May 7, 2021 - EX-99.2 - 8-K: Current report filing


Table of Contents
FINANCIAL RESULTS
Financial Highlights			3
Condensed Consolidated Statements of Income (GAAP view)			4
Segment Results of Operations (Management view)			5
Components of Adjusted Operating Return on Assets (Management view)			6
Reconciliation of Earnings Measures			7
Retirement Services Segment Highlights			8
Condensed Consolidated Balance Sheets			9

ASSETS
Investments (GAAP view)			11
Net Invested Assets (Management view) and Flows			12
Investment Funds (GAAP view)			13
Net Alternative Investments (Management view)			14
Funds Withheld at Interest (GAAP view)			15
Segment Net Investment Earned Rates (NIER )			16
NIERs by Asset Class & Apollo Investment			17
Credit Quality of Securities & Net Invested Assets			18

LIABILITIES
Net Reserve Liabilities & Rollforwards			21
Deferred Annuity Liability Characteristics			23

CAPITAL
Capitalization & Regulatory Capital Ratios			24
Financial Strength, Credit Ratings & Share Data			25

ADDITIONAL INFORMATION
Notes to the Financial Supplement			26
Non-GAAP Reconciliations			28


Financial Highlights Unaudited (in millions, except percentages and per share data)
	Quarterly Trends															Δ				Year-to-Date						Δ
	1Q’20			2Q’20			3Q’20			4Q’20			1Q’21			Q/Q		Y/Y		2020			2021			Y/Y
SELECTED INCOME STATEMENT DATA
Net income (loss) available to AHL common shareholders	$	(1,065)		$	824		$	622		$	1,065		$	578		(46)	%	NM		$	(1,065)		$	578		NM
Adjusted operating income (loss) available to common shareholders	(108)			490			302			558			748			34	%	NM		(108)			748			NM
Adjusted operating income available to common shareholders ex. notables and AOG	174			98			356			404			759			88	%	NM		174			759			NM

FINANCIAL RATIOS
Return on assets (ROA)	(2.95)		%	2.03		%	1.33		%	2.16		%	1.13		%	NM		NM		(2.95)		%	1.13		%	NM
Adjusted operating ROA	(0.36)		%	1.54		%	0.86		%	1.52		%	1.96		%	44bps		NM		(0.36)		%	1.96		%	NM
Adjusted operating ROA, excluding notables and AOG	0.59		%	0.31		%	1.03		%	1.11		%	2.00		%	89bps		141bps		0.59		%	2.00		%	141bps
Net investment spread – Retirement Services	1.03		%	0.96		%	1.41		%	1.75		%	2.48		%	73bps		145bps		1.03		%	2.48		%	145bps
Return on equity (ROE)	(36.5)		%	26.8		%	16.2		%	24.6		%	12.9		%	NM		NM		(36.5)		%	12.9		%	NM
Adjusted operating ROE	(4.4)		%	19.4		%	11.7		%	20.5		%	25.3		%	NM		NM		(4.4)		%	25.3		%	NM
Adjusted operating ROE, excluding notables and AOG	7.0		%	3.9		%	13.9		%	15.0		%	26.0		%	NM		NM		7.0		%	26.0		%	NM
Adjusted operating ROE – Retirement Services	10.6		%	11.1		%	20.2		%	26.2		%	37.8		%	NM		NM		10.6		%	37.8		%	NM

EARNINGS AND BOOK VALUE PER COMMON SHARE
Earnings (loss) per common share – basic class A	$	(5.81)		$	4.25		$	3.22		$	5.57		$	3.02		(46)	%	NM		$	(5.81)		$	3.02		NM
Earnings (loss) per common share – diluted class A1	(5.81)			4.19			3.16			5.44			2.94			(46)	%	NM		(5.81)			2.94			NM
Adjusted operating earnings (loss) per common share2	(0.60)			2.49			1.53			2.85			3.80			33	%	NM		(0.60)			3.80			NM
Adjusted operating earnings per common share ex. notables and AOG	0.96			0.50			1.81			2.06			3.86			87	%	NM		0.96			3.86			NM
Book value per common share	45.23			66.82			74.21			85.51			78.25			(8)	%	73	%	45.23			78.25			73	%
Adjusted book value per common share3	51.07			51.15			53.61			56.95			62.88			10	%	23	%	51.07			62.88			23	%

SELECTED BALANCE SHEET DATA
Total assets	$	142,179		$	183,241		$	191,088		$	202,771		$	205,670		1	%	45	%	$	142,179		$	205,670		45	%
Gross invested assets	128,263			161,965			167,136			175,424			182,296			4	%	42	%	128,263			182,296			42	%
Invested assets – ACRA noncontrolling interests	(7,063)			(24,696)			(24,301)			(25,234)			(26,593)			(5)	%	NM		(7,063)			(26,593)			NM
Net invested assets	121,200			137,269			142,835			150,190			155,703			4	%	28	%	121,200			155,703			28	%
Total liabilities	131,649			167,602			173,971			182,631			187,334			3	%	42	%	131,649			187,334			42	%
Net reserve liabilities	114,273			131,333			137,767			144,989			148,339			2	%	30	%	114,273			148,339			30	%
Debt	1,386			1,486			1,487			1,976			1,977			—	%	43	%	1,386			1,977			43	%
Total AHL shareholders’ equity	9,940			14,711			15,943			18,657			17,291			(7)	%	74	%	9,940			17,291			74	%
Adjusted AHL common shareholders’ equity	10,097			10,157			10,522			11,232			12,470			11	%	24	%	10,097			12,470			24	%











FLOWS DATA
Net organic flows3	$	1,207		$	3,639		$	4,706		$	4,866		$	3,224		(34)	%	167	%	$	1,207		$	3,224		167	%
Average net invested assets	119,344			127,591			140,052			146,512			152,947			4	%	28	%	119,344			152,947			28	%
Net organic growth rate4	4.0		%	11.4		%	13.4		%	13.3		%	8.4		%	NM		NM		4.0		%	8.4		%	NM
Net organic growth rate - LTM	4.9		%	6.7		%	7.9		%	10.8		%	11.6		%	80bps		NM		4.9		%	11.6		%	NM

Note: “NM” represents changes that are not meaningful. Please refer to Notes to the Financial Supplement section and the Non-GAAP Measure Reconciliations for discussion of non-GAAP metrics. 1 Diluted earnings per common share on a GAAP basis for Class A common shares, including diluted Class A weighted average common shares outstanding, includes the dilutive impacts, if any, of Class B common shares, Class M common shares and any other stock-based awards. 2 Represents Class A common shares outstanding or weighted average common shares outstanding assuming 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, Class M common shares 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. 3 Net organic flows are calculated as organic inflows less total outflows, net of the ACRA noncontrolling interest. In Q1’21 we revised the net organic flows metric, for all periods presented, to include all outflows while previously this metric excluded inorganic business. 4 Net organic growth rate is calculated as net organic flows divided by average net invested assets, on an annualized basis. In Q1’21, we revised the net organic growth rate and average net invested assets metrics, for all periods presented, to include all outflows and net invested assets while previously these metrics excluded inorganic business.


Condensed Consolidated Statements of Income (GAAP view) Unaudited (in millions, except percentages)
	Quarterly Trends										Δ				Year-to-Date				Δ
	1Q’20		2Q’20		3Q’20		4Q’20		1Q’21		Q/Q		Y/Y		2020		2021		Y/Y
REVENUE
Premiums	$	1,140	$	355	$	112	$	4,356	$	3,011	(31)	%	164	%	$	1,140	$	3,011	164	%
Product charges	140		141		144		146		150		3	%	7	%	140		150		7	%
Net investment income	745		1,336		1,209		1,595		1,704		7	%	129	%	745		1,704		129	%
Investment related gains (losses)	(3,572)		2,548		1,797		2,536		(488)		NM		86	%	(3,572)		(488)		86	%
Other revenues	(2)		18		13		7		14		100	%	NM		(2)		14		NM
Total revenues	$	(1,549)	$	4,398	$	3,275	$	8,640	$	4,391	(49)	%	NM		$	(1,549)	$	4,391	NM

BENEFITS AND EXPENSES
Interest sensitive contract benefits	$	(1,319)	$	2,076	$	1,225	$	1,909	$	394	(79)	%	NM		$	(1,319)	$	394	NM
Amortization of deferred sales inducements	10		(21)		48		29		84		190	%	NM		10		84		NM
Future policy and other policy benefits	1,356		674		439		4,718		3,317		(30)	%	145	%	1,356		3,317		145	%
Amortization of deferred acquisition costs and value of business acquired	(413)		361		299		274		164		(40)	%	NM		(413)		164		NM
Dividends to policyholders	11		9		9		9		10		11	%	(9)	%	11		10		(9)	%
Policy and other operating expenses	188		218		231		218		283		30	%	51	%	188		283		51	%
Total benefits and expenses	(167)		3,317		2,251		7,157		4,252		(41)	%	NM		(167)		4,252		NM
Income (loss) before income taxes	(1,382)		1,081		1,024		1,483		139		(91)	%	NM		(1,382)		139		NM
Income tax expense (benefit)	(166)		150		140		161		62		(61)	%	NM		(166)		62		NM
Net income (loss)	(1,216)		931		884		1,322		77		(94)	%	NM		(1,216)		77		NM
Less: Net income (loss) attributable to noncontrolling interests	(169)		88		232		229		(537)		NM		NM		(169)		(537)		NM
Net income (loss) attributable to Athene Holding Ltd. shareholders	(1,047)		843		652		1,093		614		(44)	%	NM		(1,047)		614		NM
Less: Preferred stock dividends	18		19		30		28		36		29	%	100	%	18		36		100	%
Net income (loss) available to Athene Holding Ltd. common shareholders	$	(1,065)	$	824	$	622	$	1,065	$	578	(46)	%	NM		$	(1,065)	$	578	NM


Segment Results of Operations (Management view) Unaudited (in millions, except percentages and per share data)
	Quarterly Trends										Δ				Year-to-Date				Δ
	1Q’20		2Q’20		3Q’20		4Q’20		1Q’21		Q/Q		Y/Y		2020		2021		Y/Y
CONSOLIDATED
Fixed income and other investment income	$	1,188	$	1,140	$	1,225	$	1,283	$	1,286	—	%	8	%	$	1,188	$	1,286	8	%
Alternative investment income (loss)	(37)		(100)		305		324		712		120	%	NM		(37)		712		NM
Net investment earnings	1,151		1,040		1,530		1,607		1,998		24	%	74	%	1,151		1,998		74	%
Cost of crediting	(540)		(560)		(640)		(677)		(668)		1	%	(24)	%	(540)		(668)		(24)	%
Other liability costs1	(342)		(215)		(320)		(281)		(342)		(22)	%	—	%	(342)		(342)		—	%
Cost of funds	(882)		(775)		(960)		(958)		(1,010)		(5)	%	(15)	%	(882)		(1,010)		(15)	%
Operating expenses	(79)		(88)		(78)		(93)		(98)		(5)	%	(24)	%	(79)		(98)		(24)	%
Interest expense	(19)		(28)		(27)		(27)		(26)		4	%	(37)	%	(19)		(26)		(37)	%
Management fees from ACRA	2		3		9		8		9		13	%	NM		2		9		NM
Pre-tax adjusted operating income	173		152		474		537		873		63	%	NM		173		873		NM
Income tax expense – operating2	(24)		(15)		(61)		(64)		(70)		(9)	%	NM		(24)		(70)		NM
Adjusted operating income	149		137		413		473		803		70	%	NM		149		803		NM
Preferred stock dividends	(18)		(19)		(30)		(28)		(36)		(29)	%	(100)	%	(18)		(36)		(100)	%
Adjusted operating income available to common shareholders excluding Apollo	131		118		383		445		767		72	%	NM		131		767		NM
Change in fair value of Apollo investment, net of tax3	(239)		372		(81)		113		(19)		NM		92	%	(239)		(19)		92	%
Adjusted operating income (loss) available to common shareholders	$	(108)	$	490	$	302	$	558	$	748	34	%	NM		$	(108)	$	748	NM

Adjusted operating earnings (loss) per common share	$	(0.60)	$	2.49	$	1.53	$	2.85	$	3.80	33	%	NM		$	(0.60)	$	3.80	NM

RETIREMENT SERVICES
Fixed income and other investment income	$	1,177	$	1,132	$	1,216	$	1,274	$	1,276	—	%	8	%	$	1,177	$	1,276	8	%
Alternative investment income (loss)	7		(57)		228		310		659		113	%	NM		7		659		NM
Net investment earnings	1,184		1,075		1,444		1,584		1,935		22	%	63	%	1,184		1,935		63	%
Cost of crediting	(540)		(560)		(640)		(677)		(668)		1	%	(24)	%	(540)		(668)		(24)	%
Other liability costs1	(342)		(215)		(320)		(281)		(342)		(22)	%	—	%	(342)		(342)		—	%
Cost of funds	(882)		(775)		(960)		(958)		(1,010)		(5)	%	(15)	%	(882)		(1,010)		(15)	%
Operating expenses	(68)		(71)		(63)		(73)		(78)		(7)	%	(15)	%	(68)		(78)		(15)	%
Interest expense	(8)		(9)		(8)		(4)		(2)		50	%	75	%	(8)		(2)		75	%
Management fees from ACRA	2		3		9		8		9		13	%	NM		2		9		NM
Pre-tax adjusted operating income	228		223		422		557		854		53	%	275	%	228		854		275	%
Income tax expense – operating	(24)		(15)		(61)		(64)		(70)		(9)	%	NM		(24)		(70)		NM
Adjusted operating income available to common shareholders	$	204	$	208	$	361	$	493	$	784	59	%	284	%	$	204	$	784	284	%

