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8-K

Athene Holding Ltd. (ATH-PA)

8-K 2024-11-06 For: 2024-11-06
View Original
Added on April 06, 2026
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): November 6, 2024

Athene-Logo_rgb.jpg

ATHENE HOLDING LTD.

(Exact name of registrant as specified in its charter)
Delaware 001-37963 98-0630022
(State or other jurisdiction of (Commission file number) (I.R.S. Employer
incorporation or organization) Identification Number)

7700 Mills Civic Pkwy

West Des Moines, Iowa 50266

1-(515) 342-4678

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act:
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Title of each class Trading Symbols Name of each exchange on which registered
Depositary Shares, each representing a 1/1,000th interest in a 6.35% Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock, Series A ATHPrA New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a 5.625% Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series B ATHPrB New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a 6.375% Fixed-Rate Reset Perpetual Non-Cumulative Preferred Stock, Series C ATHPrC New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a 4.875% Fixed-Rate Perpetual Non-Cumulative Preferred Stock, Series D ATHPrD New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a 7.75% Fixed-Rate Reset Perpetual Non-Cumulative Preferred Stock, Series E ATHPrE New York Stock Exchange
7.250% Fixed-Rate Reset Junior Subordinated Debentures due 2064 ATHS New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02        Results of Operations and Financial Condition.

On November 6, 2024, Athene Holding Ltd. (the “Company”) made available on its website the Company’s financial supplement for the third quarter ended September 30, 2024, furnished as Exhibit 99.1 hereto and incorporated by reference in this Item 2.02.

The foregoing information, including the Exhibit referenced in this Item 2.02, is being furnished pursuant to this Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing or other document, except as shall be expressly set forth by specific reference in such a filing or document.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Quarterly Financial Supplement for Athene Holding Ltd. for the third quarter 2024 (furnished and not filed).
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ATHENE HOLDING LTD.
Date: November 6, 2024 /s/ Martin P. Klein
Martin P. Klein
Executive Vice President and Chief Financial Officer

Document

a3q24.jpg

Table of Contents athene-logo_rgb.jpg
Important Notice 3
FINANCIAL RESULTS
Financial Highlights 4
Condensed Consolidated Statements of Income (GAAP view) 5
Spread Related Earnings (Management view) 6
Reconciliation of Earnings Measures 7
Net Flows & Outflows Attributable to Athene by Type 8
Condensed Consolidated Balance Sheets 9
ASSETS
Net Invested Assets (Management view) & Agency Ratings 11
Net Alternative Investments (Management view) 12
Credit Quality of Securities & Net Invested Assets 13
LIABILITIES
Net Reserve Liabilities & Rollforwards 17
Deferred Annuity Liability Characteristics 18
ADDITIONAL INFORMATION
Notes to the Financial Supplement 19
Non-GAAP Reconciliations 22
Important Notice
---

The information included in this financial supplement is unaudited and intended for informational purposes only.

Athene Holding Ltd. (AHL) is a subsidiary of Apollo Global Management, Inc. The financial statements and exhibits included in this financial supplement should be read in conjunction with AHL’s reports and other filings with the US Securities and Exchange Commission, including its reports on Form 10-K, Form 10-Q and Form 8-K. This financial supplement does not constitute an offer to sell, or the solicitation of an offer to buy, any security of AHL, and nothing in this financial supplement shall in any way be relied on in connection with investment decisions. Each recipient of the information contained in this financial supplement is responsible for making its own independent assessment of the business, financial condition, prospects, status and affairs of AHL.

AHL undertakes no obligation to update or correct the information in this financial supplement. AHL makes no representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of any of the information contained in this financial supplement. AHL does not accept any liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this financial supplement or its contents or any reliance on the information contained herein.

This financial supplement includes certain non-GAAP measures, including net investment earnings, cost of funds, other operating expenses, spread related earnings, net investment spread, net spread, adjusted senior debt-to-capital ratio, adjusted leverage ratio, net invested assets, net reserve liabilities, spread related earnings - excluding notable items, net investment spread - excluding notable items and net spread - excluding notable items. Management believes the use of these non-GAAP measures (which are defined and discussed in greater detail and reconciled elsewhere in this financial supplement), together with the relevant GAAP measures, provides information that may enhance an investor’s understanding of AHL’s results of operations and the underlying profitability drivers of AHL’s business. These measures should be considered supplementary to AHL’s results in accordance with US GAAP and should not be viewed as a substitute for the corresponding US GAAP measures.

Financial Highlights<br><br>Unaudited (in millions, except percentages) athene-logo_rgb.jpg
Quarterly Trends Δ Year-to-Date Δ
3Q’23 4Q’23 1Q’24 2Q’24 3Q’24 Q/Q Y/Y 2023 2024 Y/Y
SELECTED INCOME STATEMENT DATA
GAAP
Net income available to AHL common stockholder $ 442 $ 2,925 $ 1,147 $ 583 $ 580 (1) % 31 % $ 1,559 $ 2,310 48 %
Return on assets (ROA) 0.66 % 4.10 % 1.48 % 0.71 % 0.67 % (4)bps 1bps 0.80 % 0.94 % 14bps
NON-GAAP
Spread related earnings (SRE) $ 872 $ 749 $ 816 $ 712 $ 855 20 % (2) % $ 2,358 $ 2,383 1 %
Net spread 1.68 % 1.41 % 1.47 % 1.24 % 1.44 % 20bps (24)bps 1.52 % 1.38 % (14)bps
Net investment spread 2.13 % 1.80 % 1.83 % 1.64 % 1.83 % 19bps (30)bps 1.98 % 1.76 % (22)bps
Spread related earnings, excluding notable items1 $ 782 $ 749 $ 816 $ 712 $ 830 17 % 6 % $ 2,243 $ 2,358 5 %
Net spread, excluding notable items1 1.51 % 1.41 % 1.47 % 1.24 % 1.40 % 16bps (11)bps 1.45 % 1.37 % (8)bps
Net investment spread, excluding notable items1 1.96 % 1.80 % 1.83 % 1.64 % 1.79 % 15bps (17)bps 1.91 % 1.75 % (16)bps
Alternative net investment income delta to long-term expectation2 $ 96 $ 132 $ 56 $ 154 $ 81 $ 319 $ 291
Alternative net return delta to long-term expectation 3.25 % 4.53 % 1.90 % 5.27 % 2.81 % 3.54 % 3.31 %
Impact to net spread 0.18 % 0.25 % 0.10 % 0.27 % 0.13 % 0.21 % 0.16 %
SELECTED BALANCE SHEET DATA
GAAP
Total assets $ 269,763 $ 300,579 $ 320,579 $ 332,627 $ 354,966 7 % 32 % $ 269,763 $ 354,966 32 %
Goodwill 4,060 4,065 4,064 4,064 4,071 — % — % 4,060 4,071 — %
Total liabilities 255,734 279,344 297,423 308,295 327,855 6 % 28 % 255,734 327,855 28 %
Debt 3,634 4,209 5,740 5,733 5,725 — % 58 % 3,634 5,725 58 %
Total AHL stockholders' equity 8,537 13,838 14,760 14,998 17,445 16 % 104 % 8,537 17,445 104 %
Debt-to-capital ratio 29.9 % 23.3 % 28.0 % 27.7 % 24.7 % NM NM 29.9 % 24.7 % NM
Leverage ratio 55.8 % 40.8 % 43.4 % 42.9 % 38.3 % NM NM 55.8 % 38.3 % NM
NON-GAAP
Gross invested assets $ 261,209 $ 278,617 $ 292,837 $ 302,215 $ 314,932 4 % 21 % $ 261,209 $ 314,932 21 %
Invested assets – ACRA noncontrolling interests (53,114) (61,190) (65,482) (69,258) (72,269) 4 % 36 % (53,114) (72,269) 36 %
Net invested assets 208,095 217,427 227,355 232,957 242,663 4 % 17 % 208,095 242,663 17 %
Net reserve liabilities 185,744 199,289 208,523 211,548 225,899 7 % 22 % 185,744 225,899 22 %
Notional senior debt 3,400 4,000 5,000 5,000 5,000 — % 47 % 3,400 5,000 47 %
Adjusted AHL common stockholder’s equity 19,089 20,368 21,540 21,810 20,907 (4) % 10 % 19,089 20,907 10 %
Adjusted senior debt-to-capital ratio 13.3 % 14.5 % 16.5 % 16.4 % 16.9 % 50bps NM 13.3 % 16.9 % NM
Adjusted leverage ratio 19.4 % 20.3 % 22.7 % 22.5 % 23.2 % 70bps NM 19.4 % 23.2 % NM
INFLOWS DATA
Gross organic inflows $ 12,942 $ 19,824 $ 20,094 $ 16,695 $ 20,017 20 % 55 % $ 43,583 $ 56,806 30 %
Gross inorganic inflows — 2,214 — — — NM NM — — NM
Total gross inflows $ 12,942 $ 22,038 $ 20,094 $ 16,695 $ 20,017 20 % 55 % $ 43,583 $ 56,806 30 %
Note: “NM” represents changes that are not meaningful. Please refer to the Notes to the Financial Supplement section for discussion on non-GAAP metrics and the Non-GAAP Measure Reconciliations section for reconciliations of non-GAAP metrics. 1. Notable items include unusual variability such as actuarial experience, assumption updates and other insurance adjustments. 2. Refers to the amount that as-reported alternative net investment income is below (above) management's long-term expectation of an 11% average annual return. Our long-term expectation is based on historical experience and provides investors with supplemental information for period-to-period comparability as well as a basis for developing expectations of future performance. There is no assurance that management’s expected long-term average annual return will be achieved. Actual results may differ materially.
Condensed Consolidated Statements of Income (GAAP view)Unaudited (in millions, except percentages) athene-logo_rgb.jpg
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Δ Year-to-Date Δ
4Q’23 1Q’24 2Q’24 3Q’24 Q/Q Y/Y 2023 2024 Y/Y
REVENUES
Premiums 26 $ 3,586 $ 101 $ 673 $ 389 (42) % NM $ 9,163 $ 1,163 (87) %
Product charges 226 238 251 267 6 % 23 % 622 756 22 %
Net investment income 3,078 3,292 3,509 3,777 8 % 29 % 8,052 10,578 31 %
Investment related gains (losses) 2,621 1,677 (134) 1,539 NM NM (1,193) 3,082 NM
Other revenues 7 2 3 4 33 % (99) % 584 9 (98) %
Revenues of consolidated variable interest entities
Net investment income 47 77 56 77 38 % 3 % 210 210 — %
Investment related gains (losses) 447 334 306 469 53 % 88 % 744 1,109 49 %
Total revenues 10,012 5,721 4,664 6,522 40 % NM 18,182 16,907 (7) %
BENEFITS AND EXPENSES
Interest sensitive contract benefits 2,595 2,884 1,824 2,599 42 % NM 3,634 7,307 101 %
Future policy and other policy benefits 4,088 543 1,095 793 (28) % 115 % 10,346 2,431 (77) %
Market risk benefits remeasurement (gains) losses 570 (154) (16) 524 NM NM (166) 354 NM
Amortization of deferred acquisition costs, deferred sales inducements and value of business acquired 186 207 227 244 7 % 16 % 502 678 35 %
Policy and other operating expenses 489 459 507 687 36 % 46 % 1,359 1,653 22 %
Total benefits and expenses 7,928 3,939 3,637 4,847 33 % NM 15,675 12,423 (21) %
Income before income taxes 2,084 1,782 1,027 1,675 63 % 240 % 2,507 4,484 79 %
Income tax expense (benefit)1 (1,619) 307 161 191 19 % 18 % 458 659 44 %
Net income 3,703 1,475 866 1,484 71 % NM 2,049 3,825 87 %
Less: Net income (loss) attributable to noncontrolling interests 733 283 237 859 262 % NM 354 1,379 290 %
Net income attributable to Athene Holding Ltd. stockholders 2,970 1,192 629 625 (1) % 29 % 1,695 2,446 44 %
Less: Preferred stock dividends 45 45 46 45 (2) % 2 % 136 136 — %
Net income available to Athene Holding Ltd. common stockholder 442 $ 2,925 $ 1,147 $ 583 $ 580 (1) % 31 % $ 1,559 $ 2,310 48 %
1. 4Q’23 includes a one-time tax benefit of 1.8 billion resulting from the establishment of deferred tax assets related to the Government of Bermuda’s enactment of the Corporate Income Tax Act of 2023.

