Form: 8-K

Current report filing

February 13, 2025

Documents










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Table of Contents
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FINANCIAL RESULTS
ASSETS
LIABILITIES
ADDITIONAL INFORMATION






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

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

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

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

3




Financial Highlights
Unaudited (in millions, except percentages)
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Quarterly Trends Δ Year-to-Date Δ
4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 Q/Q Y/Y 2023 2024 Y/Y
SELECTED INCOME STATEMENT DATA
GAAP
Net income available to AHL common stockholder $ 2,925  $ 1,147  $ 583  $ 580  $ 970  67  % (67) % $ 4,484  $ 3,280  (27) %
Return on assets (ROA) 4.10  % 1.48  % 0.71  % 0.67  % 1.08  % 41bps NM 1.67  % 0.98  % (69)bps
NON-GAAP
Spread related earnings (SRE) $ 749  $ 816  $ 712  $ 855  $ 838  (2) % 12  % $ 3,107  $ 3,221  4  %
Net spread 1.41  % 1.47  % 1.24  % 1.44  % 1.37  % (7)bps (4)bps 1.49  % 1.38  % (11)bps
Net investment spread 1.80  % 1.83  % 1.64  % 1.83  % 1.79  % (4)bps (1)bp 1.93  % 1.78  % (15)bps
Spread related earnings, excluding notable items1
$ 749  $ 816  $ 712  $ 830  $ 838  1  % 12  % $ 2,992  $ 3,196  7  %
Net spread, excluding notable items1
1.41  % 1.47  % 1.24  % 1.40  % 1.37  % (3)bps (4)bps 1.44  % 1.37  % (7)bps
Net investment spread, excluding notable items1
1.80  % 1.83  % 1.64  % 1.79  % 1.79  % 0bps (1)bp 1.88  % 1.77  % (11)bps
Alternative net investment income delta to long-term expectation2,3
$ 132  $ 56  $ 154  $ 81  $ 58  $ 451  $ 349 
Alternative net return delta to long-term expectation 4.53  % 1.90  % 5.27  % 2.81  % 1.75  % 3.78  % 2.97  %
Impact to net spread 0.25  % 0.10  % 0.27  % 0.13  % 0.09  % 0.21  % 0.15  %
SELECTED BALANCE SHEET DATA
GAAP
Total assets
 $ 300,579  $ 320,579  $ 332,627  $ 354,966  $ 363,343  2  % 21  % $ 300,579  $ 363,343  21  %
Goodwill 4,065  4,064  4,064  4,071  4,063  —  % —  % 4,065  4,063  —  %
Total liabilities 279,344  297,423  308,295  327,855  337,469  3  % 21  % 279,344  337,469  21  %
Debt 4,209  5,740  5,733  5,725  6,309  10  % 50  % 4,209  6,309  50  %
Total AHL stockholders' equity 13,838  14,760  14,998  17,445  16,360  (6) % 18  % 13,838  16,360  18  %
Leverage ratio 40.8  % 43.4  % 42.9  % 38.3  % 41.7  % NM 90bps 40.8  % 41.7  % 90bps
NON-GAAP
Gross invested assets
 $ 278,617  $ 292,837  $ 302,215  $ 314,932  $ 326,964  4  % 17  % $ 278,617  $ 326,964  17  %
Invested assets – ACRA noncontrolling interests
 (61,190) (65,482) (69,258) (72,269) (78,321) 8  % 28  % (61,190) (78,321) 28  %
Net invested assets
 217,427  227,355  232,957  242,663  248,643  2  % 14  % 217,427  248,643  14  %
Net reserve liabilities
 199,289  208,523  211,548  225,899  225,926  —  % 13  % 199,289  225,926  13  %
Notional debt 4,000  5,575  5,575  5,575  6,175  11  % 54  % 4,000  6,175  54  %
Adjusted AHL common stockholder’s equity 20,368  21,540  21,810  20,907  22,313  7  % 10  % 20,368  22,313  10  %
Adjusted leverage ratio 20.3  % 22.7  % 22.5  % 23.2  % 22.6  % (60)bps 230bps 20.3  % 22.6  % 230bps
INFLOWS DATA
Gross organic inflows $ 19,824  $ 20,094  $ 16,695  $ 20,017  $ 14,197  (29) % (28) % $ 63,407  $ 71,003  12  %
Gross inorganic inflows 2,214  —  —  —  —  NM NM 2,214  —  NM
Total gross inflows $ 22,038  $ 20,094  $ 16,695  $ 20,017  $ 14,197  (29) % (36) % $ 65,621  $ 71,003  8  %
Note: “NM” represents changes that are not meaningful. Please refer to the Notes to the Financial Supplement section for discussion on non-GAAP metrics and the Non-GAAP Measure Reconciliations section for reconciliations of non-GAAP metrics. 1. Notable items include unusual variability such as actuarial experience, assumption updates and other insurance adjustments. 2. Refers to the amount that as-reported alternative net investment income is below (above) management's long-term expectation of an 11% average annual return. Management’s long-term expectation is based on historical experience and provides investors with supplemental information for period-to-period comparability as well as a basis for developing expectations of future performance. There is no assurance that management’s expected long-term average annual return will be achieved. Actual results may differ materially. 3. In 4Q’24, alternative net investment income delta to long-term expectation excludes the impact of Athene’s incremental investment in Apollo/Athene Dedicated Investment Program (ADIP I) and Apollo/Athene Dedicated Investment Program II (ADIP II), collectively ADIP, which earned $14 million of net investment earnings on an average net invested asset balance of $248 million.
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Condensed Consolidated Statements of Income (GAAP view)
Unaudited (in millions, except percentages)
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Quarterly Trends Δ Year-to-Date Δ
4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 Q/Q Y/Y 2023 2024 Y/Y
REVENUES
Premiums
 $ 3,586  $ 101  $ 673  $ 389  $ 155  (60) % (96) % $ 12,749  $ 1,318  (90) %
Product charges
 226  238  251  267  260  (3) % 15  % 848  1,016  20  %
Net investment income
 3,078  3,292  3,509  3,777  3,903  3  % 27  % 11,130  14,481  30  %
Investment related gains (losses) 2,621  1,677  (134) 1,539  (1,037) NM NM 1,428  2,045  43  %
Other revenues
 7  2  3  4  10  150  % 43  % 591  19  (97) %
Revenues of consolidated variable interest entities
Net investment income 47  77  56  77  72  (6) % 53  % 257  282  10  %
Investment related gains (losses) 447  334  306  469  419  (11) % (6) % 1,191  1,528  28  %
Total revenues 10,012  5,721  4,664  6,522  3,782  (42) % (62) % 28,194  20,689  (27) %
BENEFITS AND EXPENSES
Interest sensitive contract benefits
 2,595  2,884  1,824  2,599  1,642  (37) % (37) % 6,229  8,949  44  %
Future policy and other policy benefits
 4,088  543  1,095  793  623  (21) % (85) % 14,434  3,054  (79) %
Market risk benefits remeasurement (gains) losses 570  (154) (16) 524  (456) NM NM 404  (102) NM
Amortization of deferred acquisition costs, deferred sales inducements and value of business acquired 186  207  227  244  263  8  % 41  % 688  941  37  %
Policy and other operating expenses
 489  459  507  687  560  (18) % 15  % 1,848  2,213  20  %
Total benefits and expenses 7,928  3,939  3,637  4,847  2,632  (46) % (67) % 23,603  15,055  (36) %
Income before income taxes 2,084  1,782  1,027  1,675  1,150  (31) % (45) % 4,591  5,634  23  %
Income tax expense (benefit)1
(1,619) 307  161  191  71  (63) % NM (1,161) 730  NM
Net income 3,703  1,475  866  1,484  1,079  (27) % (71) % 5,752  4,904  (15) %
Less: Net income attributable to noncontrolling interests 733  283  237  859  64  (93) % (91) % 1,087  1,443  33  %
Net income attributable to Athene Holding Ltd. stockholders 2,970  1,192  629  625  1,015  62  % (66) % 4,665  3,461  (26) %
Less: Preferred stock dividends
 45  45  46  45  45  —  % —  % 181  181  —  %
Net income available to Athene Holding Ltd. common stockholder $ 2,925  $ 1,147  $ 583  $ 580  $ 970  67  % (67) % $ 4,484  $ 3,280  (27) %
1. 4Q’23 and FY’23 include a one-time tax benefit of $1.8 billion resulting from the establishment of deferred tax assets related to the Government of Bermuda’s enactment of the Corporate Income Tax Act of 2023 (Bermuda CIT). 4Q’24 and FY’24 include an estimated income tax benefit related to the Bermuda CIT, and the actual tax impact reported in the Company’s Annual Report on Form 10-K may differ, possibly materially, from this estimate.

