Form: 425

Filing under Securities Act Rule 425 of certain prospectuses and communications in connection with business combination transactions

November 3, 2021


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Table of Contents
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Financial Highlights
Unaudited (in millions, except percentages and per share data)
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Quarterly Trends Δ Year-to-Date Δ
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 Q/Q Y/Y 2020 2021 Y/Y
SELECTED INCOME STATEMENT DATA
Net income available to AHL common shareholders $ 622  $ 1,065  $ 578  $ 1,382  $ 698  (49) % 12  % $ 381  $ 2,658  NM
Adjusted operating income available to common shareholders 302  558  748  1,000  541  (46) % 79  % 684  2,289  235  %
Adjusted operating income available to common shareholders ex. notables and AOG 356  404  759  572  511  (11) % 44  % 636  1,843  190  %
FINANCIAL RATIOS
Return on assets (ROA)
1.33  % 2.16  % 1.13  % 2.62  % 1.27  % NM (6)bps 0.31  % 1.67  % 136bps
Adjusted operating ROA
0.86  % 1.52  % 1.96  % 2.53  % 1.32  % NM 46bps 0.71  % 1.93  % 122bps
Adjusted operating ROA, excluding notables and AOG
1.03  % 1.11  % 2.00  % 1.46  % 1.26  % (20)bps 23bps 0.66  % 1.57  % 91bps
Net investment spread – Retirement Services
1.41  % 1.75  % 2.48  % 1.90  % 1.53  % (37)bps 12bps 1.14  % 1.96  % 82bps
Return on equity (ROE) 16.2  % 24.6  % 12.9  % 29.6  % 13.8  % NM NM 3.5  % 18.6  % NM
Adjusted operating ROE
11.7  % 20.5  % 25.3  % 30.8  % 15.6  % NM NM 9.1  % 23.7  % NM
Adjusted operating ROE, excluding notables and AOG 13.9  % 15.0  % 26.0  % 18.1  % 15.3  % NM 140bps 8.5  % 19.7  % NM
Adjusted operating ROE – Retirement Services
20.2  % 26.2  % 37.8  % 27.6  % 21.2  % NM 100bps 14.0  % 28.3  % NM
EARNINGS AND BOOK VALUE PER COMMON SHARE
Earnings per common share – basic class A $ 3.22  $ 5.57  $ 3.02  $ 7.21  $ 3.64  (50) % 13  % $ 2.78  $ 13.88  NM
Earnings per common share – diluted class A1
3.16  5.44  2.94  6.97  3.51  (50) % 11  % 2.73  13.42  NM
Adjusted operating earnings per common share2
1.53  2.85  3.80  5.04  2.73  (46) % 78  % 3.55  11.56  226  %
Adjusted operating earnings per common share ex. notables and AOG 1.81  2.06  3.86  2.88  2.57  (11) % 42  % 3.30  9.31  182  %
Book value per common share
74.21  85.51  78.25  92.33  94.24  % 27  % 74.21  94.24  27  %
Adjusted book value per common share2
53.61  56.95  62.88  67.46  71.50  % 33  % 53.61  71.50  33  %
SELECTED BALANCE SHEET DATA
Total assets
$ 191,088  $ 202,771  $ 205,670  $ 215,549  $ 224,396  % 17  % $ 191,088  $ 224,396  17  %
Gross invested assets
167,136  175,424  182,296  188,751  199,144  % 19  % 167,136  199,144  19  %
Invested assets – ACRA noncontrolling interests
(24,301) (25,234) (26,593) (27,937) (32,924) (18) % (35) % (24,301) (32,924) (35) %
Net invested assets
142,835  150,190  155,703  160,814  166,220  % 16  % 142,835  166,220  16  %
Total liabilities
173,971  182,631  187,334  193,878  202,024  % 16  % 173,971  202,024  16  %
Net reserve liabilities
137,767  144,989  148,339  152,772  156,852  % 14  % 137,767  156,852  14  %
Debt
1,487  1,976  1,977  2,468  2,469  —  % 66  % 1,487  2,469  66  %
Total AHL shareholders’ equity
15,943  18,657  17,291  20,006  20,389  % 28  % 15,943  20,389  28  %
Adjusted AHL common shareholders’ equity
10,522  11,232  12,470  13,471  14,287  % 36  % 10,522  14,287  36  %
FLOWS DATA
Net organic flows3
$ 4,706  $ 4,866  $ 3,224  $ 1,954  $ 3,434  76  % (27) % $ 9,552  $ 8,612  (10) %
Average net invested assets 140,052  146,512  152,947  158,259  163,517  % 17  % 129,188  158,231  22  %
Net organic growth rate4
13.4  % 13.3  % 8.4  % 4.9  % 8.4  % NM NM 9.9  % 7.3  % NM
Net organic growth rate - LTM4
7.9  % 10.8  % 11.6  % 9.9  % 8.7  % NM 80bps 7.9  % 8.7  % 80bps
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, for all stock-based awards, and for the nine months ended September 30, 2020, the dilutive impacts, if any, of Class B and Class M common shares. 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 any stock-based awards, and for the nine months ended September 30, 2020, the impacts of Class B and Class M common shares, 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.
3


Condensed Consolidated Statements of Income (GAAP view)
Unaudited (in millions, except percentages)
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Quarterly Trends Δ Year-to-Date Δ
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 Q/Q Y/Y 2020 2021 Y/Y
REVENUE
Premiums
$ 112  $ 4,356  $ 3,011  $ 1,598  $ 6,686  NM NM $ 1,607  $ 11,295  NM
Product charges
144  146  150  157  154  (2) % % 425  461  %
Net investment income
1,209  1,595  1,704  2,038  1,474  (28) % 22  % 3,290  5,216  59  %
Investment related gains (losses) 1,797  2,536  (488) 2,610  386  (85) % (79) % 773  2,508  224  %
Other revenues
13  14  20  24  20  % 85  % 29  58  100  %
Total revenues
$ 3,275  $ 8,640  $ 4,391  $ 6,423  $ 8,724  36  % 166  % $ 6,124  $ 19,538  219  %
BENEFITS AND EXPENSES
Interest sensitive contract benefits
$ 1,225  $ 1,909  $ 394  $ 1,979  $ 572  (71) % (53) % $ 1,982  $ 2,945  49  %
Amortization of deferred sales inducements
48  29  84  22  32  45  % (33) % 37  138  273  %
Future policy and other policy benefits
439  4,718  3,317  1,950  7,014  260  % NM 2,469  12,281  NM
Amortization of deferred acquisition costs and value of business acquired 299  274  164  230  136  (41) % (55) % 247  530  115  %
Dividends to policyholders
10  10  (70) % (67) % 29  23  (21) %
Policy and other operating expenses
231  218  283  242  247  % % 637  772  21  %
Total benefits and expenses 2,251  7,157  4,252  4,433  8,004  81  % 256  % 5,401  16,689  209  %
Income before income taxes 1,024  1,483  139  1,990  720  (64) % (30) % 723  2,849  294  %
Income tax expense (benefit) 140  161  62  184  (50) NM NM 124  196  58  %
Net income 884  1,322  77  1,806  770  (57) % (13) % 599  2,653  NM
Less: Net income (loss) attributable to noncontrolling interests 232  229  (537) 389  37  (90) % (84) % 151  (111) NM
Net income attributable to Athene Holding Ltd. shareholders 652  1,093  614  1,417  733  (48) % 12  % 448  2,764  NM
Less: Preferred stock dividends
30  28  36  35  35  —  % 17  % 67  106  58  %
Net income available to Athene Holding Ltd. common shareholders $ 622  $ 1,065  $ 578  $ 1,382  $ 698  (49) % 12  % $ 381  $ 2,658  NM