CORPORATE & OTHER
Fixed income and other investment income	$	11	$	8	$	9	$	9	$	10	11	%	(9)	%	$	11	$	10	(9)	%
Alternative investment income (loss)	(44)		(43)		77		14		53		279	%	NM		(44)		53		NM
Net investment earnings (loss)	(33)		(35)		86		23		63		174	%	NM		(33)		63		NM
Operating expenses	(11)		(17)		(15)		(20)		(20)		—	%	(82)	%	(11)		(20)		(82)	%
Interest expense	(11)		(19)		(19)		(23)		(24)		(4)	%	NM		(11)		(24)		NM
Adjusted operating income (loss)	(55)		(71)		52		(20)		19		NM		NM		(55)		19		NM
Preferred stock dividends	(18)		(19)		(30)		(28)		(36)		(29)	%	(100)	%	(18)		(36)		(100)	%
Adjusted operating income (loss) available to common shareholders excluding Apollo	(73)		(90)		22		(48)		(17)		65	%	77	%	(73)		(17)		77	%
Change in fair value of Apollo investment, net of tax3	(239)		372		(81)		113		(19)		NM		92	%	(239)		(19)		92	%
Adjusted operating income (loss) available to common shareholders	$	(312)	$	282	$	(59)	$	65	$	(36)	NM		88	%	$	(312)	$	(36)	88	%

Note: Please refer to Notes to the Financial Supplement section and the Non-GAAP Measure Reconciliations for discussion on adjusted operating income available to common shareholders and adjusted operating earnings per common share. 1 Other liability costs primarily includes DAC, DSI and VOBA amortization and rider reserve changes for all products, the cost of liabilities on products other than deferred annuities and institutional costs including offsets for premiums, product charges and other revenues. 2 Income tax expense - operating excludes the income tax expense/benefit on the earnings from our investment in Apollo. 3 Change in fair value of Apollo investment, net of tax, includes both the change in our investment in Apollo and the tax expense or benefit associated with the income or loss.


Components of Adjusted Operating Return on Assets (Management View) Unaudited (in millions, except percentages)
	Quarterly Trends															Δ				Year-to-Date						Δ
	1Q’20			2Q’20			3Q’20			4Q’20			1Q’21			Q/Q		Y/Y		2020			2021			Y/Y
CONSOLIDATED
Fixed income and other investment income	4.20		%	3.78		%	3.70		%	3.70		%	3.57		%	(13)bps		(63)bps		4.20		%	3.57		%	(63)bps
Alternative investment income (loss)	(2.58)		%	(6.75)		%	19.44		%	19.56		%	38.51		%	NM		NM		(2.58)		%	38.51		%	NM
Net investment earnings	3.87		%	3.29		%	4.41		%	4.43		%	5.27		%	84bps		140bps		3.87		%	5.27		%	140bps
Cost of crediting	(1.82)		%	(1.77)		%	(1.84)		%	(1.86)		%	(1.76)		%	10bps		6bps		(1.82)		%	(1.76)		%	6bps
Other liability costs	(1.15)		%	(0.68)		%	(0.93)		%	(0.78)		%	(0.90)		%	(12)bps		25bps		(1.15)		%	(0.90)		%	25bps
Cost of funds	(2.97)		%	(2.45)		%	(2.77)		%	(2.64)		%	(2.66)		%	(2)bps		31bps		(2.97)		%	(2.66)		%	31bps
Net investment spread	0.90		%	0.84		%	1.64		%	1.79		%	2.61		%	82bps		171bps		0.90		%	2.61		%	171bps
Operating expenses	(0.27)		%	(0.28)		%	(0.22)		%	(0.26)		%	(0.26)		%	0bps		1bps		(0.27)		%	(0.26)		%	1bps
Interest expense	(0.06)		%	(0.09)		%	(0.08)		%	(0.07)		%	(0.07)		%	0bps		(1)bps		(0.06)		%	(0.07)		%	(1)bps
Management fees from ACRA	0.01		%	0.01		%	0.03		%	0.02		%	0.02		%	0bps		1bps		0.01		%	0.02		%	1bps
Pre-tax adjusted operating income	0.58		%	0.48		%	1.37		%	1.48		%	2.30		%	82bps		172bps		0.58		%	2.30		%	172bps
Income tax expense – operating	(0.08)		%	(0.05)		%	(0.18)		%	(0.18)		%	(0.18)		%	0bps		(10)bps		(0.08)		%	(0.18)		%	(10)bps
Adjusted operating income	0.50		%	0.43		%	1.19		%	1.30		%	2.12		%	82bps		162bps		0.50		%	2.12		%	162bps
Preferred stock dividends	(0.06)		%	(0.06)		%	(0.09)		%	(0.07)		%	(0.10)		%	(3)bps		(4)bps		(0.06)		%	(0.10)		%	(4)bps
Adjusted operating income available to common shareholders excluding Apollo	0.44		%	0.37		%	1.10		%	1.23		%	2.02		%	79bps		158bps		0.44		%	2.02		%	158bps
Change in fair value of Apollo investment, net of tax	(0.80)		%	1.17		%	(0.24)		%	0.29		%	(0.06)		%	(35)bps		74bps		(0.80)		%	(0.06)		%	74bps
Adjusted operating income (loss) available to common shareholders	(0.36)		%	1.54		%	0.86		%	1.52		%	1.96		%	44bps		NM		(0.36)		%	1.96		%	NM

Consolidated average net invested assets ex. Apollo investment	$	118,919		$	126,510		$	138,797		$	145,251		$	151,644		4	%	28	%	$	118,919		$	151,644		28	%
Consolidated average net invested assets	119,344			127,591			140,052			146,512			152,947			4	%	28	%	119,344			152,947			28	%

RETIREMENT SERVICES
Fixed income and other investment income	4.20		%	3.78		%	3.70		%	3.70		%	3.57		%	(13)bps		(63)bps		4.20		%	3.57		%	(63)bps
Alternative investment income (loss)	0.56		%	(4.38)		%	17.24		%	22.59		%	42.33		%	NM		NM		0.56		%	42.33		%	NM
Net investment earnings	4.04		%	3.44		%	4.22		%	4.43		%	5.18		%	75bps		114bps		4.04		%	5.18		%	114bps
Cost of crediting	(1.84)		%	(1.79)		%	(1.87)		%	(1.89)		%	(1.79)		%	10bps		5bps		(1.84)		%	(1.79)		%	5bps
Other liability costs	(1.17)		%	(0.69)		%	(0.94)		%	(0.79)		%	(0.91)		%	(12)bps		26bps		(1.17)		%	(0.91)		%	26bps
Cost of funds	(3.01)		%	(2.48)		%	(2.81)		%	(2.68)		%	(2.70)		%	(2)bps		31bps		(3.01)		%	(2.70)		%	31bps
Net investment spread	1.03		%	0.96		%	1.41		%	1.75		%	2.48		%	73bps		145bps		1.03		%	2.48		%	145bps
Operating expenses	(0.23)		%	(0.23)		%	(0.18)		%	(0.20)		%	(0.21)		%	(1)bps		2bps		(0.23)		%	(0.21)		%	2bps
Interest expense	(0.03)		%	(0.03)		%	(0.02)		%	(0.01)		%	(0.01)		%	0bps		2bps		(0.03)		%	(0.01)		%	2bps
Management fees from ACRA	0.01		%	0.01		%	0.03		%	0.02		%	0.02		%	0bps		1bps		0.01		%	0.02		%	1bps
Pre-tax adjusted operating income	0.78		%	0.71		%	1.24		%	1.56		%	2.28		%	72bps		150bps		0.78		%	2.28		%	150bps
Income tax expense – operating	(0.08)		%	(0.04)		%	(0.18)		%	(0.18)		%	(0.18)		%	0bps		(10)bps		(0.08)		%	(0.18)		%	(10)bps
Adjusted operating income available to common shareholders	0.70		%	0.67		%	1.06		%	1.38		%	2.10		%	72bps		140bps		0.70		%	2.10		%	140bps

Retirement Services average net invested assets	$	117,295		$	124,943		$	136,852		$	143,162		$	149,397		4	%	27	%	$	117,295		$	149,397		27	%


Reconciliation of Earnings Measures Unaudited (in millions, except percentages and per share data)
	Quarterly Trends										Δ				Year-to-Date				Δ
	1Q’20		2Q’20		3Q’20		4Q’20		1Q’21		Q/Q		Y/Y		2020		2021		Y/Y
RECONCILIATION OF NET INCOME (LOSS) AVAILABLE TO ATHENE HOLDING LTD. COMMON SHAREHOLDERS TO ADJUSTED OPERATING INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
Net income (loss) available to Athene Holding Ltd. common shareholders	$	(1,065)	$	824	$	622	$	1,065	$	578	(46)	%	NM		$	(1,065)	$	578	NM
Non-operating adjustments
Realized gains (losses) on sale of AFS securities	12		(11)		(11)		37		19		(49)	%	58	%	12		19		58	%
Unrealized, allowances and other investment gains (losses)	(369)		52		49		116		100		(14)	%	NM		(369)		100		NM
Change in fair value of reinsurance assets	(1,277)		1,113		434		522		(865)		NM		32	%	(1,277)		(865)		32	%
Offsets to investment gains (losses)	495		(379)		(126)		(149)		141		NM		(72)	%	495		141		(72)	%
Investment gains (losses), net of offsets	(1,139)		775		346		526		(605)		NM		47	%	(1,139)		(605)		47	%
Change in fair values of derivatives and embedded derivatives – FIAs, net of offsets	65		(405)		72		33		488		NM		NM		65		488		NM
Integration, restructuring and other non-operating expenses	(4)		(9)		—		3		(45)		NM		NM		(4)		(45)		NM
Stock compensation expense	(10)		—		(1)		—		—		NM		NM		(10)		—		NM
Income tax (expense) benefit – non-operating	131		(27)		(97)		(55)		(8)		85	%	NM		131		(8)		NM
Less: Total non-operating adjustments	(957)		334		320		507		(170)		NM		82	%	(957)		(170)		82	%
Adjusted operating income (loss) available to common shareholders	$	(108)	$	490	$	302	$	558	$	748	34	%	NM		$	(108)	$	748	NM






RECONCILIATION OF BASIC EARNINGS (LOSS) PER CLASS A COMMON SHARES TO ADJUSTED OPERATING EARNINGS (LOSS) PER COMMON SHARE
Basic earnings (loss) per share - Class A common shares	$	(5.81)	$	4.25	$	3.22	$	5.57	$	3.02	(46)	%	NM		$	(5.81)	$	3.02	NM
Non-operating adjustments
Realized gains (losses) on sale of AFS securities	0.07		(0.06)		(0.06)		0.19		0.10		(47)	%	43	%	0.07		0.10		43	%
Unrealized, allowances and other investment gains (losses)	(2.03)		0.26		0.24		0.59		0.50		(15)	%	NM		(2.03)		0.50		NM
Change in fair value of reinsurance assets	(7.04)		5.66		2.20		2.66		(4.40)		NM		38	%	(7.04)		(4.40)		38	%
Offsets to investment gains (losses)	2.73		(1.93)		(0.64)		(0.76)		0.72		NM		(74)	%	2.73		0.72		(74)	%
Investment gains (losses), net of offsets	(6.27)		3.93		1.74		2.68		(3.08)		NM		51	%	(6.27)		(3.08)		51	%
Change in fair values of derivatives and embedded derivatives – FIAs, net of offsets	0.36		(2.06)		0.37		0.17		2.48		NM		NM		0.36		2.48		NM
Integration, restructuring and other non-operating expenses	(0.03)		(0.04)		—		0.01		(0.22)		NM		NM		(0.03)		(0.22)		NM
Stock compensation expense	(0.05)		—		—		—		—		NM		NM		(0.05)		—		NM
Income tax (expense) benefit – non-operating	0.72		(0.14)		(0.49)		(0.28)		(0.04)		86	%	NM		0.72		(0.04)		NM
Less: Total non-operating adjustments	(5.27)		1.69		1.62		2.58		(0.86)		NM		84	%	(5.27)		(0.86)		84	%
Less: Effect of items convertible to or settled in Class A common shares	0.06		0.07		0.07		0.14		0.08		(43)	%	33	%	0.06		0.08		33	%
Adjusted operating earnings (loss) per common share	$	(0.60)	$	2.49	$	1.53	$	2.85	$	3.80	33	%	NM		$	(0.60)	$	3.80	NM

Note: Please refer to Notes to the Financial Supplement section for discussion on adjusted operating income available to common shareholders.