All values are in US Dollars.

Spread Related Earnings (Management view)<br><br>Unaudited (in millions, except percentages) athene-logo_rgb.jpg
Quarterly Trends Δ Year-to-Date Δ
3Q’23 4Q’23 1Q’24 2Q’24 3Q’24 Q/Q Y/Y 2023 2024 Y/Y
SPREAD RELATED EARNINGS
Fixed income and other net investment income $ 2,236 $ 2,342 $ 2,455 $ 2,635 $ 2,807 7 % 26 % $ 6,402 $ 7,897 23 %
Alternative net investment income 230 190 266 168 236 40 % 3 % 674 670 (1) %
Net investment earnings 2,466 2,532 2,721 2,803 3,043 9 % 23 % 7,076 8,567 21 %
Strategic capital management fees 19 23 25 24 27 13 % 42 % 49 76 55 %
Cost of funds (1,384) (1,594) (1,723) (1,880) (1,983) 5 % 43 % (4,056) (5,586) 38 %
Net investment spread 1,101 961 1,023 947 1,087 15 % (1) % 3,069 3,057 — %
Other operating expenses (123) (120) (116) (116) (114) (2) % (7) % (367) (346) (6) %
Interest and other financing costs (106) (92) (91) (119) (118) (1) % 11 % (344) (328) (5) %
Spread related earnings $ 872 $ 749 $ 816 $ 712 $ 855 20 % (2) % $ 2,358 $ 2,383 1 %
Fixed income and other net investment income 4.58 % 4.66 % 4.66 % 4.83 % 4.96 % 13bps 38bps 4.40 % 4.82 % 42bps
Alternative net investment income 7.75 % 6.47 % 9.10 % 5.73 % 8.19 % 246bps 44bps 7.46 % 7.69 % 23bps
Net investment earnings 4.76 % 4.76 % 4.89 % 4.87 % 5.12 % 25bps 36bps 4.57 % 4.96 % 39bps
Strategic capital management fees 0.04 % 0.04 % 0.04 % 0.04 % 0.05 % 1bp 1bp 0.03 % 0.04 % 1bp
Cost of funds (2.67) % (3.00) % (3.10) % (3.27) % (3.34) % 7bps 67bps (2.62) % (3.24) % 62bps
Net investment spread 2.13 % 1.80 % 1.83 % 1.64 % 1.83 % 19bps (30)bps 1.98 % 1.76 % (22)bps
Other operating expenses (0.24) % (0.23) % (0.21) % (0.20) % (0.19) % (1)bp (5)bps (0.24) % (0.20) % (4)bps
Interest and other financing costs (0.21) % (0.16) % (0.15) % (0.20) % (0.20) % 0bps (1)bp (0.22) % (0.18) % (4)bps
Spread related earnings 1.68 % 1.41 % 1.47 % 1.24 % 1.44 % 20bps (24)bps 1.52 % 1.38 % (14)bps
Average net invested assets - fixed income and other $ 195,448 $ 201,035 $ 210,688 $ 218,446 $ 226,295 4 % 16 % $ 194,200 $ 218,492 13 %
Average net invested assets - alternatives 11,864 11,726 11,703 11,710 11,515 (2) % (3) % 12,041 11,609 (4) %
Average net invested assets $ 207,312 $ 212,761 $ 222,391 $ 230,156 $ 237,810 3 % 15 % $ 206,241 $ 230,101 12 %
Note: Please refer to the Notes to the Financial Supplement section for discussion on spread related earnings.
Reconciliation of Earnings Measures<br><br>Unaudited (in millions, except percentages) athene-logo_rgb.jpg
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Quarterly Trends Δ Year-to-Date Δ
3Q’23 4Q’23 1Q’24 2Q’24 3Q’24 Q/Q Y/Y 2023 2024 Y/Y
RECONCILIATION OF NET INCOME AVAILABLE TO ATHENE HOLDING LTD. COMMON STOCKHOLDER TO SPREAD RELATED EARNINGS
Net income available to Athene Holding Ltd. common stockholder $ 442 $ 2,925 $ 1,147 $ 583 $ 580 (1) % 31 % $ 1,559 $ 2,310 48 %
Preferred stock dividends 44 45 45 46 45 (2) % 2 % 136 136 — %
Net income (loss) attributable to noncontrolling interests (155) 733 283 237 859 262 % NM 354 1,379 290 %
Net income 331 3,703 1,475 866 1,484 71 % NM 2,049 3,825 87 %
Income tax expense (benefit) 162 (1,619) 307 161 191 19 % 18 % 458 659 44 %
Income before income taxes 493 2,084 1,782 1,027 1,675 63 % 240 % 2,507 4,484 79 %
Realized gains (losses) on sale of AFS securities and mortgage loans (29) (34) (23) (9) (276) NM NM (169) (308) (82) %
Unrealized, allowances and other investment gains (losses) (261) 256 21 (100) 439 NM NM (507) 360 NM
Change in fair value of reinsurance assets (384) 765 (35) (32) 444 NM NM (180) 377 NM
Offsets to investment gains (losses) 11 12 15 17 21 24 % 91 % 27 53 96 %
Investment gains (losses), net of offsets (663) 999 (22) (124) 628 NM NM (829) 482 NM
Change in fair values of derivatives and embedded derivatives - FIAs (141) 59 484 126 (196) NM (39) % 208 414 99 %
Non-operating change in funding agreements 12 19 23 18 47 161 % 292 % 16 88 NM
Change in fair value of market risk benefits 565 (498) 201 67 (364) NM NM 427 (96) NM
Non-operating change in liability for future policy benefits (5) 2 (35) (8) — NM NM (51) (43) 16 %
Non-operating change in insurance liabilities and related derivatives 431 (418) 673 203 (513) NM NM 600 363 (40) %
Integration, restructuring and other non-operating expenses (41) (32) (30) (31) (204) NM NM (98) (265) 170 %
Stock compensation expense (13) (46) (13) (11) (12) 9 % (8) % (42) (36) (14) %
Preferred stock dividends 44 45 45 46 45 (2) % 2 % 136 136 — %
Noncontrolling interests - pre-tax income (loss) and VIE adjustments (137) 787 313 232 876 278 % NM 382 1,421 272 %
Less: Total adjustments to income before income taxes (379) 1,335 966 315 820 160 % NM 149 2,101 NM
Spread related earnings $ 872 $ 749 $ 816 $ 712 $ 855 20 % (2) % $ 2,358 $ 2,383 1 %
Note: Please refer to the Notes to the Financial Supplement section for discussion on spread related earnings.
Net Flows & Outflows Attributable to Athene by TypeUnaudited (in millions, except percentages) athene-logo_rgb.jpg
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Δ Year-to-Date Δ
4Q’23 1Q’24 2Q’24 3Q’24 Q/Q Y/Y 2023 2024 Y/Y
NET FLOWS
Retail 6,523 $ 13,410 $ 9,663 $ 8,938 $ 9,209 3 % 41 % $ 21,883 $ 27,810 27 %
Flow reinsurance 2,798 2,390 1,210 944 (22) % (70) % 7,749 4,544 (41) %
Funding agreements1 2,300 8,041 5,970 9,570 60 % 195 % 4,893 23,581 NM
Pension group annuities 1,316 — 577 294 (49) % NM 9,058 871 (90) %
Gross organic inflows 19,824 20,094 16,695 20,017 20 % 55 % 43,583 56,806 30 %
Gross inorganic inflows2 2,214 — — — NM NM — — NM
Total gross inflows 22,038 20,094 16,695 20,017 20 % 55 % 43,583 56,806 30 %
Gross outflows3 (7,116) (8,035) (10,140) (8,158) (20) % (24) % (26,752) (26,333) (2) %
Net flows 2,204 $ 14,922 $ 12,059 $ 6,555 $ 11,859 81 % NM $ 16,831 $ 30,473 81 %
Inflows attributable to Athene4 3,101 $ 13,026 $ 14,591 $ 10,840 $ 14,705 36 % NM $ 29,974 $ 40,136 34 %
Inflows attributable to ADIP4,5 9,012 4,437 4,824 4,244 (12) % (57) % 13,609 13,505 (1) %
Inflows ceded to third-party reinsurers6 — 1,066 1,031 1,068 4 % NM — 3,165 NM
Total gross inflows 12,942 $ 22,038 $ 20,094 $ 16,695 $ 20,017 20 % 55 % $ 43,583 $ 56,806 30 %
Outflows attributable to Athene (9,550) $ (5,791) $ (6,748) $ (8,627) $ (6,176) (28) % (35) % $ (22,972) $ (21,551) (6) %
Outflows attributable to ADIP5 (1,325) (1,287) (1,513) (1,982) 31 % 67 % (3,780) (4,782) 27 %
Total gross outflows3 (10,738) $ (7,116) $ (8,035) $ (10,140) $ (8,158) (20) % (24) % $ (26,752) $ (26,333) (2) %
OUTFLOWS ATTRIBUTABLE TO ATHENE BY TYPE
Maturity-driven, contractual-based outflows7 (3,243) $ (1,952) $ (2,818) $ (4,799) $ (2,312) (52) % (29) % $ (8,941) $ (9,929) 11 %
Policyholder-driven outflows8 (3,839) (3,930) (3,828) (3,864) 1 % 8 % (11,308) (11,622) 3 %
Income oriented withdrawals (planned)9 (1,831) (1,691) (1,558) (1,517) (3) % (6) % (5,133) (4,766) (7) %
From policies out-of-surrender-charge (planned)10 (1,365) (1,512) (1,511) (1,444) (4) % 9 % (4,183) (4,467) 7 %
From policies in-surrender-charge (unplanned)11 (643) (727) (759) (903) 19 % 41 % (1,992) (2,389) 20 %
Core outflows (5,791) (6,748) (8,627) (6,176) (28) % (10) % (20,249) (21,551) 6 %
Strategic reinsurance transactions12 — — — — NM NM (2,723) — NM
Outflows attributable to Athene (9,550) $ (5,791) $ (6,748) $ (8,627) $ (6,176) (28) % (35) % $ (22,972) $ (21,551) (6) %
Annualized rate13
Maturity-driven, contractual-based outflows7 % (3.7) % (5.1) % (8.3) % (3.9) % NM NM (5.8) % (5.8) % 0bps
Policyholder-driven outflows8 % (7.2) % (7.0) % (6.7) % (6.5) % (20)bps (40)bps (7.3) % (6.7) % (60)bps
Income oriented withdrawals (planned)9 % (3.4) % (3.0) % (2.7) % (2.6) % (10)bps (50)bps (3.3) % (2.8) % (50)bps
From policies out-of-surrender-charge (planned)10 % (2.6) % (2.7) % (2.7) % (2.4) % (30)bps (20)bps (2.7) % (2.5) % (20)bps
From policies in-surrender-charge (unplanned)11 % (1.2) % (1.3) % (1.3) % (1.5) % 20bps 30bps (1.3) % (1.4) % 10bps
Core outflows % (10.9) % (12.1) % (15.0) % (10.4) % NM NM (13.1) % (12.5) % (60)bps
Strategic reinsurance transactions12 % — % — % — % — % NM NM (1.8) % — % NM
Outflows attributable to Athene % (10.9) % (12.1) % (15.0) % (10.4) % NM NM (14.9) % (12.5) % NM
1. Funding agreements are comprised of funding agreements issued under our funding agreement backed notes (FABN) program, secured and other funding agreements, funding agreements issued to the Federal Home Loan Bank (FHLB) and long-term repurchase agreements. 2. Gross inorganic inflows represent acquisitions and block reinsurance transactions. On November 6, 2023, we entered into an agreement with a Japanese counterparty, effective October 1, 2023, pursuant to which we agreed to reinsure a block of whole life insurance policies on a coinsurance basis. In conjunction with the transaction, we entered into an agreement with a leading mortality reinsurer to retrocede the mortality risk related to this block of business. 3. Gross outflows include full and partial policyholder withdrawals on deferred annuities, death benefits, pension group annuity benefit payments, payments on payout annuities, payments related to interest, maturities and repurchases of funding agreements and block reinsurance outflows. 4. Effective July 1, 2023, Athene Life Re Ltd. (ALRe) sold 50% of Athene Co-Invest Reinsurance Affiliate Holding 2 Ltd.’s (together with its subsidiaries, ACRA 2) economic interests to Apollo/Athene Dedicated Investment Program II (ADIP II), resulting in approximately 6.8 billion of inflows attributable to Athene for the first six months of 2023 being retroactively attributed to ADIP II. Effective December 31, 2023, ADIP II’s ownership of economic interests in ACRA 2 increased to 60%, with ALRe owning the remaining 40% of the economic interests. This resulted in approximately 3.0 billion of inflows attributable to Athene for the year ended December 31, 2023 being retroactively attributed to ADIP II. These were reflected as an inflow for ADIP and a reduction of Athene inflows in 3Q’23 and 4Q’23, respectively. 5. ADIP refers to Apollo/Athene Dedicated Investment Program (ADIP I) and ADIP II and represents the noncontrolling interests in business ceded to ACRA. 6. During the first quarter of 2024, we entered into a modco reinsurance agreement with Catalina Re Archdale Life Insurance Company Ltd., a subsidiary of Catalina Holdings (Bermuda) Ltd. (together with its subsidiaries, Catalina), to cede a quota share of our retail deferred annuity business issued on or after January 1, 2024. 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 quarterly basis, based on the timing of original issuance. 8. Represents outflows from fixed indexed annuities and other applicable products, which have varying degrees of predictability due to policyholder actions. 9. Represents partial annuity withdrawals to meet retirement income needs within contractual annual limits. 10. Represents outflows from policies that no longer have an active surrender charge in force. 11. Represents outflows from policies with an active surrender charge in force. 12. Strategic reinsurance transaction outflows include the portion of the reinsurance business recaptured by Venerable Insurance and Annuity Company (VIAC) in 3Q’23. 13 The outflow rate is calculated as outflows attributable to Athene divided by average net invested assets for the respective period, on an annualized basis.