4


Segment Results of Operations (Management view)
Unaudited (in millions, except percentages and per share data)
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Quarterly Trends Δ Year-to-Date Δ
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 Q/Q Y/Y 2020 2021 Y/Y
CONSOLIDATED
Fixed income and other investment income
$ 1,225  $ 1,283  $ 1,286  $ 1,395  $ 1,340  (4) % % $ 3,553  $ 4,021  13  %
Alternative investment income 305  324  712  331  334  % 10  % 168  1,377  NM
Net investment earnings 1,530  1,607  1,998  1,726  1,674  (3) % % 3,721  5,398  45  %
Cost of crediting
(640) (677) (668) (678) (696) (3) % (9) % (1,740) (2,042) (17) %
Other liability costs1
(320) (281) (342) (247) (289) (17) % 10  % (877) (878) —  %
Cost of funds
(960) (958) (1,010) (925) (985) (6) % (3) % (2,617) (2,920) (12) %
Operating expenses
(78) (93) (98) (95) (93) % (19) % (245) (286) (17) %
Interest expense
(27) (27) (26) (27) (31) (15) % (15) % (74) (84) (14) %
Management fees from ACRA
11  38  % 22  % 14  28  100  %
Pre-tax adjusted operating income 474  537  873  687  576  (16) % 22  % 799  2,136  167  %
Income tax expense – operating2
(61) (64) (70) (25) (10) 60  % 84  % (100) (105) (5) %
Adjusted operating income 413  473  803  662  566  (15) % 37  % 699  2,031  191  %
Preferred stock dividends
(30) (28) (36) (35) (35) —  % (17) % (67) (106) (58) %
Adjusted operating income available to common shareholders excluding Apollo 383  445  767  627  531  (15) % 39  % 632  1,925  205  %
Change in fair value of Apollo investment, net of tax3
(81) 113  (19) 373  10  (97) % NM 52  364  NM
Adjusted operating income available to common shareholders $ 302  $ 558  $ 748  $ 1,000  $ 541  (46) % 79  % $ 684  $ 2,289  235  %
Adjusted operating earnings per common share $ 1.53  $ 2.85  $ 3.80  $ 5.04  $ 2.73  (46) % 78  % $ 3.55  $ 11.56  226  %
RETIREMENT SERVICES
Fixed income and other investment income
$ 1,216  $ 1,274  $ 1,276  $ 1,385  $ 1,333  (4) % 10  % $ 3,525  $ 3,994  13  %
Alternative investment income 228  310  659  274  265  (3) % 16  % 178  1,198  NM
Net investment earnings 1,444  1,584  1,935  1,659  1,598  (4) % 11  % 3,703  5,192  40  %
Cost of crediting
(640) (677) (668) (678) (696) (3) % (9) % (1,740) (2,042) (17) %
Other liability costs1
(320) (281) (342) (247) (289) (17) % 10  % (877) (878) —  %
Cost of funds
(960) (958) (1,010) (925) (985) (6) % (3) % (2,617) (2,920) (12) %
Operating expenses
(63) (73) (78) (81) (75) % (19) % (202) (234) (16) %
Interest expense
(8) (4) (2) (2) (2) —  % 75  % (25) (6) 76  %
Management fees from ACRA
11  38  % 22  % 14  28  100  %
Pre-tax adjusted operating income 422  557  854  659  547  (17) % 30  % 873  2,060  136  %
Income tax expense – operating (61) (64) (70) (25) (10) 60  % 84  % (100) (105) (5) %
Adjusted operating income available to common shareholders $ 361  $ 493  $ 784  $ 634  $ 537  (15) % 49  % $ 773  $ 1,955  153  %
CORPORATE & OTHER
Fixed income and other investment income
$ $ $ 10  $ 10  $ (30) % (22) % $ 28  $ 27  (4) %
Alternative investment income (loss) 77  14  53  57  69  21  % (10) % (10) 179  NM
Net investment earnings 86  23  63  67  76  13  % (12) % 18  206  NM
Operating expenses
(15) (20) (20) (14) (18) (29) % (20) % (43) (52) (21) %
Interest expense
(19) (23) (24) (25) (29) (16) % (53) % (49) (78) (59) %
Adjusted operating income (loss) 52  (20) 19  28  29  % (44) % (74) 76  NM
Preferred stock dividends
(30) (28) (36) (35) (35) —  % (17) % (67) (106) (58) %
Adjusted operating income (loss) available to common shareholders excluding Apollo 22  (48) (17) (7) (6) 14  % NM (141) (30) 79  %
Change in fair value of Apollo investment, net of tax3
(81) 113  (19) 373  10  (97) % NM 52  364  NM
Adjusted operating income (loss) available to common shareholders $ (59) $ 65  $ (36) $ 366  $ (99) % NM $ (89) $ 334  NM
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.
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Components of Adjusted Operating Return on Assets (Management View)
Unaudited (in millions, except percentages)
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Quarterly Trends Δ Year-to-Date Δ
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 Q/Q Y/Y 2020 2021 Y/Y
CONSOLIDATED
Fixed income and other investment income
3.70  % 3.70  % 3.57  % 3.75  % 3.49  % (26)bps (21)bps 3.87  % 3.60  % (27)bps
Alternative investment income 19.44  % 19.56  % 38.51  % 16.73  % 16.28  % (45)bps NM 3.74  % 23.56  % NM
Net investment earnings 4.41  % 4.43  % 5.27  % 4.40  % 4.14  % (26)bps (27)bps 3.87  % 4.59  % 72bps
Cost of crediting
(1.84) % (1.86) % (1.76) % (1.73) % (1.72) % 1bps 12bps (1.81) % (1.74) % 7bps
Other liability costs (0.93) % (0.78) % (0.90) % (0.63) % (0.72) % (9)bps 21bps (0.91) % (0.74) % 17bps
Cost of funds
(2.77) % (2.64) % (2.66) % (2.36) % (2.44) % (8)bps 33bps (2.72) % (2.48) % 24bps
Net investment spread 1.64  % 1.79  % 2.61  % 2.04  % 1.70  % (34)bps 6bps 1.15  % 2.11  % 96bps
Operating expenses
(0.22) % (0.26) % (0.26) % (0.24) % (0.23) % 1bps (1)bps (0.25) % (0.24) % 1bps
Interest expense
(0.08) % (0.07) % (0.07) % (0.07) % (0.08) % (1)bps 0bps (0.08) % (0.07) % 1bps
Management fees from ACRA
0.03  % 0.02  % 0.02  % 0.02  % 0.03  % 1bps 0bps 0.01  % 0.02  % 1bps
Pre-tax adjusted operating income 1.37  % 1.48  % 2.30  % 1.75  % 1.42  % (33)bps 5bps 0.83  % 1.82  % 99bps
Income tax expense – operating (0.18) % (0.18) % (0.18) % (0.06) % (0.02) % 4bps 16bps (0.10) % (0.09) % 1bps
Adjusted operating income 1.19  % 1.30  % 2.12  % 1.69  % 1.40  % (29)bps 21bps 0.73  % 1.73  % 100bps
Preferred stock dividends
(0.09) % (0.07) % (0.10) % (0.09) % (0.09) % 0bps 0bps (0.07) % (0.09) % (2)bps
Adjusted operating income available to common shareholders excluding Apollo 1.10  % 1.23  % 2.02  % 1.60  % 1.31  % (29)bps 21bps 0.66  % 1.64  % 98bps
Change in fair value of Apollo investment, net of tax (0.24) % 0.29  % (0.06) % 0.93  % 0.01  % (92)bps NM 0.05  % 0.29  % 24bps
Adjusted operating income available to common shareholders 0.86  % 1.52  % 1.96  % 2.53  % 1.32  % NM 46bps 0.71  % 1.93  % 122bps
Consolidated average net invested assets ex. Apollo investment $ 138,797  $ 145,251  $ 151,644  $ 156,753  $ 161,789  % 17  % $ 128,348  $ 156,716  22  %
Consolidated average net invested assets 140,052  146,512  152,947  158,259  163,517  % 17  % 129,188  158,231  22  %
RETIREMENT SERVICES
Fixed income and other investment income
3.70  % 3.70  % 3.57  % 3.75  % 3.49  % (26)bps (21)bps 3.87  % 3.60  % (27)bps
Alternative investment income 17.24  % 22.59  % 42.33  % 16.27  % 15.10  % NM NM 4.57  % 24.14  % NM
Net investment earnings 4.22  % 4.43  % 5.18  % 4.30  % 4.00  % (30)bps (22)bps 3.90  % 4.48  % 58bps
Cost of crediting
(1.87) % (1.89) % (1.79) % (1.76) % (1.74) % 2bps 13bps (1.83) % (1.76) % 7bps
Other liability costs (0.94) % (0.79) % (0.91) % (0.64) % (0.73) % (9)bps 21bps (0.93) % (0.76) % 17bps
Cost of funds
(2.81) % (2.68) % (2.70) % (2.40) % (2.47) % (7)bps 34bps (2.76) % (2.52) % 24bps
Net investment spread 1.41  % 1.75  % 2.48  % 1.90  % 1.53  % (37)bps 12bps 1.14  % 1.96  % 82bps
Operating expenses
(0.18) % (0.20) % (0.21) % (0.21) % (0.19) % 2bps (1)bps (0.21) % (0.20) % 1bps
Interest expense
(0.02) % (0.01) % (0.01) % (0.01) % (0.01) % 0bps 1bps (0.03) % (0.01) % 2bps
Management fees from ACRA
0.03  % 0.02  % 0.02  % 0.02  % 0.03  % 1bps 0bps 0.01  % 0.02  % 1bps
Pre-tax adjusted operating income 1.24  % 1.56  % 2.28  % 1.70  % 1.36  % (34)bps 12bps 0.91  % 1.77  % 86bps
Income tax expense – operating (0.18) % (0.18) % (0.18) % (0.06) % (0.02) % 4bps 16bps (0.10) % (0.08) % 2bps
Adjusted operating income available to common shareholders 1.06  % 1.38  % 2.10  % 1.64  % 1.34  % (30)bps 28bps 0.81  % 1.69  % 88bps
Retirement Services average net invested assets $ 136,852  $ 143,162  $ 149,397  $ 154,459  $ 159,767  % 17  % $ 126,563  $ 154,582  22  %
6


Reconciliation of Earnings Measures
Unaudited (in millions, except percentages and per share data)
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Quarterly Trends Δ Year-to-Date Δ
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 Q/Q Y/Y 2020 2021 Y/Y
RECONCILIATION OF NET INCOME AVAILABLE TO ATHENE HOLDING LTD. COMMON SHAREHOLDERS TO ADJUSTED OPERATING INCOME AVAILABLE TO COMMON SHAREHOLDERS
Net income available to Athene Holding Ltd. common shareholders $ 622  $ 1,065  $ 578  $ 1,382  $ 698  (49) % 12  % $ 381  $ 2,658  NM
Non-operating adjustments
Realized gains (losses) on sale of AFS securities (11) 37  19  57  73  28  % NM (10) 149  NM
Unrealized, allowances and other investment gains (losses) 49  116  100  32  34  % (31) % (268) 166  NM
Change in fair value of reinsurance assets 434  522  (865) 554  (118) NM NM 270  (429) NM
Offsets to investment gains (losses) (126) (149) 141  (126) 13  NM NM (10) 28  NM
Investment gains (losses), net of offsets 346  526  (605) 517  (100) % (99) % (18) (86) NM
Change in fair values of derivatives and embedded derivatives – FIAs, net of offsets 72  33  488  (68) 70  NM (3) % (268) 490  NM
Integration, restructuring and other non-operating expenses
—  (45) (11) (8) 27  % NM (13) (64) NM
Stock compensation expense
(1) —  —  (1) (1) —  % —  % (11) (2) 82  %
Income tax (expense) benefit – non-operating (97) (55) (8) (55) 94  NM NM 31  NM
Less: Total non-operating adjustments
320  507  (170) 382  157  (59) % (51) % (303) 369  NM
Adjusted operating income available to common shareholders $ 302  $ 558  $ 748  $ 1,000  $ 541  (46) % 79  % $ 684  $ 2,289  235  %
RECONCILIATION OF BASIC EARNINGS PER CLASS A COMMON SHARES TO ADJUSTED OPERATING EARNINGS PER COMMON SHARE
Basic earnings per share - Class A common shares $ 3.22  $ 5.57  $ 3.02  $ 7.21  $ 3.64  (50) % 13  % $ 2.78  $ 13.88  NM
Non-operating adjustments
Realized gains (losses) on sale of AFS securities (0.06) 0.19  0.10  0.28  0.37  32  % NM (0.05) 0.75  NM
Unrealized, allowances and other investment gains (losses) 0.24  0.59  0.50  0.17  0.16  (6) % (33) % (1.40) 0.83  NM
Change in fair value of reinsurance assets 2.20  2.66  (4.40) 2.80  (0.60) NM NM 1.40  (2.17) NM
Offsets to investment gains (losses) (0.64) (0.76) 0.72  (0.64) 0.07  NM NM (0.05) 0.14  NM
Investment gains (losses), net of offsets 1.74  2.68  (3.08) 2.61  —  NM NM (0.10) (0.45) NM
Change in fair values of derivatives and embedded derivatives – FIAs, net of offsets 0.37  0.17  2.48  (0.34) 0.35  NM (5) % (1.39) 2.47  NM
Integration, restructuring and other non-operating expenses
—  0.01  (0.22) (0.06) (0.04) 33  % NM (0.07) (0.32) NM
Stock compensation expense
—  —  —  —  —  NM NM (0.06) (0.01) 83  %
Income tax (expense) benefit – non-operating (0.49) (0.28) (0.04) (0.28) 0.47  NM NM 0.04  0.16  300  %
Less: Total non-operating adjustments
1.62  2.58  (0.86) 1.93  0.78  (60) % (52) % (1.58) 1.85  NM
Less: Effect of items convertible to or settled in Class A common shares 0.07  0.14  0.08  0.24  0.13  (46) % 86  % 0.81  0.47  (42) %
Adjusted operating earnings per common share $ 1.53  $ 2.85  $ 3.80  $ 5.04  $ 2.73  (46) % 78  % $ 3.55  $ 11.56  226  %
Note: Please refer to Notes to the Financial Supplement section for discussion on adjusted operating income available to common shareholders.
7


