreements, pension group annuities, and multi-year guarantee fixed annuities, all of which occur based on defined maturities or substantially lapse upon reaching their contractual term. Amounts may vary on a q
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