All values are in US Dollars.

Condensed Consolidated Balance Sheets<br><br>Unaudited (in millions, except percentages) athene-logo_rgb.jpg
December 31, 2023 September 30, 2024 Δ
ASSETS
Investments
Available-for-sale securities, at fair value $ 134,338 $ 164,685 23 %
Trading securities, at fair value 1,706 1,684 (1) %
Equity securities 1,293 1,292 — %
Mortgage loans, at fair value 44,115 58,587 33 %
Investment funds 109 107 (2) %
Policy loans 334 320 (4) %
Funds withheld at interest 24,359 21,231 (13) %
Derivative assets 5,298 7,529 42 %
Short-term investments 341 614 80 %
Other investments 1,206 1,727 43 %
Total investments 213,099 257,776 21 %
Cash and cash equivalents 13,020 13,587 4 %
Restricted cash 1,761 964 (45) %
Investments in related parties
Available-for-sale securities, at fair value 14,009 17,897 28 %
Trading securities, at fair value 838 619 (26) %
Equity securities, at fair value 318 257 (19) %
Mortgage loans, at fair value 1,281 1,345 5 %
Investment funds 1,632 1,604 (2) %
Funds withheld at interest 6,474 5,444 (16) %
Short-term investments 947 812 (14) %
Other investments, at fair value 343 348 1 %
Accrued investment income 1,933 2,695 39 %
Reinsurance recoverable 4,154 7,454 79 %
Deferred acquisition costs, deferred sales inducements and value of business acquired 5,979 6,971 17 %
Goodwill 4,065 4,071 — %
Other assets 10,179 10,726 5 %
Assets of consolidated variable interest entities
Investments
Trading securities, at fair value 2,136 2,379 11 %
Mortgage loans, at fair value 2,173 2,226 2 %
Investment funds, at fair value 15,927 17,135 8 %
Other investments, at fair value 103 159 54 %
Cash and cash equivalents 98 305 211 %
Other assets 110 192 75 %
Total assets $ 300,579 $ 354,966 18 %
Condensed Consolidated Balance Sheets, continued<br><br>Unaudited (in millions, except percentages) athene-logo_rgb.jpg
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December 31, 2023 September 30, 2024 Δ
LIABILITIES
Interest sensitive contract liabilities $ 204,670 $ 245,436 20 %
Future policy benefits 53,287 52,962 (1) %
Market risk benefits 3,751 4,402 17 %
Debt 4,209 5,725 36 %
Derivative liabilities 1,995 2,758 38 %
Payables for collateral on derivatives and securities to repurchase 7,536 7,952 6 %
Other liabilities 2,781 7,257 161 %
Liabilities of consolidated variable interest entities 1,115 1,363 22 %
Total liabilities 279,344 327,855 17 %
EQUITY
Preferred stock — — NM
Common stock — — NM
Additional paid-in capital 19,499 19,567 — %
Retained earnings (accumulated deficit) (92) 1,345 NM
Accumulated other comprehensive loss (5,569) (3,467) 38 %
Total Athene Holding Ltd. stockholders' equity 13,838 17,445 26 %
Noncontrolling interests 7,397 9,666 31 %
Total equity 21,235 27,111 28 %
Total liabilities and equity $ 300,579 $ 354,966 18 %
Net Invested Assets (Management view) & Agency Ratings<br><br>Unaudited (in millions, except percentages) athene-logo_rgb.jpg
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December 31, 2023 September 30, 2024
Invested Asset Value1 Percent of Total Invested Asset Value1 Percent of Total
NET INVESTED ASSETS
Corporate $ 82,883 38.1 % $ 86,751 35.7 %
CLO 20,538 9.4 % 25,200 10.4 %
Credit 103,421 47.5 % 111,951 46.1 %
CML 25,977 11.9 % 27,928 11.5 %
RML 18,021 8.3 % 25,144 10.4 %
RMBS 7,795 3.6 % 7,768 3.2 %
CMBS 5,580 2.6 % 7,436 3.1 %
Real estate 57,373 26.4 % 68,276 28.2 %
ABS 22,202 10.2 % 28,572 11.8 %
Alternative investments 11,659 5.4 % 11,356 4.7 %
State, municipal, political subdivisions and foreign government 3,384 1.5 % 3,259 1.3 %
Equity securities 1,727 0.8 % 2,095 0.9 %
Short-term investments 1,048 0.5 % 1,256 0.5 %
US government and agencies 4,052 1.9 % 4,955 2.0 %
Other investments 44,072 20.3 % 51,493 21.2 %
Cash and cash equivalents 10,467 4.8 % 8,354 3.4 %
Policy loans and other 2,094 1.0 % 2,589 1.1 %
Net invested assets $ 217,427 100.0 % $ 242,663 100.0 %
AM Best Standard & Poor’s Fitch Moody’s
--- --- --- --- ---
FINANCIAL STRENGTH RATINGS
Athene Annuity & Life Assurance Company A+ A+ A+ A1
Athene Annuity and Life Company A+ A+ A+ A1
Athene Annuity & Life Assurance Company of New York A+ A+ A+ A1
Athene Life Insurance Company of New York A+ NR NR NR
Athene Annuity Re Ltd. A+ A+ A+ A1
Athene Life Re Ltd. A+ A+ A+ A1
Athene Life Re International Ltd. A+ A+ A+ A1
Athene Co-Invest Reinsurance Affiliate 1A Ltd. and Athene Co-Invest Reinsurance Affiliate 1B Ltd. A+ A+ A+ A1
Athene Co-Invest Reinsurance Affiliate 2A Ltd. and Athene Co-Invest Reinsurance Affiliate 2B Ltd. A+ A+ A+ A1
Athene Co-Invest Reinsurance Affiliate International Ltd. A+ A+ A+ A1
CREDIT RATINGS
Athene Holding Ltd. a- A- A- NR
Senior notes a- A- BBB+ Baa1
Subordinated notes NR BBB BBB- Baa2
1. Please refer to the Notes to the Financial Supplement section for discussion on net invested assets, including net alternative investments, and the Non-GAAP Measure Reconciliations section for the reconciliation of investments, including related parties, to net invested assets. Net invested assets include our economic ownership of ACRA investments but do not include the investments associated with the noncontrolling interests.
Net Alternative Investments (Management view)<br><br>Unaudited (in millions, except percentages) athene-logo_rgb.jpg
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December 31, 20231 September 30, 2024
Invested Asset Value2 Percent of Total Invested Asset Value2 Percent of Total
NET ALTERNATIVE INVESTMENTS
Strategic origination platforms
Wheels $ 691 5.9 % $ 571 5.0 %
Redding Ridge 571 4.9 % 576 5.1 %
MidCap Financial 524 4.5 % 452 4.0 %
Aqua Finance 215 1.8 % 311 2.7 %
PK AirFinance 244 2.1 % 301 2.6 %
Foundation Home Loans 242 2.1 % 208 1.8 %
Other 240 2.1 % 509 4.5 %
Strategic origination platforms 2,727 23.4 % 2,928 25.7 %
Apollo and other investments
Real assets 2,010 17.2 % 1,735 15.3 %
Private equity 1,159 9.9 % 1,089 9.6 %
Structured equity and other 368 3.2 % 500 4.4 %
Equity 3,537 30.3 % 3,324 29.3 %
Credit 1,559 13.4 % 1,354 11.9 %
Liquid assets and other 298 2.6 % 1,148 10.1 %
Apollo and other investments 5,394 46.3 % 5,826 51.3 %
Total AAA 8,121 69.7 % 8,754 77.0 %
Retirement Services
Athora 1,106 9.5 % 1,122 9.9 %
Venerable 181 1.5 % 180 1.6 %
Other 1,014 8.7 % — — %
Retirement Services 2,301 19.7 % 1,302 11.5 %
Apollo and other investments
Equity 969 8.3 % 973 8.6 %
Credit 215 1.8 % 293 2.6 %
Other3 53 0.5 % 34 0.3 %
Apollo and other investments 1,237 10.6 % 1,300 11.5 %
Total Non AAA 3,538 30.3 % 2,602 23.0 %
Net alternative investments4 $ 11,659 100.0 % $ 11,356 100.0 %
1. Prior period amounts have been reclassified to conform with the current year presentation as a result of aligning our alternative investment categories to reflect our updated investment strategies. 2. Please refer to the Notes to the Financial Supplement section for discussion on net invested assets, including net alternative investments, and the Non-GAAP Measure Reconciliations section for the reconciliations of investments, including related parties, to net invested assets and investment funds, including related parties and consolidated VIEs, to net alternative investments. Net invested assets include our economic ownership of ACRA investments but do not include the investments associated with the noncontrolling interests. Net alternative invested asset values reflect Athene’s ownership of Apollo Aligned Alternatives, L.P. (AAA). Athene’s ownership percentage of AAA was approximately 62%, 63%, 66% and 69% as of September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, respectively. 3. Other primarily includes royalties. 4. Net alternative investments do not correspond to total investment funds, including related parties and consolidated VIEs, on our condensed consolidated balance sheets. Net alternative investments adjusts the GAAP presentation to include certain equity securities that are included in AFS or trading securities in the GAAP view, investment funds included in our funds withheld at interest and modco reinsurance portfolios, royalties and other investments.
Credit Quality of Securities<br><br>Unaudited (in millions, except percentages) athene-logo_rgb.jpg
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December 31, 2023 September 30, 2024
CREDIT QUALITY OF AFS SECURITIES (GAAP VIEW) Fair Value Percent of Total Fair Value Percent of Total
National Association of Insurance Commissioners (NAIC) designation
1 A-G $ 81,549 55.0 % $ 102,381 56.1 %
2 A-C 61,664 41.5 % 74,486 40.8 %
Total investment grade 143,213 96.5 % 176,867 96.9 %
3 A-C 3,544 2.4 % 3,502 1.9 %
4 A-C 1,013 0.7 % 1,469 0.8 %
5 A-C 129 0.1 % 148 0.1 %
6 448 0.3 % 596 0.3 %
Total below investment grade 5,134 3.5 % 5,715 3.1 %
Total AFS securities including related parties $ 148,347 100.0 % $ 182,582 100.0 %
Nationally Recognized Statistical Rating Organization (NRSRO) designation
AAA/AA/A $ 71,887 48.5 % $ 93,502 51.2 %
BBB 58,010 39.1 % 70,025 38.4 %
Non-rated1 11,427 7.7 % 11,842 6.5 %
Total investment grade 141,324 95.3 % 175,369 96.1 %
BB 3,421 2.3 % 3,004 1.6 %
B 826 0.6 % 1,004 0.5 %
CCC 1,037 0.6 % 1,030 0.6 %
CC and lower 739 0.5 % 766 0.4 %
Non-rated1 1,000 0.7 % 1,409 0.8 %
Total below investment grade 7,023 4.7 % 7,213 3.9 %
Total AFS securities including related parties $ 148,347 100.0 % $ 182,582 100.0 %
1. Securities denoted as non-rated by the NRSRO were classified as investment or non-investment grade according to the security’s respective NAIC designation. With respect to modeled loan backed and structured securities (LBaSS), the NAIC designation methodology differs in significant respects from the NRSRO ratings methodology. The NRSRO ratings methodology is focused on the likelihood of recovery of all contractual payments, including principal at par regardless of entry price, while the NAIC designation methodology considers an investment at amortized cost, and the likelihood of recovery of that book value. We view the NAIC designation methodology as the most appropriate way to view our AFS portfolio when evaluating credit risk since a portion of our holdings were purchased at a significant discount to par.
Credit Quality of Net Invested Assets (Management view)<br><br>Unaudited (In millions, except percentages) athene-logo_rgb.jpg
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December 31, 2023 September 30, 2024 December 31, 2023 September 30, 2024
Invested Asset Value1 % of Total Invested Asset Value1 % of Total Invested Asset Value1 % of Total Invested Asset Value1 % of Total
CREDIT QUALITY OF NET INVESTED ASSETS CREDIT QUALITY OF NET INVESTED ASSETS
NAIC designation NRSRO designation
1 A-G $ 79,503 53.9 % $ 90,575 54.8 % AAA/AA/A $ 67,768 45.9 % $ 80,134 48.5 %
2 A-C 61,775 41.9 % 67,976 41.2 % BBB 57,345 38.9 % 62,782 38.0 %
Non-rated 322 0.2 % — — % Non-rated2 14,397 9.8 % 13,933 8.4 %
Total investment grade 141,600 96.0 % 158,551 96.0 % Total investment grade 139,510 94.6 % 156,849 94.9 %
3 A-C 3,833 2.6 % 3,447 2.1 % BB 3,551 2.4 % 2,926 1.8 %
4 A-C 1,170 0.8 % 1,519 0.9 % B 915 0.6 % 1,060 0.7 %
5 A-C 357 0.2 % 382 0.2 % CCC 1,280 0.9 % 1,280 0.8 %
6 522 0.4 % 830 0.5 % CC and lower 940 0.6 % 884 0.5 %
Non-rated — — % 468 0.3 % Non-rated2 1,286 0.9 % 2,198 1.3 %
Total below investment grade 5,882 4.0 % 6,646 4.0 % Total below investment grade 7,972 5.4 % 8,348 5.1 %
Total NAIC designated assets3 147,482 100.0 % 165,197 100.0 % Total NRSRO designated assets3 147,482 100.0 % 165,197 100.0 %
Assets without NAIC designation Assets without NRSRO designation
Commercial mortgage loans Commercial mortgage loans
CM1 4,384 16.9 % 3,609 12.9 % CM1 4,384 16.9 % 3,609 12.9 %