Retirement Services Segment Highlights Unaudited (in millions, except percentages)
	Quarterly Trends															Δ				Year-to-Date						Δ
	1Q’20			2Q’20			3Q’20			4Q’20			1Q’21			Q/Q		Y/Y		2020			2021			Y/Y
NET INVESTMENT SPREAD – RETIREMENT SERVICES
Net investment earned rate	4.04		%	3.44		%	4.22		%	4.43		%	5.18		%	75bps		114bps		4.04		%	5.18		%	114bps
Cost of crediting	1.84		%	1.79		%	1.87		%	1.89		%	1.79		%	(10)bps		(5)bps		1.84		%	1.79		%	(5)bps
Other liability costs	1.17		%	0.69		%	0.94		%	0.79		%	0.91		%	12bps		(26)bps		1.17		%	0.91		%	(26)bps
Cost of funds	3.01		%	2.48		%	2.81		%	2.68		%	2.70		%	2bps		(31)bps		3.01		%	2.70		%	(31)bps
Net investment spread	1.03		%	0.96		%	1.41		%	1.75		%	2.48		%	73bps		145bps		1.03		%	2.48		%	145bps

Average net invested assets	$	117,295		$	124,943		$	136,852		$	143,162		$	149,397		4	%	27	%	$	117,295		$	149,397		27	%

COST OF CREDITING – RETIREMENT SERVICES
FIA option costs	$	248		$	252		$	264		$	258		$	255		(1)	%	3	%	$	248		$	255		3	%
Fixed interest credited to policyholders	174			199			242			247			238			(4)	%	37	%	174			238			37	%
Cost of crediting on deferred annuities	422			451			506			505			493			(2)	%	17	%	422			493			17	%
Average account value on deferred annuities	88,119			92,814			102,144			103,990			104,310			—	%	18	%	88,119			104,310			18	%
Cost of crediting on deferred annuities rate	1.91		%	1.94		%	1.98		%	1.94		%	1.89		%	(5)bps		(2)bps		1.91		%	1.89		%	(2)bps

Cost of crediting on institutional products	$	118		$	109		$	134		$	172		$	175		2	%	48	%	$	118		$	175		48	%
Average institutional reserve liabilities	14,250			15,233			18,162			22,375			27,028			21	%	90	%	14,250			27,028			90	%
Cost of crediting on institutional products rate	3.31		%	2.87		%	2.95		%	3.08		%	2.59		%	(49)bps		(72)bps		3.31		%	2.59		%	(72)bps

Cost of crediting	$	540		$	560		$	640		$	677		$	668		(1)	%	24	%	$	540		$	668		24	%






OTHER LIABILITY COSTS – RETIREMENT SERVICES
Change in rider reserve	$	183		$	128		$	119		$	121		$	138		14	%	(25)	%	$	183		$	138		(25)	%
DAC, DSI and VOBA amortization	127			84			178			154			194			26	%	53	%	127			194			53	%
Other1	32			3			23			6			10			67	%	(69)	%	32			10			(69)	%
Other liability costs	$	342		$	215		$	320		$	281		$	342		22	%	—	%	$	342		$	342		—	%

INVESTMENT MARGIN ON DEFERRED ANNUITIES – RETIREMENT SERVICES
Net investment earned rate	4.04		%	3.44		%	4.22		%	4.43		%	5.18		%	75bps		114bps		4.04		%	5.18		%	114bps
Cost of crediting on deferred annuities	1.91		%	1.94		%	1.98		%	1.94		%	1.89		%	(5)bps		(2)bps		1.91		%	1.89		%	(2)bps
Investment margin on deferred annuities	2.13		%	1.50		%	2.24		%	2.49		%	3.29		%	80bps		116bps		2.13		%	3.29		%	116bps

Note: Please refer to Notes to the Financial Supplement section and the Non-GAAP Reconciliations for discussion on net investment spread, investment margin on deferred annuities, net investment earned rate, cost of crediting on deferred annuities and other liability costs. 1 Other primarily includes payout annuities, policy maintenance costs, reinsurance expense allowances and non-deferred acquisition costs, net of product charges.


Condensed Consolidated Balance Sheets Unaudited (in millions, except percentages)
	December 31, 2020		March 31, 2021		Δ
ASSETS
Investments
Available-for-sale securities, at fair value	$	82,853	$	85,524	3	%
Trading securities, at fair value	2,093		1,979		(5)	%
Equity securities	532		524		(2)	%
Mortgage loans, net of allowances	15,264		16,671		9	%
Investment funds	803		966		20	%
Policy loans	369		356		(4)	%
Funds withheld at interest	48,612		46,024		(5)	%
Derivative assets	3,523		3,677		4	%
Short-term investments	222		125		(44)	%
Other investments, net of allowances	572		1,722		201	%
Total investments	154,843		157,568		2	%
Cash and cash equivalents	7,704		6,427		(17)	%
Restricted cash	738		546		(26)	%
Investments in related parties
Available-for-sale securities, at fair value	6,520		6,905		6	%
Trading securities, at fair value	1,529		1,710		12	%
Equity securities, at fair value	72		114		58	%
Mortgage loans, net of allowances	674		714		6	%
Investment funds	5,284		5,899		12	%
Funds withheld at interest	13,030		12,572		(4)	%

Other investments, net of allowances	469		469		—	%
Accrued investment income	905		968		7	%
Reinsurance recoverable	4,848		4,690		(3)	%
Deferred acquisition costs, deferred sales inducements and value of business acquired	4,906		5,303		8	%
Other assets	1,249		1,785		43	%
Total assets	$	202,771	$	205,670	1	%


Condensed Consolidated Balance Sheets, continued Unaudited (in millions, except percentages)
	December 31, 2020		March 31, 2021		Δ
LIABILITIES
Interest sensitive contract liabilities	$	144,566	$	146,247	1	%
Future policy benefits	29,258		31,767		9	%
Other policy claims and benefits	130		135		4	%
Dividends payable to policyholders	110		110		—	%

Long-term debt	1,976		1,977		—	%
Derivative liabilities	298		288		(3)	%
Payables for collateral on derivatives and securities to repurchase	3,801		3,952		4	%
Funds withheld liability	452		422		(7)	%
Other liabilities	2,040		2,436		19	%

Total liabilities	182,631		187,334		3	%

EQUITY
Preferred stock	—		—		NM
Common stock	—		—		NM
Additional paid-in-capital	6,613		6,623		—	%
Retained earnings	8,073		8,647		7	%
Accumulated other comprehensive income	3,971		2,021		(49)	%
Total Athene Holding Ltd. shareholders’ equity	18,657		17,291		(7)	%
Noncontrolling interests	1,483		1,045		(30)	%
Total equity	20,140		18,336		(9)	%
Total liabilities and equity	$	202,771	$	205,670	1	%


Investments (GAAP view) Unaudited (in millions, except percentages)
	December 31, 2020				March 31, 2021
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
INVESTMENTS AND INVESTMENTS IN RELATED PARTIES SUMMARY
Investments
Available-for-sale securities, at fair value
U.S. government and agencies	$	351	0.2	%	$	351	0.2	%
U.S. state, municipal and political subdivisions	1,033		0.6	%	1,006		0.5	%
Foreign governments	368		0.2	%	382		0.2	%
Corporate	58,180		31.9	%	58,848		31.5	%
CLO	9,569		5.2	%	11,272		6.1	%
ABS	4,270		2.3	%	4,832		2.6	%
CMBS	2,169		1.2	%	2,206		1.2	%
RMBS	6,913		3.8	%	6,627		3.6	%
Total available-for-sale securities, at fair value	82,853		45.4	%	85,524		45.9	%
Trading securities, at fair value	2,093		1.2	%	1,979		1.1	%
Equity securities	532		0.3	%	524		0.3	%
Mortgage loans, net of allowances	15,264		8.4	%	16,671		8.9	%
Investment funds	803		0.4	%	966		0.5	%
Policy loans	369		0.2	%	356		0.2	%
Funds withheld at interest	48,612		26.7	%	46,024		24.7	%
Derivative assets	3,523		1.9	%	3,677		2.0	%
Short-term investments	222		0.1	%	125		0.1	%
Other investments	572		0.3	%	1,722		0.9	%
Total investments	154,843		84.9	%	157,568		84.6	%
Investments in related parties
Available-for-sale securities, at fair value
Corporate	215		0.1	%	221		0.1	%
CLO	1,520		0.9	%	1,869		1.0	%
ABS	4,785		2.6	%	4,815		2.6	%
Total available-for-sale securities, at fair value	6,520		3.6	%	6,905		3.7	%
Trading securities, at fair value	1,529		0.8	%	1,710		0.9	%
Equity securities, at fair value	72		—	%	114		0.1	%
Mortgage loans	674		0.4	%	714		0.4	%
Investment funds	5,284		2.9	%	5,899		3.2	%
Funds withheld at interest	13,030		7.1	%	12,572		6.8	%

Other investments	469		0.3	%	469		0.3	%
Total investments in related parties	27,578		15.1	%	28,383		15.4	%
Total investments including related parties	$	182,421	100.0	%	$	185,951	100.0	%


Net Invested Assets (Management view) and Flows Unaudited (in millions, except percentages)
	December 31, 2020				March 31, 2021
	Invested Asset Value1		Percent of Total		Invested Asset Value1		Percent of Total
NET INVESTED ASSETS
Corporate	$	71,040	47.3	%	$	74,549	47.9	%
CLO	14,609		9.7	%	15,835		10.2	%
Credit	85,649		57.0	%	90,384		58.1	%
RMBS	8,337		5.6	%	7,968		5.1	%
CML	16,778		11.2	%	18,113		11.6	%
RML	4,774		3.2	%	5,229		3.4	%
CMBS	3,227		2.1	%	3,271		2.1	%

Real estate	33,116		22.1	%	34,581		22.2	%
ABS	13,137		8.7	%	14,061		9.0	%
Alternative investments	6,793		4.5	%	8,004		5.1	%
State, municipal, political subdivisions and foreign government	2,136		1.4	%	2,153		1.5	%

Equity securities	478		0.3	%	494		0.3	%
Short-term investments	479		0.3	%	227		0.1	%
U.S. government and agencies	206		0.2	%	242		0.2	%
Other investments	23,229		15.4	%	25,181		16.2	%
Cash and equivalents	5,417		3.6	%	2,844		1.8	%
Policy loans and other	1,455		1.0	%	1,432		0.9	%
Net invested assets excluding investment in Apollo	148,866		99.1	%	154,422		99.2	%
Investment in Apollo	1,324		0.9	%	1,281		0.8	%
Net invested assets	$	150,190	100.0	%	$	155,703	100.0	%


	Quarterly Trends															Δ				Year-to-Date						Δ
	1Q’20			2Q’20			3Q’20			4Q’20			1Q’21			Q/Q		Y/Y		2020			2021			Y/Y
NET FLOWS
Retail	$	1,246		$	1,791		$	2,465		$	2,299		$	1,757		(24)	%	41	%	$	1,246		$	1,757		41	%
Flow reinsurance	861			2,265			2,317			559			299			(47)	%	(65)	%	861			299			(65)	%
Funding agreements2	823			2,636			2,619			2,199			3,226			47	%	292	%	823			3,226			292
Pension risk transfer	1,017			229			—			4,221			2,893			(31)	%	184	%	1,017			2,893			184	%
Gross organic inflows	3,947			6,921			7,401			9,278			8,175			(12)	%	107	%	3,947			8,175			107	%
Gross inorganic inflows	—			28,792			—			—			—			NM		NM		—			—			NM
Total gross inflows	3,947			35,713			7,401			9,278			8,175			(12)	%	107	%	3,947			8,175			107	%
Inflows attributable to ACRA noncontrolling interest	—			(18,268)			—			(1,180)			(1,470)			(25)	%	NM		—			(1,470)			NM
Net outflows3	(2,740)			(3,282)			(2,695)			(3,232)			(3,481)			(8)	%	(27)	%	(2,740)			(3,481)			(27)	%
Net flows	$	1,207		$	14,163		$	4,706		$	4,866		$	3,224		(34)	%	167	%	$	1,207		$	3,224		167	%

Gross organic inflows	$	3,947		$	6,921		$	7,401		$	9,278		$	8,175		(12)	%	107	%	$	3,947		$	8,175		107	%
Organic inflows attributable to ACRA noncontrolling interest	—			—			—			(1,180)			(1,470)			(25)	%	NM		—			(1,470)			NM
Net organic inflows	3,947			6,921			7,401			8,098			6,705			(17)	%	70	%	3,947			6,705			70	%
Net outflows3	(2,740)			(3,282)			(2,695)			(3,232)			(3,481)			(8)	%	(27)	%	(2,740)			(3,481)			(27)	%
Net organic flows	$	1,207		$	3,639		$	4,706		$	4,866		$	3,224		(34)	%	167	%	$	1,207		$	3,224		167	%

Net organic growth rate4	4.0		%	11.4		%	13.4		%	13.3		%	8.4		%	NM		NM		4.0		%	8.4		%	NM

1 Please refer to Notes to the Financial Supplement for discussion on net invested assets including net alternative investments and Non-GAAP Measure Reconciliations for the reconciliation of investments including related parties to net invested assets. Net invested assets includes our economic ownership of ACRA investments but does not include the investments associated with the noncontrolling interest. 2 Funding agreements are comprised of funding agreements issued under our FABN and FABR programs, funding agreements issued to the FHLB and long-term repurchase agreements. 3 Net outflows consist of full and partial policyholder withdrawals on deferred annuities, death benefits, pension risk transfer benefit payments, payments on payout annuities and funding agreement maturities, net of the ACRA noncontrolling interest. In Q1’21, we revised the net outflows metric, for all periods presented, to include all outflows while previously this metric excluded inorganic business. 4 Net organic growth rate is calculated as net organic flows divided by average net invested assets, on an annualized basis. In Q1’21, we revised the net organic growth rate and average net invested assets metrics, for all periods presented, to include all outflows and net invested assets while previously these metrics excluded inorganic business.


