Q4 net income increased 27% year-over-year to $464 million

Q4 adjusted operating income increased 19% year-over-year to $332 million

Q4 ROE of 20.8%, Q4 Retirement Services adjusted operating ROE ex. AOCI of 22.6%

Q4 new deposits up 91% to $3.5 billion, and full-year deposits up 31% to $11.5 billion

Total investments, including related parties, increased 16% year-over-year to $84.4 billion

Total invested assets increased 15% year-over-year to $82.3 billion

PEMBROKE, Bermuda - February 21, 2018 - Athene Holding Ltd. ("Athene") (NYSE: ATH), a leading provider of retirement savings products, today announced financial results for the fourth quarter and full-year 2017.

Net income for the fourth quarter 2017 was $464 million, or $2.35 per diluted Class A share ("diluted share"), compared to net income in the fourth quarter 2016 of $364 million, or $1.78 per diluted share. Net income for the full-year 2017 was $1.4 billion, or $7.37 per diluted share, compared to net income for the full-year 2016 of $768 million, or $4.02 per diluted share.

Adjusted operating income¹ for the fourth quarter 2017 was $332 million, or $1.69 per adjusted operating share, compared to adjusted operating income for the fourth quarter 2016 of $280 million, or $1.43 per adjusted operating share. Adjusted operating income for the full-year 2017 was $1.1 billion, or $5.66 per adjusted operating share, compared to adjusted operating income for the full-year 2016 of $728 million, or $3.77 per adjusted operating share.

¹This news release references certain Non-GAAP measures. See Non-GAAP Measures for additional discussion.

¹ALRe RBC ratio, which is used in evaluating our capital position and the amount of capital needed to support our Retirement Services segment, is calculated by applying the NAIC RBC factors to the Statutory Financial Statements of ALRe.

²Rankings as of September 30, 2017 per LIMRA.

Fourth Quarter Results

Net income for the fourth quarter was $464 million, an increase of $100 million, or 27%, over the prior year. The increase was driven by a $52 million increase in adjusted operating income and realized gains. Additionally, the fourth quarter of 2016 had unfavorable impacts from assumed reinsurance embedded derivatives related to increases in U.S. Treasury rates. The fourth quarter of 2017 included a $7 million tax benefit related to the decrease in net deferred tax liabilities attributed to the lower future income tax rate.

Adjusted operating income for the fourth quarter was $332 million, an increase of $52 million, or 19%, over the prior year. The increase was driven by higher fixed and other investment income, lower other liability costs and German adjusted operating income of $30 million compared to $17 million in the prior year. This was partially offset by lower alternative investment income. Fixed and other investment income increased mainly due to invested asset growth and increased floating rate investment income due to higher short-term interest rates. Other liability costs were lower primarily due to favorable equity market performance and immaterial out-of-period actuarial adjustments.

Net income for the full-year 2017 was $1.448 billion, an increase of $680 million, or 89%, over the prior year. The increase was driven by a $381 million increase in adjusted operating income, a favorable change in FIA derivatives resulting from strong equity market performance, favorable assumed reinsurance embedded derivative impacts due to RMBS credit spread tightening, and realized gains.

Adjusted operating income for the full-year 2017 was $1.109 billion, an increase of $381 million, or 52% over the prior year. The increase was primarily driven by higher investment income and lower other liability costs, partially offset by higher operating expenses which were consistent with block growth. Additionally, in 2016 a $102 million income tax benefit was recognized due to a deferred tax valuation allowance release. Investment income increased primarily due to invested asset growth, increased floating rate investment income due to higher short-term interest rates and higher alternative investment income. Other liability costs decreased primarily due to favorable variance in unlocking impacts with 2017 recognizing a $20 million expense compared to $158 million in 2016, favorable equity market performance and immaterial out-of-period actuarial adjustments.

In the fourth quarter, Athene generated deposits of $3.5 billion, an increase of 91% compared to the prior year. For the full year, new deposits were $11.5 billion, an increase of 31% from the prior year, driven by robust growth in our institutional channel.

Retail Sales: In the fourth quarter, Athene generated $1.3 billion of new deposits, down from the prior year due to overall market softness. For the full year, new deposits were $5.4 billion, up 1% over the prior year, driven by expanded distribution, in both the bank and broker-dealer channels, as we are seeing the impact of our ratings upgrade and expanded wholesale team.

Flow Reinsurance: In the fourth quarter, Athene generated $305 million of new deposits, down from the prior year. For the full year, new deposits were $875 million. We continue to pursue new reinsurance partners and develop new products to diversify our portfolio.