CM2 15,645 60.2 % 18,715 67.0 % CM2 15,645 60.2 % 18,715 67.0 %
CM3 5,304 20.4 % 5,083 18.2 % CM3 5,304 20.4 % 5,083 18.2 %
CM4 623 2.4 % 481 1.7 % CM4 623 2.4 % 481 1.7 %
CM5 — — % — — % CM5 — — % — — %
CM6 13 0.1 % 18 0.1 % CM6 13 0.1 % 18 0.1 %
CM7 8 — % 22 0.1 % CM7 8 — % 22 0.1 %
Total CMLs 25,977 100.0 % 27,928 100.0 % Total CMLs 25,977 100.0 % 27,928 100.0 %
Residential mortgage loans Residential mortgage loans
In good standing 17,503 97.1 % 24,452 97.2 % In good standing 17,503 97.1 % 24,452 97.2 %
90 days late 407 2.3 % 520 2.1 % 90 days late 407 2.3 % 520 2.1 %
In foreclosure 111 0.6 % 172 0.7 % In foreclosure 111 0.6 % 172 0.7 %
Total RMLs 18,021 100.0 % 25,144 100.0 % Total RMLs 18,021 100.0 % 25,144 100.0 %
Alternative investments 11,659 11,356 Alternative investments 11,659 11,356
Cash and equivalents 10,467 8,354 Cash and equivalents 10,467 8,354
Equity securities 1,727 2,095 Equity securities 1,727 2,095
Other4 2,094 2,589 Other4 2,094 2,589
Net invested assets $ 217,427 $ 242,663 Net invested assets $ 217,427 $ 242,663
1. Please refer to the Notes to the Financial Supplement section for discussion on net invested assets and the Non-GAAP Measure Reconciliations section for the reconciliation of total investments, including related parties, to net invested assets. 2. Securities denoted as non-rated by the NRSRO were classified as investment or non-investment grade according to the security’s respective NAIC designation. With respect to modeled LBaSS, the NAIC designation methodology differs in significant respects from the NRSRO ratings methodology. 3. NAIC and NRSRO designations include corporates, CLO, RMBS, CMBS, ABS, state, municipal, political subdivisions and foreign government securities, short-term investments and US government and agency securities. 4. Other includes policy loans, accrued interest and other net invested assets.
Credit Quality of Net Invested Assets - ABS and CLOs (Management view)<br><br>Unaudited (In millions, except percentages) athene-logo_rgb.jpg
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December 31, 2023 September 30, 2024 December 31, 2023 September 30, 2024
Invested Asset Value1 % of Total Invested Asset Value1 % of Total Invested Asset Value1 % of Total Invested Asset Value1 % of Total
CREDIT QUALITY OF ABS – NAIC DESIGNATION CREDIT QUALITY OF ABS – NRSRO DESIGNATION
1 A-G $ 13,700 61.7 % $ 19,516 68.3 % AAA/AA/A $ 12,117 54.6 % $ 18,991 66.5 %
2 A-C 7,227 32.6 % 7,930 27.8 % BBB 8,407 37.9 % 8,012 28.0 %
Non-rated — — % — — % Non-rated2 403 1.8 % 455 1.6 %
Total investment grade 20,927 94.3 % 27,446 96.1 % Total investment grade 20,927 94.3 % 27,458 96.1 %
3 A-C 809 3.6 % 768 2.7 % BB 822 3.6 % 742 2.6 %
4 A-C 261 1.2 % 203 0.7 % B 248 1.1 % 193 0.7 %
5 A-C 125 0.5 % 111 0.4 % CCC 12 0.1 % 12 — %
6 80 0.4 % 44 0.1 % CC and lower 35 0.2 % 4 — %
Non-rated — — % — — % Non-rated2 158 0.7 % 163 0.6 %
Total below investment grade 1,275 5.7 % 1,126 3.9 % Total below investment grade 1,275 5.7 % 1,114 3.9 %
ABS net invested assets $ 22,202 100.0 % $ 28,572 100.0 % ABS net invested assets $ 22,202 100.0 % $ 28,572 100.0 %
CREDIT QUALITY OF CLOs – NAIC DESIGNATION CREDIT QUALITY OF CLOs – NRSRO DESIGNATION
1 A-G $ 13,232 64.4 % $ 17,030 67.6 % AAA/AA/A $ 13,232 64.4 % $ 17,030 67.6 %
2 A-C 7,161 34.9 % 8,062 32.0 % BBB 7,161 34.9 % 8,062 32.0 %
Non-rated — — % — — % Non-rated2 — — % — — %
Total investment grade 20,393 99.3 % 25,092 99.6 % Total investment grade 20,393 99.3 % 25,092 99.6 %
3 A-C 126 0.6 % 89 0.3 % BB 126 0.6 % 89 0.3 %
4 A-C 19 0.1 % 19 0.1 % B 19 0.1 % 19 0.1 %
5 A-C — — % — — % CCC — — % — — %
6 — — % — — % CC and lower — — % — — %
Non-rated — — % — — % Non-rated2 — — % — — %
Total below investment grade 145 0.7 % 108 0.4 % Total below investment grade 145 0.7 % 108 0.4 %
CLO net invested assets $ 20,538 100.0 % $ 25,200 100.0 % CLO net invested assets $ 20,538 100.0 % $ 25,200 100.0 %
1. Please refer to the Notes to the Financial Supplement section for discussion on net invested assets and the Non-GAAP Measure Reconciliations section for the reconciliation of total investments, including related parties, to net invested assets. 2. Securities denoted as non-rated by the NRSRO were classified as investment or non-investment grade according to the security’s respective NAIC designation. With respect to modeled LBaSS, the NAIC designation methodology differs in significant respects from the NRSRO ratings methodology.
Credit Quality of Net Invested Assets - RMBS and CMBS (Management view)<br><br>Unaudited (In millions, except percentages) athene-logo_rgb.jpg
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December 31, 2023 September 30, 2024 December 31, 2023 September 30, 2024
Invested Asset Value1 % of Total Invested Asset Value1 % of Total Invested Asset Value1 % of Total Invested Asset Value1 % of Total
CREDIT QUALITY OF RMBS – NAIC DESIGNATION CREDIT QUALITY OF RMBS – NRSRO DESIGNATION
1 A-G $ 6,714 86.1 % $ 6,627 85.3 % AAA/AA/A $ 2,344 30.1 % $ 2,344 30.2 %
2 A-C 262 3.4 % 442 5.7 % BBB 475 6.1 % 598 7.7 %
Non-rated — — % — — % Non-rated2 2,324 29.8 % 2,498 32.2 %
Total investment grade 6,976 89.5 % 7,069 91.0 % Total investment grade 5,143 66.0 % 5,440 70.1 %
3 A-C 335 4.3 % 298 3.8 % BB 99 1.3 % 55 0.7 %
4 A-C 323 4.2 % 260 3.3 % B 128 1.6 % 131 1.7 %
5 A-C 89 1.1 % 67 0.9 % CCC 1,144 14.7 % 1,018 13.1 %
6 72 0.9 % 74 1.0 % CC and lower 835 10.7 % 765 9.8 %
Non-rated — — % — — % Non-rated2 446 5.7 % 359 4.6 %
Total below investment grade 819 10.5 % 699 9.0 % Total below investment grade 2,652 34.0 % 2,328 29.9 %
RMBS net invested assets $ 7,795 100.0 % $ 7,768 100.0 % RMBS net invested assets $ 7,795 100.0 % $ 7,768 100.0 %
CREDIT QUALITY OF CMBS – NAIC DESIGNATION CREDIT QUALITY OF CMBS – NRSRO DESIGNATION
1 A-G $ 4,000 71.7 % $ 5,775 77.7 % AAA/AA/A $ 3,447 61.8 % $ 5,075 68.2 %
2 A-C 993 17.8 % 821 11.1 % BBB 962 17.2 % 877 11.8 %
Non-rated — — % — — % Non-rated2 291 5.2 % 355 4.8 %
Total investment grade 4,993 89.5 % 6,596 88.8 % Total investment grade 4,700 84.2 % 6,307 84.8 %
3 A-C 293 5.3 % 299 4.0 % BB 550 9.9 % 476 6.4 %
4 A-C 151 2.7 % 418 5.6 % B 216 3.8 % 420 5.6 %
5 A-C 75 1.3 % 77 1.0 % CCC 89 1.6 % 197 2.7 %
6 68 1.2 % 46 0.6 % CC and lower 25 0.5 % 36 0.5 %
Non-rated — — % — — % Non-rated2 — — % — — %
Total below investment grade 587 10.5 % 840 11.2 % Total below investment grade 880 15.8 % 1,129 15.2 %
CMBS net invested assets $ 5,580 100.0 % $ 7,436 100.0 % CMBS net invested assets $ 5,580 100.0 % $ 7,436 100.0 %
1. Please refer to the Notes to the Financial Supplement section for discussion on net invested assets and the Non-GAAP Measure Reconciliations section for the reconciliation of total investments, including related parties, to net invested assets. 2. Securities denoted as non-rated by the NRSRO were classified as investment or non-investment grade according to the security’s respective NAIC designation. With respect to modeled LBaSS, the NAIC designation methodology differs in significant respects from the NRSRO ratings methodology.
Net Reserve Liabilities & Rollforwards<br><br>Unaudited (in millions, except percentages) athene-logo_rgb.jpg
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December 31, 2023 September 30, 2024
Dollars Percent of Total Dollars Percent of Total
NET RESERVE LIABILITIES
Indexed annuities $ 84,444 42.4 % $ 84,572 37.4 %
Fixed rate annuities 53,282 26.7 % 62,533 27.7 %
Total deferred annuities 137,726 69.1 % 147,105 65.1 %
Pension group annuities 26,313 13.2 % 26,448 11.7 %
Payout annuities 4,897 2.4 % 4,896 2.2 %
Funding agreements1 26,637 13.4 % 43,588 19.3 %
Life and other 3,716 1.9 % 3,862 1.7 %
Total net reserve liabilities $ 199,289 100.0 % $ 225,899 100.0 %
Δ Year-to-Date Δ
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4Q’23 1Q’24 2Q’24 3Q’24 Q/Q Y/Y 2023 2024 Y/Y
NET RESERVE LIABILITY ROLLFORWARD
Net reserve liabilities – beginning 193,431 $ 185,744 $ 199,289 $ 208,523 $ 211,548 1 % 9 % $ 175,970 $ 199,289 13 %
Gross inflows2 20,167 20,408 16,979 20,301 20 % 53 % 44,357 57,688 30 %
Acquisition and block reinsurance3 2,214 — — — NM NM — — NM
Inflows attributable to ACRA noncontrolling interests (6,025) (4,519) (4,907) (4,318) (12) % 35 % (7,003) (13,744) 96 %
Inflows ceded to third-party reinsurers4 — (1,083) (1,047) (1,083) 3 % NM — (3,213) NM
Net inflows 16,356 14,806 11,025 14,900 35 % 48 % 37,354 40,731 9 %
Net withdrawals (5,791) (6,748) (8,627) (6,176) (28) % (10) % (20,249) (21,551) 6 %
Strategic reinsurance outflows5 — — — — NM NM (2,723) — NM
ACRA ownership changes6 (3,239) — — — NM NM (7,023) — NM
Other reserve changes 6,219 1,176 627 5,627 NM NM 2,415 7,430 208 %
Net reserve liabilities – ending 185,744 $ 199,289 $ 208,523 $ 211,548 $ 225,899 7 % 22 % $ 185,744 $ 225,899 22 %
ACRA NONCONTROLLING INTERESTS RESERVE LIABILITY ROLLFORWARD
Reserve liabilities – beginning 37,775 $ 46,576 $ 56,651 $ 60,142 $ 63,810 6 % 69 % $ 35,981 $ 56,651 57 %
Inflows 6,025 4,519 4,907 4,318 (12) % 35 % 7,003 13,744 96 %
Withdrawals (1,325) (1,287) (1,513) (1,982) 31 % 67 % (3,780) (4,782) 27 %
ACRA ownership changes6 3,239 — — — NM NM 7,023 — NM
Other reserve changes 2,136 259 274 1,946 NM NM 349 2,479 NM
Reserve liabilities – ending 46,576 $ 56,651 $ 60,142 $ 63,810 $ 68,092 7 % 46 % $ 46,576 $ 68,092 46 %
Note: Please refer to the Notes to the Financial Supplement section for discussion on net reserve liabilities and the Non-GAAP Measure Reconciliations section for the reconciliation of total liabilities to net reserve liabilities. Net reserve liabilities include our economic ownership of ACRA reserve liabilities but do not include the reserve liabilities associated with the noncontrolling interests. 1. Funding agreements are comprised of funding agreements issued under our FABN program, secured and other funding agreements, funding agreements issued to the FHLB and long-term repurchase agreements. 2. Gross inflows equal inflows from our retail, flow reinsurance and institutional channels as well as inflows for life and products other than deferred annuities or our institutional products, renewal inflows, annuitizations and foreign currency translation adjustments on large transactions between the transaction date and the translation period. Gross inflows include all inflows sourced by Athene, including all of the inflows reinsured to ACRA and third-party reinsurers. 3. Acquisition and block reinsurance transactions include the reserve liabilities acquired in our inorganic channel at inception. On November 6, 2023, we entered into an agreement with a Japanese counterparty, effective October 1, 2023, pursuant to which we agreed to reinsure a block of whole life insurance policies on a coinsurance basis. In conjunction with the transaction, we entered into an agreement with a leading mortality reinsurer to retrocede the mortality risk related to this block of business. 4. During the first quarter of 2024, we entered into a modco reinsurance agreement with Catalina to cede a quota share of our retail deferred annuity business issued on or after January 1, 2024. 5. Strategic reinsurance outflows include the portion of the reinsurance business recaptured by VIAC in 3Q’23. 6. Effective July 1, 2023, ALRe sold 50% of ACRA 2’s economic interests to ADIP II, resulting in approximately 6.8 billion of inflows attributable to Athene for the first six months of 2023 being retroactively attributed to ADIP II. The ADIP II reserve liabilities at inception on July 1, 2023 were 7.0 billion. Effective December 31, 2023, ADIP II’s ownership of economic interests in ACRA 2 increased to 60%, with ALRe owning the remaining 40% of the economic interests.