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Spread Related Earnings (Management view)
Unaudited (in millions, except percentages)
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Quarterly Trends Δ Year-to-Date Δ
4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 Q/Q Y/Y 2023 2024 Y/Y
SPREAD RELATED EARNINGS
Fixed income and other net investment income $ 2,342  $ 2,455  $ 2,635  $ 2,807  $ 2,914  4  % 24  % $ 8,744  $ 10,811  24  %
Alternative net investment income 190  266  168  236  269  14  % 42  % 864  939  9  %
Net investment earnings 2,532  2,721  2,803  3,043  3,183  5  % 26  % 9,608  11,750  22  %
Strategic capital management fees 23  25  24  27  29  7  % 26  % 72  105  46  %
Cost of funds (1,594) (1,723) (1,880) (1,983) (2,116) 7  % 33  % (5,650) (7,702) 36  %
Net investment spread 961  1,023  947  1,087  1,096  1  % 14  % 4,030  4,153  3  %
Other operating expenses (120) (116) (116) (114) (121) 6  % 1  % (487) (467) (4) %
Interest and other financing costs (92) (91) (119) (118) (137) 16  % 49  % (436) (465) 7  %
Spread related earnings $ 749  $ 816  $ 712  $ 855  $ 838  (2) % 12  % $ 3,107  $ 3,221  4  %
Fixed income and other net investment income 4.66  % 4.66  % 4.83  % 4.96  % 5.00  % 4bps 34bps 4.45  % 4.87  % 42bps
Alternative net investment income 6.47  % 9.10  % 5.73  % 8.19  % 9.25  % 106bps 278bps 7.22  % 8.03  % 81bps
Net investment earnings 4.76  % 4.89  % 4.87  % 5.12  % 5.20  % 8bps 44bps 4.61  % 5.03  % 42bps
Strategic capital management fees 0.04  % 0.04  % 0.04  % 0.05  % 0.05  % 0bps 1bp 0.03  % 0.04  % 1bp
Cost of funds (3.00) % (3.10) % (3.27) % (3.34) % (3.46) % 12bps 46bps (2.71) % (3.29) % 58bps
Net investment spread 1.80  % 1.83  % 1.64  % 1.83  % 1.79  % (4)bps (1)bp 1.93  % 1.78  % (15)bps
Other operating expenses (0.23) % (0.21) % (0.20) % (0.19) % (0.20) % 1bp (3)bps (0.23) % (0.20) % (3)bps
Interest and other financing costs (0.16) % (0.15) % (0.20) % (0.20) % (0.22) % 2bps 6bps (0.21) % (0.20) % (1)bp
Spread related earnings 1.41  % 1.47  % 1.24  % 1.44  % 1.37  % (7)bps (4)bps 1.49  % 1.38  % (11)bps
Average net invested assets - fixed income and other $ 201,035  $ 210,688  $ 218,446  $ 226,295  $ 233,153  3  % 16  % $ 196,514  $ 222,122  13  %
Average net invested assets - alternatives 11,726  11,703  11,710  11,515  11,643  1  % (1) % 11,965  11,687  (2) %
Average net invested assets $ 212,761  $ 222,391  $ 230,156  $ 237,810  $ 244,796  3  % 15  % $ 208,479  $ 233,809  12  %
Note: Please refer to the Notes to the Financial Supplement section for discussion on spread related earnings.
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Reconciliation of Earnings Measures
Unaudited (in millions, except percentages)
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Quarterly Trends Δ Year-to-Date Δ
4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 Q/Q Y/Y 2023 2024 Y/Y
RECONCILIATION OF NET INCOME AVAILABLE TO ATHENE HOLDING LTD. COMMON STOCKHOLDER TO SPREAD RELATED EARNINGS
Net income available to Athene Holding Ltd. common stockholder $ 2,925  $ 1,147  $ 583  $ 580  $ 970  67  % (67) % $ 4,484  $ 3,280  (27) %
Preferred stock dividends 45  45  46  45  45  —  % —  % 181  181  —  %
Net income attributable to noncontrolling interests 733  283  237  859  64  (93) % (91) % 1,087  1,443  33  %
Net income 3,703  1,475  866  1,484  1,079  (27) % (71) % 5,752  4,904  (15) %
Income tax expense (benefit) (1,619) 307  161  191  71  (63) % NM (1,161) 730  NM
Income before income taxes 2,084  1,782  1,027  1,675  1,150  (31) % (45) % 4,591  5,634  23  %
Realized gains (losses) on sale of AFS securities and mortgage loans (34) (23) (9) (276) (31) 89  % 9  % (203) (339) (67) %
Unrealized, allowances and other investment gains (losses) 256  21  (100) 439  (4) NM NM (251) 356  NM
Change in fair value of reinsurance assets 765  (35) (32) 444  (246) NM NM 585  131  (78) %
Offsets to investment gains (losses) 12  15  17  21  16  (24) % 33  % 39  69  77  %
Investment gains (losses), net of offsets 999  (22) (124) 628  (265) NM NM 170  217  28  %
Change in fair values of derivatives and embedded derivatives - FIAs 59  484  126  (196) —  NM NM 267  414  55  %
Non-operating change in funding agreements 19  23  18  47  55  17  % 189  % 35  143  NM
Change in fair value of market risk benefits (498) 201  67  (364) 453  NM NM (71) 357  NM
Non-operating change in liability for future policy benefits 2  (35) (8) —  (25) NM NM (49) (68) (39) %
Non-operating change in insurance liabilities and related derivatives (418) 673  203  (513) 483  NM NM 182  846  NM
Integration, restructuring and other non-operating expenses (32) (30) (31) (204) 26  NM NM (130) (239) 84  %
Stock compensation expense (46) (13) (11) (12) (14) 17  % (70) % (88) (50) (43) %
Preferred stock dividends 45  45  46  45  45  —  % —  % 181  181  —  %
Noncontrolling interests - pre-tax income and VIE adjustments 787  313  232  876  37  (96) % (95) % 1,169  1,458  25  %
Less: Total adjustments to income before income taxes 1,335  966  315  820  312  (62) % (77) % 1,484  2,413  63  %
Spread related earnings $ 749  $ 816  $ 712  $ 855  $ 838  (2) % 12  % $ 3,107  $ 3,221  4  %
Note: Please refer to the Notes to the Financial Supplement section for discussion on spread related earnings.
7




Net Flows & Outflows Attributable to Athene by Type
Unaudited (in millions, except percentages)
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Quarterly Trends Δ Year-to-Date Δ
4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 Q/Q Y/Y 2023 2024 Y/Y
NET FLOWS
Retail $ 13,410  $ 9,663  $ 8,938  $ 9,209  $ 7,954  (14) % (41) % $ 35,293  $ 35,764  1  %
Flow reinsurance 2,798  2,390  1,210  944  1,029  9  % (63) % 10,547  5,573  (47) %
Funding agreements1
2,300  8,041  5,970  9,570  5,167  (46) % 125  % 7,193  28,748  300  %
Pension group annuities 1,316  —  577  294  47  (84) % (96) % 10,374  918  (91) %
Gross organic inflows 19,824  20,094  16,695  20,017  14,197  (29) % (28) % 63,407  71,003  12  %
Gross inorganic inflows2
2,214  —  —  —  —  NM NM 2,214  —  NM
Total gross inflows 22,038  20,094  16,695  20,017  14,197  (29) % (36) % 65,621  71,003  8  %
Gross outflows3
(7,116) (8,035) (10,140) (8,158) (7,136) (13) % —  % (33,868) (33,469) (1) %
Net flows $ 14,922  $ 12,059  $ 6,555  $ 11,859  $ 7,061  (40) % (53) % $ 31,753  $ 37,534  18  %
Inflows attributable to Athene4
$ 13,026  $ 14,591  $ 10,840  $ 14,705  $ 8,948  (39) % (31) % $ 43,000  $ 49,084  14  %
Inflows attributable to ADIP4,5
9,012  4,437  4,824  4,244  4,343  2  % (52) % 22,621  17,848  (21) %
Inflows ceded to third-party reinsurers6
—  1,066  1,031  1,068  906  (15) % NM —  4,071  NM
Total gross inflows $ 22,038  $ 20,094  $ 16,695  $ 20,017  $ 14,197  (29) % (36) % $ 65,621  $ 71,003  8  %
Outflows attributable to Athene $ (5,791) $ (6,748) $ (8,627) $ (6,176) $ (5,697) (8) % (2) % $ (28,763) $ (27,248) (5) %
Outflows attributable to ADIP5
(1,325) (1,287) (1,513) (1,982) (1,439) (27) % 9  % (5,105) (6,221) 22  %
Total gross outflows3
$ (7,116) $ (8,035) $ (10,140) $ (8,158) $ (7,136) (13) % —  % $ (33,868) $ (33,469) (1) %
OUTFLOWS ATTRIBUTABLE TO ATHENE BY TYPE
Maturity-driven, contractual-based outflows7
$ (1,952) $ (2,818) $ (4,799) $ (2,312) $ (2,167) (6) % 11  % $ (10,893) $ (12,096) 11  %
Policyholder-driven outflows8
(3,839) (3,930) (3,828) (3,864) (3,530) (9) % (8) % (15,147) (15,152) —  %
Income oriented withdrawals (planned)9
(1,831) (1,691) (1,558) (1,517) (1,661) 9  % (9) % (6,964) (6,427) (8) %
From policies out-of-surrender-charge (planned)10
(1,365) (1,512) (1,511) (1,444) (1,131) (22) % (17) % (5,548) (5,598) 1  %
From policies in-surrender-charge (unplanned)11
(643) (727) (759) (903) (738) (18) % 15  % (2,635) (3,127) 19  %
Core outflows (5,791) (6,748) (8,627) (6,176) (5,697) (8) % (2) % (26,040) (27,248) 5  %
Strategic reinsurance transactions12
—  —  —  —  —  NM NM (2,723) —  NM
Outflows attributable to Athene $ (5,791) $ (6,748) $ (8,627) $ (6,176) $ (5,697) (8) % (2) % $ (28,763) $ (27,248) (5) %
Annualized rate13
Maturity-driven, contractual-based outflows7
(3.7) % (5.1) % (8.3) % (3.9) % (3.5) % (40)bps (20)bps (5.2) % (5.2) % 0bps
Policyholder-driven outflows8
(7.2) % (7.0) % (6.7) % (6.5) % (5.8) % (70)bps NM (7.3) % (6.5) % (80)bps
Income oriented withdrawals (planned)9
(3.4) % (3.0) % (2.7) % (2.6) % (2.7) % 10bps (70)bps (3.3) % (2.8) % (50)bps
From policies out-of-surrender-charge (planned)10
(2.6) % (2.7) % (2.7) % (2.4) % (1.9) % (50)bps (70)bps (2.7) % (2.4) % (30)bps
From policies in-surrender-charge (unplanned)11
(1.2) % (1.3) % (1.3) % (1.5) % (1.2) % (30)bps 0bps (1.3) % (1.3) % 0bps
Core outflows (10.9) % (12.1) % (15.0) % (10.4) % (9.3) % NM NM (12.5) % (11.7) % (80)bps
Strategic reinsurance transactions12
—  % —  % —  % —  % —  % NM NM (1.3) % —  % NM
Outflows attributable to Athene (10.9) % (12.1) % (15.0) % (10.4) % (9.3) % NM NM (13.8) % (11.7) % NM
1. Funding agreements are comprised of funding agreements issued under our funding agreement backed notes (FABN) program, secured and other funding agreements, funding agreements issued to the Federal Home Loan Bank (FHLB) and long-term repurchase agreements. 2. Gross inorganic inflows represent acquisitions and block reinsurance transactions. On November 6, 2023, we entered into an agreement with a Japanese counterparty, effective October 1, 2023, pursuant to which we agreed to reinsure a block of whole life insurance policies on a coinsurance basis. In conjunction with the transaction, we entered into an agreement with a leading mortality reinsurer to retrocede the mortality risk related to this block of business. 3. Gross outflows include full and partial policyholder withdrawals on deferred annuities, death benefits, pension group annuity benefit payments, payments on payout annuities, payments related to interest, maturities and repurchases of funding agreements and block reinsurance outflows. 4. Effective July 1, 2023, Athene Life Re Ltd. (ALRe) sold 50% of Athene Co-Invest Reinsurance Affiliate Holding 2 Ltd.’s (together with its subsidiaries, ACRA 2) economic interests to ADIP II. Subsequent to the initial buy-in, ADIP II increased its economic ownership interests in ACRA 2 to 60% effective December 31, 2023 and 63% effective October 1, 2024. 5. ADIP refers to ADIP I and ADIP II and represents the noncontrolling interests in business ceded to ACRA. 6. During the first quarter of 2024, we entered into a modco reinsurance agreement with Catalina Re Archdale Life Insurance Company Ltd., a subsidiary of Catalina Holdings (Bermuda) Ltd. (together with its subsidiaries, Catalina), to cede a quota share of our retail deferred annuity business issued on or after January 1, 2024. 7. Represents outflows from funding agreements, pension group annuities and multi-year guarantee fixed annuities, all of which occur based on defined maturities or substantially lapse upon reaching their contractual term. Amounts may vary on a quarterly basis, based on the timing of original issuance. 8. Represents outflows from fixed indexed annuities and other applicable products, which have varying degrees of predictability due to policyholder actions. 9. Represents partial annuity withdrawals to meet retirement income needs within contractual annual limits. 10. Represents outflows from policies that no longer have an active surrender charge in force. 11. Represents outflows from policies with an active surrender charge in force. 12. Strategic reinsurance transaction outflows include the portion of the reinsurance business recaptured by Venerable Insurance and Annuity Company (VIAC) in 3Q’23. 13 The outflow rate is calculated as outflows attributable to Athene divided by average net invested assets for the respective period, on an annualized basis.
8