Retirement Services Segment Highlights
Unaudited (in millions, except percentages)
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Quarterly Trends Δ Year-to-Date Δ
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 Q/Q Y/Y 2020 2021 Y/Y
NET INVESTMENT SPREAD – RETIREMENT SERVICES
Net investment earned rate
4.22  % 4.43  % 5.18  % 4.30  % 4.00  % (30)bps (22)bps 3.90  % 4.48  % 58bps
Cost of crediting
1.87  % 1.89  % 1.79  % 1.76  % 1.74  % (2)bps (13)bps 1.83  % 1.76  % (7)bps
Other liability costs
0.94  % 0.79  % 0.91  % 0.64  % 0.73  % 9bps (21)bps 0.93  % 0.76  % (17)bps
Cost of funds
2.81  % 2.68  % 2.70  % 2.40  % 2.47  % 7bps (34)bps 2.76  % 2.52  % (24)bps
Net investment spread
1.41  % 1.75  % 2.48  % 1.90  % 1.53  % (37)bps 12bps 1.14  % 1.96  % 82bps
Average net invested assets
$ 136,852 $ 143,162 $ 149,397 $ 154,459 $ 159,767 % 17  % $ 126,563 $ 154,582 22  %
COST OF CREDITING – RETIREMENT SERVICES
FIA option costs
$ 264  $ 258  $ 255  $ 250  $ 251  —  % (5) % $ 764  $ 756  (1) %
Fixed interest credited to policyholders
242  247  238  236  227  (4) % (6) % 615  701  14  %
Cost of crediting on deferred annuities 506  505  493  486  478  (2) % (6) % 1,379  1,457  %
Average account value on deferred annuities
102,144  103,990  104,310  104,107  104,396  —  % % 94,600  104,353  10  %
Cost of crediting on deferred annuities rate
1.98  % 1.94  % 1.89  % 1.87  % 1.83  % (4)bps (15)bps 1.94  % 1.86  % (8)bps
Cost of crediting on institutional products
$ 134  $ 172  $ 175  $ 192  $ 218  14  % 63  % $ 361  $ 585  62  %
Average institutional reserve liabilities 18,162  22,375  27,028  30,863  35,213  14  % 94  % 15,882  31,035  95  %
Cost of crediting on institutional products rate 2.95  % 3.08  % 2.59  % 2.49  % 2.47  % (2)bps (48)bps 3.03  % 2.51  % (52)bps
Cost of crediting $ 640  $ 677  $ 668  $ 678  $ 696  % % $ 1,740  $ 2,042  17  %
OTHER LIABILITY COSTS – RETIREMENT SERVICES
Change in rider reserve
$ 119  $ 121  $ 138  $ 86  $ 111  29  % (7) % $ 430  $ 335  (22) %
DAC, DSI and VOBA amortization
178  154  194  153  174  14  % (2) % 389  521  34  %
Other1
23  10  (50) % (83) % 58  22  (62) %
Other liability costs
$ 320  $ 281  $ 342  $ 247  $ 289  17  % (10) % $ 877  $ 878  —  %
INVESTMENT MARGIN ON DEFERRED ANNUITIES – RETIREMENT SERVICES
Net investment earned rate
4.22  % 4.43  % 5.18  % 4.30  % 4.00  % (30)bps (22)bps 3.90  % 4.48  % 58bps
Cost of crediting on deferred annuities
1.98  % 1.94  % 1.89  % 1.87  % 1.83  % (4)bps (15)bps 1.94  % 1.86  % (8)bps
Investment margin on deferred annuities
2.24  % 2.49  % 3.29  % 2.43  % 2.17  % (26)bps (7)bps 1.96  % 2.62  % 66bps
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. Other primarily includes payout annuities, policy maintenance costs, reinsurance expense allowances and non-deferred acquisition costs, net of product charges.


8


Condensed Consolidated Balance Sheets
Unaudited (in millions, except percentages)
image4.jpg
December 31, 2020 September 30, 2021 Δ
ASSETS
Investments
Available-for-sale securities, at fair value
$ 82,853  $ 100,262  21  %
Trading securities, at fair value
2,093  2,115  %
Equity securities
532  666  25  %
Mortgage loans, net of allowances
15,264  19,700  29  %
Investment funds
803  1,427  78  %
Policy loans
369  320  (13) %
Funds withheld at interest
48,612  44,362  (9) %
Derivative assets
3,523  3,786  %
Short-term investments, at fair value 222  125  (44) %
Other investments, net of allowances
572  1,725  202  %
Total investments
154,843  174,488  13  %
Cash and cash equivalents
7,704  7,753  %
Restricted cash
738  757  %
Investments in related parties
Available-for-sale securities, at fair value
6,520  7,156  10  %
Trading securities, at fair value
1,529  1,742  14  %
Equity securities, at fair value
72  115  60  %
Mortgage loans, net of allowances
674  1,110  65  %
Investment funds
5,284  6,594  25  %
Funds withheld at interest
13,030  12,441  (5) %
Other investments, net of allowances
469  178  (62) %
Accrued investment income
905  1,016  12  %
Reinsurance recoverable
4,848  4,565  (6) %
Deferred acquisition costs, deferred sales inducements and value of business acquired
4,906  5,110  %
Other assets
1,249  1,371  10  %
Total assets
$ 202,771  $ 224,396  11  %
9


Condensed Consolidated Balance Sheets, continued
Unaudited (in millions, except percentages)
image4.jpg
December 31, 2020 September 30, 2021 Δ
LIABILITIES
Interest sensitive contract liabilities
$ 144,566  $ 152,200  %
Future policy benefits
29,258  39,666  36  %
Other policy claims and benefits
130  130  —  %
Dividends payable to policyholders
110  103  (6) %
Long-term debt
1,976  2,469  25  %
Derivative liabilities
298  303  %
Payables for collateral on derivatives and securities to repurchase
3,801  4,129  %
Funds withheld liability
452  437  (3) %
Other liabilities
2,040  2,587  27  %
Total liabilities
182,631  202,024  11  %
EQUITY
Preferred stock
—  —  NM
Common stock
—  —  NM
Additional paid-in-capital
6,613  6,651  %
Retained earnings
8,073  10,727  33  %
Accumulated other comprehensive income
3,971  3,011  (24) %
Total Athene Holding Ltd. shareholders’ equity
18,657  20,389  %
Noncontrolling interests
1,483  1,983  34  %
Total equity
20,140  22,372  11  %
Total liabilities and equity
$ 202,771  $ 224,396  11  %
10


Investments (GAAP view)
Unaudited (in millions, except percentages)
image4.jpg
December 31, 2020 September 30, 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  % $ 402  0.2  %
U.S. state, municipal and political subdivisions
1,033  0.6  % 1,115  0.5  %
Foreign governments
368  0.2  % 931  0.5  %
Corporate
58,180  31.9  % 69,330  34.0  %
CLO
9,569  5.2  % 13,379  6.6  %
ABS
4,270  2.3  % 6,164  3.0  %
CMBS
2,169  1.2  % 2,640  1.3  %
RMBS
6,913  3.8  % 6,301  3.1  %
Total available-for-sale securities, at fair value
82,853  45.4  % 100,262  49.2  %
Trading securities, at fair value
2,093  1.2  % 2,115  1.0  %
Equity securities
532  0.3  % 666  0.3  %
Mortgage loans, net of allowances
15,264  8.4  % 19,700  9.7  %
Investment funds
803  0.4  % 1,427  0.7  %
Policy loans
369  0.2  % 320  0.2  %
Funds withheld at interest
48,612  26.7  % 44,362  21.7  %
Derivative assets
3,523  1.9  % 3,786  1.9  %
Short-term investments, at fair value 222  0.1  % 125  0.1  %
Other investments
572  0.3  % 1,725  0.8  %
Total investments
154,843  84.9  % 174,488  85.6  %
Investments in related parties
Available-for-sale securities, at fair value
Corporate
215  0.1  % 503  0.3  %
CLO
1,520  0.9  % 2,097  1.0  %
ABS
4,785  2.6  % 4,556  2.2  %
Total available-for-sale securities, at fair value
6,520  3.6  % 7,156  3.5  %
Trading securities, at fair value
1,529  0.8  % 1,742  0.9  %
Equity securities, at fair value
72  —  % 115  0.1  %
Mortgage loans
674  0.4  % 1,110  0.5  %
Investment funds
5,284  2.9  % 6,594  3.2  %
Funds withheld at interest
13,030  7.1  % 12,441  6.1  %
Other investments
469  0.3  % 178  0.1  %
Total investments in related parties
27,578  15.1  % 29,336  14.4  %
Total investments including related parties
$ 182,421  100.0  % $ 203,824  100.0  %