All values are in US Dollars.

Deferred Annuity Liability Characteristics<br><br>Unaudited (in millions, except percentages) athene-logo_rgb.jpg
Surrender charge (gross) Percent of total Surrender charge (net of MVA) Percent of total
SURRENDER CHARGE PERCENTAGES ON DEFERRED ANNUITIES NET ACCOUNT VALUE
No Surrender Charge $ 25,896 18.6 % $ 25,896 18.6 %
0.0% < 2.0% 6,315 4.5 % 3,933 2.8 %
2.0% < 4.0% 7,037 5.1 % 9,248 6.7 %
4.0% < 6.0% 12,786 9.2 % 20,043 14.4 %
6.0% or greater 86,998 62.6 % 79,912 57.5 %
$ 139,032 100.0 % $ 139,032 100.0 %
Surrender charge (gross) MVA benefit Surrender charge (net)
Aggregate surrender charge protection 5.9 % 0.7 % 6.6 %
Deferred annuities Percent of total Average surrender charge (gross)
--- --- --- --- --- --- ---
YEARS OF SURRENDER CHARGE REMAINING ON DEFERRED ANNUITIES NET ACCOUNT VALUE
No Surrender Charge $ 25,896 18.6 % — %
Less than 2 19,972 14.4 % 5.6 %
2 to less than 4 35,171 25.3 % 6.3 %
4 to less than 6 28,173 20.3 % 7.2 %
6 to less than 8 13,987 10.0 % 8.7 %
8 to less than 10 13,293 9.6 % 8.6 %
10 or greater 2,540 1.8 % 14.1 %
$ 139,032 100.0 %
Notes to the Financial Supplement
---

KEY OPERATING AND NON-GAAP MEASURES

In addition to our results presented in accordance with US GAAP, we present certain financial information that includes non-GAAP measures. Management believes the use of these non-GAAP measures, together with the relevant US GAAP measures, provides information that may enhance an investor’s understanding of our results of operations and the underlying profitability drivers of our business. The majority of these non-GAAP measures are intended to remove from the results of operations the impact of market volatility (other than with respect to alternative investments), which consists of investment gains (losses), net of offsets, and non-operating change in insurance liabilities and related derivatives, both defined below, as well as integration, restructuring, stock compensation and certain other expenses which are not part of our underlying profitability drivers, as such items fluctuate from period to period in a manner inconsistent with these drivers. These measures should be considered supplementary to our results in accordance with US GAAP and should not be viewed as a substitute for the corresponding US GAAP measures.