Condensed Consolidated Balance Sheets
Unaudited (in millions, except percentages)
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December 31, 2023 December 31, 2024 Δ
ASSETS
Investments
Available-for-sale securities, at fair value
 $ 134,338  $ 165,364  23  %
Trading securities, at fair value
 1,706  1,583  (7) %
Equity securities 1,293  1,290  —  %
Mortgage loans, at fair value 44,115  63,239  43  %
Investment funds
 109  107  (2) %
Policy loans
 334  318  (5) %
Funds withheld at interest
 24,359  18,866  (23) %
Derivative assets
 5,298  8,154  54  %
Short-term investments 341  447  31  %
Other investments 1,206  2,915  142  %
Total investments
 213,099  262,283  23  %
Cash and cash equivalents
 13,020  12,733  (2) %
Restricted cash
 1,761  943  (46) %
Investments in related parties
Available-for-sale securities, at fair value
 14,009  19,127  37  %
Trading securities, at fair value
 838  573  (32) %
Equity securities, at fair value
 318  234  (26) %
Mortgage loans, at fair value 1,281  1,297  1  %
Investment funds
 1,632  1,853  14  %
Funds withheld at interest
 6,474  5,050  (22) %
Short-term investments 947  743  (22) %
Other investments, at fair value 343  331  (3) %
Accrued investment income
 1,933  2,816  46  %
Reinsurance recoverable
 4,154  8,194  97  %
Deferred acquisition costs, deferred sales inducements and value of business acquired
 5,979  7,173  20  %
Goodwill 4,065  4,063  —  %
Other assets
 10,179  11,253  11  %
Assets of consolidated variable interest entities
Investments
Trading securities, at fair value 2,136  2,301  8  %
Mortgage loans, at fair value 2,173  2,579  19  %
Investment funds, at fair value 15,927  17,765  12  %
Other investments 103  884  NM
Cash and cash equivalents 98  583  NM
Other assets 110  565  NM
Total assets
 $ 300,579  $ 363,343  21  %
9




Condensed Consolidated Balance Sheets, continued
Unaudited (in millions, except percentages)
athene-logo_rgb.jpg
December 31, 2023 December 31, 2024 Δ
LIABILITIES
Interest sensitive contract liabilities
 $ 204,670  $ 253,637  24  %
Future policy benefits
 53,287  49,902  (6) %
Market risk benefits 3,751  4,028  7  %
Debt 4,209  6,309  50  %
Derivative liabilities
 1,995  3,556  78  %
Payables for collateral on derivatives and securities to repurchase
 7,536  11,652  55  %
Other liabilities
 2,781  6,745  143  %
Liabilities of consolidated variable interest entities 1,115  1,640  47  %
Total liabilities 279,344  337,469  21  %
EQUITY
Preferred stock
 —  —  NM
Common stock
 —  —  NM
Additional paid-in capital 19,499  19,588  —  %
Retained earnings (accumulated deficit) (92) 2,237  NM
Accumulated other comprehensive loss (5,569) (5,465) 2  %
Total Athene Holding Ltd. stockholders' equity 13,838  16,360  18  %
Noncontrolling interests
 7,397  9,514  29  %
Total equity 21,235  25,874  22  %
Total liabilities and equity $ 300,579  $ 363,343  21  %
10




Net Invested Assets (Management view) & Agency Ratings
Unaudited (in millions, except percentages)
athene-logo_rgb.jpg
December 31, 2023 December 31, 2024
Invested Asset Value1
Percentage of Total
Invested Asset Value1
Percentage of Total
NET INVESTED ASSETS
Corporate $ 82,883  38.1  % $ 86,051  34.6  %
CLO 20,538  9.4  % 27,698  11.2  %
Credit 103,421  47.5  % 113,749  45.8  %
CML 25,977  11.9  % 28,055  11.3  %
RML 18,021  8.3  % 27,848  11.2  %
RMBS 7,795  3.6  % 7,635  3.1  %
CMBS 5,580  2.6  % 8,243  3.3  %
Real estate 57,373  26.4  % 71,781  28.9  %
ABS 22,202  10.2  % 28,670  11.5  %
Alternative investments 11,659  5.4  % 12,000  4.8  %
State, municipal, political subdivisions and foreign government 3,384  1.5  % 3,237  1.3  %
Equity securities 1,727  0.8  % 2,201  0.9  %
Short-term investments 1,048  0.5  % 1,015  0.4  %
US government and agencies 4,052  1.9  % 5,531  2.2  %
Other investments 44,072  20.3  % 52,654  21.1  %
Cash and cash equivalents 10,467  4.8  % 6,794  2.7  %
Other 2,094  1.0  % 3,665  1.5  %
Net invested assets $ 217,427  100.0  % $ 248,643  100.0  %

AM Best Standard & Poor’s Fitch Moody’s
FINANCIAL STRENGTH RATINGS
Athene Annuity and Life Company
 A+ A+ A+ A1
Athene Annuity & Life Assurance Company of New York
 A+ A+ A+ A1
Athene Life Insurance Company of New York A+ NR NR NR
Athene Annuity Re Ltd. A+ A+ A+ A1
Athene Life Re Ltd. A+ A+ A+ A1
Athene Life Re International Ltd. A+ A+ A+ A1
Athene Co-Invest Reinsurance Affiliate 1A Ltd. and Athene Co-Invest Reinsurance Affiliate 1B Ltd. A+ A+ A+ A1
Athene Co-Invest Reinsurance Affiliate 2A Ltd. and Athene Co-Invest Reinsurance Affiliate 2B Ltd. A+ A+ A+ A1
Athene Co-Invest Reinsurance Affiliate International Ltd. A+ A+ A+ A1
CREDIT RATINGS
Athene Holding Ltd. a- A- A- NR
Senior notes a- A- BBB+ Baa1
Subordinated notes NR BBB BBB- Baa2
1. Please refer to the Notes to the Financial Supplement section for discussion on net invested assets, and the Non-GAAP Measure Reconciliations section for the reconciliation of investments, including related parties, to net invested assets. Net invested assets include our economic ownership of ACRA investments but do not include the investments associated with the noncontrolling interests.
11




