Athene Holding Ltd
For the period ended Sep 30, 2024. Filed Nov 6, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 6, 2024
ATHS$23.15-1.5%Stored close · as of Nov 10, 2026
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Non-GAAP Measure Reconciliations
The reconciliation of net income available to Athene Holding Ltd. common stockholder to spread related earnings is as follows:
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| (In millions) | 2024 | 2023 | 2024 | 2023 |
| Net income available to Athene Holding Ltd. common stockholder | $580 | $442 | $2,310 | $1,559 |
| Preferred stock dividends | 45 | 44 | 136 | 136 |
| Net income (loss) attributable to noncontrolling interests | 859 | (155) | 1,379 | 354 |
| Net income | 1,484 | 331 | 3,825 | 2,049 |
| Income tax expense | 191 | 162 | 659 | 458 |
| Income before income taxes | 1,675 | 493 | 4,484 | 2,507 |
| Investment gains (losses), net of offsets | 628 | (663) | 482 | (829) |
| Non-operating change in insurance liabilities and related derivatives | (513) | 431 | 363 | 600 |
| Integration, restructuring and other non-operating expenses | (204) | (41) | (265) | (98) |
| Stock compensation expense | (12) | (13) | (36) | (42) |
| Preferred stock dividends | 45 | 44 | 136 | 136 |
| Noncontrolling interests – pre-tax income (loss) and VIE adjustments | 876 | (137) | 1,421 | 382 |
| Less: Total adjustments to income before income taxes | 820 | (379) | 2,101 | 149 |
| Spread related earnings | $855 | $872 | $2,383 | $2,358 |
The reconciliation of total AHL stockholders’ equity to total adjusted AHL common stockholder’s equity is as follows:
| (In millions) | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total AHL stockholders’ equity | $17,445 | $13,838 |
| Less: Preferred stock | 3,154 | 3,154 |
| Total AHL common stockholder’s equity | 14,291 | 10,684 |
| Less: Accumulated other comprehensive loss | (3,467) | (5,569) |
| Less: Accumulated change in fair value of reinsurance assets | (1,416) | (1,882) |
| Less: Accumulated change in fair value of mortgage loan assets | (1,733) | (2,233) |
| Total adjusted AHL common stockholder’s equity | $20,907 | $20,368 |
The reconciliation of debt-to-capital ratio to adjusted senior debt-to-capital ratio is as follows:
| (In millions, except percentages) | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total debt | $5,725 | $4,209 |
| Less: Subordinated debt | 575 | — |
| Less: Adjustment to arrive at notional debt | 150 | 209 |
| Notional senior debt | $5,000 | $4,000 |
| Total debt | $5,725 | $4,209 |
| Total AHL stockholders’ equity | 17,445 | 13,838 |
| Total capitalization | 23,170 | 18,047 |
| Less: Accumulated other comprehensive loss | (3,467) | (5,569) |
| Less: Accumulated change in fair value of reinsurance assets | (1,416) | (1,882) |
| Less: Accumulated change in fair value of mortgage loan assets | (1,733) | (2,233) |
| Less: Adjustment to arrive at notional debt | 150 | 209 |
| Total adjusted capitalization | $29,636 | $27,522 |
| Debt-to-capital ratio | 24.7% | 23.3% |
| Accumulated other comprehensive loss | (2.9)% | (4.7)% |
| Accumulated change in fair value of reinsurance assets | (1.2)% | (1.6)% |
| Accumulated change in fair value of mortgage loan assets | (1.4)% | (1.9)% |
| Adjustment to exclude subordinated debt | (1.9)% | —% |
| Adjustment to arrive at notional debt | (0.4)% | (0.6)% |
| Adjusted senior debt-to-capital ratio | 16.9% | 14.5% |
The reconciliation of leverage ratio to adjusted leverage ratio is as follows:
| (In millions, except percentages) | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total debt | $5,725 | $4,209 |
| Add: 50% of preferred stock | 1,577 | 1,577 |
| Less: 50% of subordinated debt | 288 | — |
| Less: Adjustment to arrive at notional debt | 150 | 209 |
| Adjusted leverage | $6,864 | $5,577 |
| Total debt | $5,725 | $4,209 |