SPREAD RELATED EARNINGS AND NET SPREAD

Spread related earnings is a pre-tax non-GAAP measure used to evaluate our financial performance including the impact of any reinsurance transactions and excluding market volatility and expenses related to integration, restructuring, stock compensation and other expenses. Our spread related earnings equals net income available to AHL common stockholder adjusted to eliminate the impact of the following:

•Investment Gains (Losses), Net of Offsets—Consists of the realized gains and losses on the sale of AFS securities, the change in fair value of reinsurance assets, unrealized gains and losses, changes in the provision for credit losses and other investment gains and losses. Unrealized, allowances and other investment gains and losses are comprised of the fair value adjustments of trading securities (other than certain equity tranche securities) and mortgage loans, investments held under the fair value option, derivative gains and losses not hedging FIA index credits, all foreign exchange impacts and the change in provision for credit losses recognized in operations net of the change in AmerUs Closed Block fair value reserve related to the corresponding change in fair value of investments. Investment gains and losses are net of offsets related to the market value adjustments (MVA) associated with surrenders or terminations of contracts.

•Non-operating Change in Insurance Liabilities and Related Derivatives

•Change in Fair Values of Derivatives and Embedded Derivatives – FIAs—Consists of impacts related to the fair value accounting for derivatives hedging the FIA index credits and the related embedded derivative liability fluctuations from period to period. The index reserve is measured at fair value for the current period and all periods beyond the current policyholder index term. However, the FIA hedging derivatives are purchased to hedge only the current index period. Upon policyholder renewal at the end of the period, new FIA hedging derivatives are purchased to align with the new term. The difference in duration between the FIA hedging derivatives and the index credit reserves creates a timing difference in earnings. This timing difference of the FIA hedging derivatives and index credit reserves is included as a non-operating adjustment. We primarily hedge with options that align with the index terms of our FIA products (typically 1–2 years). On an economic basis, we believe this is suitable because policyholder accounts are credited with index performance at the end of each index term. However, because the term of an embedded derivative in an FIA contract is longer-dated, there is a duration mismatch which may lead to mismatches for accounting purposes.

•Non-operating Change in Funding Agreements—Consists of timing differences caused by changes to interest rates on variable funding agreements and funding agreement backed notes and the associated reserve accretion patterns of those contracts. Further included are adjustments for gains associated with our repurchases of funding agreement backed notes.

•Change in Fair Value of Market Risk Benefits—Consists primarily of volatility in capital market inputs used in the measurement at fair value of our market risk benefits, including certain impacts from changes in interest rates, equity returns and implied equity volatilities.

•Non-operating Change in Liability for Future Policy Benefits—Consists of the non-economic loss incurred at issuance for certain pension group annuities and other payout annuities with life contingencies when valuation interest rates prescribed by US GAAP are lower than the net investment earned rates, adjusted for profit, assumed in pricing. For such contracts with non-economic US GAAP losses, the SRE reserve accretes interest using an imputed discount rate that produces zero gain or loss at issuance.

•Integration, Restructuring, and Other Non-operating Expenses—Consists of restructuring and integration expenses related to acquisitions and block reinsurance costs as well as certain other expenses, which are not predictable or related to our underlying profitability drivers.

•Stock Compensation Expense—Consists of stock compensation expenses associated with our share incentive plans, including long-term incentive expenses, which are not related to our underlying profitability drivers and fluctuate from time to time due to the structure of our plans.

•Income Tax (Expense) Benefit—Consists of the income tax effect of all income statement adjustments and is computed by applying the appropriate jurisdiction’s tax rate to all adjustments subject to income tax.

We consider these adjustments to be meaningful adjustments to net income available to AHL common stockholder for the reasons discussed in greater detail above. Accordingly, we believe using a measure which excludes the impact of these items is useful in analyzing our business performance and the trends in our results of operations. Together with net income available to AHL common stockholder, we believe spread related earnings provides a meaningful financial metric that helps investors understand our underlying results and profitability. Spread related earnings should not be used as a substitute for net income available to AHL common stockholder.

Net spread is a non-GAAP measure used to evaluate our financial performance and profitability. Net spread is computed using our spread related earnings divided by average net invested assets for the relevant period. To enhance the ability to analyze this measure across periods, interim periods are annualized. While we believe this metric is a meaningful financial metric and enhances our understanding of the underlying profitability drivers of our business, it should not be used as a substitute for ROA presented under US GAAP.

SRE, EXCLUDING NOTABLE ITEMS AND NET SPREAD, EXCLUDING NOTABLE ITEMS

Spread related earnings, excluding notable items and net spread, excluding notable items represent SRE and net spread with an adjustment to exclude notable items. Notable items include unusual variability such as actuarial experience, assumption updates and other insurance adjustments. We use these measures to assess the long-term performance of the business against projected earnings, by excluding items that are expected to be infrequent or not indicative of the ongoing operations of the business. We view these non-GAAP measures as additional measures that provide insight to management and investors on the historical, period-to-period comparability of our key non-GAAP operating measures.

Notes to the Financial Supplement, continued

NET INVESTMENT SPREAD

Net investment spread is a key measure of profitability used in analyzing the trends of our core business operations. Net investment spread measures our investment performance plus our strategic capital management fees, less our total cost of funds. Net investment earned rate is a key measure of our investment performance while cost of funds is a key measure of the cost of our policyholder benefits and liabilities. Strategic capital management fees consist of management fees received by us for business managed for others.

•Net investment earned rate is a non-GAAP measure we use to evaluate the performance of our net invested assets. Net investment earned rate is computed as the income from our net invested assets divided by the average net invested assets, for the relevant period. To enhance the ability to analyze these measures across periods, interim periods are annualized. The adjustments to net investment income to arrive at our net investment earnings add (a) alternative investment gains and losses, (b) gains and losses related to certain equity securities, (c) net VIE impacts (revenues, expenses and noncontrolling interests), (d) forward points gains and losses on foreign exchange derivative hedges, (e) amortization of premium/discount on held-for-trading securities and (f) the change in fair value of reinsurance assets, and remove the proportionate share of the ACRA net investment income associated with the noncontrolling interests. We include the income and assets supporting our change in fair value of reinsurance assets by evaluating the underlying investments of the funds withheld at interest receivables and we include the net investment income from those underlying investments which does not correspond to the US GAAP presentation of change in fair value of reinsurance assets. We exclude the income and assets on business related to ceded reinsurance transactions. We believe the adjustments for reinsurance provide a net investment earned rate on the assets for which we have economic exposure. We believe a measure like net investment earned rate is useful in analyzing the trends of our core business operations, profitability and pricing discipline. While we believe net investment earned rate is a meaningful financial metric and enhances our understanding of the underlying profitability drivers of our business, it should not be used as a substitute for net investment income presented under US GAAP.

•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 noncontrolling interests. Cost of crediting on deferred annuities is the interest credited to the policyholders on our fixed strategies as well as the option costs on the indexed annuity strategies. With respect to FIAs, the cost of providing index credits includes the expenses incurred to fund the annual index credits, and where applicable, minimum guaranteed interest credited. Cost of crediting on institutional products is comprised of (1) pension group annuity costs, including interest credited, benefit payments and other reserve changes, net of premiums received when issued, and (2) funding agreement costs, including the interest payments and other reserve changes. Additionally, cost of crediting includes forward points gains and losses on foreign exchange derivative hedges. Other liability costs include DAC, DSI and VOBA amortization, certain market risk benefit costs, the cost of liabilities on products other than deferred annuities and institutional products, premiums and certain product charges and other revenues. We include the costs related to business added through assumed reinsurance transactions and exclude the costs on business related to ceded reinsurance transactions. Cost of funds is computed as the total liability costs divided by the average net invested assets for the relevant period. To enhance the ability to analyze these measures across periods, interim periods are annualized. We believe a measure like cost of funds is useful in analyzing the trends of our core business operations, profitability and pricing discipline. While we believe cost of funds is a meaningful financial metric and enhances our understanding of the underlying profitability drivers of our business, it should not be used as a substitute for total benefits and expenses presented under US GAAP.

NET INVESTMENT SPREAD, EXCLUDING NOTABLE ITEMS

Net investment spread, excluding notable items represents net investment spread with an adjustment to exclude notable items. Notable items include unusual variability such as actuarial experience, assumption updates and other insurance adjustments. We use this measure to assess the long-term performance of the business against projected earnings, by excluding items that are expected to be infrequent or not indicative of the ongoing operations of the business. We view this non-GAAP measure as an additional measure that provides insight to management and investors on the historical, period-to-period comparability of our key non-GAAP operating measures.

OTHER OPERATING EXPENSES

Other operating expenses excludes interest expense, policy acquisition expenses, net of deferrals, integration, restructuring and other non-operating expenses, stock compensation and long-term incentive plan expenses and the proportionate share of the ACRA operating expenses associated with the noncontrolling interests. We believe a measure like other operating expenses is useful in analyzing the trends of our core business operations and profitability. While we believe other operating expenses is a meaningful financial metric and enhances our understanding of the underlying profitability drivers of our business, it should not be used as a substitute for policy and other operating expenses presented under US GAAP.

ADJUSTED SENIOR DEBT-TO-CAPITAL RATIO

Adjusted senior 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 assets, net of tax. Adjusted senior debt-to-capital ratio is calculated as senior debt at notional value divided by adjusted capitalization. Adjusted capitalization includes our adjusted AHL common stockholder’s equity, preferred stock and the notional value of our total debt. Adjusted AHL common stockholder’s equity is calculated as the ending AHL stockholders’ equity excluding AOCI, the cumulative changes in fair value of funds withheld and modco reinsurance assets and mortgage loan assets as well as preferred stock. These adjustments fluctuate period to period in a manner inconsistent with our underlying profitability drivers as the majority of such fluctuation is related to the market volatility of the unrealized gains and losses associated with our AFS securities, reinsurance assets and mortgage loans. Except with respect to reinvestment activity relating to acquired blocks of businesses, we typically buy and hold investments to maturity throughout the duration of market fluctuations, therefore, the period-over-period impacts in unrealized gains and losses are not necessarily indicative of current operating fundamentals or future performance. Adjusted senior debt-to-capital ratio should not be used as a substitute for the debt-to-capital ratio. However, we believe the adjustments to stockholders’ equity and debt are significant to gaining an understanding of our capitalization, debt utilization and debt capacity.