Investment Funds (GAAP view) Unaudited (in millions, except percentages)
	December 31, 2020				March 31, 2021
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
INVESTMENT FUNDS INCLUDING RELATED PARTIES1
Investment funds
Real estate	$	348	5.7	%	$	462	6.7	%
Credit funds	107		1.8	%	122		1.8	%
Private equity	267		4.4	%	300		4.4	%
Real assets	81		1.3	%	82		1.2	%


Total investment funds	803		13.2	%	966		14.1	%
Investment funds – related parties
Differentiated investments

AmeriHome	444		7.3	%	583		8.5	%
Catalina	334		5.5	%	344		5.0	%
Athora	709		11.6	%	689		10.0	%
Venerable	123		2.0	%	316		4.6	%
Other	279		4.6	%	308		4.5	%
Total differentiated investments	1,889		31.0	%	2,240		32.6	%
Real estate	828		13.5	%	942		13.7	%
Credit funds	375		6.2	%	398		5.8	%
Private equity	473		7.8	%	689		10.0	%
Real assets	172		2.8	%	139		2.0	%
Natural resources	113		1.9	%	110		1.6	%
Public equities	110		1.8	%	100		1.5	%
Investment in Apollo	1,324		21.8	%	1,281		18.7	%
Total investment funds – related parties	5,284		86.8	%	5,899		85.9	%
Total investment funds including related parties	$	6,087	100.0	%	$	6,865	100.0	%

Note: The investment funds balances include the entire investment fund balance attributable to ACRA as ACRA is 100% consolidated. 1 Investment funds, including related parties, is the GAAP measure which does not include investments that we view as alternative investments. Alternative investments include CLO and ABS equity tranche securities that are included in trading securities in the GAAP view, a nonredeemable preferred stock viewed as an alternative investment for management view but included in equity securities for GAAP view, investment funds included in our funds withheld at interest reinsurance portfolios, royalties and other investments. Please refer to 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 investment funds, including related parties, to net alternative investments.


Net Alternative Investments (Management view) Unaudited (in millions, except percentages)
	December 31, 2020				March 31, 2021
	Invested Asset Value1		Percent of Total		Invested Asset Value1		Percent of Total
NET ALTERNATIVE INVESTMENTS
Retirement Services
Differentiated investments
AmeriHome	$	546	8.0	%	$	720	9.0	%
MidCap	611		9.0	%	650		8.1	%
Catalina	334		4.9	%	344		4.3	%

Venerable	123		1.8	%	316		3.9	%
Other	339		5.0	%	373		4.6	%
Total differentiated investments	1,953		28.7	%	2,403		29.9	%
Real estate	1,537		22.6	%	1,687		21.1	%
Credit	941		13.9	%	1,055		13.2	%
Private equity	831		12.2	%	1,311		16.4	%
Real assets	296		4.4	%	307		3.8	%
Natural resources	60		0.9	%	67		0.8	%

Total Retirement Services	5,618		82.7	%	6,830		85.2	%
Corporate & Other

Athora	661		9.7	%	669		8.4	%
Credit	93		1.4	%	110		1.4	%
Natural resources	238		3.5	%	222		2.8	%
Equities2	183		2.7	%	173		2.2	%

Total Corporate & Other	1,175		17.3	%	1,174		14.8	%
Net alternative investments3	$	6,793	100.0	%	$	8,004	100.0	%

1 Net invested assets includes our economic ownership of ACRA investments but does not include the investments associated with the noncontrolling interest. 2 Equities includes our private equity investment in Jackson and a public equity position of 2.4 million and 2.8 million shares in OneMain Holdings, Inc. (ticker: OMF) as of March 31, 2021 and December 31, 2020, respectively. 3 Net alternative investments does not correspond to the total investment funds, including related parties, on our condensed consolidated balance sheets. Net alternative investments adjusts the GAAP presentation to include CLO and ABS equity tranche securities that are included in trading securities in the GAAP view, a nonredeemable preferred stock viewed as an alternative investment for management view but included in equity securities for GAAP view, investment funds included in our funds withheld at interest reinsurance portfolios, royalties and other investments. Please refer to 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 investment funds, including related parties, to net alternative investments.


Funds Withheld at Interest (GAAP view) Unaudited (in millions, except percentages)
	December 31, 2020				March 31, 2021
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
FUNDS WITHHELD AT INTEREST INCLUDING RELATED PARTIES
Fixed maturity securities

U.S. state, municipal and political subdivisions	$	513	0.8	%	$	462	0.8	%
Foreign governments	301		0.5	%	279		0.5	%
Corporate	34,057		55.2	%	30,372		51.8	%
CLO	5,912		9.6	%	5,912		10.1	%
ABS	5,212		8.5	%	5,887		10.1	%
CMBS	2,374		3.8	%	2,317		4.0	%
RMBS	2,270		3.7	%	2,077		3.5	%
Total fixed maturity securities	50,639		82.1	%	47,306		80.8	%
Equity securities	119		0.2	%	142		0.2	%
Mortgage loans	8,201		13.3	%	9,068		15.5	%
Investment funds	1,155		1.9	%	1,522		2.6	%
Derivative assets	200		0.3	%	222		0.4	%
Short-term investments	608		1.0	%	226		0.4	%
Other investments	15		—	%	15		—	%
Cash and cash equivalents	906		1.5	%	594		1.0	%
Other assets and liabilities	(201)		(0.3)	%	(499)		(0.9)	%
Total funds withheld at interest including related parties1	$	61,642	100.0	%	$	58,596	100.0	%

1 Funds withheld at interest represents a receivable for amounts contractually withheld by ceding companies in accordance with modco and funds withheld reinsurance agreements in which we act as the reinsurer. In managing our business we utilize invested assets, where we adjust the presentation for funds withheld and modco transactions to include or exclude the underlying investments based upon the contractual transfer of economic exposure to such underlying investments.


Segment Net Investment Earned Rates (NIER) Unaudited (In millions, except percentages)
	Quarterly Trends															Δ				Year-to-Date						Δ
	1Q’20			2Q’20			3Q’20			4Q’20			1Q’21			Q/Q		Y/Y		2020			2021			Y/Y
NIER – CONSOLIDATED
Fixed income and other investments	4.20		%	3.78		%	3.70		%	3.70		%	3.57		%	(13)bps		(63)bps		4.20		%	3.57		%	(63)bps
Alternative investments	(2.58)		%	(6.75)		%	19.44		%	19.56		%	38.51		%	NM		NM		(2.58)		%	38.51		%	NM
Total net investment earned rate	3.87		%	3.29		%	4.41		%	4.43		%	5.27		%	84bps		140bps		3.87		%	5.27		%	140bps

NIER SUMMARY – RETIREMENT SERVICES
Fixed income and other investments	4.20		%	3.78		%	3.70		%	3.70		%	3.57		%	(13)bps		(63)bps		4.20		%	3.57		%	(63)bps
Alternative investments	0.56		%	(4.38)		%	17.24		%	22.59		%	42.33		%	NM		NM		0.56		%	42.33		%	NM
Total net investment earned rate	4.04		%	3.44		%	4.22		%	4.43		%	5.18		%	75bps		114bps		4.04		%	5.18		%	114bps

Fixed income and other investment income	$	1,177		$	1,132		$	1,216		$	1,274		$	1,276		—	%	8	%	$	1,177		$	1,276		8	%
Alternatives investment income (loss)	7			(57)			228			310			659			113	%	NM		7			659			NM
Total net investment earnings	$	1,184		$	1,075		$	1,444		$	1,584		$	1,935		22	%	63	%	$	1,184		$	1,935		63	%

Fixed income and other investments	$	112,205		$	119,720		$	131,565		$	137,678		$	143,173		4	%	28	%	$	112,205		$	143,173		28	%
Alternatives investments	5,090			5,223			5,287			5,484			6,224			13	%	22	%	5,090			6,224			22	%
Total average net invested assets	$	117,295		$	124,943		$	136,852		$	143,162		$	149,397		4	%	27	%	$	117,295		$	149,397		27	%

NIER SUMMARY – CORPORATE & OTHER
Fixed income and other investments	4.18		%	3.78		%	3.68		%	3.70		%	3.57		%	(13)bps		(61)bps		4.18		%	3.57		%	(61)bps
Alternative investments	(29.33)		%	(24.20)		%	31.35		%	4.94		%	18.24		%	NM		NM		(29.33)		%	18.24		%	NM
Total net investment earned rate	(8.14)		%	(8.91)		%	17.59		%	4.38		%	11.22		%	NM		NM		(8.14)		%	11.22		%	NM

Fixed income and other investment income	$	11		$	8		$	9		$	9		$	10		11	%	(9)	%	$	11		$	10		(9)	%
Alternatives investment income (loss)	(44)			(43)			77			14			53			279	%	NM		(44)			53			NM
Total net investment earnings (loss)	$	(33)		$	(35)		$	86		$	23		$	63		174	%	NM		$	(33)		$	63		NM

Fixed income and other investments	$	1,027		$	856		$	967		$	953		$	1,075		13	%	5	%	$	1,027		$	1,075		5	%
Alternatives investments	597			711			978			1,136			1,172			3	%	96	%	597			1,172			96	%
Total average net invested assets ex. Apollo investment	$	1,624		$	1,567		$	1,945		$	2,089		$	2,247		8	%	38	%	$	1,624		$	2,247		38	%

Note: Please refer to Notes to the Financial Supplement section and the Non-GAAP Measure Reconciliations for discussion on net investment earned rate and net invested assets. The investment results above are presented net of investment management fees as well as the proportionate share of income/(loss) and investments associated with the ACRA noncontrolling interest. Consolidated and Corporate & Other average net invested assets exclude the assets related to our investment in Apollo when used in the calculation of our net investment earned rate.


NIERs by Asset Class and Apollo Investment Unaudited (in millions, except percentages)
	Quarterly Trends															Δ		Year-to-Date						Δ
	1Q’20			2Q’20			3Q’20			4Q’20			1Q’21			Q/Q	Y/Y	2020			2021			Y/Y
NIER BY ASSET CLASS
Corporate securities	4.02		%	3.80		%	3.77		%	3.70		%	3.54		%	(16)bps	(48)bps	4.02		%	3.54		%	(48)bps
Structured securities
RMBS	5.53		%	4.61		%	4.72		%	5.08		%	5.19		%	11bps	(34)bps	5.53		%	5.19		%	(34)bps
CLO	4.38		%	3.74		%	2.88		%	3.12		%	3.03		%	(9)bps	NM	4.38		%	3.03		%	NM
ABS	4.48		%	3.85		%	3.78		%	3.91		%	3.72		%	(19)bps	(76)bps	4.48		%	3.72		%	(76)bps
CMBS	4.23		%	4.39		%	4.23		%	4.26		%	3.93		%	(33)bps	(30)bps	4.23		%	3.93		%	(30)bps
Total structured securities	4.69		%	4.05		%	3.73		%	3.91		%	3.77		%	(14)bps	(92)bps	4.69		%	3.77		%	(92)bps
State, municipal, political subdivisions and U.S. and foreign government	4.80		%	3.38		%	3.56		%	3.35		%	3.20		%	(15)bps	NM	4.80		%	3.20		%	NM
Mortgage loans	4.36		%	4.29		%	4.17		%	4.37		%	3.97		%	(40)bps	(39)bps	4.36		%	3.97		%	(39)bps
Alternative investments	(2.58)		%	(6.75)		%	19.44		%	19.56		%	38.51		%	NM	NM	(2.58)		%	38.51		%	NM
Other U.S. and Bermuda net invested assets	2.32		%	1.17		%	2.13		%	1.28		%	1.29		%	1bps	NM	2.32		%	1.29		%	NM
Consolidated net investment earned rate	3.87		%	3.29		%	4.41		%	4.43		%	5.27		%	84bps	140bps	3.87		%	5.27		%	140bps

APOLLO INVESTMENT DETAILS
Change in fair value of Apollo investment	$	(297)		$	481		$	(101)		$	142		$	(25)		NM	NM	$	(297)		$	(25)		NM
Income tax (expense) benefit on Apollo investment	58			(109)			20			(29)			6			NM	NM	58			6			NM
Change in fair value of Apollo investment, net of tax	$	(239)		$	372		$	(81)		$	113		$	(19)		NM	NM	$	(239)		$	(19)		NM

Annualized return on Apollo investment, net of tax	(224.9)		%	137.7		%	(25.8)		%	35.8		%	(6.0)		%	NM	NM	(224.9)		%	(6.0)		%	NM
Change in fair value of Apollo investment impact on adjusted operating EPS1	$	(1.32)		$	1.89		$	(0.41)		$	0.58		$	(0.10)		NM	NM	$	(1.32)		$	(0.10)		NM
Adjusted operating EPS, excluding AOG1	$	0.72		$	0.60		$	1.94		$	2.27		$	3.90		NM	NM	$	0.72		$	3.90		NM

Note: Please refer to Notes to the Financial Supplement section and the Non-GAAP Measure Reconciliations for discussion on net investment earned rate. The investment results above are presented net of investment management fees as well as the proportionate share of income/(loss) and investments associated with the ACRA noncontrolling interest. 1 The impact of the Apollo investment on adjusted operating EPS includes removing the income/(loss) on the investment, net of tax.