11


Net Invested Assets (Management view) and Flows
Unaudited (in millions, except percentages)
image4.jpg
December 31, 2020 September 30, 2021
Invested Asset Value1
Percent of Total
Invested Asset Value1
Percent of Total
NET INVESTED ASSETS
Corporate
$ 71,040  47.3  % $ 78,767  47.4  %
CLO
14,609  9.7  % 17,144  10.3  %
Credit
85,649  57.0  % 95,911  57.7  %
RMBS
8,337  5.6  % 7,256  4.4  %
CML
16,778  11.2  % 19,504  11.7  %
RML
4,774  3.2  % 6,445  3.9  %
CMBS
3,227  2.1  % 3,582  2.2  %
Real estate
33,116  22.1  % 36,787  22.2  %
ABS
13,137  8.7  % 14,318  8.6  %
Alternative investments
6,793  4.5  % 8,525  5.1  %
State, municipal, political subdivisions and foreign government
2,136  1.4  % 2,145  1.3  %
Equity securities
478  0.3  % 499  0.3  %
Short-term investments
479  0.3  % 70  0.1  %
U.S. government and agencies
206  0.2  % 317  0.2  %
Other investments
23,229  15.4  % 25,874  15.6  %
Cash and equivalents
5,417  3.6  % 4,552  2.7  %
Policy loans and other
1,455  1.0  % 1,370  0.8  %
Net invested assets excluding investment in Apollo 148,866  99.1  % 164,494  99.0  %
Investment in Apollo
1,324  0.9  % 1,726  1.0  %
Net invested assets $ 150,190  100.0  % $ 166,220  100.0  %
Quarterly Trends Δ Year-to-Date Δ
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 Q/Q Y/Y 2020 2021 Y/Y
NET FLOWS
Retail
$ 2,465  $ 2,299  $ 1,757  $ 1,749  $ 2,372  36  % (4) % $ 5,502  $ 5,878  %
Flow reinsurance
2,317  559  299  279  635  128  % (73) % 5,443  1,213  (78) %
Funding agreements2
2,619  2,199  3,226  4,074  2,337  (43) % (11) % 6,078  9,637  59  %
Pension group annuities3
—  4,221  2,893  1,474  6,593  NM NM 1,246  10,960  NM
Gross organic inflows 7,401  9,278  8,175  7,576  11,937  58  % 61  % 18,269  27,688  52  %
Gross inorganic inflows —  —  —  —  —  NM NM 28,792  —  NM
Total gross inflows 7,401  9,278  8,175  7,576  11,937  58  % 61  % 47,061  27,688  (41) %
Inflows attributable to ACRA noncontrolling interest —  (1,180) (1,470) (1,681) (4,757) NM NM (18,268) (7,908) 57  %
Net outflows4 6
(2,695) (3,232) (3,481) (3,941) (3,746) % (39) % (8,717) (11,168) (28) %
Net flows $ 4,706  $ 4,866  $ 3,224  $ 1,954  $ 3,434  76  % (27) % $ 20,076  $ 8,612  (57) %
Gross organic inflows $ 7,401  $ 9,278  $ 8,175  $ 7,576  $ 11,937  58  % 61  % $ 18,269  $ 27,688  52  %
Organic inflows attributable to ACRA noncontrolling interest —  (1,180) (1,470) (1,681) (4,757) NM NM —  (7,908) NM
Net organic inflows 7,401  8,098  6,705  5,895  7,180  22  % (3) % 18,269  19,780  %
Net outflows4 6
(2,695) (3,232) (3,481) (3,941) (3,746) % (39) % (8,717) (11,168) (28) %
Net organic flows $ 4,706  $ 4,866  $ 3,224  $ 1,954  $ 3,434  76  % (27) % $ 9,552  $ 8,612  (10) %
Net organic growth rate5 6
13.4  % 13.3  % 8.4  % 4.9  % 8.4  % NM NM 9.9  % 7.3  % 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 Pension group annuities (PGA) were previously referenced as pension risk transfer (PRT). 4 Net outflows consist of full and partial policyholder withdrawals on deferred annuities, death benefits, pension group annuity benefit payments, payments on payout annuities and funding agreement maturities, net of the ACRA noncontrolling interest. 5 Net organic growth rate is calculated as net organic flows divided by average net invested assets, on an annualized basis. 6 In Q1’21, we revised the net outflows, 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.
12


Investment Funds (GAAP view)
Unaudited (in millions, except percentages)
image4.jpg
December 31, 2020 September 30, 2021
Carrying Value Percent of Total Carrying Value Percent of Total
INVESTMENT FUNDS INCLUDING RELATED PARTIES1
Investment funds
Real estate
$ 348  5.7  % $ 837  10.4  %
Credit funds
107  1.8  % 96  1.2  %
Private equity
267  4.4  % 327  4.1  %
Real assets
81  1.3  % 167  2.1  %
Total investment funds
803  13.2  % 1,427  17.8  %
Investment funds – related parties
Differentiated investments
A-A Mortgage2
444  7.3  % 77  1.0  %
Catalina
334  5.5  % 421  5.2  %
Athora
709  11.6  % 728  9.1  %
Venerable
123  2.0  % 235  2.9  %
Other
279  4.6  % 445  5.5  %
Total differentiated investments
1,889  31.0  % 1,906  23.7  %
Real estate
828  13.5  % 1,270  15.9  %
Credit funds
375  6.2  % 623  7.8  %
Private equity
473  7.8  % 585  7.3  %
Real assets
172  2.8  % 319  4.0  %
Natural resources
113  1.9  % 138  1.7  %
Public equities
110  1.8  % 27  0.3  %
Investment in Apollo
1,324  21.8  % 1,726  21.5  %
Total investment funds – related parties
5,284  86.8  % 6,594  82.2  %
Total investment funds including related parties
$ 6,087  100.0  % $ 8,021  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. 2 In April of 2021, we sold our investment in AmeriHome, which is held by A-A Mortgage. Following the sale of AmeriHome, A-A Mortgage distributed the majority of the proceeds, with the remaining residual investment expected to be distributed within the next year.




13


Net Alternative Investments (Management view)
Unaudited (in millions, except percentages)
image4.jpg
December 31, 2020 September 30, 2021
Invested Asset Value1
Percent of Total
Invested Asset Value1
Percent of Total
NET ALTERNATIVE INVESTMENTS
Retirement Services
Differentiated investments
A-A Mortgage2
$ 546  8.0  % $ 96  1.1  %
MidCap
611  9.0  % 643  7.6  %
Catalina
334  4.9  % 421  4.9  %
Venerable
123  1.8  % 235  2.8  %
Other
339  5.0  % 629  7.4  %
Total differentiated investments
1,953  28.7  % 2,024  23.8  %
Real estate
1,537  22.6  % 2,467  28.9  %
Credit
941  13.9  % 1,052  12.3  %
Private equity
831  12.2  % 1,171  13.7  %
Real assets
296  4.4  % 536  6.3  %
Natural resources
60  0.9  % 82  1.0  %
Other
—  —  % 18  0.2  %
Total Retirement Services
5,618  82.7  % 7,350  86.2  %
Corporate & Other
Athora
661  9.7  % 716  8.4  %
Credit
93  1.4  % 98  1.1  %
Natural resources
238  3.5  % 244  2.9  %
Equities3
183  2.7  % 117  1.4  %
Total Corporate & Other
1,175  17.3  % 1,175  13.8  %
Net alternative investments4
$ 6,793  100.0  % $ 8,525  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 In April of 2021, we sold our investment in AmeriHome, which is held by A-A Mortgage. Following the sale of AmeriHome, A-A Mortgage distributed the majority of the proceeds, with the remaining residual investment expected to be distributed within the next year. 3 As of September 30, 2021, equities included our public equity positions in Jackson Financial Inc (ticker: JXN) and OneMain Holdings, Inc. (OMF). We held 3.8 million and 0.0 million shares in Jackson, net of the ACRA noncontrolling interest, and 0.7 million and 2.8 million shares in OneMain as of September 30, 2021 and December 31, 2020, respectively. 4 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.

14


Funds Withheld at Interest (GAAP view)
Unaudited (in millions, except percentages)
image4.jpg
December 31, 2020 September 30, 2021
Carrying Value Percent of Total Carrying Value Percent of Total
FUNDS WITHHELD AT INTEREST INCLUDING RELATED PARTIES
Fixed maturity securities
U.S. government and agencies
$ —  —  % $ 51  0.1  %
U.S. state, municipal and political subdivisions
513  0.8  % 380  0.7  %
Foreign governments
301  0.5  % 405  0.7  %
Corporate
34,057  55.2  % 28,568  50.3  %
CLO
5,912  9.6  % 4,787  8.4  %
ABS
5,212  8.5  % 6,318  11.1  %
CMBS
2,374  3.8  % 2,351  4.1  %
RMBS
2,270  3.7  % 1,725  3.0  %
Total fixed maturity securities
50,639  82.1  % 44,585  78.4  %
Equity securities
119  0.2  % 168  0.3  %
Mortgage loans
8,201  13.3  % 9,658  17.0  %
Investment funds
1,155  1.9  % 1,670  3.0  %
Derivative assets
200  0.3  % 193  0.3  %
Short-term investments
608  1.0  % 23  0.1  %
Other investments 15  —  % —  —  %
Cash and cash equivalents
906  1.5  % 1,214  2.1  %
Other assets and liabilities
(201) (0.3) % (708) (1.2) %
Total funds withheld at interest including related parties1
$ 61,642  100.0  % $ 56,803  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.

15


Segment Net Investment Earned Rates (NIER)
Unaudited (In millions, except percentages)
image4.jpg
Quarterly Trends Δ Year-to-Date Δ
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 Q/Q Y/Y 2020 2021 Y/Y
NIER – CONSOLIDATED
Fixed income and other investments
3.70  % 3.70  % 3.57  % 3.75  % 3.49  % (26)bps (21)bps 3.87  % 3.60  % (27)bps
Alternative investments
19.44  % 19.56  % 38.51  % 16.73  % 16.28  % (45)bps NM 3.74  % 23.56  % NM
Total net investment earned rate
4.41  % 4.43  % 5.27  % 4.40  % 4.14  % (26)bps (27)bps 3.87  % 4.59  % 72bps
NIER SUMMARY – RETIREMENT SERVICES
Fixed income and other investments
3.70  % 3.70  % 3.57  % 3.75  % 3.49  % (26)bps (21)bps 3.87  % 3.60  % (27)bps
Alternative investments
17.24  % 22.59  % 42.33  % 16.27  % 15.10  % NM NM 4.57  % 24.14  % NM
Total net investment earned rate
4.22  % 4.43  % 5.18  % 4.30  % 4.00  % (30)bps (22)bps 3.90  % 4.48  % 58bps
Fixed income and other investment income $ 1,216  $ 1,274  $ 1,276  $ 1,385  $ 1,333  (4) % 10  % $ 3,525  $ 3,994  13  %
Alternatives investment income 228  310  659  274  265  (3) % 16  % 178  1,198  NM
Total net investment earnings $ 1,444  $ 1,584  $ 1,935  $ 1,659  $ 1,598  (4) % 11  % $ 3,703  $ 5,192  40  %
Fixed income and other investments
$ 131,565  $ 137,678  $ 143,173  $ 147,713  $ 152,761  % 16  % $ 121,376  $ 147,967  22  %
Alternatives investments 5,287  5,484  6,224  6,746  7,006  % 33  % 5,187  6,615  28  %
Total average net invested assets
$ 136,852  $ 143,162  $ 149,397  $ 154,459  $ 159,767  % 17  % $ 126,563  $ 154,582  22  %
NIER SUMMARY – CORPORATE & OTHER
Fixed income and other investments
3.68  % 3.70  % 3.57  % 3.75  % 3.48  % (27)bps (20)bps 3.71  % 3.81  % 10bps
Alternative investments
31.35  % 4.94  % 18.24  % 19.40  % 23.28  % NM NM (1.71) % 20.29  % NM
Total net investment earned rate
17.59  % 4.38  % 11.22  % 11.72  % 14.96  % NM NM 1.32  % 12.86  % NM
Fixed income and other investment income $ $ $ 10  $ 10  $ (30) % (22) % $ 28  $ 27  (4) %
Alternatives investment income (loss) 77  14  53  57  69  21  % (10) % (10) 179  NM
Total net investment earnings $ 86  $ 23  $ 63  $ 67  $ 76  13  % (12) % $ 18  $ 206  NM
Fixed income and other investments
$ 967  $ 953  $ 1,075  $ 1,125  $ 850  (24) % (12) % $ 997  $ 962  (4) %
Alternatives investments
978  1,136  1,172  1,169  1,172  —  % 20  % 788  1,172  49  %
Total average net invested assets ex. Apollo investment
$ 1,945  $ 2,089  $ 2,247  $ 2,294  $ 2,022  (12) % % $ 1,785  $ 2,134  20  %
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.