Net Alternative Investments (Management view)
Unaudited (in millions, except percentages)
athene-logo_rgb.jpg
December 31, 20231
December 31, 2024
Invested Asset Value2
Percentage of Total
Invested Asset Value2
Percentage of Total
NET ALTERNATIVE INVESTMENTS
Strategic origination platforms
Wheels $ 691  5.9  % $ 581  4.8  %
Redding Ridge 571  4.9  % 581  4.8  %
MidCap Financial 524  4.5  % 544  4.5  %
Aqua Finance 215  1.8  % 309  2.6  %
Skylign3
244  2.1  % 300  2.5  %
Foundation Home Loans 242  2.1  % 184  1.5  %
Other 240  2.1  % 776  6.5  %
Strategic origination platforms 2,727  23.4  % 3,275  27.2  %
Apollo and other investments
Real assets 2,010  17.2  % 1,691  14.1  %
Private equity 1,159  9.9  % 1,107  9.2  %
Structured equity and other 368  3.2  % 522  4.4  %
Equity 3,537  30.3  % 3,320  27.7  %
Credit 1,559  13.4  % 1,481  12.4  %
Liquid assets and other 298  2.6  % 851  7.1  %
Apollo and other investments 5,394  46.3  % 5,652  47.2  %
Total AAA 8,121  69.7  % 8,927  74.4  %
Retirement Services
Athora 1,106  9.5  % 1,125  9.4  %
Venerable 181  1.5  % 273  2.3  %
Other 1,014  8.7  % —  —  %
Retirement Services 2,301  19.7  % 1,398  11.7  %
Apollo and other investments
Equity 969  8.3  % 1,120  9.3  %
Credit 215  1.8  % 531  4.4  %
Other 53  0.5  % 24  0.2  %
Apollo and other investments 1,237  10.6  % 1,675  13.9  %
Total Non AAA 3,538  30.3  % 3,073  25.6  %
Net alternative investments4
$ 11,659  100.0  % $ 12,000  100.0  %
1. Prior period amounts have been reclassified to conform with the current year presentation as a result of aligning our alternative investment categories to reflect our updated investment strategies. 2. Please refer to the Notes to the Financial Supplement section for discussion on net invested assets, including net alternative investments, and the Non-GAAP Measure Reconciliations section for the reconciliations of investments, including related parties, to net invested assets and investment funds, including related parties and consolidated VIEs, to net alternative investments. Net invested assets include our economic ownership of ACRA investments but do not include the investments associated with the noncontrolling interests. Net alternative invested asset values reflect Athene’s ownership of Apollo Aligned Alternatives, L.P. (AAA). Athene’s ownership percentage of AAA was approximately 61%, 62%, 63%, 66% and 69% as of December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, respectively. 3. Skylign Aviation Holdings, L.P. (Skylign) was previously referenced as PK AirFinance. Skylign is the holding company that comprises two operating businesses, PK AirFinance and Perseus Aviation. 4. Net alternative investments do not correspond to total investment funds, including related parties and consolidated VIEs, on our condensed consolidated balance sheets. Net alternative investments adjusts the GAAP presentation to include certain equity securities that are included in AFS or trading securities in the GAAP view, investment funds included in our funds withheld at interest and modco reinsurance portfolios and other investments.

12




Credit Quality of Securities
Unaudited (in millions, except percentages)
athene-logo_rgb.jpg
December 31, 2023 December 31, 2024
CREDIT QUALITY OF AFS SECURITIES (GAAP VIEW)
 Fair Value Percentage of Total Fair Value Percentage of Total
National Association of Insurance Commissioners (NAIC) designation
1 A-G $ 81,549  55.0  % $ 104,887  56.9  %
2 A-C 61,664  41.5  % 74,064  40.1  %
Total investment grade
 143,213  96.5  % 178,951  97.0  %
3 A-C 3,544  2.4  % 3,230  1.8  %
4 A-C 1,013  0.7  % 1,378  0.7  %
5 A-C 129  0.1  % 293  0.2  %
6 448  0.3  % 639  0.3  %
Total below investment grade
 5,134  3.5  % 5,540  3.0  %
Total AFS securities including related parties
 $ 148,347  100.0  % $ 184,491  100.0  %
Nationally Recognized Statistical Rating Organization (NRSRO) designation
AAA/AA/A $ 71,887  48.5  % $ 96,095  52.2  %
BBB 58,010  39.1  % 70,150  38.0  %
Non-rated1
11,427  7.7  % 11,300  6.1  %
Total investment grade 141,324  95.3  % 177,545  96.3  %
BB
 3,421  2.3  % 2,722  1.5  %
B
 826  0.6  % 972  0.5  %
CCC
 1,037  0.6  % 1,011  0.5  %
CC and lower
 739  0.5  % 791  0.4  %
Non-rated1
1,000  0.7  % 1,450  0.8  %
Total below investment grade
 7,023  4.7  % 6,946  3.7  %
Total AFS securities including related parties
 $ 148,347  100.0  % $ 184,491  100.0  %
1. Securities denoted as non-rated by the NRSRO were classified as investment or non-investment grade according to the security’s respective NAIC designation. With respect to modeled loan backed and structured securities (LBaSS), the NAIC designation methodology differs in significant respects from the NRSRO ratings methodology. The NRSRO ratings methodology is focused on the likelihood of recovery of all contractual payments, including principal at par regardless of entry price, while the NAIC designation methodology considers an investment at amortized cost, and the likelihood of recovery of that book value. We view the NAIC designation methodology as the most appropriate way to view our AFS portfolio when evaluating credit risk since a portion of our holdings were purchased at a significant discount to par.
13




Credit Quality of Net Invested Assets (Management view)
Unaudited (In millions, except percentages)
athene-logo_rgb.jpg
December 31, 2023 December 31, 2024 December 31, 2023 December 31, 2024
Invested Asset Value1
Percentage of Total
Invested Asset Value1
Percentage of Total
Invested Asset Value1
Percentage of Total
Invested Asset Value1
Percentage of Total
CREDIT QUALITY OF NET INVESTED ASSETS
CREDIT QUALITY OF NET INVESTED ASSETS
NAIC designation
NRSRO designation
1 A-G $ 79,503  53.9  % $ 93,116  55.4  % AAA/AA/A $ 67,768  45.9  % $ 83,176  49.5  %
2 A-C 61,775  41.9  % 68,559  40.8  % BBB 57,345  38.9  % 63,476  37.8  %
Non-rated 322  0.2  % —  —  %
Non-rated2
14,397  9.8  % 13,454  8.0  %
Total investment grade
 141,600  96.0  % 161,675  96.2  % Total investment grade 139,510  94.6  % 160,106  95.3  %
3 A-C 3,833  2.6  % 3,255  1.9  %
BB
 3,551  2.4  % 2,623  1.6  %
4 A-C 1,170  0.8  % 1,296  0.8  %
B
 915  0.6  % 892  0.5  %
5 A-C 357  0.2  % 522  0.3  %
CCC
 1,280  0.9  % 1,240  0.7  %
6 522  0.4  % 886  0.5  %
CC and lower
 940  0.6  % 998  0.6  %
Non-rated —  —  % 446  0.3  %
Non-rated2
1,286  0.9  % 2,221  1.3  %
Total below investment grade
 5,882  4.0  % 6,405  3.8  %
Total below investment grade
 7,972  5.4  % 7,974  4.7  %
Total NAIC designated assets3
147,482  100.0  % 168,080  100.0  %
Total NRSRO designated assets3
147,482  100.0  % 168,080  100.0  %
Assets without NAIC designation
Assets without NRSRO designation
Commercial mortgage loans
Commercial mortgage loans
CM1
 4,384  16.9  % 3,609  12.9  %
CM1
 4,384  16.9  % 3,609  12.9  %
CM2
 15,645  60.2  % 19,252  68.5  %
CM2
 15,645  60.2  % 19,252  68.5  %
CM3
 5,304  20.4  % 4,700  16.8  %
CM3
 5,304  20.4  % 4,700  16.8  %
CM4
 623  2.4  % 474  1.7  %
CM4
 623  2.4  % 474  1.7  %
CM5
 —  —  % —  —  %
CM5
 —  —  % —  —  %
CM6
 13  0.1  % 4  —  %
CM6
 13  0.1  % 4  —  %
CM7
 8  —  % 16  0.1  %
CM7
 8  —  % 16  0.1  %
Total CMLs
 25,977  100.0  % 28,055  100.0  %
Total CMLs
 25,977  100.0  % 28,055  100.0  %
Residential mortgage loans
Residential mortgage loans
In good standing
 17,503  97.1  % 27,122  97.4  %
In good standing
 17,503  97.1  % 27,122  97.4  %
90 days late
 407  2.3  % 521  1.9  %
90 days late
 407  2.3  % 521  1.9  %
In foreclosure
 111  0.6  % 205  0.7  %
In foreclosure
 111  0.6  % 205  0.7  %
Total RMLs
 18,021  100.0  % 27,848  100.0  %
Total RMLs
 18,021  100.0  % 27,848  100.0  %
Alternative investments
 11,659  12,000 
Alternative investments
 11,659  12,000 
Cash and equivalents 10,467  6,794  Cash and equivalents 10,467  6,794 
Equity securities
 1,727  2,201 
Equity securities
 1,727  2,201 
Other4
2,094  3,665 
Other4
2,094  3,665 
Net invested assets
 $ 217,427  $ 248,643 
Net invested assets
 $ 217,427  $ 248,643 
1. Please refer to the Notes to the Financial Supplement section for discussion on net invested assets and the Non-GAAP Measure Reconciliations section for the reconciliation of total investments, including related parties, to net invested assets. 2. Securities denoted as non-rated by the NRSRO were classified as investment or non-investment grade according to the security’s respective NAIC designation. With respect to modeled LBaSS, the NAIC designation methodology differs in significant respects from the NRSRO ratings methodology. 3. NAIC and NRSRO designations include corporate securities, CLO, RMBS, CMBS, ABS, state, municipal, political subdivisions and foreign government securities, short-term investments and US government and agency securities. 4. Other includes investments in company owned life insurance, accrued investment income, policy loans and other net invested assets.
14