Credit Quality of Securities Unaudited (in millions, except percentages)
	December 31, 2020				March 31, 2021
CREDIT QUALITY OF AFS SECURITIES (GAAP VIEW)	Fair Value		Percent of Total		Fair Value		Percent of Total
NAIC designation
1	$	41,532	46.5	%	$	42,552	46.0	%
2	41,704		46.7	%	43,557		47.1	%
Total investment grade	83,236		93.2	%	86,109		93.1	%
3	4,853		5.4	%	5,025		5.4	%
4	1,145		1.3	%	1,069		1.2	%
5	114		0.1	%	154		0.2	%
6	25		—	%	72		0.1	%
Total below investment grade	6,137		6.8	%	6,320		6.9	%
Total AFS securities including related parties	$	89,373	100.0	%	$	92,429	100.0	%

NRSRO designation
AAA/AA/A	$	33,553	37.5	%	$	34,931	37.8	%
BBB	34,404		38.5	%	37,032		40.1	%
Non-rated1	12,732		14.3	%	11,695		12.7	%
Total investment grade2	80,689		90.3	%	83,658		90.6	%
BB	4,020		4.5	%	4,273		4.6	%
B	1,030		1.2	%	1,061		1.1	%
CCC	1,557		1.7	%	1,564		1.7	%
CC and lower	973		1.1	%	847		0.9	%
Non-rated1	1,104		1.2	%	1,026		1.1	%
Total below investment grade	8,684		9.7	%	8,771		9.4	%
Total AFS securities including related parties	$	89,373	100.0	%	$	92,429	100.0	%

	Invested Asset Value3		% NAIC 1 or 2		Invested Asset Value3		% NAIC 1 or 2
SUMMARY OF NAIC 1 & 2 DESIGNATIONS BY ASSET CLASS (MANAGEMENT VIEW)
Corporate securities	$	65,887	92.7	%	$	69,430	93.1	%

RMBS	7,721		92.6	%	7,362		92.3	%
CLO	14,139		96.8	%	15,409		97.3	%
ABS	11,722		89.2	%	12,368		88.0	%
CMBS	2,459		76.2	%	2,503		76.5	%
Total structured securities	36,041		91.7	%	37,642		91.5	%
State, municipal, political subdivisions and U.S. and foreign government	2,221		94.9	%	2,325		97.1	%
Short-term investments	429		89.4	%	194		86.5	%
Total NAIC 1 & 2 Designations	$	104,578			$	109,591

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 LBaSS, the NAIC designation methodology differs in significant respects from the NRSRO ratings methodology. 2 We view the NAIC designation methodology as the most appropriate way to view our AFS portfolio when evaluating credit risk since a large portion of our holdings were purchased at a significant discount to par. With respect to loan-backed and structured securities, the NAIC designation methodology differs in significant respects from the NRSRO rating methodology. 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 our investment at amortized cost, and the likelihood of recovery of that book value as opposed to the likelihood of the recovery of all contractual payments. 3 Please refer to 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.


Credit Quality of Net Invested Assets (Management view) Unaudited (In millions, except percentages)
	December 31, 2020				March 31, 2021					December 31, 2020				March 31, 2021
	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	$	52,883	46.7	%	$	55,276	46.7	%	AAA/AA/A	$	42,492	37.6	%	$	44,084	37.3	%
2	51,695		45.7	%	54,315		45.9	%	BBB	42,478		37.5	%	45,502		38.4	%
Non-rated2	—		—	%	—		—	%	Non-rated2	16,494		14.6	%	17,058		14.4	%
Total investment grade	104,578		92.4	%	109,591		92.6	%	Total investment grade	101,464		89.7	%	106,644		90.1	%
3	6,256		5.5	%	6,412		5.4	%	BB	5,317		4.7	%	5,504		4.7	%
4	1,957		1.7	%	1,837		1.6	%	B	1,784		1.5	%	1,798		1.5	%
5	335		0.4	%	377		0.3	%	CCC	1,899		1.7	%	1,877		1.6	%
6	45		—	%	89		0.1	%	CC and lower	1,145		1.0	%	1,004		0.8	%
Non-rated2	—		—	%	—		—	%	Non-rated2	1,562		1.4	%	1,479		1.3	%
Total below investment grade	8,593		7.6	%	8,715		7.4	%	Total below investment grade	11,707		10.3	%	11,662		9.9	%
Total NAIC designated assets3	113,171		100.0	%	118,306		100.0	%	Total NRSRO designated assets3	113,171		100.0	%	118,306		100.0	%

Assets without NAIC designation									Assets without NRSRO designation
Commercial mortgage loans									Commercial mortgage loans
CM1	4,712		28.0	%	4,888		27.0	%	CM1	4,712		28.0	%	4,888		27.0	%
CM2	7,794		46.5	%	8,548		47.2	%	CM2	7,794		46.5	%	8,548		47.2	%
CM3	3,906		23.3	%	4,310		23.8	%	CM3	3,906		23.3	%	4,310		23.8	%
CM4	366		2.2	%	367		2.0	%	CM4	366		2.2	%	367		2.0	%
CM5	—		—	%	—		—	%	CM5	—		—	%	—		—	%
CM6	—		—	%	—		—	%	CM6	—		—	%	—		—	%
CM7	—		—	%	—		—	%	CM7	—		—	%	—		—	%
Total CMLs	16,778		100.0	%	18,113		100.0	%	Total CMLs	16,778		100.0	%	18,113		100.0	%
Residential mortgage loans									Residential mortgage loans
In good standing	4,666		97.7	%	5,042		96.4	%	In good standing	4,666		97.7	%	5,042		96.4	%
90 days late	65		1.4	%	140		2.7	%	90 days late	65		1.4	%	140		2.7	%
In foreclosure	43		0.9	%	47		0.9	%	In foreclosure	43		0.9	%	47		0.9	%
Total RMLs	4,774		100.0	%	5,229		100.0	%	Total RMLs	4,774		100.0	%	5,229		100.0	%
Alternative investments	6,793				8,004				Alternative investments	6,793				8,004
Investment in Apollo	1,324				1,281				Investment in Apollo	1,324				1,281
Cash and equivalents	5,417				2,844				Cash and equivalents	5,417				2,844
Equity securities	478				494				Equity securities	478				494
Other4	1,455				1,432				Other4	1,455				1,432

Net invested assets	$	150,190			$	155,703			Net invested assets	$	150,190			$	155,703

1 Please refer to Notes to the Financial Supplement section for discussion on net invested assets and 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 U.S. government and agencies securities. 4 Other includes policy loans, accrued interest, and other net invested assets.


Credit Quality of Net Invested Assets – RMBS, CLOs, ABS (Management view) Unaudited (In millions, except percentages)
	December 31, 2020				March 31, 2021					December 31, 2020				March 31, 2021
	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	$	7,449	89.3	%	$	7,047	88.3	%	AAA/AA/A	$	1,286	15.4	%	$	1,219	15.3	%
2	272		3.3	%	315		4.0	%	BBB	670		8.0	%	655		8.2	%
Non-rated2	—		—	%	—		—	%	Non-rated2	2,548		30.6	%	2,482		31.1	%
Total investment grade	7,721		92.6	%	7,362		92.3	%	Total investment grade	4,504		54.0	%	4,356		54.6	%
3	378		4.5	%	348		4.4	%	BB	276		3.3	%	248		3.1	%
4	171		2.1	%	141		1.8	%	B	309		3.7	%	287		3.6	%
5	49		0.6	%	54		0.7	%	CCC	1,795		21.6	%	1,734		21.8	%
6	18		0.2	%	63		0.8	%	CC and lower	1,141		13.7	%	1,004		12.6	%
Non-rated2	—		—	%	—		—	%	Non-rated2	312		3.7	%	339		4.3	%
Total below investment grade	616		7.4	%	606		7.7	%	Total below investment grade	3,833		46.0	%	3,612		45.4	%
RMBS net invested assets	$	8,337	100.0	%	$	7,968	100.0	%	RMBS net invested assets	$	8,337	100.0	%	$	7,968	100.0	%

CREDIT QUALITY OF CLOs – NAIC DESIGNATION									CREDIT QUALITY OF CLOs – NRSRO DESIGNATION
1	$	9,130	62.5	%	$	10,194	64.4	%	AAA/AA/A	$	9,113	62.4	%	$	9,993	63.1	%
2	5,009		34.3	%	5,215		32.9	%	BBB	4,995		34.2	%	5,148		32.5	%
Non-rated2	—		—	%	—		—	%	Non-rated2	31		0.2	%	264		1.7	%
Total investment grade	14,139		96.8	%	15,409		97.3	%	Total investment grade	14,139		96.8	%	15,405		97.3	%
3	457		3.1	%	415		2.7	%	BB	457		3.1	%	419		2.7	%
4	9		0.1	%	7		—	%	B	9		0.1	%	7		—	%
5	4		—	%	4		—	%	CCC	4		—	%	4		—	%
6	—		—	%	—		—	%	CC and lower	—		—	%	—		—	%

Total below investment grade	470		3.2	%	426		2.7	%	Total below investment grade	470		3.2	%	430		2.7	%
CLOs net invested assets	$	14,609	100.0	%	$	15,835	100.0	%	CLOs net invested assets	$	14,609	100.0	%	$	15,835	100.0	%

CREDIT QUALITY OF ABS – NAIC DESIGNATION									CREDIT QUALITY OF ABS – NRSRO DESIGNATION
1	$	6,789	51.6	%	$	7,015	49.9	%	AAA/AA/A	$	5,691	43.3	%	$	6,105	43.4	%
2	4,933		37.6	%	5,353		38.1	%	BBB	2,156		16.4	%	3,197		22.7	%
Non-rated2	—		—	%	—		—	%	Non-rated2	3,794		28.9	%	2,974		21.2	%
Total investment grade	11,722		89.2	%	12,368		88.0	%	Total investment grade	11,641		88.6	%	12,276		87.3	%
3	862		6.6	%	1,139		8.1	%	BB	545		4.2	%	899		6.4	%
4	389		3.0	%	397		2.8	%	B	281		2.1	%	421		3.0	%
5	164		1.2	%	157		1.1	%	CCC	13		0.1	%	10		0.1	%
6	—		—	%	—		—	%	CC and lower	—		—	%	—		—	%
Non-rated2	—		—	%	—		—	%	Non-rated2	657		5.0	%	455		3.2	%
Total below investment grade	1,415		10.8	%	1,693		12.0	%	Total below investment grade	1,496		11.4	%	1,785		12.7	%
ABS net invested assets	$	13,137	100.0	%	$	14,061	100.0	%	ABS net invested assets	$	13,137	100.0	%	$	14,061	100.0	%

1 Please refer to Notes to the Financial Supplement section for discussion on net invested assets and 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 Unaudited (in millions, except percentages)
	December 31, 2020				March 31, 2021
	Dollars		Percent of Total		Dollars		Percent of Total
NET RESERVE LIABILITIES
Indexed annuities	$	81,084	55.9	%	$	80,687	54.5	%
Fixed rate annuities	30,315		20.9	%	29,737		20.0	%
Total deferred annuities	111,399		76.8	%	110,424		74.5	%
Pension risk transfer annuities	12,262		8.5	%	13,532		9.1	%
Payout annuities	6,859		4.7	%	6,985		4.7	%
Funding agreements1	12,591		8.7	%	15,715		10.6	%
Life and other	1,878		1.3	%	1,683		1.1	%





Total net reserve liabilities	$	144,989	100.0	%	$	148,339	100.0	%


	Quarterly Trends										Δ				Year-to-Date				Δ
	1Q’20		2Q’20		3Q’20		4Q’20		1Q’21		Q/Q		Y/Y		2020		2021		Y/Y
NET RESERVE LIABILITY ROLLFORWARD
Net reserve liabilities – beginning	$	114,652	$	114,273	$	131,333	$	137,767	$	144,989	5	%	26	%	$	114,652	$	144,989	26	%
Gross inflows2	4,084		7,031		7,487		9,471		8,360		(12)	%	105	%	4,084		8,360		105	%
Acquisition and block reinsurance3	—		28,792		—		—		—		NM		NM		—		—		NM
Inflows attributable to ACRA noncontrolling interest	—		(18,288)		(53)		(1,230)		(1,507)		(23)	%	NM		—		(1,507)		NM
Net inflows	4,084		17,535		7,434		8,241		6,853		(17)	%	68	%	4,084		6,853		68	%
Net withdrawals	(2,740)		(3,282)		(2,695)		(3,232)		(3,481)		(8)	%	(27)	%	(2,740)		(3,481)		(27)	%
Sale of ACRA noncontrolling interest to ADIP and ownership changes4	—		335		—		—		—		NM		NM		—		—		NM
Other reserve changes	(1,723)		2,472		1,695		2,213		(22)		NM		99	%	(1,723)		(22)		99	%
Net reserve liabilities – ending	$	114,273	$	131,333	$	137,767	$	144,989	$	148,339	2	%	30	%	$	114,273	$	148,339	30	%

ACRA NONCONTROLLING INTEREST RESERVE LIABILITY ROLLFORWARD5
Reserve liabilities – beginning	$	6,574	$	6,322	$	24,094	$	23,762	$	24,618	4	%	274	%	$	6,574	$	24,618	274	%
Inflows	—		20		53		1,230		1,507		23	%	NM		—		1,507		NM
Acquisition and block reinsurance3	—		18,268		—		—		—		NM		NM		—		—		NM
Withdrawals	(197)		(317)		(574)		(619)		(641)		(4)	%	NM		(197)		(641)		NM
Sale of ACRA noncontrolling interest to ADIP and ownership changes4	—		(335)		—		—		—		NM		NM		—		—		NM
Other reserve changes	(55)		136		189		245		141		(42)	%	NM		(55)		141		NM
Reserve liabilities – ending	$	6,322	$	24,094	$	23,762	$	24,618	$	25,625	4	%	NM		$	6,322	$	25,625	NM

Note: Please refer to Notes to the Financial Supplement section and the Non-GAAP Measure Reconciliations for discussion on 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 interest. 1 Funding agreements are comprised of funding agreements issued under our FABN and FABR programs, 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 on older blocks of business, 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. 3 Acquisition and block reinsurance transactions include the reserve liabilities acquired in our inorganic channel at inception. On June 1, 2020, we entered into an agreement with Jackson National Life pursuant to which we agreed to reinsure a block of fixed and fixed indexed annuities on a funds withheld coinsurance basis providing $28.8 billion of gross inflows. 4 Effective April 1, 2020, ALRe purchased 14,000 newly issued shares in ACRA increasing our ownership from 33% to 36.55% of the economic interests. 5 The ACRA reserve liability rollforward is a rollforward of the GAAP reserve liabilities associated with the noncontrolling interest.