16


NIERs by Asset Class and Apollo Investment
Unaudited (in millions, except percentages)
image4.jpg
Quarterly Trends Δ Year-to-Date Δ
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 Q/Q Y/Y 2020 2021 Y/Y
NIER BY ASSET CLASS
Corporate securities
3.77  % 3.70  % 3.54  % 3.66  % 3.49  % (17)bps (28)bps 3.84  % 3.57  % (27)bps
Structured securities
RMBS
4.72  % 5.08  % 5.19  % 5.34  % 4.97  % (37)bps 25bps 4.95  % 5.17  % 22bps
CLO
2.88  % 3.12  % 3.03  % 2.92  % 2.62  % (30)bps (26)bps 3.63  % 2.87  % (76)bps
ABS
3.78  % 3.91  % 3.72  % 4.83  % 3.55  % NM (23)bps 4.04  % 4.06  % 2bps
CMBS
4.23  % 4.26  % 3.93  % 4.12  % 3.80  % (32)bps (43)bps 4.28  % 3.94  % (34)bps
Total structured securities
3.73  % 3.91  % 3.77  % 4.12  % 3.44  % (68)bps (29)bps 4.15  % 3.79  % (36)bps
State, municipal, political subdivisions and U.S. and foreign government 3.56  % 3.35  % 3.20  % 3.40  % 3.45  % 5bps (11)bps 3.39  % 3.34  % (5)bps
Mortgage loans
4.17  % 4.37  % 3.97  % 3.92  % 4.11  % 19bps (6)bps 4.28  % 4.01  % (27)bps
Alternative investments
19.44  % 19.56  % 38.51  % 16.73  % 16.28  % (45)bps NM 3.74  % 23.56  % NM
Other U.S. and Bermuda net invested assets
2.13  % 1.28  % 1.29  % 1.61  % 1.44  % (17)bps (69)bps 1.92  % 1.39  % (53)bps
Consolidated net investment earned rate
4.41  % 4.43  % 5.27  % 4.40  % 4.14  % (26)bps (27)bps 3.87  % 4.59  % 72bps
APOLLO INVESTMENT DETAILS
Change in fair value of Apollo investment
$ (101) $ 142  $ (25) $ 472  $ 13  NM NM $ 83  $ 460  NM
Income tax (expense) benefit on Apollo investment 20  (29) (99) (3) NM NM (31) (96) NM
Change in fair value of Apollo investment, net of tax
$ (81) $ 113  $ (19) $ 373  $ 10  NM NM $ 52  $ 364  NM
Annualized return on Apollo investment, net of tax (25.8) % 35.8  % (6.0) % 99.0  % 2.5  % NM NM 8.2  % 32.0  % NM
Change in fair value of Apollo investment impact on adjusted operating EPS1
$ (0.41) $ 0.58  $ (0.10) $ 1.88  $ 0.06  NM NM $ 0.27  $ 1.84  NM
Adjusted operating EPS, excluding AOG1
$ 1.94  $ 2.27  $ 3.90  $ 3.16  $ 2.67  NM NM $ 3.28  $ 9.72  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.

17


Credit Quality of Securities
Unaudited (in millions, except percentages)
image4.jpg
December 31, 2020 September 30, 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  % $ 48,874  45.5  %
2
41,704  46.7  % 52,285  48.7  %
Total investment grade
83,236  93.2  % 101,159  94.2  %
3
4,853  5.4  % 4,793  4.5  %
4
1,145  1.3  % 1,075  1.0  %
5
114  0.1  % 131  0.1  %
6
25  —  % 260  0.2  %
Total below investment grade
6,137  6.8  % 6,259  5.8  %
Total AFS securities including related parties
$ 89,373  100.0  % $ 107,418  100.0  %
NRSRO designation
AAA/AA/A
$ 33,553  37.5  % $ 42,430  39.5  %
BBB
34,404  38.5  % 46,722  43.5  %
Non-rated1
12,732  14.3  % 9,971  9.3  %
Total investment grade2
80,689  90.3  % 99,123  92.3  %
BB
4,020  4.5  % 4,146  3.9  %
B
1,030  1.2  % 1,098  1.0  %
CCC
1,557  1.7  % 1,459  1.4  %
CC and lower
973  1.1  % 794  0.7  %
Non-rated1
1,104  1.2  % 798  0.7  %
Total below investment grade
8,684  9.7  % 8,295  7.7  %
Total AFS securities including related parties
$ 89,373  100.0  % $ 107,418  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  % $ 73,875  93.8  %
RMBS 7,721  92.6  % 6,722  92.6  %
CLO 14,139  96.8  % 16,967  99.0  %
ABS 11,722  89.2  % 13,120  91.6  %
CMBS 2,459  76.2  % 2,800  78.2  %
Total structured securities
36,041  91.7  % 39,609  93.6  %
State, municipal, political subdivisions and U.S. and foreign government
2,221  94.9  % 2,415  98.0  %
Short-term investments
429  89.4  % 54  76.7  %
Total NAIC 1 & 2 Designations
$ 104,578  $ 115,953 
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.
18


Credit Quality of Net Invested Assets (Management view)
Unaudited (In millions, except percentages)
image4.jpg
December 31, 2020 September 30, 2021 December 31, 2020 September 30, 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  % $ 57,844  46.8  %
AAA/AA/A
$ 42,492  37.6  % $ 48,336  39.1  %
2
51,695  45.7  % 58,109  47.0  %
BBB
42,478  37.5  % 51,415  41.6  %
Non-rated2
—  —  % —  —  %
Non-rated2
16,494  14.6  % 13,750  11.1  %
Total investment grade
104,578  92.4  % 115,953  93.8  %
Total investment grade
101,464  89.7  % 113,501  91.8  %
3
6,256  5.5  % 5,769  4.7  %
BB
5,317  4.7  % 5,033  4.1  %
4
1,957  1.7  % 1,366  1.1  %
B
1,784  1.5  % 1,360  1.1  %
5
335  0.4  % 339  0.3  %
CCC
1,899  1.7  % 1,722  1.4  %
6
45  —  % 172  0.1  %
CC and lower
1,145  1.0  % 933  0.8  %
Non-rated2
—  —  % —  —  %
Non-rated2
1,562  1.4  % 1,050  0.8  %
Total below investment grade
8,593  7.6  % 7,646  6.2  %
Total below investment grade
11,707  10.3  % 10,098  8.2  %
Total NAIC designated assets3
113,171  100.0  % 123,599  100.0  %
Total NRSRO designated assets3
113,171  100.0  % 123,599  100.0  %
Assets without NAIC designation
Assets without NRSRO designation
Commercial mortgage loans
Commercial mortgage loans
CM1
4,712  28.0  % 4,761  24.4  %
CM1
4,712  28.0  % 4,761  24.4  %
CM2
7,794  46.5  % 9,724  49.9  %
CM2
7,794  46.5  % 9,724  49.9  %
CM3
3,906  23.3  % 4,593  23.5  %
CM3
3,906  23.3  % 4,593  23.5  %
CM4
366  2.2  % 426  2.2  %
CM4
366  2.2  % 426  2.2  %
CM5
—  —  % —  —  %
CM5
—  —  % —  —  %
CM6
—  —  % —  —  %
CM6
—  —  % —  —  %
CM7
—  —  % —  —  %
CM7
—  —  % —  —  %
Total CMLs
16,778  100.0  % 19,504  100.0  %
Total CMLs
16,778  100.0  % 19,504  100.0  %
Residential mortgage loans
Residential mortgage loans
In good standing
4,666  97.7  % 5,709  88.6  %
In good standing
4,666  97.7  % 5,709  88.6  %
90 days late
65  1.4  % 697  10.8  %
90 days late
65  1.4  % 697  10.8  %
In foreclosure
43  0.9  % 39  0.6  %
In foreclosure
43  0.9  % 39  0.6  %
Total RMLs
4,774  100.0  % 6,445  100.0  %
Total RMLs
4,774  100.0  % 6,445  100.0  %
Alternative investments
6,793  8,525 
Alternative investments
6,793  8,525 
Investment in Apollo
1,324  1,726 
Investment in Apollo
1,324  1,726 
Cash and equivalents
5,417  4,552 
Cash and equivalents
5,417  4,552 
Equity securities
478  499 
Equity securities
478  499 
Other4
1,455  1,370 
Other4
1,455  1,370 
Net invested assets
$ 150,190  $ 166,220 
Net invested assets
$ 150,190  $ 166,220 
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.




19


Credit Quality of Net Invested Assets – RMBS, CLOs, ABS (Management view)
Unaudited (In millions, except percentages)
image4.jpg
December 31, 2020 September 30, 2021 December 31, 2020 September 30, 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  % $ 6,386  88.0  %
AAA/AA/A
$ 1,286  15.4  % $ 1,337  18.4  %
2
272  3.3  % 336  4.6  %
BBB
670  8.0  % 554  7.6  %
Non-rated2
—  —  % —  —  %
Non-rated2
2,548  30.6  % 2,175  30.0  %
Total investment grade
7,721  92.6  % 6,722  92.6  %
Total investment grade
4,504  54.0  % 4,066  56.0  %
3
378  4.5  % 308  4.3  %
BB
276  3.3  % 219  3.0  %
4
171  2.1  % 124  1.7  %
B
309  3.7  % 242  3.4  %
5
49  0.6  % 53  0.7  %
CCC
1,795  21.6  % 1,569  21.6  %
6
18  0.2  % 49  0.7  %
CC and lower
1,141  13.7  % 902  12.4  %
Non-rated2
—  —  % —  —  %
Non-rated2
312  3.7  % 258  3.6  %
Total below investment grade
616  7.4  % 534  7.4  %
Total below investment grade
3,833  46.0  % 3,190  44.0  %
RMBS net invested assets
$ 8,337  100.0  % $ 7,256  100.0  %
RMBS net invested assets
$ 8,337  100.0  % $ 7,256  100.0  %
CREDIT QUALITY OF CLOs – NAIC DESIGNATION
CREDIT QUALITY OF CLOs – NRSRO DESIGNATION
1
$ 9,130  62.5  % $ 11,248  65.6  %
AAA/AA/A
$ 9,113  62.4  % $ 11,240  65.6  %
2
5,009  34.3  % 5,719  33.4  %
BBB
4,995  34.2  % 5,719  33.4  %
Non-rated2
—  —  % —  —  %
Non-rated2
31  0.2  % —  %
Total investment grade
14,139  96.8  % 16,967  99.0  %
Total investment grade
14,139  96.8  % 16,967  99.0  %
3
457  3.1  % 170  1.0  %
BB
457  3.1  % 170  1.0  %
4
0.1  % —  %
B
0.1  % —  %
5
—  % —  —  %
CCC
—  % —  —  %
6
—  —  % —  —  %
CC and lower
—  —  % —  —  %
Non-rated
—  —  % —  —  %
Non-rated3
—  —  % —  —  %
Total below investment grade
470  3.2  % 177  1.0  %
Total below investment grade
470  3.2  % 177  1.0  %
CLOs net invested assets
$ 14,609  100.0  % $ 17,144  100.0  %
CLOs net invested assets
$ 14,609  100.0  % $ 17,144  100.0  %
CREDIT QUALITY OF ABS – NAIC DESIGNATION
CREDIT QUALITY OF ABS – NRSRO DESIGNATION
1
$ 6,789  51.6  % $ 7,524  52.5  %
AAA/AA/A
$ 5,691  43.3  % $ 6,942  48.5  %
2
4,933  37.6  % 5,596  39.1  %
BBB
2,156  16.4  % 5,518  38.5  %
Non-rated2
—  —  % —  —  %
Non-rated2
3,794  28.9  % 610  4.3  %
Total investment grade
11,722  89.2  % 13,120  91.6  %
Total investment grade
11,641  88.6  % 13,070  91.3  %
3
862  6.6  % 737  5.2  %
BB
545  4.2  % 787  5.5  %
4
389  3.0  % 321  2.2  %
B
281  2.1  % 318  2.2  %
5
164  1.2  % 140  1.0  %
CCC
13  0.1  % 16  0.1  %
6
—  —  % —  —  %
CC and lower
—  —  % —  —  %
Non-rated2
—  —  % —  —  %
Non-rated2
657  5.0  % 127  0.9  %
Total below investment grade
1,415  10.8  % 1,198  8.4  %
Total below investment grade
1,496  11.4  % 1,248  8.7  %
ABS net invested assets
$ 13,137  100.0  % $ 14,318  100.0  %
ABS net invested assets
$ 13,137  100.0  % $ 14,318  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.
20