Institutional: In the fourth quarter, Athene generated $1.9 billion of new deposits from three pension risk transfer transactions. For the full year, new deposits were $5.3 billion within our institutional channel, comprised of $3.0 billion of funding agreements and $2.3 billion of pension risk transfer liabilities.

Selected Results

¹In January 2018, we issued $1.0 billion of senior unsecured debt.

²Book value per share, ex. AOCI is calculated as the ending AHL shareholders' equity excluding AOCI divided by the adjusted operating common shares outstanding.

³Represents common shares outstanding for all classes eligible to participate in dividends for each period presented. Utilized for the book value per share calculation.

⁴Adjusted operating common shares outstanding assumes conversion or settlement of all outstanding items that are able to be converted to or settled in Class A common shares, including the impacts of Class B common shares outstanding on a one-for-one basis, the impacts of all Class M common shares outstanding net of the conversion price and any other stock-based awards outstanding, but excluding any awards for which the exercise or conversion price exceeds the market value of Class A common shares on the applicable measurement date. Our Class B common shares are economically equivalent to Class A common shares and can be converted to Class A common shares on a 1-for-1 basis at any time. Our Class M common shares are in the legal form of shares but economically function as options as they are convertible into Class A shares after vesting and settlement of the conversion price. We believe this non-GAAP measure is an appropriate economic representation of our share counts for use in an economic view of book value metrics.

¹ Basic earnings per share, including basic weighted average shares outstanding includes all classes eligible to participate in dividends for each period presented.  

² Diluted earnings per share on a GAAP basis for Class A common shares, including diluted Class A weighted average shares outstanding, includes the dilutive impacts, if any, of Class B common shares, Class M common shares and any other stock-based awards. Such dilutive securities totaled 412,058 weighted average shares for the quarter and 3,323,072 weighted average shares for the year. Diluted earnings per share on a GAAP basis for Class A common shares are based on allocated net income of $297 million (64% of net income) and $114 million (31% of net income) for the three months ended December 31, 2017 and 2016, respectively. Diluted earnings per share on a GAAP basis for Class A common shares are based on allocated net income of $818 million (56% of net income) and $215 million (28% of net income) for the years ended December 31, 2017 and 2016, respectively.

³ Weighted average shares outstanding - adjusted operating assumes conversion or settlement of all outstanding items that are able to be converted to or settled in Class A common shares, including the impacts of Class B common shares on a one-for-one basis, the impacts of all Class M common shares net of the conversion price and any other stock-based awards, but excluding any awards for which the exercise or conversion price exceeds the market value of Class A common shares on the applicable measurement date. Our Class B common shares are economically equivalent to Class A common shares and can be converted to Class A common shares on a 1-for-1 basis at any time. Our Class M common shares are in the legal form of shares but economically function as options as they are convertible into Class A shares after vesting and settlement of the conversion price. In calculating Class A diluted earnings per share on a GAAP basis, we are required to apply sequencing rules to determine the dilutive impacts, if any, of our Class B common shares, Class M common shares and any other stock-based awards. To the extent our Class B common shares, Class M common shares and/or any other stock-based awards are not dilutive they are excluded. We believe this non-GAAP measure is an appropriate economic representation of our share counts for use in an economic view of adjusted operating earnings per share.

Q4 Results

In the fourth quarter, Retirement Services adjusted operating income was $306 million, an increase of $64 million, or 26%, over the prior year. The increase was driven by higher fixed and other investment income and lower other liability costs, partially offset by lower alternative investment income.

Fixed and other investment income increased primarily due to invested asset growth and increased floating rate investment income due to higher short-term interest rates. The decrease in other liability costs was primarily due to $53 million of lower rider reserves and DAC amortization due to favorable equity market performance as well as immaterial out-of-period actuarial adjustments, partially offset by an increase resulting from growth in the block of business.

Investment margin on deferred annuities was 2.70%, a decrease of 28 basis points over the prior year. The net investment earned rate was 4.57%, a decrease of 36 basis points over the prior year. Investment returns were

strong in both fixed and other as well as alternatives, returning 4.43% and 7.92%, respectively. However, the prior year benefited from high alternative returns of 16.25%, resulting from an increase in the fair value of two funds reflecting the removal of liquidity discounts related to marketability assumptions used in the determination of fair value.

Cost of crediting was 1.87%, a favorable decrease of 8 basis points compared to the prior year, as a result of rate actions and lower option costs.

For the full-year 2017, Retirement Services adjusted operating income was $1.092 billion, an increase of $315 million, or 41%, over the prior year. The increase was driven by higher fixed and other investment income and lower other liability costs. This was partially offset by higher income tax expense and lower alternative investment income.