ADJUSTED LEVERAGE RATIO

Adjusted leverage 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 assets, net of tax. Adjusted leverage ratio is calculated as total debt at notional value adjusted to exclude 50% of the notional value of subordinated debt as an equity credit plus 50% of preferred stock divided by adjusted capitalization. Adjusted capitalization includes our adjusted AHL common stockholder’s equity, preferred stock and the notional value of our total debt. Adjusted AHL common stockholder’s equity is calculated as the ending AHL stockholders’ equity excluding AOCI, the cumulative changes in fair value of funds withheld and modco reinsurance assets and mortgage loan assets as well as preferred stock. These adjustments fluctuate period to period in a manner inconsistent with our underlying profitability drivers as the majority of such fluctuation is related to the market volatility of the unrealized gains and losses associated with our AFS securities, reinsurance assets and mortgage loans. Except with respect to reinvestment activity relating to acquired blocks of businesses, we typically buy and hold investments to maturity throughout the duration of market fluctuations, therefore, the period-over-period impacts in unrealized gains and losses are not necessarily indicative of current operating fundamentals or future performance. Adjusted leverage ratio should not be used as a substitute for the leverage ratio. However, we believe the adjustments to stockholders’ equity and debt are significant to gaining an understanding of our capitalization, debt and preferred stock utilization and overall leverage capacity, because they provide insight into how rating agencies measure our capitalization, which is a consideration in how we manage our leverage capacity.

Notes to the Financial Supplement, continued

NET INVESTED ASSETS

In managing our business, we analyze net invested assets, which does not correspond to total investments, including investments in related parties, as disclosed in our condensed consolidated financial statements and notes thereto. Net invested assets represent the investments that directly back our net reserve liabilities as well as surplus assets. Net invested assets is used in the computation of net investment earned rate, which allows us to analyze the profitability of our investment portfolio. Net invested assets include (a) total investments on the condensed consolidated balance sheets, with AFS securities, trading securities and mortgage loans at cost or amortized cost, excluding derivatives, (b) cash and cash equivalents and restricted cash, (c) investments in related parties, (d) accrued investment income, (e) VIE assets, liabilities and noncontrolling interest adjustments, (f) net investment payables and receivables, (g) policy loans ceded (which offset the direct policy loans in total investments) and (h) an adjustment for the allowance for credit losses. Net invested assets exclude the derivative collateral offsetting the related cash positions. We include the underlying investments supporting our assumed funds withheld and modco agreements and exclude the underlying investments related to ceded reinsurance transactions in our net invested assets calculation in order to match the assets with the income received. We believe the adjustments for reinsurance provide a view of the assets for which we have economic exposure. Net invested assets include our proportionate share of ACRA investments, based on our economic ownership, but do not include the proportionate share of investments associated with the noncontrolling interests. Our net invested assets are averaged over the number of quarters in the relevant period to compute our net investment earned rate for such period. While we believe net invested assets is a meaningful financial metric and enhances our understanding of the underlying drivers of our investment portfolio, it should not be used as a substitute for total investments, including related parties, presented under US GAAP.

NET RESERVE LIABILITIES

In managing our business, we also analyze net reserve liabilities, which does not correspond to total liabilities as disclosed in our condensed consolidated financial statements and notes thereto. Net reserve liabilities represent our policyholder liability obligations net of reinsurance and are used to analyze the costs of our liabilities. Net reserve liabilities include (a) interest sensitive contract liabilities, (b) future policy benefits, (c) net market risk benefits, (d) long-term repurchase obligations, (e) dividends payable to policyholders and (f) other policy claims and benefits, offset by reinsurance recoverable, excluding policy loans ceded. Net reserve liabilities include our proportionate share of ACRA reserve liabilities, based on our economic ownership, but do not include the proportionate share of reserve liabilities associated with the noncontrolling interests. Net reserve liabilities are net of the ceded liabilities to third-party reinsurers as the costs of the liabilities are passed to such reinsurers and, therefore, we have no net economic exposure to such liabilities, assuming our reinsurance counterparties perform under our agreements. For such transactions, US GAAP requires the ceded liabilities and related reinsurance recoverables to continue to be recorded in our consolidated financial statements despite the transfer of economic risk to the counterparty in connection with the reinsurance transaction. We include the underlying liabilities assumed through modco reinsurance agreements in our net reserve liabilities calculation in order to match the liabilities with the expenses incurred. While we believe net reserve liabilities is a meaningful financial metric and enhances our understanding of the underlying profitability drivers of our business, it should not be used as a substitute for total liabilities presented under US GAAP.

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 annuities and FIAs and align with the LIMRA definition of all money paid into an individual annuity, including money paid into new contracts with initial purchase occurring in the specified period and existing contracts with initial purchase occurring prior to the specified period (excluding internal transfers). We believe sales is a meaningful metric that enhances our understanding of our business performance and is not the same as premiums presented in our condensed consolidated statements of income.