Net Reserve Liabilities & Rollforwards
Unaudited (in millions, except percentages)
image4.jpg
December 31, 2020 September 30, 2021
Dollars Percent of Total Dollars Percent of Total
NET RESERVE LIABILITIES
Indexed annuities $ 81,084  55.9  % $ 82,648  52.7  %
Fixed rate annuities
30,315  20.9  % 28,419  18.1  %
Total deferred annuities
111,399  76.8  % 111,067  70.8  %
Pension group annuities 12,262  8.5  % 17,203  11.0  %
Payout annuities
6,859  4.7  % 7,156  4.6  %
Funding agreements1
12,591  8.7  % 19,630  12.5  %
Life and other
1,878  1.3  % 1,796  1.1  %
Total net reserve liabilities
$ 144,989  100.0  % $ 156,852  100.0  %

Quarterly Trends Δ Year-to-Date Δ
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 Q/Q Y/Y 2020 2021 Y/Y
NET RESERVE LIABILITY ROLLFORWARD
Net reserve liabilities – beginning
$ 131,333  $ 137,767  $ 144,989  $ 148,339  $ 152,772  % 16  % $ 114,652  $ 144,989  26  %
Gross inflows2
7,487  9,471  8,360  7,769  12,108  56  % 62  % 18,602  28,237  52  %
Acquisition and block reinsurance3
—  —  —  —  —  NM NM 28,792  —  NM
Inflows attributable to ACRA noncontrolling interest (53) (1,230) (1,507) (1,725) (4,795) NM NM (18,341) (8,027) 56  %
Net inflows 7,434  8,241  6,853  6,044  7,313  21  % (2) % 29,053  20,210  (30) %
Net withdrawals
(2,695) (3,232) (3,481) (3,941) (3,746) % (39) % (8,717) (11,168) (28) %
Sale of ACRA noncontrolling interest to ADIP and ownership changes4
—  —  —  —  —  NM NM 335  —  NM
Other reserve changes
1,695  2,213  (22) 2,330  513  (78) % (70) % 2,444  2,821  15  %
Net reserve liabilities – ending
$ 137,767  $ 144,989  $ 148,339  $ 152,772  $ 156,852  % 14  % $ 137,767  $ 156,852  14  %
ACRA NONCONTROLLING INTEREST RESERVE LIABILITY ROLLFORWARD5
Reserve liabilities – beginning
$ 24,094  $ 23,762  $ 24,618  $ 25,625  $ 26,871  % 12  % $ 6,574  $ 24,618  274  %
Inflows 53  1,230  1,507  1,725  4,795  178  % NM 73  8,027  NM
Acquisition and block reinsurance3
—  —  —  —  —  NM NM 18,268  —  NM
Withdrawals
(574) (619) (641) (694) (687) % (20) % (1,088) (2,022) (86) %
Sale of ACRA noncontrolling interest to ADIP and ownership changes4
—  —  —  —  —  NM NM (335) —  NM
Other reserve changes
189  245  141  215  121  (44) % (36) % 270  477  77  %
Reserve liabilities – ending
$ 23,762  $ 24,618  $ 25,625  $ 26,871  $ 31,100  16  % 31  % $ 23,762  $ 31,100  31  %
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.
21



Net Reserve Liabilities & Rollforwards, continued
Unaudited (in millions, except percentages)
image4.jpg
Quarterly Trends Δ Year-to-Date Δ
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 Q/Q Y/Y 2020 2021 Y/Y
NET DEFERRED ANNUITY ACCOUNT VALUE ROLLFORWARD1
Net account value – beginning
$ 100,694  $ 103,594  $ 104,385  $ 104,234  $ 103,981  —  % % $ 88,000  $ 104,385  19  %
Gross inflows2
4,604  2,756  1,965  1,970  2,950  50  % (36) % 10,530  6,885  (35) %
Acquisition and block reinsurance3
—  —  —  —  —  NM NM 27,404  —  NM
Inflows attributable to ACRA noncontrolling interest (30) (29) (25) (27) (23) 15  % 23  % (17,428) (75) 100  %
Net inflows 4,574  2,727  1,940  1,943  2,927  51  % (36) % 20,506  6,810  (67) %
Premium and interest bonuses
40  53  52  61  70  15  % 75  % 122  183  50  %
Fixed and index credits to policyholders
656  821  929  1,200  1,121  (7) % 71  % 1,688  3,250  93  %
Surrenders and benefits paid
(2,248) (2,688) (2,947) (3,326) (3,154) % (40) % (6,590) (9,427) (43) %
Sale of ACRA noncontrolling interest to ADIP and ownership changes4
—  —  —  —  —  NM NM 221  —  NM
Fee and product charges
(122) (122) (125) (131) (133) (2) % (9) % (353) (389) (10) %
Net account value – ending
$ 103,594  $ 104,385  $ 104,234  $ 103,981  $ 104,812  % % $ 103,594  $ 104,812  %
NET INSTITUTIONAL RESERVE LIABILITY ROLLFORWARD (PENSION GROUP ANNUITIES AND FUNDING AGREEMENTS)
Net reserve liabilities – beginning
$ 17,103  $ 19,647  $ 24,853  $ 29,247  $ 32,937  13  % 93  % $ 13,337  $ 24,853  86  %
Gross inflows2
2,619  6,420  6,119  5,548  8,925  61  % 241  % 7,324  20,592  181  %
Inflows attributable to ACRA noncontrolling interest —  (1,177) (1,465) (1,683) (4,747) NM NM —  (7,895) NM
Net inflows 2,619  5,243  4,654  3,865  4,178  % 60  % 7,324  12,697  73  %
Net withdrawals
(239) (337) (316) (404) (375) % (57) % (1,503) (1,095) 27  %
Sale of ACRA noncontrolling interest to ADIP and ownership changes4
—  —  —  —  —  NM NM 117  —  NM
Other reserve changes
164  300  56  229  93  (59) % (43) % 372  378  %
Net reserve liabilities – ending
$ 19,647  $ 24,853  $ 29,247  $ 32,937  $ 36,833  12  % 87  % $ 19,647  $ 36,833  87  %
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.
22


Deferred Annuity Liability Characteristics
Unaudited (in millions, except percentages)
image4.jpg
Surrender charge (gross) Percent of total Surrender charge
(net of MVA)
Percent of total
SURRENDER CHARGE PERCENTAGES ON DEFERRED ANNUITIES NET ACCOUNT VALUE
No Surrender Charge
$ 27,712  26.4  % $ 27,712  26.4  %
0.0% < 2.0%
847  0.8  % 3,730  3.5  %
2.0% < 4.0%
4,278  4.1  % 11,295  10.8  %
4.0% < 6.0%
11,356  10.8  % 14,115  13.5  %
6.0% or greater 60,619  57.9  % 47,960  45.8  %
$ 104,812  100.0  % $ 104,812  100.0  %
Surrender charge (gross) MVA benefit Surrender charge (net)
Aggregate surrender charge protection
5.6  % (0.5) % 5.1  %
Deferred annuities Percent of total Average surrender charge (gross)
YEARS OF SURRENDER CHARGE REMAINING ON DEFERRED ANNUITIES NET ACCOUNT VALUE
No Surrender Charge
$ 27,712  26.4  % —  %
Less than 2
21,598  20.6  % 5.4  %
2 to less than 4
15,602  14.9  % 6.4  %
4 to less than 6
15,341  14.6  % 7.7  %
6 to less than 8
12,587  12.0  % 9.0  %
8 to less than 10
8,888  8.6  % 10.7  %
10 or greater
3,084  2.9  % 14.3  %
$ 104,812  100.0  %
At minimum guarantees Total account value Percent of total account value at minimum guarantees
MINIMUM GUARANTEES ON DEFERRED ANNUITIES
Fixed indexed annuities
$ 16,832  $ 77,220  22  %
Fixed rate annuities
10,588  27,592  38  %
Total net deferred annuities
$ 27,420  $ 104,812  26  %
September 30, 2021
Distance to guarantees1
> 95
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 September 30, 2021 Δ
DEFERRED ANNUITY RIDER RESERVE SUMMARY
Net rider reserve
$ 4,747  $ 5,016  %
Net account value with rider reserves
37,721  37,984  %
Rider reserve as a percentage of account value with rider reserves
12.6  % 13.2  % 60bps
23