Net Reserve Liabilities & Rollforwards, continued Unaudited (in millions, except percentages)
	Quarterly Trends										Δ				Year-to-Date				Δ
	1Q’20		2Q’20		3Q’20		4Q’20		1Q’21		Q/Q		Y/Y		2020		2021		Y/Y
NET DEFERRED ANNUITY ACCOUNT VALUE ROLLFORWARD1
Net account value – beginning	$	88,000	$	88,238	$	100,694	$	103,594	$	104,385	1	%	19	%	$	88,000	$	104,385	19	%
Gross inflows2	2,013		3,913		4,604		2,756		1,965		(29)	%	(2)	%	2,013		1,965		(2)	%
Acquisition and block reinsurance3	—		27,404		—		—		—		NM		NM		—		—		NM
Inflows attributable to ACRA noncontrolling interest	—		(17,398)		(30)		(29)		(25)		14	%	NM		—		(25)		NM
Net inflows	2,013		13,919		4,574		2,727		1,940		(29)	%	(4)	%	2,013		1,940		(4)	%
Premium and interest bonuses	37		45		40		53		52		(2)	%	41	%	37		52		41	%
Fixed and index credits to policyholders	589		443		656		821		929		13	%	58	%	589		929		58	%
Surrenders and benefits paid	(2,288)		(2,054)		(2,248)		(2,688)		(2,947)		(10)	%	(29)	%	(2,288)		(2,947)		(29)	%
Sale of ACRA noncontrolling interest to ADIP and ownership changes4	—		221		—		—		—		NM		NM		—		—		NM
Fee and product charges	(113)		(118)		(122)		(122)		(125)		(2)	%	(11)	%	(113)		(125)		(11)	%
Net account value – ending	$	88,238	$	100,694	$	103,594	$	104,385	$	104,234	—	%	18	%	$	88,238	$	104,234	18	%

NET INSTITUTIONAL RESERVE LIABILITY ROLLFORWARD (PENSION RISK TRANSFER AND FUNDING AGREEMENTS)
Net reserve liabilities – beginning	$	13,337	$	15,036	$	17,103	$	19,647	$	24,853	26	%	86	%	$	13,337	$	24,853	86	%
Gross inflows2	1,840		2,865		2,619		6,420		6,119		(5)	%	233	%	1,840		6,119		233	%
Inflows attributable to ACRA noncontrolling interest	—		—		—		(1,177)		(1,465)		(24)	%	NM		—		(1,465)		NM
Net inflows	1,840		2,865		2,619		5,243		4,654		(11)	%	153	%	1,840		4,654		153	%
Net withdrawals	(240)		(1,024)		(239)		(337)		(316)		6	%	(32)	%	(240)		(316)		(32)	%
Sale of ACRA noncontrolling interest to ADIP and ownership changes4	—		117		—		—		—		NM		NM		—		—		NM
Other reserve changes	99		109		164		300		56		(81)	%	(43)	%	99		56		(43)	%
Net reserve liabilities – ending	$	15,036	$	17,103	$	19,647	$	24,853	$	29,247	18	%	95	%	$	15,036	$	29,247	95	%

Note: Please refer to Notes to the Financial Supplement section and the Non-GAAP Measure Reconciliations for discussion on 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 interest. 1 The account value rollforward on deferred annuities includes our fixed rate and indexed annuities and are net of ceded reinsurance activity. 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 on older blocks of business, 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. 3 Acquisition and block reinsurance transactions include the reserve liabilities acquired in our inorganic channel at inception. On June 1, 2020, we entered into an agreement with Jackson National Life pursuant to which we agreed to reinsure a block of fixed and fixed indexed annuities on a funds withheld coinsurance basis providing $28.8 billion of gross inflows. 4 Effective April 1, 2020, ALRe purchased 14,000 newly issued shares in ACRA increasing our ownership from 33% to 36.55% of the economic interests.


Deferred Annuity Liability Characteristics Unaudited (in millions, except percentages)
	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	$	26,303	25.2	%	$	26,303		25.2	%
0.0% < 2.0%	1,093		1.1	%	4,046			3.9	%
2.0% < 4.0%	4,520		4.3	%	9,181			8.8	%
4.0% < 6.0%	11,754		11.3	%	16,257			15.6	%
6.0% or greater	60,564		58.1	%	48,447			46.5	%
	$	104,234	100.0	%	$	104,234		100.0	%

			Surrender charge (gross)		MVA benefit			Surrender charge (net)
Aggregate surrender charge protection			5.7	%	(0.4)		%	5.3	%


	Deferred annuities		Percent of total		Average surrender charge (gross)
YEARS OF SURRENDER CHARGE REMAINING ON DEFERRED ANNUITIES NET ACCOUNT VALUE
No Surrender Charge	$	26,303	25.2	%	—	%
Less than 2	18,575		17.8	%	5.2	%
2 to less than 4	19,654		18.9	%	6.5	%
4 to less than 6	14,789		14.2	%	7.8	%
6 to less than 8	12,196		11.7	%	9.1	%
8 to less than 10	9,517		9.1	%	10.4	%
10 or greater	3,200		3.1	%	14.1	%
	$	104,234	100.0	%


	At minimum guarantees		Total account value		Percent of total account value at minimum guarantees
MINIMUM GUARANTEES ON DEFERRED ANNUITIES
Fixed indexed annuities	$	16,829	$	75,326	22	%
Fixed rate annuities	10,751		28,908		37	%
Total net deferred annuities	$	27,580	$	104,234	26	%

					March 31, 2021
Distance to guarantees1					> 100

1 The distance to guarantee reflects the average distance in option costs between the current and guaranteed rates for indexed strategies and between current and guaranteed fixed rates for fixed strategies. The option costs used reflect an estimate of option cost in the market.


	December 31, 2020			March 31, 2021			Δ
DEFERRED ANNUITY RIDER RESERVE SUMMARY
Net rider reserve	$	4,747		$	4,677		(1)	%
Net account value with rider reserves	37,721			37,683			—	%
Rider reserve as a percentage of account value with rider reserves	12.6		%	12.4		%	(20)bps


Capitalization & Regulatory Capital Ratios Unaudited (in millions, except percentages)
	Quarterly Trends															Δ
	1Q’20			2Q’20			3Q’20			4Q’20			1Q’21			Q/Q		Y/Y
CAPITALIZATION
Total debt	$	1,386		$	1,486		$	1,487		$	1,976		$	1,977		—	%	43	%
Total AHL shareholders’ equity	9,940			14,711			15,943			18,657			17,291			(7)	%	74	%
Total capitalization	11,326			16,197			17,430			20,633			19,268			(7)	%	70	%
Less: Accumulated other comprehensive income (loss) (AOCI)	(1,174)			2,184			2,888			3,971			2,021			(49)	%	NM
Less: Accumulated change in fair value of reinsurance assets	(155)			615			778			1,142			488			(57)	%	NM
Total adjusted capitalization	$	12,655		$	13,398		$	13,764		$	15,520		$	16,759		8	%	32	%

EQUITY
Total AHL shareholders’ equity	$	9,940		$	14,711		$	15,943		$	18,657		$	17,291		(7)	%	74	%
Less: Preferred stock	1,172			1,755			1,755			2,312			2,312			—	%	97	%
Total AHL common shareholders’ equity	8,768			12,956			14,188			16,345			14,979			(8)	%	71	%
Less: AOCI	(1,174)			2,184			2,888			3,971			2,021			(49)	%	NM
Less: Accumulated change in fair value of reinsurance assets	(155)			615			778			1,142			488			(57)	%	NM
Total adjusted AHL common shareholders’ equity	$	10,097		$	10,157		$	10,522		$	11,232		$	12,470		11	%	24	%

EQUITY BY SEGMENT
Retirement Services	$	8,002		$	6,957		$	7,321		$	7,732		$	8,870		15	%	11	%
Corporate and Other	2,095			3,200			3,201			3,500			3,600			3	%	72	%
Total adjusted AHL common shareholders’ equity	$	10,097		$	10,157		$	10,522		$	11,232		$	12,470		11	%	24	%

FINANCIAL LEVERAGE
Debt to capital ratio	12.2		%	9.2		%	8.5		%	9.6		%	10.3		%	70bps		NM
AOCI	(1.1)		%	1.5		%	1.8		%	2.4		%	1.2		%	NM		NM
Accumulated change in fair value of reinsurance assets	(0.1)		%	0.4		%	0.5		%	0.7		%	0.3		%	(40)bps		NM
Adjusted debt to capital ratio	11.0		%	11.1		%	10.8		%	12.7		%	11.8		%	(90)bps		80bps


	December 31, 2019		December 31, 2020		Δ
REGULATORY CAPITAL RATIOS
U.S. RBC ratio – Athene Annuity & Life Assurance Company	429	%	425	%	NM
BSCR – Athene Life Re Ltd.	310	%	254	%	NM
Athene Life Re Ltd. RBC ratio1	443	%	460	%	NM

1 ALRe RBC ratio is calculated by applying the NAIC RBC factors to the statutory financial statements of ALRe and ALRe's non-U.S.reinsurance subsidiaries on an aggregate basis with certain adjustments made by management.

Financial Strength, Credit Ratings & Share Data

Unaudited (in millions, except percentages)

A.M. Best

Standard & Poor’s

Fitch

FINANCIAL STRENGTH RATINGS

Athene Annuity & Life Assurance Company

Athene Annuity and Life Company

Athene Annuity & Life Assurance Company of New York

Athene Life Insurance Company of New York

Not Rated

Athene Life Re Ltd.

Athene Life Re International Ltd.

Athene Co-Invest Reinsurance Affiliate 1A Ltd. and Athene Co-Invest Reinsurance Affiliate 1B Ltd.

Athene Co-Invest Reinsurance Affiliate International Ltd.

CREDIT RATINGS

Athene Holding Ltd.

bbb+

BBB+

Senior notes

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BBB+

BBB


	Quarterly Trends					Δ				Year-to-Date		Δ
	1Q’20	2Q’20	3Q’20	4Q’20	1Q’21	Q/Q		Y/Y		2020	2021	Y/Y
SHARE DATA
Weighted average common shares outstanding – basic – Class A	161.4	193.9	193.1	191.1	191.3	—	%	19	%	161.4	191.3	19	%
Weighted average common shares outstanding – diluted – Class A1	161.4	196.9	197.1	195.9	196.8	—	%	22	%	161.4	196.8	22	%
Weighted average common shares outstanding – adjusted operating2	181.5	196.9	197.1	195.9	196.8	—	%	8	%	181.5	196.8	8	%
Common shares outstanding3	193.9	193.9	191.2	191.2	191.4	—	%	(1)	%	193.9	191.4	(1)	%
Adjusted operating common shares outstanding2	197.7	198.6	196.3	197.2	198.3	1	%	—	%	197.7	198.3	—	%

1 Diluted earnings per common share on a GAAP basis for Class A common shares, including diluted Class A weighted average common shares outstanding, includes the dilutive impacts, if any, of Class B common shares, Class M common shares and any other stock-based awards. 2 Represents Class A common shares outstanding or weighted average common shares outstanding assuming 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, Class M common shares 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. 3 Represents common shares vested and outstanding for all classes eligible to participate in dividends for each period presented.


Notes to the Financial Supplement

KEY OPERATING AND NON-GAAP MEASURES

In addition to our results presented in accordance with GAAP, we present certain financial information that includes non-GAAP measures. 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, 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 corresponding GAAP measures.

ADJUSTED OPERATING INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS AND ADJUSTED OPERATING RETURN ON ASSETS (ROA)

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

•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 credit loss allowance, 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 CLOs) and investments held under the fair value option, derivative gains and losses not hedging FIA index credits, and the change in credit loss allowances recognized in operations net of the change in AmerUs Closed Block fair value reserve related to the corresponding change in fair value of investments and the change in unit-linked reserves related to the corresponding trading securities. Investment gains and losses are net of offsets related to DAC, DSI, and VOBA amortization and changes to guaranteed lifetime withdrawal benefit (GLWB) and guaranteed minimum death benefit (GMDB) reserves (together, GLWB and GMDB reserves represent rider reserves) as well as the MVAs associated with surrenders or terminations of contracts.

•Change in Fair Values of Derivatives and Embedded Derivatives – FIAs, Net of Offsets—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, net of offsets related to DAC, DSI, and VOBA amortization and changes to rider reserves. 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.

•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, excluding our long-term incentive plan, which are not related to our underlying profitability drivers and fluctuate from time to time due to the structure of our plans.

•Bargain Purchase Gain—Consists of adjustments to net income (loss) available to AHL common shareholders as they are not related to our underlying profitability drivers.