Credit Quality of Net Invested Assets - ABS and CLOs (Management view)
Unaudited (In millions, except percentages)
athene-logo_rgb.jpg
December 31, 2023 December 31, 2024 December 31, 2023 December 31, 2024
Invested Asset Value1
Percentage of Total
Invested Asset Value1
Percentage of Total
Invested Asset Value1
Percentage of Total
Invested Asset Value1
Percentage of Total
CREDIT QUALITY OF ABS – NAIC DESIGNATION CREDIT QUALITY OF ABS – NRSRO DESIGNATION
1 A-G $ 13,700  61.7  % $ 19,537  68.1  % AAA/AA/A $ 12,117  54.6  % $ 19,307  67.3  %
2 A-C 7,227  32.6  % 8,134  28.4  % BBB 8,407  37.9  % 8,287  28.9  %
Non-rated —  —  % —  —  %
Non-rated2
403  1.8  % 140  0.5  %
Total investment grade 20,927  94.3  % 27,671  96.5  % Total investment grade 20,927  94.3  % 27,734  96.7  %
3 A-C 809  3.6  % 713  2.5  % BB 822  3.6  % 658  2.3  %
4 A-C 261  1.2  % 113  0.4  % B 248  1.1  % 104  0.4  %
5 A-C 125  0.5  % 120  0.4  % CCC 12  0.1  % 28  0.1  %
6 80  0.4  % 53  0.2  % CC and lower 35  0.2  % 34  0.1  %
Non-rated —  —  % —  —  %
Non-rated2
158  0.7  % 112  0.4  %
Total below investment grade 1,275  5.7  % 999  3.5  % Total below investment grade 1,275  5.7  % 936  3.3  %
ABS net invested assets $ 22,202  100.0  % $ 28,670  100.0  % ABS net invested assets $ 22,202  100.0  % $ 28,670  100.0  %
CREDIT QUALITY OF CLOs – NAIC DESIGNATION CREDIT QUALITY OF CLOs – NRSRO DESIGNATION
1 A-G $ 13,232  64.4  % $ 19,052  68.8  % AAA/AA/A $ 13,232  64.4  % $ 19,060  68.8  %
2 A-C 7,161  34.9  % 8,533  30.8  % BBB 7,161  34.9  % 8,525  30.8  %
Non-rated —  —  % —  —  %
Non-rated2
—  —  % —  —  %
Total investment grade 20,393  99.3  % 27,585  99.6  % Total investment grade 20,393  99.3  % 27,585  99.6  %
3 A-C 126  0.6  % 94  0.3  % BB 126  0.6  % 94  0.3  %
4 A-C 19  0.1  % 19  0.1  % B 19  0.1  % 19  0.1  %
5 A-C —  —  % —  —  % CCC —  —  % —  —  %
6 —  —  % —  —  % CC and lower —  —  % —  —  %
Non-rated —  —  % —  —  %
Non-rated2
—  —  % —  —  %
Total below investment grade 145  0.7  % 113  0.4  % Total below investment grade 145  0.7  % 113  0.4  %
CLO net invested assets $ 20,538  100.0  % $ 27,698  100.0  % CLO net invested assets $ 20,538  100.0  % $ 27,698  100.0  %
1. Please refer to the Notes to the Financial Supplement section for discussion on net invested assets and the Non-GAAP Measure Reconciliations section for the reconciliation of total investments, including related parties, to net invested assets. 2. Securities denoted as non-rated by the NRSRO were classified as investment or non-investment grade according to the security’s respective NAIC designation. With respect to modeled LBaSS, the NAIC designation methodology differs in significant respects from the NRSRO ratings methodology.
15




Credit Quality of Net Invested Assets - RMBS and CMBS (Management view)
Unaudited (In millions, except percentages)
athene-logo_rgb.jpg
December 31, 2023 December 31, 2024 December 31, 2023 December 31, 2024
Invested Asset Value1
Percentage of Total
Invested Asset Value1
Percentage of Total
Invested Asset Value1
Percentage of Total
Invested Asset Value1
Percentage of Total
CREDIT QUALITY OF RMBS – NAIC DESIGNATION CREDIT QUALITY OF RMBS – NRSRO DESIGNATION
1 A-G $ 6,714  86.1  % $ 6,333  82.9  % AAA/AA/A $ 2,344  30.1  % $ 2,283  29.9  %
2 A-C 262  3.4  % 535  7.0  % BBB 475  6.1  % 681  8.9  %
Non-rated —  —  % —  —  %
Non-rated2
2,324  29.8  % 2,342  30.7  %
Total investment grade 6,976  89.5  % 6,868  89.9  % Total investment grade 5,143  66.0  % 5,306  69.5  %
3 A-C 335  4.3  % 332  4.4  % BB 99  1.3  % 38  0.5  %
4 A-C 323  4.2  % 270  3.5  % B 128  1.6  % 123  1.6  %
5 A-C 89  1.1  % 102  1.4  % CCC 1,144  14.7  % 986  13.0  %
6 72  0.9  % 63  0.8  % CC and lower 835  10.7  % 752  9.8  %
Non-rated —  —  % —  —  %
Non-rated2
446  5.7  % 430  5.6  %
Total below investment grade 819  10.5  % 767  10.1  % Total below investment grade 2,652  34.0  % 2,329  30.5  %
RMBS net invested assets $ 7,795  100.0  % $ 7,635  100.0  % RMBS net invested assets $ 7,795  100.0  % $ 7,635  100.0  %
CREDIT QUALITY OF CMBS – NAIC DESIGNATION CREDIT QUALITY OF CMBS – NRSRO DESIGNATION
1 A-G $ 4,000  71.7  % $ 6,598  80.0  % AAA/AA/A $ 3,447  61.8  % $ 5,800  70.4  %
2 A-C 993  17.8  % 912  11.1  % BBB 962  17.2  % 946  11.5  %
Non-rated —  —  % —  —  %
Non-rated2
291  5.2  % 552  6.7  %
Total investment grade 4,993  89.5  % 7,510  91.1  % Total investment grade 4,700  84.2  % 7,298  88.6  %
3 A-C 293  5.3  % 293  3.6  % BB 550  9.9  % 390  4.7  %
4 A-C 151  2.7  % 155  1.9  % B 216  3.8  % 177  2.1  %
5 A-C 75  1.3  % 200  2.4  % CCC 89  1.6  % 173  2.1  %
6 68  1.2  % 85  1.0  % CC and lower 25  0.5  % 130  1.6  %
Non-rated —  —  % —  —  %
Non-rated2
—  —  % 75  0.9  %
Total below investment grade 587  10.5  % 733  8.9  % Total below investment grade 880  15.8  % 945  11.4  %
CMBS net invested assets $ 5,580  100.0  % $ 8,243  100.0  % CMBS net invested assets $ 5,580  100.0  % $ 8,243  100.0  %
1. Please refer to the Notes to the Financial Supplement section for discussion on net invested assets and the Non-GAAP Measure Reconciliations section for the reconciliation of total investments, including related parties, to net invested assets. 2. Securities denoted as non-rated by the NRSRO were classified as investment or non-investment grade according to the security’s respective NAIC designation. With respect to modeled LBaSS, the NAIC designation methodology differs in significant respects from the NRSRO ratings methodology.
16