Capitalization & Regulatory Capital Ratios
Unaudited (in millions, except percentages)
image4.jpg
Quarterly Trends Δ
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 Q/Q Y/Y
CAPITALIZATION
Total debt
$ 1,487  $ 1,976  $ 1,977  $ 2,468  $ 2,469  —  % 66  %
Total AHL shareholders’ equity
15,943  18,657  17,291  20,006  20,389  % 28  %
Total capitalization
17,430  20,633  19,268  22,474  22,858  % 31  %
Less: Accumulated other comprehensive income (AOCI) 2,888  3,971  2,021  3,337  3,011  (10) % %
Less: Accumulated change in fair value of reinsurance assets
778  1,142  488  886  779  (12) % —  %
Total adjusted capitalization
$ 13,764  $ 15,520  $ 16,759  $ 18,251  $ 19,068  % 39  %
EQUITY
Total AHL shareholders’ equity
$ 15,943  $ 18,657  $ 17,291  $ 20,006  $ 20,389  % 28  %
Less: Preferred stock
1,755  2,312  2,312  2,312  2,312  —  % 32  %
Total AHL common shareholders’ equity
14,188  16,345  14,979  17,694  18,077  % 27  %
Less: AOCI
2,888  3,971  2,021  3,337  3,011  (10) % %
Less: Accumulated change in fair value of reinsurance assets
778  1,142  488  886  779  (12) % —  %
Total adjusted AHL common shareholders’ equity
$ 10,522  $ 11,232  $ 12,470  $ 13,471  $ 14,287  % 36  %
EQUITY BY SEGMENT
Retirement Services
$ 7,321  $ 7,732  $ 8,870  $ 9,471  $ 10,787  14  % 47  %
Corporate and Other
3,201  3,500  3,600  4,000  3,500  (13) % %
Total adjusted AHL common shareholders’ equity
$ 10,522  $ 11,232  $ 12,470  $ 13,471  $ 14,287  % 36  %
FINANCIAL LEVERAGE
Debt to capital ratio
8.5  % 9.6  % 10.3  % 11.0  % 10.8  % (20)bps 230bps
AOCI
1.8  % 2.4  % 1.2  % 2.0  % 1.7  % (30)bps (10)bps
Accumulated change in fair value of reinsurance assets
0.5  % 0.7  % 0.3  % 0.5  % 0.4  % (10)bps (10)bps
Adjusted debt to capital ratio
10.8  % 12.7  % 11.8  % 13.5  % 12.9  % (60)bps 210bps
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.



24


Financial Strength, Credit Ratings & Share Data
Unaudited (in millions, except percentages)
image4.jpg
A.M. Best Standard & Poor’s Fitch
FINANCIAL STRENGTH RATINGS
Athene Annuity & Life Assurance Company
A A+ A
Athene Annuity and Life Company
A A+ A
Athene Annuity & Life Assurance Company of New York
A A+ A
Athene Life Insurance Company of New York
A Not Rated Not Rated
Athene Life Re Ltd.
A A+ A
Athene Life Re International Ltd.
A A+ A
Athene Co-Invest Reinsurance Affiliate 1A Ltd. and Athene Co-Invest Reinsurance Affiliate 1B Ltd.
A A+ A
Athene Co-Invest Reinsurance Affiliate International Ltd.
A A+ A
CREDIT RATINGS
Athene Holding Ltd. bbb+ A- BBB+
Senior notes bbb+ A- BBB
Quarterly Trends Δ Year-to-Date Δ
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 Q/Q Y/Y 2020 2021 Y/Y
SHARE DATA
Weighted average common shares outstanding – basic – Class A 193.1  191.1  191.3  191.5  191.7  —  % (1) % 182.8  191.5  %
Weighted average common shares outstanding – diluted – Class A1
197.1  195.9  196.8  198.2  198.8  —  % % 185.9  198.0  %
Weighted average common shares outstanding – adjusted operating2
197.1  195.9  196.8  198.2  198.8  —  % % 192.5  198.0  %
Common shares outstanding3
191.2  191.2  191.4  191.6  191.8  —  % —  % 191.2  191.8  —  %
Adjusted operating common shares outstanding2
196.3  197.2  198.3  199.7  199.8  —  % % 196.3  199.8  %
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, for all stock-based awards, and for the nine months ended September 30, 2020, the dilutive impacts, if any, of Class B and Class M common shares. 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 any stock-based awards, and for the nine months ended September 30, 2020, the impacts of Class B and Class M common shares, 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.

25

                                        
Notes to the Financial Supplement

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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. 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.
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 this measure across periods, interim periods are annualized. While we believe this metric is a meaningful financial metric and enhances our understanding of the underlying profitability drivers of our business, it should not be used as a substitute for ROA presented under 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 (loss) 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.






26

                                        
Notes to the Financial Supplement, continued

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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) pension group annuity 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 pension group annuity 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 group annuity 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.
27


Non-GAAP Reconciliations
Unaudited (in millions, except per share data)
image4.jpg
Quarterly Trends Year-to-Date
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 2020 2021
RECONCILIATION OF BOOK VALUE PER COMMON SHARE TO ADJUSTED BOOK VALUE PER COMMON SHARE
Book value per common share
$ 74.21  $ 85.51  $ 78.25  $ 92.33  $ 94.24 
AOCI
(15.10) (20.77) (10.56) (17.41) (15.70)
Accumulated change in fair value of reinsurance assets
(4.07) (5.98) (2.55) (4.62) (4.06)
Effect of items convertible to or settled in Class A common shares
(1.43) (1.81) (2.26) (2.84) (2.98)
Adjusted book value per common share
$ 53.61  $ 56.95  $ 62.88  $ 67.46  $ 71.50 
RECONCILIATION OF AVERAGE AHL SHAREHOLDERS’ EQUITY TO AVERAGE ADJUSTED AHL COMMON SHAREHOLDERS’ EQUITY
Average AHL shareholders’ equity
$ 15,327  $ 17,300  $ 17,974  $ 18,649  $ 20,198  $ 14,667  $ 19,086 
Less: Average preferred stock
1,755  2,034  2,312  2,312  2,312  1,464  2,312 
Less: Average AOCI
2,536  3,430  2,996  2,679  3,174  2,585  3,085 
Less: Average accumulated change in fair value of reinsurance assets
697  960  815  687  833  636  824 
Average adjusted AHL common shareholders’ equity
$ 10,339  $ 10,876  $ 11,851  $ 12,971  $ 13,879  $ 9,982  $ 12,865 
Retirement Services
$ 7,139  $ 7,526  $ 8,301  $ 9,171  $ 10,129  $ 7,381  $ 9,215 
Corporate and Other
3,200  3,350  3,550  3,800  3,750  2,601  3,650 
Average adjusted AHL common shareholders’ equity
$ 10,339  $ 10,876  $ 11,851  $ 12,971  $ 13,879  $ 9,982  $ 12,865 
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
193.1  191.1  191.3  191.5  191.7  182.8  191.5 
Conversion of Class B common shares to Class A common shares
—  —  —  —  —  5.6  — 
Conversion of Class M common shares to Class A common shares
—  —  —  —  —  0.9  — 
Effect of other stock compensation plans
4.0  4.8  5.5  6.7  7.1  3.2  6.5 
Weighted average common shares outstanding – adjusted operating
197.1  195.9  196.8  198.2  198.8  192.5  198.0 
RECONCILIATION OF CLASS A COMMON SHARES OUTSTANDING TO ADJUSTED OPERATING COMMON SHARES OUTSTANDING
Class A common shares outstanding
191.2  191.2  191.4  191.6  191.8 
Effect of other stock compensation plans
5.1  6.0  6.9  8.1  8.0 
Adjusted operating common shares outstanding
196.3  197.2  198.3  199.7  199.8 











28


Non-GAAP Reconciliations
Unaudited (in millions, except percentages)
image4.jpg
Quarterly Trends Year-to-Date
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 2020 2021
RECONCILIATION OF NET INCOME AVAILABLE TO AHL COMMON SHAREHOLDERS TO ADJUSTED OPERATING INCOME AVAILABLE TO COMMON SHAREHOLDERS EXCLUDING NOTABLES AND AOG
Net income available to Athene Holding Ltd. common shareholders $ 622  $ 1,065  $ 578  $ 1,382  $ 698  $ 381  $ 2,658 
Less: Total non-operating adjustments
320  507  (170) 382  157  (303) 369 
Adjusted operating income available to common shareholders 302  558  748  1,000  541  684  2,289 
Notable items
(27) (41) (8) (55) (20) (82)
Adjusted operating income available to common shareholders excluding notable items $ 275  $ 517  $ 740  $ 945  $ 521  $ 688  $ 2,207 
Retirement Services adjusted operating income available to common shareholders $ 361  $ 493  $ 784  $ 634  $ 537  $ 773  $ 1,955 
Non-recurring adjustment on derivative collateral (25) —  —  —  —  (18) — 
Actuarial experience and market impacts —  (46) (9) (57) (20) 29  (86)
Unlocking
(6) —  —  —  —  (6) — 
Tax impact of notable items
—  (1)
Retirement Services notable items
(27) (41) (8) (55) (20) (82)
Retirement Services adjusted operating income available to common shareholders excluding notable items 334  452  776  579  517  777  1,873 
Corporate and Other adjusted operating income (loss) available to common shareholders (59) 65  (36) 366  (89) 334 
Adjusted operating income available to common shareholders excluding notable items 275  517  740  945  521  688  2,207 
Less: Change in fair value of Apollo investment, net of tax
(81) 113  (19) 373  10  52  364 
Adjusted operating income available to common shareholders excluding notables and AOG $ 356  $ 404  $ 759  $ 572  $ 511  $ 636  $ 1,843 













29


Non-GAAP Reconciliations
Unaudited (in millions, except percentages)
image4.jpg
Quarterly Trends Year-to-Date
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 2020 2021
RECONCILIATION OF NET INVESTMENT INCOME TO NET INVESTMENT EARNINGS
GAAP net investment income $ 1,209  $ 1,595  $ 1,704  $ 2,038  $ 1,474  $ 3,290  $ 5,216 
Change in fair value of reinsurance assets
444  476  366  388  379  932  1,133 
Alternative gains (losses) 23  (80) 69  (18) 74  (22) 125 
ACRA noncontrolling interest
(196) (210) (198) (219) (287) (349) (704)
Apollo investment (gain) loss
101  (142) 25  (472) (13) (83) (460)
Held for trading amortization and other
(51) (32) 32  47  (47) 88 
Total adjustments to arrive at net investment earnings
321  12  294  (312) 200  431  182 
Total net investment earnings
$ 1,530  $ 1,607  $ 1,998  $ 1,726  $ 1,674  $ 3,721  $ 5,398 
Retirement Services
$ 1,444  $ 1,584  $ 1,935  $ 1,659  $ 1,598  $ 3,703  $ 5,192 
Corporate and Other
86  23  63  67  76  18  206 
Total net investment earnings
$ 1,530  $ 1,607  $ 1,998  $ 1,726  $ 1,674  $ 3,721  $ 5,398 
RECONCILIATION OF NET INVESTMENT INCOME RATE TO NET INVESTMENT EARNED RATE
GAAP net investment income rate
3.48  % 4.39  % 4.49  % 5.20  % 3.64  % 3.42  % 4.44  %
Change in fair value of reinsurance assets
1.28  % 1.31  % 0.97  % 0.99  % 0.94  % 0.97  % 0.96  %
Alternative gains (losses) 0.07  % (0.22) % 0.18  % (0.05) % 0.18  % (0.02) % 0.11  %
ACRA noncontrolling interest
(0.56) % (0.58) % (0.52) % (0.56) % (0.71) % (0.36) % (0.60) %
Apollo investment (gain) loss 0.29  % (0.38) % 0.07  % (1.20) % (0.03) % (0.09) % (0.39) %
Held for trading amortization and other
(0.15) % (0.09) % 0.08  % 0.02  % 0.12  % (0.05) % 0.07  %
Total adjustments to arrive at net investment earned rate
0.93  % 0.04  % 0.78  % (0.80) % 0.50  % 0.45  % 0.15  %
Consolidated net investment earned rate
4.41  % 4.43  % 5.27  % 4.40  % 4.14  % 3.87  % 4.59  %
Retirement Services
4.22  % 4.43  % 5.18  % 4.30  % 4.00  % 3.90  % 4.48  %
Corporate and Other
17.59  % 4.38  % 11.22  % 11.72  % 14.96  % 1.32  % 12.86  %
Consolidated net investment earned rate
4.41  % 4.43  % 5.27  % 4.40  % 4.14  % 3.87  % 4.59  %
Retirement Services
$ 136,852  $ 143,162  $ 149,397  $ 154,459  $ 159,767  $ 126,563  $ 154,582 
Corporate and Other ex. Apollo investment
1,945  2,089  2,247  2,294  2,022  1,785  2,134 
Consolidated average net invested assets ex. Apollo investment
$ 138,797  $ 145,251  $ 151,644  $ 156,753  $ 161,789  $ 128,348  $ 156,716 