Fixed and other investment income increased primarily due to invested asset growth and increased floating rate investment income due to higher short-term interest rates. Other liability costs were lower due to a $138 million favorable change in unlocking of assumptions, $100 million of lower rider reserves and DAC amortization due to favorable equity market performance and immaterial out-of-period actuarial adjustments, partially offset by an increase resulting from growth in the block of business. Income tax expense was lower in the prior year as a result of a deferred tax valuation allowance release of $102 million.

Investment margin on deferred annuities was 2.82%, an increase of 6 basis points over the prior year. The net investment earned rate was 4.70%, a slight decrease of 2 basis points over the prior year. Investment returns were strong in both fixed and other as well as alternatives, returning 4.48% and 10.01%, respectively. Alternative income was driven by higher real estate income and higher income from AmeriHome. The prior year had alternative returns of 12.26%, resulting from an increase in the fair value of two funds reflecting the removal of liquidity discounts related to marketability assumptions used in the determination of fair value.

Cost of crediting was 1.88%, a favorable decrease of 8 basis points compared to the prior year, as a result of rate actions and lower option costs.

Q4 Results

In the fourth quarter, Corporate and Other adjusted operating income was $26 million, a decrease of $12 million compared to the prior year. The decrease was driven by lower alternative income and higher Corporate operating expenses. German adjusted operating income was $30 million, an increase of $13 million over prior year, primarily driven by favorable policyholder dividends as a result of the unwinding of timing differences in recognition of participating income under U.S. GAAP compared to German GAAP that occurred in the third quarter 2017, which had an adjusted operating loss of $17 million.

For the full-year 2017, Corporate and Other adjusted operating income was $17 million, an increase of $66 million compared to the prior year. The increase was driven by higher alternative investment income, partially offset by higher Corporate operating expenses and a decline in German adjusted operating income to $2 million, compared to $16 million in 2016. Alternative investment income was higher than the prior year during which there was a decline in the market value of public equity positions in one of our funds.

This press release and the fourth quarter 2017 financial supplement will be posted to the Company’s website at ir.athene.com.

Athene will conduct a conference call on Thursday, February 22, 2018 at 9:00 a.m. ET to discuss fourth quarter and full-year 2017 results. Additionally, the company will post an earnings presentation deck on the ir.athene.com website prior to market open on February 22, 2018.

Investor Relations Contact:             Media Contact:

phart@athene.com                    cfisher@athene.com

Athene had total assets of approximately $99.6 billion as of December 31, 2017. Athene's principal subsidiaries include Athene Annuity & Life Assurance Company, a Delaware-domiciled insurance company, Athene Annuity and Life Company, an Iowa-domiciled insurance company, Athene Annuity & Life Assurance Company of New York, a New York-domiciled insurance company and Athene Life Re Ltd., a Bermuda-domiciled reinsurer.

Further information about our companies can be found at www.athene.com.

In addition to our results presented in accordance with GAAP, our results of operations include certain non-GAAP measures commonly used in our industry. Management believes the use of these non-GAAP measures, together with the relevant 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) as well as integration, restructuring and certain other expenses which are not part of our underlying profitability drivers or likely to re-occur in the foreseeable future, 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 GAAP and should not be viewed as a substitute for the GAAP measures. See Non-GAAP Measure Reconciliations for the appropriate reconciliations to the GAAP measures.

Adjusted operating income (formerly operating income, net of tax) is a non-GAAP measure used to evaluate our financial performance excluding market volatility and expenses related to integration, restructuring, stock compensation, and certain other expenses. Our adjusted operating income equals net income available to AHL’s shareholders adjusted to eliminate the impact of the following (collectively, the “non-operating adjustments”):

We consider these non-operating adjustments to be meaningful adjustments to net income available to AHL's shareholders and we believe using a measure which excludes the impact of these items is effective in analyzing the trends in our results of operations. Together with net income available to AHL's shareholders, we believe adjusted operating income provides a meaningful financial metric that helps investors understand our underlying results and profitability. Adjusted operating income should not be used as a substitute for net income available to AHL's shareholders.

ROE excluding AOCI and adjusted operating ROE excluding AOCI are non-GAAP measures used to evaluate our financial performance excluding the impacts of AOCI. AOCI fluctuates 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. Once we have reinvested acquired blocks of businesses, we typically buy and hold AFS 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. Accordingly, we believe using measures which exclude AOCI is useful in analyzing the trends of our operations. To enhance the ability to analyze these measures across periods, interim periods are annualized. ROE excluding AOCI and adjusted operating ROE excluding AOCI should not be used as a substitute for ROE. However, we believe the adjustments to equity are significant to gaining an understanding of our overall results of operations.