Net Reserve Liabilities & Rollforwards
Unaudited (in millions, except percentages)
athene-logo_rgb.jpg
December 31, 2023 December 31, 2024
Dollars Percentage of Total Dollars Percentage of Total
NET RESERVE LIABILITIES
Indexed annuities $ 84,444  42.4  % $ 82,711  36.6  %
Fixed rate annuities
 53,282  26.7  % 62,705  27.8  %
Total deferred annuities 137,726  69.1  % 145,416  64.4  %
Pension group annuities 26,313  13.2  % 24,986  11.1  %
Payout annuities
 4,897  2.4  % 4,701  2.1  %
Funding agreements1
26,637  13.4  % 47,384  21.0  %
Life and other
 3,716  1.9  % 3,439  1.4  %
Total net reserve liabilities $ 199,289  100.0  % $ 225,926  100.0  %
Quarterly Trends Δ Year-to-Date Δ
4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 Q/Q Y/Y 2023 2024 Y/Y
NET RESERVE LIABILITY ROLLFORWARD
Net reserve liabilities – beginning $ 185,744  $ 199,289  $ 208,523  $ 211,548  $ 225,899  7  % 22  % $ 175,970  $ 199,289  13  %
Gross inflows2
20,167  20,408  16,979  20,301  14,465  (29) % (28) % 64,524  72,153  12  %
Acquisition and block reinsurance3
2,214  —  —  —  —  NM NM 2,214  —  NM
Inflows attributable to ACRA noncontrolling interests (6,025) (4,519) (4,907) (4,318) (4,418) 2  % (27) % (13,028) (18,162) 39  %
Inflows ceded to third-party reinsurers4
—  (1,083) (1,047) (1,083) (921) (15) % NM —  (4,134) NM
Net inflows 16,356  14,806  11,025  14,900  9,126  (39) % (44) % 53,710  49,857  (7) %
Net withdrawals
 (5,791) (6,748) (8,627) (6,176) (5,697) (8) % (2) % (26,040) (27,248) 5  %
Strategic reinsurance outflows5
—  —  —  —  —  NM NM (2,723) —  NM
ACRA ownership changes6
(3,239) —  —  —  (1,774) NM 45  % (10,262) (1,774) 83  %
Other reserve changes
 6,219  1,176  627  5,627  (1,628) NM NM 8,634  5,802  (33) %
Net reserve liabilities – ending
 $ 199,289  $ 208,523  $ 211,548  $ 225,899  $ 225,926  —  % 13  % $ 199,289  $ 225,926  13  %
ACRA NONCONTROLLING INTERESTS RESERVE LIABILITY ROLLFORWARD
Reserve liabilities – beginning $ 46,576  $ 56,651  $ 60,142  $ 63,810  $ 68,092  7  % 46  % $ 35,981  $ 56,651  57  %
Inflows 6,025  4,519  4,907  4,318  4,418  2  % (27) % 13,028  18,162  39  %
Withdrawals
 (1,325) (1,287) (1,513) (1,982) (1,439) (27) % 9  % (5,105) (6,221) 22  %
ACRA ownership changes6
3,239  —  —  —  1,774  NM (45) % 10,262  1,774  (83) %
Other reserve changes
 2,136  259  274  1,946  (681) NM NM 2,485  1,798  (28) %
Reserve liabilities – ending
 $ 56,651  $ 60,142  $ 63,810  $ 68,092  $ 72,164  6  % 27  % $ 56,651  $ 72,164  27  %
Note: Please refer to the Notes to the Financial Supplement section for discussion on net reserve liabilities and the Non-GAAP Measure Reconciliations section for the reconciliation of total liabilities to net reserve liabilities. Net reserve liabilities include our economic ownership of ACRA reserve liabilities but do not include the reserve liabilities associated with the noncontrolling interests. 1. Funding agreements are comprised of funding agreements issued under our FABN program, secured and other funding agreements, funding agreements issued to the FHLB and long-term repurchase agreements. 2. Gross inflows equal inflows from our retail, flow reinsurance and institutional channels as well as inflows for life and products other than deferred annuities or our institutional products, renewal inflows, annuitizations and foreign currency translation adjustments on large transactions between the transaction date and the translation period. Gross inflows include all inflows sourced by Athene, including all of the inflows reinsured to ACRA and third-party reinsurers. 3. Acquisition and block reinsurance transactions include the reserve liabilities acquired in our inorganic channel at inception. On November 6, 2023, we entered into an agreement with a Japanese counterparty, effective October 1, 2023, pursuant to which we agreed to reinsure a block of whole life insurance policies on a coinsurance basis. In conjunction with the transaction, we entered into an agreement with a leading mortality reinsurer to retrocede the mortality risk related to this block of business. 4. During the first quarter of 2024, we entered into a modco reinsurance agreement with Catalina to cede a quota share of our retail deferred annuity business issued on or after January 1, 2024. 5. Strategic reinsurance outflows include the portion of the reinsurance business recaptured by VIAC in 3Q’23. 6. Effective July 1, 2023, ALRe sold 50% of ACRA 2’s economic interests to ADIP II. Subsequent to the initial buy-in, ADIP II increased its economic ownership interests in ACRA 2 to 60% effective December 31, 2023 and 63% effective October 1, 2024.

17




Deferred Annuity Liability Characteristics
Unaudited (in millions, except percentages)
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Base surrender charge Percentage of total Surrender charge (net of MVA) Percentage of total
SURRENDER CHARGE PERCENTAGES ON DEFERRED ANNUITIES NET ACCOUNT VALUE
No Surrender Charge
 $ 25,610  18.5  % $ 25,610  18.5  %
0.0% < 2.0%
 6,089  4.4  % 2,815  2.0  %
2.0% < 4.0%
 6,612  4.8  % 6,391  4.6  %
4.0% < 6.0%
 13,066  9.4  % 9,668  7.0  %
6.0% or greater 87,152  62.9  % 94,045  67.9  %
$ 138,529  100.0  % $ 138,529  100.0  %
Base surrender charge MVA charge (benefit) Surrender charge (net of MVA)
Aggregate surrender charge protection
 5.8  % 1.8  % 7.6  %

Deferred annuities Percentage of total Average base surrender charge
YEARS OF SURRENDER CHARGE REMAINING ON DEFERRED ANNUITIES NET ACCOUNT VALUE
No Surrender Charge
 $ 25,610  18.5  % —  %
Less than 2
 21,800  15.7  % 5.6  %
2 to less than 4
 38,352  27.7  % 6.3  %
4 to less than 6
 25,431  18.4  % 7.3  %
6 to less than 8
 13,217  9.5  % 8.7  %
8 to less than 10
 11,712  8.5  % 8.7  %
10 or greater
 2,407  1.7  % 14.0  %
$ 138,529  100.0  %



18




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

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

•Investment Gains (Losses), Net of Offsets—Consists of the realized gains and losses on the sale of AFS securities and mortgage loans, the change in fair value of reinsurance assets, unrealized gains and losses, changes in the provision for credit losses and other investment gains and losses. Unrealized, allowances and other investment gains and losses are comprised of the fair value adjustments of trading securities (other than certain equity tranche securities) and mortgage loans, investments held under the fair value option, derivative gains and losses not hedging FIA index credits, all foreign exchange impacts and the change in provision for credit losses recognized in operations net of the change in AmerUs Closed Block fair value reserve related to the corresponding change in fair value of investments. Investment gains and losses are net of offsets related to the market value adjustments (MVA) associated with surrenders or terminations of contracts.
•Non-operating Change in Insurance Liabilities and Related Derivatives
•Change in Fair Values of Derivatives and Embedded Derivatives – FIAs—Consists of impacts related to the fair value accounting for derivatives hedging the FIA index credits and the related embedded derivative liability fluctuations from period to period. The index reserve is measured at fair value for the current period and all periods beyond the current policyholder index term. However, the FIA hedging derivatives are purchased to hedge only the current index period. Upon policyholder renewal at the end of the period, new FIA hedging derivatives are purchased to align with the new term. The difference in duration between the FIA hedging derivatives and the index credit reserves creates a timing difference in earnings. This timing difference of the FIA hedging derivatives and index credit reserves is included as a non-operating adjustment. We primarily hedge with options that align with the index terms of our FIA products (typically 1–2 years). On an economic basis, we believe this is suitable because policyholder accounts are credited with index performance at the end of each index term. However, because the term of an embedded derivative in an FIA contract is longer-dated, there is a duration mismatch which may lead to mismatches for accounting purposes.
•Non-operating Change in Funding Agreements—Consists of timing differences caused by changes to interest rates on variable funding agreements and funding agreement backed notes and the associated reserve accretion patterns of those contracts. Further included are adjustments for gains associated with our repurchases of funding agreement backed notes.
•Change in Fair Value of Market Risk Benefits—Consists primarily of volatility in capital market inputs used in the measurement at fair value of our market risk benefits, including certain impacts from changes in interest rates, equity returns and implied equity volatilities.
•Non-operating Change in Liability for Future Policy Benefits—Consists of the non-economic loss incurred at issuance for certain pension group annuities and other payout annuities with life contingencies when valuation interest rates prescribed by US GAAP are lower than the net investment earned rates, adjusted for profit, assumed in pricing. For such contracts with non-economic US GAAP losses, the SRE reserve accretes interest using an imputed discount rate that produces zero gain or loss at issuance.
•Integration, Restructuring, and Other Non-operating Expenses—Consists of restructuring and integration expenses related to acquisitions and block reinsurance costs as well as certain other expenses, which are not predictable or related to our underlying profitability drivers.
•Stock Compensation Expense—Consists of stock compensation expenses associated with our share incentive plans, including long-term incentive expenses, which are not related to our underlying profitability drivers and fluctuate from time to time due to the structure of our plans.
•Income Tax (Expense) Benefit—Consists of the income tax effect of all income statement adjustments and is computed by applying the appropriate jurisdiction’s tax rate to all adjustments subject to income tax.
We consider these adjustments to be meaningful adjustments to net income (loss) available to AHL common stockholder for the reasons discussed in greater detail above. Accordingly, we believe using a measure which excludes the impact of these items is useful in analyzing our business performance and the trends in our results of operations. Together with net income (loss) available to AHL common stockholder, we believe spread related earnings provides a meaningful financial metric that helps investors understand our underlying results and profitability. Spread related earnings should not be used as a substitute for net income (loss) available to AHL common stockholder.

