Overview

Athene is a leading retirement services company that specializes in issuing and reinsuring retirement savings products. As of March 31, 2024, Athene had $320.6 billion in total assets.

For the first quarter of 2024, Athene generated a net investment spread of 1.83%. This measures Athene’s investment income plus fees earned from managing assets for others, less Athene’s cost of funds to support its products and meet policyholder obligations.

Financial Results

In the first quarter of 2024, Athene grew its total investments to $275.4 billion, up from $259.3 billion at year-end 2023. This growth was fueled by strong sales and customer deposits into Athene’s retirement products.

Athene reported $5.7 billion in total first quarter revenues, up 41% from $4.1 billion in the first quarter of 2023. Net income rose to $1.5 billion, up 20% from $1.2 billion in the year ago quarter.

The revenue increase was driven by higher net investment income from portfolio growth and rising interest rates. Additional gains came from favorable equity market performance which impacted results from Athene’s indexed annuity products.

Business Growth

Athene generated organic inflows of $20.1 billion in the quarter from strong sales across its distribution channels:

• Retail - Record sales of fixed indexed annuities and growth from bank, broker-dealer and independent agent channels
• Flow Reinsurance - Addition of new partners in the US and Japan
• Institutional - Issuance of funding agreements and group pensions

Athene maintains disciplined underwriting standards and focuses on products and channels delivering targeted returns.

With over $9 billion in capital available, Athene is well-positioned to continue growing while maintaining its strong financial position.

Industry Trends

• Demographics point to increasing demand for retirement savings products over the next decades due to rising life expectancy and inadequate savings rates. Athene’s products are competitively positioned to meet this demand.

• Rising interest rates make Athene’s products more attractive to consumers compared to periods of low rates. However, a declining rate environment can pressure investment spreads over time.

• The US annuity market grew 23% in 2023. Athene maintained its #1 position in fixed annuity sales and a top 3 position in fixed indexed annuity sales.

Investment Portfolio

Athene’s $275 billion investment portfolio is focused on high quality fixed income assets like corporate bonds, structured securities, mortgage loans and opportunistic allocations to yield investments.

The portfolio is managed by Apollo, Athene’s external investment manager, which provides investment management, asset allocation and other services. As of March 31, 2024, 94% of Athene’s available-for-sale securities were rated investment grade.

Athene’s investment in related parties, including funds managed by Apollo, was $44.7 billion or 13.9% of total assets. These are primarily structured securities, mortgage loans, and strategic investments where Apollo is investment manager but the underlying risk is unaffiliated.