•Income Tax (Expense) Benefit – Non-operating—Consists of the income tax effect of non-operating adjustments and is computed by applying the appropriate jurisdiction’s tax rate to the non-operating adjustments that are subject to income tax.

We consider these non-operating adjustments to be meaningful adjustments to net income (loss) available to AHL common shareholders 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 (loss) available to AHL common shareholders, we believe adjusted operating income (loss) available to common shareholders provides a meaningful financial metric that helps investors understand our underlying results and profitability. Adjusted operating income (loss) available to common shareholders should not be used as a substitute for net income (loss) available to AHL common shareholders.

Adjusted operating ROA is a non-GAAP measure used to evaluate our financial performance and profitability. Adjusted operating ROA is computed using our adjusted operating income (loss) available to common shareholders divided by average net invested assets for the relevant period. To enhance the ability to analyze these measures across periods, interim periods are annualized. While we believe each of these metrics 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 ROA presented under GAAP.

ADJUSTED OPERATING ROE

Adjusted operating ROE is a non-GAAP measure used to evaluate our financial performance excluding the impacts of AOCI and the cumulative change in fair value of funds withheld and modco reinsurance assets, net of DAC, DSI, rider reserve and tax offsets. Adjusted AHL common shareholders’ equity is calculated as the ending AHL shareholders’ equity excluding AOCI, the cumulative change in fair value of funds withheld and modco reinsurance assets and preferred stock. Adjusted operating ROE is calculated as the adjusted operating income (loss) available to common shareholders, divided by average adjusted AHL common shareholders’ equity. 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. Except with respect to reinvestment activity relating to 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 and the cumulative change in fair value of funds withheld and modco reinsurance assets are useful in analyzing trends in our operating results. To enhance the ability to analyze these measures across periods, interim periods are annualized. Adjusted operating ROE should not be used as a substitute for ROE. However, we believe the adjustments to net income (loss) available to AHL common shareholders and AHL common shareholders’ equity are significant to gaining an understanding of our overall financial performance.

ADJUSTED OPERATING EARNINGS (LOSS) PER COMMON SHARE, WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – ADJUSTED OPERATING, AND ADJUSTED BOOK VALUE PER COMMON SHARE

Adjusted operating earnings (loss) per common share, weighted average common shares outstanding – adjusted operating and adjusted book value per common share 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 these measures represent an economic view of our share counts and provide a simplified and consistent view of our outstanding shares. Adjusted operating earnings (loss) per common share is calculated as the adjusted operating income (loss) available to common shareholders, over the weighted average common shares outstanding – adjusted operating. Adjusted book value per common share is calculated as the adjusted AHL common shareholders’ equity divided by the adjusted operating common shares outstanding. Effective February 28, 2020, all Class B common shares were converted into Class A common shares and all Class M common shares were converted into warrants and Class A common shares. Our Class B common shares were economically equivalent to Class A common shares and were convertible to Class A common shares on a one-for-one basis at any time. Our Class M common shares were in the legal form of shares but economically functioned as options as they were convertible into Class A common shares after vesting and payment 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 were not dilutive, after considering the dilutive effects of the more dilutive securities in the sequence, they were excluded. Weighted average common 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 (loss) per common share, weighted average common shares outstanding – adjusted operating and adjusted book value per common share should not be used as a substitute for basic earnings (loss) per share – Class A common shares, basic weighted average common shares outstanding – Class A or book value per common 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.


Notes to the Financial Supplement, continued

ADJUSTED DEBT TO CAPITAL RATIO

Adjusted debt to capital ratio is a non-GAAP measure used to evaluate our capital structure excluding the impacts of AOCI and the cumulative change in fair value of funds withheld and modco reinsurance assets, net of DAC, DSI, rider reserve and tax offsets. Adjusted debt to capital ratio is calculated as total debt divided by adjusted AHL shareholders’ equity. Adjusted debt to capital ratio should not be used as a substitute for the debt to capital ratio. However, we believe the adjustments to shareholders’ equity are significant to gaining an understanding of our capitalization, debt utilization and debt capacity.

RETIREMENT SERVICES NET INVESTMENT SPREAD, INVESTMENT MARGIN ON DEFERRED ANNUITIES, AND OPERATING EXPENSES

Net investment spread is a key measure of the profitability of our Retirement Services segment. Net investment spread measures our investment performance less the total cost of our liabilities. 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. Investment margin on our deferred annuities measures our investment performance less the cost of crediting for our deferred annuities, which make up a significant portion of our net reserve liabilities.

•Net investment earned rate is a non-GAAP measure we use to evaluate the performance of our net invested assets that does not correspond to GAAP net investment income. Net investment earned rate is computed as the income from our net invested assets divided by the average net invested assets, excluding the impacts of our investment in Apollo, 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 earned rate add (a) alternative investment gains and losses, (b) gains and losses related to trading securities for CLOs, (c) net VIE impacts (revenues, expenses and noncontrolling interest), (d) forward points gains and losses on foreign exchange derivative hedges and (e) the change in fair value of reinsurance assets, and removes the proportionate share of the ACRA net investment income associated with the ACRA noncontrolling interest as well as the gain or loss on our investment in Apollo. 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 GAAP presentation of change in fair value of reinsurance assets. We exclude the income and assets supporting business that we have exited through ceded reinsurance including funds withheld agreements. We believe the adjustments for reinsurance provide a net investment earned rate on the assets for which we have economic exposure.

•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 interest. Cost of funds is computed as the total liability costs divided by the average net invested assets, excluding our investment in Apollo, for the relevant period. To enhance the ability to analyze these measures across periods, interim periods are annualized.

◦Cost of crediting includes the costs for both deferred annuities and institutional products. 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 (i) PRT costs, including interest credited, benefit payments and other reserve changes, net of premiums received when issued, and (ii) funding agreement costs, including the interest payments and other reserve changes. Cost of crediting is computed as the cost of crediting for deferred annuities and institutional products divided by the average net invested assets, excluding the investment in Apollo, for the relevant periods. Cost of crediting on deferred annuities is computed as the net interest credited on fixed strategies and option costs on indexed annuity strategies divided by the average net account value of our deferred annuities. Cost of crediting on institutional products is computed as the PRT and funding agreement costs divided by the average net institutional reserve liabilities. Our average net invested assets, excluding our investment in Apollo, net account values and net institutional reserve liabilities are averaged over the number of quarters in the relevant period to obtain our associated cost of crediting for such period. To enhance the ability to analyze these measures across periods, interim periods are annualized.

◦Other liability costs include DAC, DSI and VOBA amortization, change in rider reserves, the cost of liabilities on products other than deferred annuities and institutional products, excise taxes, premiums, product charges and other revenues. We believe a measure like other liability costs is useful in analyzing the trends of our core business operations and profitability. While we believe other liability costs 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 GAAP.

•Net investment earned rate, cost of funds, net investment spread and investment margin on deferred annuities are non-GAAP measures we use to evaluate the profitability of our business. We believe these metrics are useful in analyzing the trends of our business operations, profitability and pricing discipline. While we believe each of these metrics 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, interest sensitive contract benefits or total benefits and expenses presented under GAAP.

•Operating expenses excludes integration, restructuring and other non-operating expenses, stock compensation expense, interest expense and policy acquisition expenses. We believe a measure like operating expenses is useful in analyzing the trends of our core business operations and profitability. While we believe 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 GAAP.

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 consolidated financial statements and notes thereto. Net invested assets represents the investments that directly back our net reserve liabilities as well as surplus assets. Net invested assets, excluding our investment in Apollo, is used in the computation of net investment earned rate, which allows us to analyze the profitability of our investment portfolio. Net 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) 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 allowance for credit losses. Net 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 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 includes our proportionate share of ACRA investments, based on our economic ownership, but does not include the proportionate share of investments associated with the noncontrolling interest. Net invested assets also includes our investment in Apollo. Our net invested assets, excluding our investment in Apollo, 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 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 consolidated financial statements and notes thereto. Net reserve liabilities represent our policyholder liability obligations net of reinsurance and is used to analyze the costs of our liabilities. Net reserve liabilities include (a) the interest sensitive contract liabilities, (b) future policy benefits, (c) dividends payable to policyholders, and (d) 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 does not include the proportionate share of reserve liabilities associated with the noncontrolling interest. Net reserve liabilities is 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. The majority of our ceded reinsurance is a result of reinsuring large blocks of life business following acquisitions. For such transactions, 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. 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 GAAP.

SALES

Sales statistics do not correspond to revenues under 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). While we believe sales is a meaningful metric and enhances our understanding of our business performance, it should not be used as a substitute for premiums presented under GAAP.

NET ORGANIC GROWTH RATE

Net organic growth rate is calculated as the net organic flows divided by average net invested assets. Net organic flows are comprised of net organic inflows less net outflows. Organic inflows are the deposits generated from our organic channels, which include retail, flow reinsurance and institutional. Net outflows are total liability outflows, including full and partial withdrawals on our deferred annuities, death benefits, pension risk transfer benefit payments, payments on payout annuities and maturities of our funding agreements, net of outflows attributable to the ACRA noncontrolling interest. To enhance the ability to analyze these measures across periods, interim periods are annualized. We believe net organic growth rate provides a meaningful financial metric that enables investors to assess our growth from the channels that provide recurring inflows. Management uses net organic growth rate to monitor our business performance and the underlying profitability drivers of our business.


Non-GAAP Reconciliations Unaudited (in millions, except per share data)
	Quarterly Trends										Year-to-Date
	1Q’20		2Q’20		3Q’20		4Q’20		1Q’21		2020		2021
RECONCILIATION OF BOOK VALUE PER COMMON SHARE TO ADJUSTED BOOK VALUE PER COMMON SHARE
Book value per common share	$	45.23	$	66.82	$	74.21	$	85.51	$	78.25
AOCI	6.06		(11.26)		(15.10)		(20.77)		(10.56)
Accumulated change in fair value of reinsurance assets	0.80		(3.17)		(4.07)		(5.98)		(2.55)
Effect of items convertible to or settled in Class A common shares	(1.02)		(1.24)		(1.43)		(1.81)		(2.26)
Adjusted book value per common share	$	51.07	$	51.15	$	53.61	$	56.95	$	62.88

RECONCILIATION OF AVERAGE AHL SHAREHOLDERS’ EQUITY TO AVERAGE ADJUSTED AHL COMMON SHAREHOLDERS’ EQUITY
Average AHL shareholders’ equity	$	11,666	$	12,326	$	15,327	$	17,300	$	17,974	$	11,666	$	17,974
Less: Average preferred stock	1,172		1,464		1,755		2,034		2,312		1,172		2,312
Less: Average AOCI	554		505		2,536		3,430		2,996		554		2,996
Less: Average accumulated change in fair value of reinsurance assets	169		230		697		960		815		169		815
Average adjusted AHL common shareholders’ equity	$	9,771	$	10,127	$	10,339	$	10,876	$	11,851	$	9,771	$	11,851

Retirement Services	$	7,722	$	7,480	$	7,139	$	7,526	$	8,301	$	7,722	$	8,301
Corporate and Other	2,049		2,647		3,200		3,350		3,550		2,049		3,550
Average adjusted AHL common shareholders’ equity	$	9,771	$	10,127	$	10,339	$	10,876	$	11,851	$	9,771	$	11,851

RECONCILIATION OF BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – CLASS A TO WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – ADJUSTED OPERATING
Basic weighted average common shares outstanding – Class A	161.4		193.9		193.1		191.1		191.3		161.4		191.3
Conversion of Class B common shares to Class A common shares	16.9		—		—		—		—		16.9		—
Conversion of Class M common shares to Class A common shares	3.2		—		—		—		—		3.2		—
Effect of other stock compensation plans	—		3.0		4.0		4.8		5.5		—		5.5
Weighted average common shares outstanding – adjusted operating	181.5		196.9		197.1		195.9		196.8		181.5		196.8

RECONCILIATION OF CLASS A COMMON SHARES OUTSTANDING TO ADJUSTED OPERATING COMMON SHARES OUTSTANDING
Class A common shares outstanding	193.9		193.9		191.2		191.2		191.4


Effect of other stock compensation plans	3.8		4.7		5.1		6.0		6.9
Adjusted operating common shares outstanding	197.7		198.6		196.3		197.2		198.3


Non-GAAP Reconciliations Unaudited (in millions, except percentages)
	Quarterly Trends										Year-to-Date
	1Q’20		2Q’20		3Q’20		4Q’20		1Q’21		2020		2021
RECONCILIATION OF NET INCOME (LOSS) AVAILABLE TO AHL COMMON SHAREHOLDERS TO ADJUSTED OPERATING INCOME AVAILABLE TO COMMON SHAREHOLDERS EXCLUDING NOTABLES AND AOG
Net income (loss) available to Athene Holding Ltd. common shareholders	$	(1,065)	$	824	$	622	$	1,065	$	578	$	(1,065)	$	578
Less: Total non-operating adjustments	(957)		334		320		507		(170)		(957)		(170)
Adjusted operating income (loss) available to common shareholders	(108)		490		302		558		748		(108)		748
Notable items	43		(20)		(27)		(41)		(8)		43		(8)
Adjusted operating income (loss) available to common shareholders excluding notable items	$	(65)	$	470	$	275	$	517	$	740	$	(65)	$	740

Retirement Services adjusted operating income available to common shareholders	$	204	$	208	$	361	$	493	$	784	$	204	$	784
Non-recurring adjustment on derivative collateral	—		—		(25)		—		—		—		—