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

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



19




Notes to the Financial Supplement, continued
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NET INVESTMENT SPREAD
Net investment spread is a key measure of profitability used in analyzing the trends of our core business operations. Net investment spread measures our investment performance plus our strategic capital management fees, less our total cost of funds. Net investment earned rate is a key measure of our investment performance while cost of funds is a key measure of the cost of our policyholder benefits and liabilities. Strategic capital management fees consist of management fees received by us for business managed for others.
•Net investment earned rate is a non-GAAP measure we use to evaluate the performance of our net invested assets. Net investment earned rate is computed as the income from our net invested assets divided by the average net invested assets, for the relevant period. To enhance the ability to analyze these measures across periods, interim periods are annualized. The primary adjustments to net investment income to arrive at our net investment earnings are (a) net VIE impacts (revenues, expenses and noncontrolling interests), (b) forward points gains and losses on foreign exchange derivative hedges, (c) amortization of premium/discount on held-for-trading securities, (d) the change in fair value of reinsurance assets, (e) an adjustment to the change in net asset value of our ADIP investments to recognize our proportionate share of spread related earnings based on our ownership in the investment funds and (f) the removal of the proportionate share of the ACRA net investment income associated with the noncontrolling interests. We include the income and assets supporting our change in fair value of reinsurance assets by evaluating the underlying investments of the funds withheld at interest receivables and we include the net investment income from those underlying investments which does not correspond to the US GAAP presentation of change in fair value of reinsurance assets. We exclude the income and assets on business related to ceded reinsurance transactions. We believe the adjustments for reinsurance provide a net investment earned rate on the assets for which we have economic exposure. We believe a measure like net investment earned rate is useful in analyzing the trends of our core business operations, profitability and pricing discipline. While we believe net investment earned rate is a meaningful financial metric and enhances our understanding of the underlying profitability drivers of our business, it should not be used as a substitute for net investment income presented under US GAAP.
•Cost of funds includes liability costs related to cost of crediting on both deferred annuities and institutional products as well as other liability costs, but does not include the proportionate share of the ACRA cost of funds associated with the noncontrolling interests. Cost of crediting on deferred annuities is the interest credited to the policyholders on our fixed strategies as well as the option costs on the indexed annuity strategies. With respect to FIAs, the cost of providing index credits includes the expenses incurred to fund the annual index credits, and where applicable, minimum guaranteed interest credited. Cost of crediting on institutional products is comprised of (1) pension group annuity costs, including interest credited, benefit payments and other reserve changes, net of premiums received when issued, and (2) funding agreement costs, including the interest payments and other reserve changes. Additionally, cost of crediting includes forward points gains and losses on foreign exchange derivative hedges. Other liability costs include DAC, DSI and VOBA amortization, certain market risk benefit costs, the cost of liabilities on products other than deferred annuities and institutional products, premiums and certain product charges and other revenues. We include the costs related to business added through assumed reinsurance transactions and exclude the costs on business related to ceded reinsurance transactions. Cost of funds is computed as the total liability costs divided by the average net invested assets for the relevant period. To enhance the ability to analyze these measures across periods, interim periods are annualized. We believe a measure like cost of funds is useful in analyzing the trends of our core business operations, profitability and pricing discipline. While we believe cost of funds is a meaningful financial metric and enhances our understanding of the underlying profitability drivers of our business, it should not be used as a substitute for total benefits and expenses presented under US GAAP.

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

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

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



20




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

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

SALES
Sales statistics do not correspond to revenues under US GAAP but are used as relevant measures to understand our business performance as it relates to inflows generated during a specific period of time. Our sales statistics include inflows for fixed rate annuities and FIAs and align with the LIMRA definition of all money paid into an individual annuity, including money paid into new contracts with initial purchase occurring in the specified period and existing contracts with initial purchase occurring prior to the specified period (excluding internal transfers). We believe sales is a meaningful metric that enhances our understanding of our business performance and is not the same as premiums presented in our consolidated statements of income (loss).
21




Non-GAAP Reconciliations
Unaudited (in millions, except percentages)
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Quarterly Trends
4Q’23 1Q’24 2Q’24 3Q’24 4Q’24
RECONCILIATION OF TOTAL AHL STOCKHOLDERS’ EQUITY TO TOTAL ADJUSTED AHL COMMON STOCKHOLDER’S EQUITY
Total AHL stockholders’ equity $ 13,838  $ 14,760  $ 14,998  $ 17,445  $ 16,360 
Less: Preferred stock 3,154  3,154  3,154  3,154  3,154 
Total AHL common stockholder’s equity 10,684  11,606  11,844  14,291  13,206 
Less: Accumulated other comprehensive loss (5,569) (5,628) (5,809) (3,467) (5,465)
Less: Accumulated change in fair value of reinsurance assets (1,882) (1,880) (1,787) (1,416) (1,591)
Less: Accumulated change in fair value of mortgage loan assets (2,233) (2,426) (2,370) (1,733) (2,051)
Total adjusted AHL common stockholder’s equity $ 20,368  $ 21,540  $ 21,810  $ 20,907  $ 22,313 
RECONCILIATION OF LEVERAGE RATIO TO ADJUSTED LEVERAGE RATIO
Total debt $ 4,209  $ 5,740  $ 5,733  $ 5,725  $ 6,309 
Add: 50% of preferred stock 1,577  1,577  1,577  1,577  1,577 
Less: 50% of subordinated debt —  288  288  288  588 
Less: Adjustment to arrive at notional debt 209  165  158  150  134 
Adjusted leverage $ 5,577  $ 6,864  $ 6,864  $ 6,864  $ 7,164 
Total debt $ 4,209  $ 5,740  $ 5,733  $ 5,725  $ 6,309 
Total AHL stockholders’ equity 13,838  14,760  14,998  17,445  16,360 
Total capitalization 18,047  20,500  20,731  23,170  22,669 
Less: Accumulated other comprehensive loss (5,569) (5,628) (5,809) (3,467) (5,465)
Less: Accumulated change in fair value of reinsurance assets (1,882) (1,880) (1,787) (1,416) (1,591)
Less: Accumulated change in fair value of mortgage loan assets (2,233) (2,426) (2,370) (1,733) (2,051)
Less: Adjustment to arrive at notional debt 209  165  158  150  134 
Total adjusted capitalization $ 27,522  $ 30,269  $ 30,539  $ 29,636  $ 31,642 
Leverage ratio 40.8  % 43.4  % 42.9  % 38.3  % 41.7  %
Accumulated other comprehensive loss (8.2) % (8.0) % (8.0) % (4.4) % (7.1) %
Accumulated change in fair value of reinsurance assets (2.8) % (2.7) % (2.5) % (1.8) % (2.1) %
Accumulated change in fair value of mortgage loan assets (3.3) % (3.5) % (3.3) % (2.2) % (2.7) %
Adjustment to exclude 50% of preferred stock (5.6) % (5.2) % (5.2) % (5.3) % (5.0) %
Adjustment to exclude 50% of subordinated debt —  % (0.9) % (1.0) % (1.0) % (1.9) %
Adjustment to arrive at notional debt (0.6) % (0.4) % (0.4) % (0.4) % (0.3) %
Adjusted leverage ratio 20.3  % 22.7  % 22.5  % 23.2  % 22.6  %



22




Non-GAAP Reconciliations, continued
Unaudited (in millions, except percentages)
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Quarterly Trends Year-to-Date
4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 2023 2024
RECONCILIATION OF NET INCOME AVAILABLE TO ATHENE HOLDING LTD. COMMON STOCKHOLDER TO SPREAD RELATED EARNINGS, EXCLUDING NOTABLE ITEMS
Net income available to Athene Holding Ltd. common stockholder $ 2,925  $ 1,147  $ 583  $ 580  $ 970  $ 4,484  $ 3,280 
Preferred stock dividends 45  45  46  45  45  181  181 
Net income attributable to noncontrolling interests 733  283  237  859  64  1,087  1,443 
Net income 3,703  1,475  866  1,484  1,079  5,752  4,904 
Income tax expense (benefit) (1,619) 307  161  191  71  (1,161) 730 
Income before income taxes 2,084  1,782  1,027  1,675  1,150  4,591  5,634 
Less: Total adjustments to income before income taxes 1,335  966  315  820  312  1,484  2,413 
Spread related earnings 749  816  712  855  838  3,107  3,221 
Notable items —  —  —  (25) —  (115) (25)
Spread related earnings, excluding notable items $ 749  $ 816  $ 712  $ 830  $ 838  $ 2,992  $ 3,196 
RECONCILIATION OF NET INVESTMENT INCOME TO NET INVESTMENT EARNINGS
US GAAP net investment income $ 3,078  $ 3,292  $ 3,509  $ 3,777  $ 3,903  $ 11,130  $ 14,481 
Change in fair value of reinsurance assets 21  (10) (37) (11) (71) 86  (129)
VIE earnings and noncontrolling interests 335  311  257  362  380  1,078  1,310 
Forward points adjustment on FX derivative hedges 33  51  32  30  20  187  133 
Held-for-trading amortization (45) (35) (8) (30) (35) (191) (108)
Reinsurance impacts (65) (64) (55) (54) (50) (264) (223)
ACRA noncontrolling interests (749) (868) (921) (1,011) (1,064) (2,377) (3,864)
Other (76) 44  26  (20) 100  (41) 150 
Total adjustments to arrive at net investment earnings
 (546) (571) (706) (734) (720) (1,522) (2,731)
Total net investment earnings
 $ 2,532  $ 2,721  $ 2,803  $ 3,043  $ 3,183  $ 9,608  $ 11,750 
RECONCILIATION OF NET INVESTMENT INCOME RATE TO NET INVESTMENT EARNED RATE
US GAAP net investment income 5.79  % 5.92  % 6.10  % 6.35  % 6.38  % 5.34  % 6.19  %
Change in fair value of reinsurance assets 0.04  % (0.02) % (0.06) % (0.02) % (0.11) % 0.04  % (0.05) %
VIE earnings and noncontrolling interests 0.63  % 0.56  % 0.45  % 0.61  % 0.62  % 0.52  % 0.56  %
Forward points adjustment on FX derivative hedges 0.06  % 0.09  % 0.05  % 0.05  % 0.03  % 0.09  % 0.06  %
Held-for-trading amortization (0.09) % (0.06) % (0.01) % (0.05) % (0.06) % (0.09) % (0.05) %
Reinsurance impacts (0.12) % (0.12) % (0.10) % (0.09) % (0.08) % (0.13) % (0.09) %
ACRA noncontrolling interests (1.41) % (1.56) % (1.60) % (1.70) % (1.74) % (1.14) % (1.65) %
Other (0.14) % 0.08  % 0.04  % (0.03) % 0.16  % (0.02) % 0.06  %
Total adjustments to arrive at net investment earned rate
 (1.03) % (1.03) % (1.23) % (1.23) % (1.18) % (0.73) % (1.16) %
Net investment earned rate 4.76  % 4.89  % 4.87  % 5.12  % 5.20  % 4.61  % 5.03  %
Average net invested assets $ 212,761  $ 222,391  $ 230,156  $ 237,810  $ 244,796  $ 208,479  $ 233,809 
23