Adjusted operating earnings per share, weighted average shares outstanding - adjusted operating, and book value per share excluding AOCI are non-GAAP measures used to evaluate our financial performance and financial condition. The non-GAAP measures adjust the number of shares included in the corresponding GAAP measures to reflect the conversion or settlement of all shares and other stock-based awards outstanding. We believe using these measures represents an economic view of our share counts and provides a simplified and consistent view of our outstanding shares. Adjusted operating earnings per share is calculated as the adjusted operating income over the weighted average shares outstanding - adjusted operating. Book value per share excluding AOCI is calculated as the ending AHL shareholders' equity excluding AOCI divided by the adjusted operating common shares outstanding. Our Class B common shares are economically equivalent to Class A common shares and can be converted to Class A common shares on a one-for-one basis at any time. Our Class M common shares are in the legal form of shares but economically function as options as they are convertible into Class A shares after vesting and settlement of the conversion price. In calculating Class A diluted earnings per share on a GAAP basis, we are required to apply sequencing rules to determine the dilutive impacts, if any, of our Class B common shares, Class M common shares and any other stock-based awards. To the extent our Class B common shares, Class M common shares and/or any other stock-based awards are not dilutive they are excluded. Weighted average shares outstanding - adjusted operating and adjusted operating common shares outstanding assume conversion or settlement of all outstanding items that are able to be converted to or settled in Class A common shares, including the impacts of Class B common shares on a one-for-one basis, the impacts of all Class M common shares net of the conversion price and any other stock-based awards, but excluding any awards for which the exercise or conversion price exceeds the market value of our Class A common shares on the applicable measurement date. For certain historical periods, Class M shares were not included due to issuance restrictions which were contingent upon our IPO. Adjusted operating earnings per share, weighted average shares outstanding - adjusted operating and book value per share excluding AOCI should not be used as a substitute for basic earnings per share - Class A common shares, basic weighted average shares outstanding - Class A or book value per share. However, we believe the adjustments to the shares and equity are significant to gaining an understanding of our overall results of operations and financial condition.

Investment margin is a key measurement of the financial health of our Retirement Services core deferred annuities. Investment margin on our deferred annuities is generated from the excess of our net investment earned rate over the cost of crediting to our policyholders. Net investment earned rate is a key measure of investment returns and cost of crediting is a key measure of the policyholder benefits on our deferred annuities. Net investment earned rate, cost of crediting and investment margin on deferred annuities are non-GAAP measures we use to evaluate the profitability of our core deferred annuities business. We believe measures like net investment earned rate, cost of crediting and investment margin on deferred annuities are effective in analyzing the trends of our core business operations, profitability and pricing discipline. While we believe net investment earned rate, cost of crediting and investment margin on deferred annuities are meaningful financial metrics and enhance our understanding of the underlying profitability drivers of our business, they should not be used as a substitute for net investment income and interest sensitive contract benefits presented under GAAP.

In managing our business we analyze invested assets, which do not correspond to total investments, including investments in related parties, as disclosed in our consolidated financial statements and notes thereto. Invested assets represent the investments that directly back our policyholder liabilities as well as surplus assets. Invested assets is used in the computation of net investment earned rate, which allows us to analyze the profitability of our investment portfolio. Invested assets includes (a) total investments on the consolidated balance sheets with AFS securities 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) the consolidated VIE assets, liabilities and noncontrolling interest, (f) net investment payables and receivables and (g) policy loans ceded (which offset the direct policy loans in total investments). Invested assets also excludes assets associated with funds withheld liabilities related to business exited through reinsurance agreements and derivative collateral (offsetting the related cash positions). We include the underlying investments supporting our assumed funds withheld and modco agreements in our 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. Our invested assets are averaged over the number of quarters in the relevant period to compute our net investment earned rate for such period.

Condensed Consolidated Balance Sheets (unaudited)

Condensed Consolidated Statements of Income (unaudited)

The reconciliation of basic weighted average Class A shares to weighted average shares outstanding - adjusted operating, is as follows:

The reconciliation of AHL shareholders’ equity to AHL shareholders’ equity excluding AOCI included in ROE excluding AOCI, adjusted operating ROE excluding AOCI and book value per share excluding AOCI is as follows:

The reconciliation of basic Class A shares outstanding to adjusted operating common shares outstanding is as follows: