Investor Relations
Athene Fixed Income Investor Conference Call - May 2024
Quarter Ended Mar 31, 2024
Jim Belardi, CEO, CIO, and Co-Founder.
Company Overview
Athene is a leading retirement services company with ~$320 billion of total assets, and operations in the United States, Bermuda, Canada, and Japan. Athene is focused on providing financial security to individuals by offering an attractive suite of retirement income and savings products and also serves as a solutions provider to corporations.
Athene maintains a separate capital structure and credit profile following the merger with Apollo in 2022. It is an issuer of senior and subordinated debt, preferred stock, and also sponsors a funding agreement backed note program, which issues medium-term notes in the bond markets.
Athene has a Distinct Credit Profile within Apollo
Apollo is a publicly traded holding company with two principal businesses, an alternative asset manager (Apollo Asset Management) and a retirement services company, Athene.
Athene has Various Channels from which to Generate Inflows
Retail Annuities
Flow Reinsurance
Funding Agreements
Pension Group Annuities
Organic Growth
Block Reinsurance
Acquisitions
Inorganic Growth
Compelling Growth
Strong Returns
Athene Holds Excess Capital and Liquidity
$23B
Regulatory Capital2
$3.6B
Excess Equity Capital3
$81B
Available Liquidity4
$9.3B
Total Deployable Capital5
High Quality Asset Portfolio Generates Safe Yield<sup>6</sup>
Net Invested Assets $227 Billion<sup>7</sup>
1. Financial strength ratings for Athene Annuity & Life Assurance Company, Athene Annuity and Life Company, and Athene Annuity & Life Assurance Company of New York. S&P, A.M. Best, Fitch, and Moody's credit ratings reflect their assessment of the relative ability of an insurer to meet its ongoing insurance policy and contract obligations.
2. Represents the aggregate capital of Athene's US and Bermuda insurance entities, determined with respect to each insurance entity by applying the statutory accounting principles applicable to each such entity. Adjustments are made to, among other things, assets and expenses at the holding company level. Includes capital from non-controlling interests in ACRA.
3. Computed as capital in excess of the capital required to support our core operating strategies, as determined based upon internal modeling and analysis of economic risk, as well as inputs from rating agency capital models and consideration of both NAIC RBC and Bermuda capital requirements.
4. Includes $10.3 billion of cash and cash equivalents, $2.6 billion AHL/Athene Life Re Ltd. (ALRe) liquidity facility with $0.5 billion accordion feature, $2.0 billion committed repos, $1.25 billion AHL credit facility with $0.5 billion accordion feature, $4.5 billion of FHLB capacity, and $59.7 billion liquid bond portfolio. Availability of accordion features subject to lender consent and other factors.
5. Includes $3.6 billion in excess equity capital, $3.2 billion in untapped leverage capacity and $2.5 billion in available undrawn capital at ACRA, including additional commitments to ADIP II completed subsequent to quarter-end. Untapped leverage capacity assumes an adjusted leverage ratio of not more than 30%, subject to maintaining a sufficient level of capital required to maintain our desired financial strength ratings from rating agencies.
6. As of March 31, 2024, 97% of $159 billion of available for sale securities designated NAIC 1 or 2.
7. Represents net invested assets as of March 31, 2024. Gross invested assets were $293 billion as of March 31, 2024, including the ACRA noncontrolling interests. Note: Net invested assets includes Athene's proportionate share of ACRA investments, based on Athene's economic ownership, but does not include the proportionate share of investments associated with the noncontrolling interests.
8. Includes short-term investments, equity securities, policy loans and other investments.