Non-GAAP Reconciliations, continued
Unaudited (in millions, except percentages)
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Quarterly Trends Year-to-Date
4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 2023 2024
RECONCILIATION OF BENEFITS AND EXPENSES TO COST OF FUNDS
US GAAP benefits and expenses $ 7,928  $ 3,939  $ 3,637  $ 4,847  $ 2,632  $ 23,603  $ 15,055 
Premiums (3,586) (101) (673) (389) (155) (12,749) (1,318)
Product charges (226) (238) (251) (267) (260) (848) (1,016)
Other revenues (7) (2) (3) (4) (10) (150) (19)
FIA option costs 388  392  402  410  413  1,512  1,617 
Reinsurance impacts (39) (42) (31) (47) (37) (155) (157)
Non-operating change in insurance liabilities and embedded derivatives (1,913) (1,339) (374) (1,252) 318  (2,930) (2,647)
Policy and other operating expenses, excluding policy acquisition expenses (373) (341) (393) (573) (453) (1,341) (1,760)
Forward points adjustment on FX derivative hedges 58  70  70  77  76  141  293 
AmerUs Closed Block fair value liability (85) 15  13  (55) 52  (58) 25 
ACRA noncontrolling interests (610) (692) (577) (833) (522) (1,587) (2,624)
Other 59  62  60  69  62  212  253 
Total adjustments to arrive at cost of funds (6,334) (2,216) (1,757) (2,864) (516) (17,953) (7,353)
Total cost of funds $ 1,594  $ 1,723  $ 1,880  $ 1,983  $ 2,116  $ 5,650  $ 7,702 
RECONCILIATION OF TOTAL BENEFITS AND EXPENSES RATE TO COST OF FUNDS RATE
US GAAP benefits and expenses 14.90  % 7.08  % 6.32  % 8.15  % 4.30  % 11.32  % 6.44  %
Premiums (6.74) % (0.18) % (1.17) % (0.65) % (0.25) % (6.12) % (0.56) %
Product charges (0.42) % (0.43) % (0.44) % (0.45) % (0.42) % (0.41) % (0.44) %
Other revenues (0.01) % —  % (0.01) % (0.01) % (0.02) % (0.07) % (0.01) %
FIA option costs 0.73  % 0.70  % 0.70  % 0.69  % 0.67  % 0.73  % 0.69  %
Reinsurance impacts (0.07) % (0.08) % (0.05) % (0.08) % (0.06) % (0.07) % (0.07) %
Non-operating change in insurance liabilities and embedded derivatives (3.60) % (2.41) % (0.65) % (2.11) % 0.52  % (1.41) % (1.13) %
Policy and other operating expenses, excluding policy acquisition expenses (0.70) % (0.61) % (0.68) % (0.96) % (0.74) % (0.64) % (0.75) %
Forward points adjustment on FX derivative hedges 0.11  % 0.13  % 0.12  % 0.13  % 0.12  % 0.07  % 0.12  %
AmerUs Closed Block fair value liability (0.16) % 0.03  % 0.02  % (0.09) % 0.09  % (0.03) % 0.01  %
ACRA noncontrolling interests (1.15) % (1.24) % (1.00) % (1.40) % (0.85) % (0.76) % (1.12) %
Other 0.11  % 0.11  % 0.11  % 0.12  % 0.10  % 0.10  % 0.11  %
Total adjustments to arrive at cost of funds (11.90) % (3.98) % (3.05) % (4.81) % (0.84) % (8.61) % (3.15) %
Total cost of funds 3.00  % 3.10  % 3.27  % 3.34  % 3.46  % 2.71  % 3.29  %
Average net invested assets $ 212,761  $ 222,391  $ 230,156  $ 237,810  $ 244,796  $ 208,479  $ 233,809 
24




Non-GAAP Reconciliations, continued
Unaudited (in millions)
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Quarterly Trends Year-to-Date
4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 2023 2024
RECONCILIATION OF POLICY AND OTHER OPERATING EXPENSES TO OTHER OPERATING EXPENSES
US GAAP policy and other operating expenses $ 489  $ 459  $ 507  $ 687  $ 560  $ 1,848  $ 2,213 
Interest expense (99) (102) (129) (142) (179) (459) (552)
Policy acquisition expenses, net of deferrals (116) (118) (114) (114) (107) (507) (453)
Integration, restructuring and other non-operating expenses (32) (30) (31) (204) 26  (130) (239)
Stock compensation expenses (46) (13) (11) (12) (14) (88) (50)
ACRA noncontrolling interests (65) (70) (95) (88) (153) (143) (406)
Other (11) (10) (11) (13) (12) (34) (46)
Total adjustments to arrive at other operating expenses (369) (343) (391) (573) (439) (1,361) (1,746)
Other operating expenses $ 120  $ 116  $ 116  $ 114  $ 121  $ 487  $ 467 
December 31, 2023 December 31, 2024
RECONCILIATION OF INVESTMENT FUNDS, INCLUDING RELATED PARTIES AND CONSOLIDATED VIES, TO NET ALTERNATIVE INVESTMENTS
Investment funds, including related parties and consolidated VIEs $ 17,668  $ 19,725 
Equity securities 430  — 
Certain equity securities included in AFS or trading securities 201  34 
Investment funds within funds withheld at interest 827  900 
Royalties 14  7 
Net assets of the VIE, excluding investment funds (4,508) (4,850)
Unrealized (gains) losses 26  92 
ACRA noncontrolling interests (2,829) (3,731)
Other assets (170) (177)
Total adjustments to arrive at net alternative investments
 (6,009) (7,725)
Net alternative investments
 $ 11,659  $ 12,000 
    










25




Non-GAAP Reconciliations, continued
Unaudited (in millions)
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Quarterly Trends
4Q’23 1Q’24 2Q’24 3Q’24 4Q’24
RECONCILIATION OF TOTAL INVESTMENTS, INCLUDING RELATED PARTIES, TO NET INVESTED ASSETS
Total investments, including related parties $ 238,941  $ 254,239  $ 265,044  $ 286,102  $ 291,491 
Derivative assets (5,298) (7,159) (7,488) (7,529) (8,154)
Cash and cash equivalents (including restricted cash) 14,781  16,825  14,097  14,551  13,676 
Accrued investment income 1,933  2,332  2,507  2,695  2,816 
Net receivable (payable) for collateral on derivatives (2,835) (4,293) (4,258) (4,194) (4,602)
Reinsurance impacts (572) (1,358) (2,132) (4,284) (4,435)
VIE and VOE assets, liabilities and noncontrolling interests 14,818  14,979  15,339  15,697  17,289 
Unrealized (gains) losses 16,445  17,809  18,869  11,674  18,320 
Ceded policy loans (174) (171) (170) (167) (167)
Net investment receivables (payables) 11  (950) (252) (291) 97 
Allowance for credit losses 608  615  682  689  720 
Other investments (41) (31) (23) (11) (87)
Total adjustments to arrive at gross invested assets
 39,676  38,598  37,171  28,830  35,473 
Gross invested assets
 278,617  292,837  302,215  314,932  326,964 
ACRA noncontrolling interests (61,190) (65,482) (69,258) (72,269) (78,321)
Net invested assets
 $ 217,427  $ 227,355  $ 232,957  $ 242,663  $ 248,643 
RECONCILIATION OF TOTAL LIABILITIES TO NET RESERVE LIABILITIES
Total liabilities $ 279,344  $ 297,423  $ 308,295  $ 327,855  $ 337,469 
Debt (4,209) (5,740) (5,733) (5,725) (6,309)
Derivative liabilities (1,995) (2,429) (3,212) (2,758) (3,556)
Payables for collateral on derivatives and short-term securities to repurchase (4,370) (5,481) (7,210) (5,286) (8,988)
Other liabilities (2,590) (4,195) (4,839) (7,058) (6,546)
Liabilities of consolidated VIEs (1,115) (1,082) (1,526) (1,363) (1,640)
Reinsurance impacts (8,574) (9,277) (9,876) (11,196) (11,861)
Ceded policy loans (174) (171) (170) (167) (167)
Market risk benefit asset (377) (383) (371) (311) (312)
ACRA noncontrolling interests (56,651) (60,142) (63,810) (68,092) (72,164)
Total adjustments to arrive at net reserve liabilities
 (80,055) (88,900) (96,747) (101,956) (111,543)
Net reserve liabilities
 $ 199,289  $ 208,523  $ 211,548  $ 225,899  $ 225,926 
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