30


Non-GAAP Reconciliations
Unaudited (in millions, except percentages)
image4.jpg
Quarterly Trends Year-to-Date
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 2020 2021
RECONCILIATION OF INTEREST SENSITIVE CONTRACT BENEFITS TO COST OF CREDITING
GAAP interest sensitive contract benefits
$ 1,225  $ 1,909  $ 394  $ 1,979  $ 572  $ 1,982  $ 2,945 
Interest credited other than deferred annuities and institutional products
73  101  97  94  99  211  290 
FIA option costs
284  280  279  278  281  821  838 
Product charges (strategy fees)
(34) (36) (38) (40) (42) (100) (120)
Reinsurance embedded derivative impacts
14  14  14  12  12  43  38 
Change in fair values of embedded derivatives – FIAs
(779) (1,395) 43  (1,480) (126) (1,009) (1,563)
Negative VOBA amortization
15  12 
ACRA noncontrolling interest
(151) (207) (128) (180) (110) (226) (418)
Other changes in interest sensitive contract liabilities
10  20 
Total adjustments to arrive at cost of crediting
(585) (1,232) 274  (1,301) 124  (242) (903)
Retirement Services cost of crediting
$ 640  $ 677  $ 668  $ 678  $ 696  $ 1,740  $ 2,042 
GAAP interest sensitive contract benefits
3.58  % 5.33  % 1.05  % 5.12  % 1.43  % 2.09  % 2.54  %
Interest credited other than deferred annuities and institutional products
0.21  % 0.28  % 0.26  % 0.25  % 0.25  % 0.22  % 0.25  %
FIA option costs
0.83  % 0.78  % 0.75  % 0.72  % 0.71  % 0.86  % 0.72  %
Product charges (strategy fees)
(0.10) % (0.10) % (0.10) % (0.10) % (0.11) % (0.11) % (0.10) %
Reinsurance embedded derivative impacts
0.04  % 0.04  % 0.04  % 0.03  % 0.03  % 0.05  % 0.03  %
Change in fair values of embedded derivatives – FIAs
(2.28) % (3.90) % 0.11  % (3.83) % (0.32) % (1.06) % (1.35) %
Negative VOBA amortization
0.01  % 0.02  % 0.01  % 0.01  % 0.01  % 0.02  % 0.01  %
ACRA noncontrolling interest
(0.44) % (0.58) % (0.34) % (0.47) % (0.28) % (0.24) % (0.36) %
Other changes in interest sensitive contract liabilities
0.02  % 0.02  % 0.01  % 0.03  % 0.02  % —  % 0.02  %
Total adjustments to arrive at cost of crediting
(1.71) % (3.44) % 0.74  % (3.36) % 0.31  % (0.26) % (0.78) %
Retirement Services cost of crediting
1.87  % 1.89  % 1.79  % 1.76  % 1.74  % 1.83  % 1.76  %
Retirement Services cost of crediting on deferred annuities
1.98  % 1.94  % 1.89  % 1.87  % 1.83  % 1.94  % 1.86  %
Retirement Services cost of crediting on institutional products
2.95  % 3.08  % 2.59  % 2.49  % 2.47  % 3.03  % 2.51  %
Retirement Services cost of crediting
1.87  % 1.89  % 1.79  % 1.76  % 1.74  % 1.83  % 1.76  %
Retirement Services average net invested assets
$ 136,852  $ 143,162  $ 149,397  $ 154,459  $ 159,767  $ 126,563  $ 154,582 
Average net account value on deferred annuities
102,144  103,990  104,310  104,107  104,396  94,600  104,353 
Average institutional net reserve liabilities
18,162  22,375  27,028  30,863  35,213  15,882  31,035 
31


Non-GAAP Reconciliations
Unaudited (in millions)
image4.jpg
Quarterly Trends Year-to-Date
3Q’20 4Q’20 1Q’21 2Q’21 3Q’21 2020 2021
RECONCILIATION OF BENEFITS AND EXPENSES TO OTHER LIABILITY COSTS
GAAP benefits and expenses $ 2,251  $ 7,157  $ 4,252  $ 4,433  $ 8,004  $ 5,401  $ 16,689 
Premiums (112) (4,356) (3,011) (1,598) (6,686) (1,607) (11,295)
Product charges (144) (146) (150) (157) (154) (425) (461)
Other revenues (13) (7) (14) (20) (24) (29) (58)
Cost of crediting (342) (383) (375) (388) (403) (876) (1,166)
Change in fair value of embedded derivatives - FIA, net of offsets (863) (1,409) (298) (1,450) (164) (852) (1,912)
DAC, DSI and VOBA amortization related to investment gains and losses (86) (111) 139  (94) 29  16  74 
Rider reserves (21) (19) 21  (20) — 
Policy and other operating expenses, excluding policy acquisition expenses (132) (139) (201) (168) (161) (394) (530)
AmerUs closed block fair value liability (15) (34) 93  (54) 11  (70) 50 
ACRA noncontrolling interest (193) (258) (107) (242) (145) (269) (494)
Other changes in benefits and expenses (10) (14) (7) (18) (27) (20)
Total adjustments to arrive at other liability costs (1,931) (6,876) (3,910) (4,186) (7,715) (4,524) (15,811)
Other liability costs $ 320  $ 281  $ 342  $ 247  $ 289  $ 877  $ 878 
Retirement Services $ 320  $ 281  $ 342  $ 247  $ 289  $ 877  $ 878 
Corporate and Other —  —  —  —  —  —  — 
Consolidated other liability costs $ 320  $ 281  $ 342  $ 247  $ 289  $ 877  $ 878 
RECONCILIATION OF POLICY AND OTHER OPERATING EXPENSES TO OPERATING EXPENSES
Policy and other operating expenses $ 231  $ 218  $ 283  $ 242  $ 247  $ 637  $ 772 
Interest expense (34) (31) (32) (34) (34) (83) (100)
Policy acquisition expenses, net of deferrals (99) (79) (82) (74) (86) (243) (242)
Integration, restructuring and other non-operating expenses —  (45) (11) (8) (13) (64)
Stock compensation expenses (1) —  —  (1) (1) (11) (2)
ACRA noncontrolling interest (16) (19) (21) (19) (31) (39) (71)
Other changes in policy and other operating expenses (3) (5) (8) (3) (7)
Total adjustments to arrive at operating expenses (153) (125) (185) (147) (154) (392) (486)
Operating expenses $ 78  $ 93  $ 98  $ 95  $ 93  $ 245  $ 286 
Retirement Services $ 63  $ 73  $ 78  $ 81  $ 75  $ 202  $ 234 
Corporate and Other 15  20  20  14  18  43  52 
Consolidated operating expenses $ 78  $ 93  $ 98  $ 95  $ 93  $ 245  $ 286 








32


Non-GAAP Reconciliations
Unaudited (in millions)
image4.jpg
December 31, 2020 September 30, 2021
RECONCILIATION OF TOTAL INVESTMENTS INCLUDING RELATED PARTIES TO NET INVESTED ASSETS
Total investments, including related parties
$ 182,421  $ 203,824 
Derivative assets
(3,523) (3,786)
Cash and cash equivalents (including restricted cash)
8,442  8,510 
Accrued investment income
905  1,016 
Payables for collateral on derivatives
(3,203) (3,531)
Reinsurance funds withheld and modified coinsurance
(2,459) (1,049)
VIE and VOE assets, liabilities and noncontrolling interest
(136) (398)
Unrealized (gains) losses
(7,275) (5,042)
Ceded policy loans
(204) (173)
Net investment receivables (payables)
99  (569)
Allowance for credit losses
357  342 
Total adjustments to arrive at gross invested assets
(6,997) (4,680)
Gross invested assets
175,424  199,144 
ACRA noncontrolling interest
(25,234) (32,924)
Net invested assets
$ 150,190  $ 166,220 
RECONCILIATION OF INVESTMENT FUNDS INCLUDING RELATED PARTIES TO NET ALTERNATIVE INVESTMENTS
Investment funds, including related parties
$ 6,087  $ 8,021 
Equity securities 165  406 
CLO and ABS equities included in trading securities
971  1,069 
Investment in Apollo (1,324) (1,726)
Investment funds within funds withheld at interest
1,155  1,670 
Royalties and other assets included in other investments
66  (52)
Unrealized (gains) losses and other adjustments
(44) (3)
ACRA noncontrolling interest
(283) (860)
Total adjustments to arrive at net alternative investments
706  504 
Net alternative investments
$ 6,793  $ 8,525 
RECONCILIATION OF TOTAL LIABILITIES TO NET RESERVE LIABILITIES
Total liabilities
$ 182,631  $ 202,024 
Long-term debt
(1,976) (2,469)
Derivative liabilities
(298) (303)
Payables for collateral on derivatives (3,203) (3,531)
Funds withheld liability
(452) (437)
Other liabilities
(2,040) (2,587)
Reinsurance ceded receivables
(4,848) (4,565)
Policy loans ceded
(204) (173)
ACRA noncontrolling interest
(24,618) (31,099)
Other
(3) (8)
Total adjustments to arrive at net reserve liabilities
(37,642) (45,172)
Net reserve liabilities
$ 144,989  $ 156,852 
33