Actuarial experience and market impacts	50		(22)		—		(46)		(9)		50		(9)
Unlocking	—		—		(6)		—		—		—		—
Tax impact of notable items	(7)		2		4		5		1		(7)		1
Retirement Services notable items	43		(20)		(27)		(41)		(8)		43		(8)
Retirement Services adjusted operating income available to common shareholders excluding notable items	247		188		334		452		776		247		776

Corporate and Other adjusted operating income (loss) available to common shareholders	(312)		282		(59)		65		(36)		(312)		(36)
Adjusted operating income (loss) available to common shareholders excluding notable items	(65)		470		275		517		740		(65)		740
Less: Change in fair value of Apollo investment, net of tax	(239)		372		(81)		113		(19)		(239)		(19)
Adjusted operating income available to common shareholders excluding notables and AOG	$	174	$	98	$	356	$	404	$	759	$	174	$	759


Non-GAAP Reconciliations Unaudited (in millions, except percentages)
	Quarterly Trends															Year-to-Date
	1Q’20			2Q’20			3Q’20			4Q’20			1Q’21			2020			2021
RECONCILIATION OF NET INVESTMENT INCOME TO NET INVESTMENT EARNINGS
GAAP net investment income	$	745		$	1,336		$	1,209		$	1,595		$	1,704		$	745		$	1,704
Change in fair value of reinsurance assets	270			218			444			476			366			270			366

Alternative gains (losses)	(101)			56			23			(80)			69			(101)			69
ACRA noncontrolling interest	(72)			(81)			(196)			(210)			(198)			(72)			(198)
Apollo investment (gain) loss	297			(481)			101			(142)			25			297			25
Held for trading amortization and other	12			(8)			(51)			(32)			32			12			32
Total adjustments to arrive at net investment earnings	406			(296)			321			12			294			406			294
Total net investment earnings	$	1,151		$	1,040		$	1,530		$	1,607		$	1,998		$	1,151		$	1,998

Retirement Services	$	1,184		$	1,075		$	1,444		$	1,584		$	1,935		$	1,184		$	1,935
Corporate and Other	(33)			(35)			86			23			63			(33)			63
Total net investment earnings	$	1,151		$	1,040		$	1,530		$	1,607		$	1,998		$	1,151		$	1,998

RECONCILIATION OF NET INVESTMENT INCOME RATE TO NET INVESTMENT EARNED RATE
GAAP net investment income rate	2.51		%	4.22		%	3.48		%	4.39		%	4.49		%	2.51		%	4.49		%
Change in fair value of reinsurance assets	0.90		%	0.69		%	1.28		%	1.31		%	0.97		%	0.90		%	0.97		%

Alternative gains (losses)	(0.34)		%	0.18		%	0.07		%	(0.22)		%	0.18		%	(0.34)		%	0.18		%
ACRA noncontrolling interest	(0.24)		%	(0.26)		%	(0.56)		%	(0.58)		%	(0.52)		%	(0.24)		%	(0.52)		%
Apollo investment (gain) loss	1.00		%	(1.52)		%	0.29		%	(0.38)		%	0.07		%	1.00		%	0.07		%
Held for trading amortization and other	0.04		%	(0.02)		%	(0.15)		%	(0.09)		%	0.08		%	0.04		%	0.08		%
Total adjustments to arrive at net investment earned rate	1.36		%	(0.93)		%	0.93		%	0.04		%	0.78		%	1.36		%	0.78		%
Consolidated net investment earned rate	3.87		%	3.29		%	4.41		%	4.43		%	5.27		%	3.87		%	5.27		%

Retirement Services	4.04		%	3.44		%	4.22		%	4.43		%	5.18		%	4.04		%	5.18		%
Corporate and Other	(8.14)		%	(8.91)		%	17.59		%	4.38		%	11.22		%	(8.14)		%	11.22		%
Consolidated net investment earned rate	3.87		%	3.29		%	4.41		%	4.43		%	5.27		%	3.87		%	5.27		%

Retirement Services	$	117,295		$	124,943		$	136,852		$	143,162		$	149,397		$	117,295		$	149,397
Corporate and Other ex. Apollo investment	1,624			1,567			1,945			2,089			2,247			1,624			2,247
Consolidated average net invested assets ex. Apollo investment	$	118,919		$	126,510		$	138,797		$	145,251		$	151,644		$	118,919		$	151,644


Non-GAAP Reconciliations Unaudited (in millions, except percentages)
	Quarterly Trends															Year-to-Date
	1Q’20			2Q’20			3Q’20			4Q’20			1Q’21			2020			2021
RECONCILIATION OF INTEREST SENSITIVE CONTRACT BENEFITS TO COST OF CREDITING
GAAP interest sensitive contract benefits	$	(1,319)		$	2,076		$	1,225		$	1,909		$	394		$	(1,319)		$	394
Interest credited other than deferred annuities and institutional products	63			75			73			101			97			63			97
FIA option costs	266			271			284			280			279			266			279
Product charges (strategy fees)	(32)			(34)			(34)			(36)			(38)			(32)			(38)
Reinsurance embedded derivative impacts	14			15			14			14			14			14			14
Change in fair values of embedded derivatives – FIAs	1,504			(1,734)			(779)			(1,395)			43			1,504			43
Negative VOBA amortization	7			5			3			6			3			7			3
ACRA noncontrolling interest	38			(113)			(151)			(207)			(128)			38			(128)

Other changes in interest sensitive contract liabilities	(1)			(1)			5			5			4			(1)			4
Total adjustments to arrive at cost of crediting	1,859			(1,516)			(585)			(1,232)			274			1,859			274
Retirement Services cost of crediting	$	540		$	560		$	640		$	677		$	668		$	540		$	668

GAAP interest sensitive contract benefits	(4.50)		%	6.65		%	3.58		%	5.33		%	1.05		%	(4.50)		%	1.05		%
Interest credited other than deferred annuities and institutional products	0.21		%	0.24		%	0.21		%	0.28		%	0.26		%	0.21		%	0.26		%
FIA option costs	0.91		%	0.86		%	0.83		%	0.78		%	0.75		%	0.91		%	0.75		%
Product charges (strategy fees)	(0.11)		%	(0.11)		%	(0.10)		%	(0.10)		%	(0.10)		%	(0.11)		%	(0.10)		%
Reinsurance embedded derivative impacts	0.05		%	0.05		%	0.04		%	0.04		%	0.04		%	0.05		%	0.04		%
Change in fair values of embedded derivatives – FIAs	5.13		%	(5.55)		%	(2.28)		%	(3.90)		%	0.11		%	5.13		%	0.11		%
Negative VOBA amortization	0.02		%	0.02		%	0.01		%	0.02		%	0.01		%	0.02		%	0.01		%
ACRA noncontrolling interest	0.13		%	(0.37)		%	(0.44)		%	(0.58)		%	(0.34)		%	0.13		%	(0.34)		%

Other changes in interest sensitive contract liabilities	—		%	—		%	0.02		%	0.02		%	0.01		%	—		%	0.01		%
Total adjustments to arrive at cost of crediting	6.34		%	(4.86)		%	(1.71)		%	(3.44)		%	0.74		%	6.34		%	0.74		%
Retirement Services cost of crediting	1.84		%	1.79		%	1.87		%	1.89		%	1.79		%	1.84		%	1.79		%

Retirement Services cost of crediting on deferred annuities	1.91		%	1.94		%	1.98		%	1.94		%	1.89		%	1.91		%	1.89		%
Retirement Services cost of crediting on institutional products	3.31		%	2.87		%	2.95		%	3.08		%	2.59		%	3.31		%	2.59		%
Retirement Services cost of crediting	1.84		%	1.79		%	1.87		%	1.89		%	1.79		%	1.84		%	1.79		%

Retirement Services average net invested assets	$	117,295		$	124,943		$	136,852		$	143,162		$	149,397		$	117,295		$	149,397
Average net account value on deferred annuities	88,119			92,814			102,144			103,990			104,310			88,119			104,310
Average institutional net reserve liabilities	14,250			15,233			18,162			22,375			27,028			14,250			27,028


Non-GAAP Reconciliations Unaudited (in millions)
	Quarterly Trends										Year-to-Date
	1Q’20		2Q’20		3Q’20		4Q’20		1Q’21		2020		2021
RECONCILIATION OF BENEFITS AND EXPENSES TO OTHER LIABILITY COSTS
GAAP benefits and expenses	$	(167)	$	3,317	$	2,251	$	7,157	$	4,252	$	(167)	$	4,252
Premiums	(1,140)		(355)		(112)		(4,356)		(3,011)		(1,140)		(3,011)
Product charges	(140)		(141)		(144)		(146)		(150)		(140)		(150)
Other revenues	2		(18)		(13)		(7)		(14)		2		(14)
Cost of crediting	(259)		(275)		(342)		(383)		(375)		(259)		(375)
Change in fair value of embedded derivatives - FIA, net of offsets	1,456		(1,445)		(863)		(1,409)		(298)		1,456		(298)
DAC, DSI and VOBA amortization related to investment gains and losses	425		(323)		(86)		(111)		139		425		139
Rider reserves	76		(46)		(21)		(19)		21		76		21
Policy and other operating expenses, excluding policy acquisition expenses	(117)		(145)		(132)		(139)		(201)		(117)		(201)

AmerUs closed block fair value liability	45		(100)		(15)		(34)		93		45		93
ACRA noncontrolling interest	165		(241)		(193)		(258)		(107)		165		(107)

Other changes in benefits and expenses	(4)		(13)		(10)		(14)		(7)		(4)		(7)
Total adjustments to arrive at other liability costs	509		(3,102)		(1,931)		(6,876)		(3,910)		509		(3,910)
Other liability costs	$	342	$	215	$	320	$	281	$	342	$	342	$	342

Retirement Services	$	342	$	215	$	320	$	281	$	342	$	342	$	342
Corporate and Other	—		—		—		—		—		—		—
Consolidated other liability costs	$	342	$	215	$	320	$	281	$	342	$	342	$	342

RECONCILIATION OF POLICY AND OTHER OPERATING EXPENSES TO OPERATING EXPENSES
Policy and other operating expenses	$	188	$	218	$	231	$	218	$	283	$	188	$	283
Interest expense	(20)		(29)		(34)		(31)		(32)		(20)		(32)
Policy acquisition expenses, net of deferrals	(71)		(73)		(99)		(79)		(82)		(71)		(82)
Integration, restructuring and other non-operating expenses	(4)		(9)		—		3		(45)		(4)		(45)
Stock compensation expenses	(10)		—		(1)		—		—		(10)		—
ACRA noncontrolling interest	(4)		(19)		(16)		(19)		(21)		(4)		(21)
Other changes in policy and other operating expenses	—		—		(3)		1		(5)		—		(5)
Total adjustments to arrive at operating expenses	(109)		(130)		(153)		(125)		(185)		(109)		(185)
Operating expenses	$	79	$	88	$	78	$	93	$	98	$	79	$	98

Retirement Services	$	68	$	71	$	63	$	73	$	78	$	68	$	78
Corporate and Other	11		17		15		20		20		11		20
Consolidated operating expenses	$	79	$	88	$	78	$	93	$	98	$	79	$	98


Non-GAAP Reconciliations Unaudited (in millions)
	December 31, 2020		March 31, 2021
RECONCILIATION OF TOTAL INVESTMENTS INCLUDING RELATED PARTIES TO NET INVESTED ASSETS
Total investments, including related parties	$	182,421	$	185,951
Derivative assets	(3,523)		(3,677)
Cash and cash equivalents (including restricted cash)	8,442		6,973
Accrued investment income	905		968
Payables for collateral on derivatives	(3,203)		(3,353)
Reinsurance funds withheld and modified coinsurance	(2,459)		(572)
VIE and VOE assets, liabilities and noncontrolling interest	(136)		(70)
Unrealized (gains) losses	(7,275)		(3,685)
Ceded policy loans	(204)		(199)
Net investment receivables (payables)	99		(402)
Allowance for credit losses	357		362
Total adjustments to arrive at gross invested assets	(6,997)		(3,655)
Gross invested assets	175,424		182,296
ACRA noncontrolling interest	(25,234)		(26,593)
Net invested assets	$	150,190	$	155,703

RECONCILIATION OF INVESTMENT FUNDS INCLUDING RELATED PARTIES TO NET ALTERNATIVE INVESTMENTS
Investment funds, including related parties	$	6,087	$	6,865
Equity securities	165		217
CLO and ABS equities included in trading securities	971		1,042
Investment in Apollo	(1,324)		(1,281)
Investment funds within funds withheld at interest	1,155		1,522
Royalties and other assets included in other investments	66		140

Unrealized (gains) losses and other adjustments	(44)		(24)
ACRA noncontrolling interest	(283)		(477)
Total adjustments to arrive at net alternative investments	706		1,139
Net alternative investments	$	6,793	$	8,004

RECONCILIATION OF TOTAL LIABILITIES TO NET RESERVE LIABILITIES
Total liabilities	$	182,631	$	187,334

Long-term debt	(1,976)		(1,977)
Derivative liabilities	(298)		(288)
Payables for collateral on derivatives	(3,203)		(3,353)
Funds withheld liability	(452)		(422)
Other liabilities	(2,040)		(2,436)

Reinsurance ceded receivables	(4,848)		(4,690)
Policy loans ceded	(204)		(199)
ACRA noncontrolling interest	(24,618)		(25,625)
Other	(3)		(5)
Total adjustments to arrive at net reserve liabilities	(37,642)		(38,995)
Net reserve liabilities	$	144,989	$	148,339

Form: 8-K

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