Non-GAAP Reconciliations<br><br>Unaudited (in millions, except percentages) athene-logo_rgb.jpg
Quarterly Trends
3Q’23 4Q’23 1Q’24 2Q’24 3Q’24
RECONCILIATION OF TOTAL AHL STOCKHOLDERS’ EQUITY TO TOTAL ADJUSTED AHL COMMON STOCKHOLDER’S EQUITY
Total AHL stockholders’ equity $ 8,537 $ 13,838 $ 14,760 $ 14,998 $ 17,445
Less: Preferred stock 3,154 3,154 3,154 3,154 3,154
Total AHL common stockholder’s equity 5,383 10,684 11,606 11,844 14,291
Less: Accumulated other comprehensive loss (8,079) (5,569) (5,628) (5,809) (3,467)
Less: Accumulated change in fair value of reinsurance assets (2,807) (1,882) (1,880) (1,787) (1,416)
Less: Accumulated change in fair value of mortgage loan assets (2,820) (2,233) (2,426) (2,370) (1,733)
Total adjusted AHL common stockholder’s equity $ 19,089 $ 20,368 $ 21,540 $ 21,810 $ 20,907
RECONCILIATION OF DEBT-TO-CAPITAL RATIO TO ADJUSTED SENIOR DEBT-TO-CAPITAL RATIO
Total debt $ 3,634 $ 4,209 $ 5,740 $ 5,733 $ 5,725
Less: Subordinated debt — — 575 575 575
Less: Adjustment to arrive at notional debt 234 209 165 158 150
Notional senior debt $ 3,400 $ 4,000 $ 5,000 $ 5,000 $ 5,000
Total debt $ 3,634 $ 4,209 $ 5,740 $ 5,733 $ 5,725
Total AHL stockholders’ equity 8,537 13,838 14,760 14,998 17,445
Total capitalization 12,171 18,047 20,500 20,731 23,170
Less: Accumulated other comprehensive loss (8,079) (5,569) (5,628) (5,809) (3,467)
Less: Accumulated change in fair value of reinsurance assets (2,807) (1,882) (1,880) (1,787) (1,416)
Less: Accumulated change in fair value of mortgage loan assets (2,820) (2,233) (2,426) (2,370) (1,733)
Less: Adjustment to arrive at notional debt 234 209 165 158 150
Total adjusted capitalization $ 25,643 $ 27,522 $ 30,269 $ 30,539 $ 29,636
Debt-to-capital ratio 29.9 % 23.3 % 28.0 % 27.7 % 24.7 %
Accumulated other comprehensive loss (9.4) % (4.7) % (5.2) % (5.2) % (2.9) %
Accumulated change in fair value of reinsurance assets (3.2) % (1.6) % (1.7) % (1.6) % (1.2) %
Accumulated change in fair value of mortgage loan assets (3.3) % (1.9) % (2.2) % (2.2) % (1.4) %
Adjustment to exclude subordinated debt — % — % (1.9) % (1.8) % (1.9) %
Adjustment to arrive at notional debt (0.7) % (0.6) % (0.5) % (0.5) % (0.4) %
Adjusted senior debt-to-capital ratio 13.3 % 14.5 % 16.5 % 16.4 % 16.9 %
Non-GAAP Reconciliations<br><br>Unaudited (in millions, except percentages) athene-logo_rgb.jpg
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Quarterly Trends
3Q’23 4Q’23 1Q’24 2Q’24 3Q’24
RECONCILIATION OF LEVERAGE RATIO TO ADJUSTED LEVERAGE RATIO
Total debt $ 3,634 $ 4,209 $ 5,740 $ 5,733 $ 5,725
Add: 50% of preferred stock 1,577 1,577 1,577 1,577 1,577
Less: 50% of subordinated debt — — 288 288 288
Less: Adjustment to arrive at notional debt 234 209 165 158 150
Adjusted leverage $ 4,977 $ 5,577 $ 6,864 $ 6,864 $ 6,864
Total debt $ 3,634 $ 4,209 $ 5,740 $ 5,733 $ 5,725
Total AHL stockholders’ equity 8,537 13,838 14,760 14,998 17,445
Total capitalization 12,171 18,047 20,500 20,731 23,170
Less: Accumulated other comprehensive loss (8,079) (5,569) (5,628) (5,809) (3,467)
Less: Accumulated change in fair value of reinsurance assets (2,807) (1,882) (1,880) (1,787) (1,416)
Less: Accumulated change in fair value of mortgage loan assets (2,820) (2,233) (2,426) (2,370) (1,733)
Less: Adjustment to arrive at notional debt 234 209 165 158 150
Total adjusted capitalization $ 25,643 $ 27,522 $ 30,269 $ 30,539 $ 29,636
Leverage ratio 55.8 % 40.8 % 43.4 % 42.9 % 38.3 %
Accumulated other comprehensive loss (17.4) % (8.2) % (8.0) % (8.0) % (4.4) %
Accumulated change in fair value of reinsurance assets (6.1) % (2.8) % (2.7) % (2.5) % (1.8) %
Accumulated change in fair value of mortgage loan assets (6.1) % (3.3) % (3.5) % (3.3) % (2.2) %
Adjustment to exclude 50% of preferred stock (6.1) % (5.6) % (5.2) % (5.2) % (5.3) %
Adjustment to exclude 50% of subordinated debt — % — % (0.9) % (1.0) % (1.0) %
Adjustment to arrive at notional debt (0.7) % (0.6) % (0.4) % (0.4) % (0.4) %
Adjusted leverage ratio 19.4 % 20.3 % 22.7 % 22.5 % 23.2 %
Non-GAAP Reconciliations<br><br>Unaudited (in millions, except percentages) athene-logo_rgb.jpg
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Quarterly Trends Year-to-Date
3Q’23 4Q’23 1Q’24 2Q’24 3Q’24 2023 2024
RECONCILIATION OF NET INCOME AVAILABLE TO ATHENE HOLDING LTD. COMMON STOCKHOLDER TO SPREAD RELATED EARNINGS, EXCLUDING NOTABLE ITEMS
Net income available to Athene Holding Ltd. common stockholder $ 442 $ 2,925 $ 1,147 $ 583 $ 580 $ 1,559 $ 2,310
Preferred stock dividends 44 45 45 46 45 136 136
Net income (loss) attributable to noncontrolling interests (155) 733 283 237 859 354 1,379
Net income 331 3,703 1,475 866 1,484 2,049 3,825
Income tax expense (benefit) 162 (1,619) 307 161 191 458 659
Income before income taxes 493 2,084 1,782 1,027 1,675 2,507 4,484
Less: Total adjustments to income before income taxes (379) 1,335 966 315 820 149 2,101
Spread related earnings 872 749 816 712 855 2,358 2,383
Notable items (90) — — — (25) (115) (25)
Spread related earnings, excluding notable items $ 782 $ 749 $ 816 $ 712 $ 830 $ 2,243 $ 2,358
RECONCILIATION OF NET INVESTMENT INCOME TO NET INVESTMENT EARNINGS
US GAAP net investment income $ 2,928 $ 3,078 $ 3,292 $ 3,509 $ 3,777 $ 8,052 $ 10,578
Change in fair value of reinsurance assets (42) 21 (10) (37) (11) 65 (58)
VIE earnings and noncontrolling interests 264 335 311 257 362 743 930
Forward points adjustment on FX derivative hedges 49 33 51 32 30 154 113
Held-for-trading amortization (38) (45) (35) (8) (30) (146) (73)
Reinsurance impacts (66) (65) (64) (55) (54) (199) (173)
ACRA noncontrolling interests (676) (749) (868) (921) (1,011) (1,628) (2,800)
Other 47 (76) 44 26 (20) 35 50
Total adjustments to arrive at net investment earnings (462) (546) (571) (706) (734) (976) (2,011)
Total net investment earnings $ 2,466 $ 2,532 $ 2,721 $ 2,803 $ 3,043 $ 7,076 $ 8,567
RECONCILIATION OF NET INVESTMENT INCOME RATE TO NET INVESTMENT EARNED RATE
US GAAP net investment income 5.65 % 5.79 % 5.92 % 6.10 % 6.35 % 5.21 % 6.13 %
Change in fair value of reinsurance assets (0.08) % 0.04 % (0.02) % (0.06) % (0.02) % 0.04 % (0.04) %
VIE earnings and noncontrolling interests 0.51 % 0.63 % 0.56 % 0.45 % 0.61 % 0.48 % 0.54 %
Forward points adjustment on FX derivative hedges 0.09 % 0.06 % 0.09 % 0.05 % 0.05 % 0.10 % 0.06 %
Held-for-trading amortization (0.07) % (0.09) % (0.06) % (0.01) % (0.05) % (0.10) % (0.04) %
Reinsurance impacts (0.13) % (0.12) % (0.12) % (0.10) % (0.09) % (0.13) % (0.10) %
ACRA noncontrolling interests (1.30) % (1.41) % (1.56) % (1.60) % (1.70) % (1.05) % (1.62) %
Other 0.09 % (0.14) % 0.08 % 0.04 % (0.03) % 0.02 % 0.03 %
Total adjustments to arrive at net investment earned rate (0.89) % (1.03) % (1.03) % (1.23) % (1.23) % (0.64) % (1.17) %
Net investment earned rate 4.76 % 4.76 % 4.89 % 4.87 % 5.12 % 4.57 % 4.96 %
Average net invested assets $ 207,312 $ 212,761 $ 222,391 $ 230,156 $ 237,810 $ 206,241 $ 230,101
Non-GAAP Reconciliations<br><br>Unaudited (in millions, except percentages) athene-logo_rgb.jpg
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Quarterly Trends Year-to-Date
3Q’23 4Q’23 1Q’24 2Q’24 3Q’24 2023 2024
RECONCILIATION OF BENEFITS AND EXPENSES TO COST OF FUNDS
US GAAP benefits and expenses $ 943 $ 7,928 $ 3,939 $ 3,637 $ 4,847 $ 15,675 $ 12,423
Premiums (26) (3,586) (101) (673) (389) (9,163) (1,163)
Product charges (217) (226) (238) (251) (267) (622) (756)
Other revenues (123) (7) (2) (3) (4) (143) (9)
FIA option costs 374 388 392 402 410 1,124 1,204
Reinsurance impacts (41) (39) (42) (31) (47) (116) (120)
Non-operating change in insurance liabilities and embedded derivatives 969 (1,913) (1,339) (374) (1,252) (1,017) (2,965)
Policy and other operating expenses, excluding policy acquisition expenses (335) (373) (341) (393) (573) (968) (1,307)
Forward points adjustment on FX derivative hedges 44 58 70 70 77 83 217
AmerUs Closed Block fair value liability 52 (85) 15 13 (55) 27 (27)
ACRA noncontrolling interests (311) (610) (692) (577) (833) (977) (2,102)
Other 55 59 62 60 69 153 191
Total adjustments to arrive at cost of funds 441 (6,334) (2,216) (1,757) (2,864) (11,619) (6,837)
Total cost of funds $ 1,384 $ 1,594 $ 1,723 $ 1,880 $ 1,983 $ 4,056 $ 5,586
RECONCILIATION OF TOTAL BENEFITS AND EXPENSES RATE TO COST OF FUNDS RATE
US GAAP benefits and expenses 1.83 % 14.90 % 7.08 % 6.32 % 8.15 % 10.12 % 7.20 %
Premiums (0.05) % (6.74) % (0.18) % (1.17) % (0.65) % (5.92) % (0.67) %
Product charges (0.42) % (0.42) % (0.43) % (0.44) % (0.45) % (0.40) % (0.44) %
Other revenues (0.24) % (0.01) % — % (0.01) % (0.01) % (0.09) % — %
FIA option costs 0.72 % 0.73 % 0.70 % 0.70 % 0.69 % 0.73 % 0.70 %
Reinsurance impacts (0.08) % (0.07) % (0.08) % (0.05) % (0.08) % (0.07) % (0.07) %
Non-operating change in insurance liabilities and embedded derivatives 1.87 % (3.60) % (2.41) % (0.65) % (2.11) % (0.66) % (1.72) %
Policy and other operating expenses, excluding policy acquisition expenses (0.65) % (0.70) % (0.61) % (0.68) % (0.96) % (0.63) % (0.76) %
Forward points adjustment on FX derivative hedges 0.08 % 0.11 % 0.13 % 0.12 % 0.13 % 0.05 % 0.13 %
AmerUs Closed Block fair value liability 0.10 % (0.16) % 0.03 % 0.02 % (0.09) % 0.02 % (0.02) %
ACRA noncontrolling interests (0.60) % (1.15) % (1.24) % (1.00) % (1.40) % (0.63) % (1.22) %
Other 0.11 % 0.11 % 0.11 % 0.11 % 0.12 % 0.10 % 0.11 %
Total adjustments to arrive at cost of funds 0.84 % (11.90) % (3.98) % (3.05) % (4.81) % (7.50) % (3.96) %
Total cost of funds 2.67 % 3.00 % 3.10 % 3.27 % 3.34 % 2.62 % 3.24 %
Average net invested assets $ 207,312 $ 212,761 $ 222,391 $ 230,156 $ 237,810 $ 206,241 $ 230,101
Non-GAAP Reconciliations<br><br>Unaudited (in millions) athene-logo_rgb.jpg
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Quarterly Trends Year-to-Date
3Q’23 4Q’23 1Q’24 2Q’24 3Q’24 2023 2024
RECONCILIATION OF POLICY AND OTHER OPERATING EXPENSES TO OTHER OPERATING EXPENSES
US GAAP policy and other operating expenses $ 472 $ 489 $ 459 $ 507 $ 687 $ 1,359 $ 1,653
Interest expense (113) (99) (102) (129) (142) (360) (373)
Policy acquisition expenses, net of deferrals (137) (116) (118) (114) (114) (391) (346)
Integration, restructuring and other non-operating expenses (41) (32) (30) (31) (204) (98) (265)
Stock compensation expenses (13) (46) (13) (11) (12) (42) (36)
ACRA noncontrolling interests (30) (65) (70) (95) (88) (78) (253)
Other (15) (11) (10) (11) (13) (23) (34)
Total adjustments to arrive at other operating expenses (349) (369) (343) (391) (573) (992) (1,307)
Other operating expenses $ 123 $ 120 $ 116 $ 116 $ 114 $ 367 $ 346
December 31, 2023 September 30, 2024
RECONCILIATION OF INVESTMENT FUNDS, INCLUDING RELATED PARTIES AND CONSOLIDATED VIES, TO NET ALTERNATIVE INVESTMENTS
Investment funds, including related parties and consolidated VIEs $ 17,668 $ 18,846
Equity securities 430 5
Certain equity securities included in AFS or trading securities 201 34
Investment funds within funds withheld at interest 827 879
Royalties 14 10
Net assets of the VIE, excluding investment funds (4,508) (4,768)
Unrealized (gains) losses 26 15
ACRA noncontrolling interests (2,829) (3,500)
Other assets (170) (165)
Total adjustments to arrive at net alternative investments (6,009) (7,490)
Net alternative investments $ 11,659 $ 11,356
Non-GAAP Reconciliations<br><br>Unaudited (in millions) athene-logo_rgb.jpg
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Quarterly Trends
3Q’23 4Q’23 1Q’24 2Q’24 3Q’24
RECONCILIATION OF TOTAL INVESTMENTS, INCLUDING RELATED PARTIES, TO NET INVESTED ASSETS
Total investments, including related parties $ 214,953 $ 238,941 $ 254,239 $ 265,044 $ 286,102
Derivative assets (4,571) (5,298) (7,159) (7,488) (7,529)
Cash and cash equivalents (including restricted cash) 11,214 14,781 16,825 14,097 14,551
Accrued investment income 1,792 1,933 2,332 2,507 2,695
Net receivable (payable) for collateral on derivatives (2,485) (2,835) (4,293) (4,258) (4,194)
Reinsurance impacts 882 (572) (1,358) (2,132) (4,284)
VIE assets, liabilities and noncontrolling interests 14,340 14,818 14,979 15,339 15,697
Unrealized (gains) losses 25,078 16,445 17,809 18,869 11,674
Ceded policy loans (174) (174) (171) (170) (167)
Net investment receivables (payables) (375) 11 (950) (252) (291)
Allowance for credit losses 592 608 615 682 689
Other investments (37) (41) (31) (23) (11)
Total adjustments to arrive at gross invested assets 46,256 39,676 38,598 37,171 28,830
Gross invested assets 261,209 278,617 292,837 302,215 314,932
ACRA noncontrolling interests (53,114) (61,190) (65,482) (69,258) (72,269)
Net invested assets $ 208,095 $ 217,427 $ 227,355 $ 232,957 $ 242,663
RECONCILIATION OF TOTAL LIABILITIES TO NET RESERVE LIABILITIES
Total liabilities $ 255,734 $ 279,344 $ 297,423 $ 308,295 $ 327,855
Debt (3,634) (4,209) (5,740) (5,733) (5,725)
Derivative liabilities (1,892) (1,995) (2,429) (3,212) (2,758)
Payables for collateral on derivatives and short-term securities to repurchase (4,786) (4,370) (5,481) (7,210) (5,286)
Other liabilities (2,324) (2,590) (4,195) (4,839) (7,058)
Liabilities of consolidated VIEs (1,255) (1,115) (1,082) (1,526) (1,363)
Reinsurance impacts (8,918) (8,574) (9,277) (9,876) (11,196)
Policy loans ceded (174) (174) (171) (170) (167)
Market risk benefit asset (431) (377) (383) (371) (311)
ACRA noncontrolling interests (46,576) (56,651) (60,142) (63,810) (68,092)
Total adjustments to arrive at net reserve liabilities (69,990) (80,055) (88,900) (96,747) (101,956)
Net reserve liabilities $ 185,744 $ 199,289 $ 208,523 $ 211,548 $ 225,899

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