| Total AHL stockholders’ equity | 17,445 | 13,838 |
| Total capitalization | 23,170 | 18,047 |
| Less: Accumulated other comprehensive loss | (3,467) | (5,569) |
| Less: Accumulated change in fair value of reinsurance assets | (1,416) | (1,882) |
| Less: Accumulated change in fair value of mortgage loan assets | (1,733) | (2,233) |
| Less: Adjustment to arrive at notional debt | 150 | 209 |
| Total adjusted capitalization | $29,636 | $27,522 |
| Leverage ratio | 38.3% | 40.8% |
| Accumulated other comprehensive loss | (4.4)% | (8.2)% |
| Accumulated change in fair value of reinsurance assets | (1.8)% | (2.8)% |
| Accumulated change in fair value of mortgage loan assets | (2.2)% | (3.3)% |
| Adjustment to exclude 50% of preferred stock | (5.3)% | (5.6)% |
| Adjustment to exclude 50% of subordinated debt | (1.0)% | —% |
| Adjustment to arrive at notional debt | (0.4)% | (0.6)% |
| Adjusted leverage ratio | 23.2% | 20.3% |
The reconciliation of net investment income to net investment earnings and earned rate is as follows:
| Three months ended September 30, · Nine months ended September 30, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||
| (In millions, except percentages) | Dollar | Rate | Dollar | Rate | Dollar | Rate | Dollar | Rate |
| US GAAP net investment income | $3,777 | 6.35% | $2,928 | 5.65% | $10,578 | 6.13% | $8,052 | 5.21% |
| Change in fair value of reinsurance assets | (11) | (0.02)% | (42) | (0.08)% | (58) | (0.04)% | 65 | 0.04% |
| VIE earnings and noncontrolling interests | 362 | 0.61% | 264 | 0.51% | 930 | 0.54% | 743 | 0.48% |
| Forward points adjustment on FX derivative hedges | 30 | 0.05% | 49 | 0.09% | 113 | 0.06% | 154 | 0.10% |
| Held-for-trading amortization | (30) | (0.05)% | (38) | (0.07)% | (73) | (0.04)% | (146) | (0.10)% |
| Reinsurance impacts | (54) | (0.09)% | (66) | (0.13)% | (173) | (0.10)% | (199) | (0.13)% |
| ACRA noncontrolling interests | (1,011) | (1.70)% | (676) | (1.30)% | (2,800) | (1.62)% | (1,628) | (1.05)% |
| Other | (20) | (0.03)% | 47 | 0.09% | 50 | 0.03% | 35 | 0.02% |
| Total adjustments to arrive at net investment earnings/earned rate | (734) | (1.23)% | (462) | (0.89)% | (2,011) | (1.17)% | (976) | (0.64)% |
| Total net investment earnings/earned rate | $3,043 | 5.12% | $2,466 | 4.76% | $8,567 | 4.96% | $7,076 | 4.57% |
| Average net invested assets | $237,810 | $207,312 | $230,101 | $206,241 | ||||
The reconciliation of benefits and expenses to cost of funds is as follows:
| Three months ended September 30, · Nine months ended September 30, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||||
| (In millions, except percentages) | Dollar | Rate | Dollar | Rate | Dollar | Rate | Dollar | Rate |
| US GAAP benefits and expenses | $4,847 | 8.15% | $943 | 1.83% | $12,423 | 7.20% | $15,675 | 10.12% |
| Premiums | (389) | (0.65)% | (26) | (0.05)% | (1,163) | (0.67)% | (9,163) | (5.92)% |
| Product charges | (267) | (0.45)% | (217) | (0.42)% | (756) | (0.44)% | (622) | (0.40)% |
| Other revenues | (4) | (0.01)% | (123) | (0.24)% | (9) | —% | (143) | (0.09)% |
| FIA option costs | 410 | 0.69% | 374 | 0.72% | 1,204 | 0.70% | 1,124 | 0.73% |
| Reinsurance impacts | (47) | (0.08)% | (41) | (0.08)% | (120) | (0.07)% | (116) | (0.07)% |
| Non-operating change in insurance liabilities and embedded derivatives | (1,252) | (2.11)% | 969 | 1.87% | (2,965) | (1.72)% | (1,017) | (0.66)% |
| Policy and other operating expenses, excluding policy acquisition expenses | (573) | (0.96)% | (335) | (0.65)% | (1,307) | (0.76)% | (968) | (0.63)% |
| Forward points adjustment on FX derivative hedges | 77 | 0.13% | 44 | 0.08% | 217 | 0.13% | 83 | 0.05% |
| AmerUs Closed Block fair value liability | (55) | (0.09)% | 52 | 0.10% | (27) | (0.02)% | 27 | 0.02% |
| ACRA noncontrolling interests | (833) | (1.40)% | (311) | (0.60)% | (2,102) | (1.22)% | (977) | (0.63)% |
| Other | 69 | 0.12% | 55 | 0.11% | 191 | 0.11% | 153 | 0.10% |
| Total adjustments to arrive at cost of funds | (2,864) | (4.81)% | 441 | 0.84% | (6,837) | (3.96)% | (11,619) | (7.50)% |
| Total cost of funds | $1,983 | 3.34% | $1,384 | 2.67% | $5,586 | 3.24% | $4,056 | 2.62% |
| Average net invested assets | $237,810 | $207,312 | $230,101 | $206,241 | ||||
The reconciliation of policy and other operating expenses to other operating expenses is as follows:
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| (In millions) | 2024 | 2023 | 2024 | 2023 |
| US GAAP policy and other operating expenses | $687 | $472 | $1,653 | $1,359 |
| Interest expense | (142) | (113) | (373) | (360) |
| Policy acquisition expenses, net of deferrals | (114) | (137) | (346) | (391) |
| Integration, restructuring and other non-operating expenses | (204) | (41) | (265) | (98) |
| Stock compensation expenses | (12) | (13) | (36) | (42) |
| ACRA noncontrolling interests | (88) | (30) | (253) | (78) |
| Other | (13) | (15) | (34) | (23) |
| Total adjustments to arrive at other operating expenses | (573) | (349) | (1,307) | (992) |
| Other operating expenses | $114 | $123 | $346 | $367 |
The reconciliation of total investments, including related parties, to net invested assets is as follows:
| (In millions) | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total investments, including related parties | $286,102 | $238,941 |
| Derivative assets | (7,529) | (5,298) |
| Cash and cash equivalents (including restricted cash) | 14,551 | 14,781 |
| Accrued investment income | 2,695 | 1,933 |
| Net receivable (payable) for collateral on derivatives | (4,194) | (2,835) |
| Reinsurance impacts | (4,284) | (572) |
| VIE assets, liabilities and noncontrolling interests | 15,697 | 14,818 |
| Unrealized (gains) losses | 11,674 | 16,445 |
| Ceded policy loans | (167) | (174) |
| Net investment receivables (payables) | (291) | 11 |
| Allowance for credit losses | 689 | 608 |
| Other investments | (11) | (41) |
| Total adjustments to arrive at gross invested assets | 28,830 | 39,676 |
| Gross invested assets | 314,932 | 278,617 |
| ACRA noncontrolling interests | (72,269) | (61,190) |
| Net invested assets | $242,663 | $217,427 |
The reconciliation of total investment funds, including related parties and consolidated VIEs, to net alternative investments within net invested assets is as follows:
| (In millions) | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Investment funds, including related parties and consolidated VIEs | $18,846 | $17,668 |
| Equity securities | 5 | 430 |
| Certain equity securities included in AFS or trading securities | 34 | 201 |
| Investment funds within funds withheld at interest | 879 | 827 |
| Royalties | 10 | 14 |
| Net assets of the VIE, excluding investment funds | (4,768) | (4,508) |
| Unrealized (gains) losses | 15 | 26 |
| ACRA noncontrolling interests | (3,500) | (2,829) |
| Other assets | (165) | (170) |
| Total adjustments to arrive at net alternative investments | (7,490) | (6,009) |
| Net alternative investments | $11,356 | $11,659 |
The reconciliation of total liabilities to net reserve liabilities is as follows:
| (In millions) | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total liabilities | $327,855 | $279,344 |
| Debt | (5,725) | (4,209) |
| Derivative liabilities | (2,758) | (1,995) |
| Payables for collateral on derivatives and short-term securities to repurchase | (5,286) | (4,370) |
| Other liabilities | (7,058) | (2,590) |
| Liabilities of consolidated VIEs | (1,363) | (1,115) |
| Reinsurance impacts | (11,196) | (8,574) |
| Policy loans ceded | (167) | (174) |
| Market risk benefit asset | (311) | (377) |
| ACRA noncontrolling interests | (68,092) | (56,651) |
| Total adjustments to arrive at net reserve liabilities | (101,956) | (80,055) |
| Net reserve liabilities | $225,899 | $199,289 |
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