Athene Holding Ltd.

Results of Operations

The following summarizes the condensed consolidated results of operations:

Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

In this section, references to 2026 refer to the three months ended June 30, 2026 and references to 2025 refer to the three months ended June 30, 2025.

Net Income (Loss) Available to Athene Holding Ltd. Common Stockholder

Net income (loss) available to Athene Holding Ltd. common stockholder increased by $450 million, or 89%, to $1.0 billion in 2026 from $503 million in 2025. The increase in net income (loss) available to Athene Holding Ltd. common stockholder was primarily driven by a $3.8 billion increase in revenues, partially offset by a $2.5 billion increase in benefits and expenses, a $476 million increase in net income attributable to noncontrolling interests, a $251 million increase in income tax expense and an $84 million decrease related to the 2025 preferred stock redemption.

Revenues

Revenues increased by $3.8 billion to $9.2 billion in 2026 from $5.4 billion in 2025. The increase was primarily driven by an increase in investment related gains (losses), an increase in net investment income, an increase in VIE investment related gains (losses) and an increase in premiums.

Investment related gains (losses) increased by $3.0 billion to $3.0 billion in 2026 from $(5) million in 2025, primarily driven bya favorable change in the fair value of indexed annuity hedging derivatives, net foreign exchange gains and a$673 million gain resulting from the early call of our investment in AP Grange, partially offset by an unfavorable change in the fair value of mortgage loans and reinsurance assets. The change in fair value of indexed annuity hedging derivatives increased $2.1 billion, primarily driven by the favorable performance of the equity indices upon which our call options are based. The largest percentage of our call options are based on the S&P 500 Index, which increased 14.9% in 2026, compared to an increase of 10.6% in 2025. The net foreign exchange gains were primarily related to the strengthening of the US dollar against foreign currencies in 2026 compared to 2025, including the impact from derivatives not designated as a hedge where the foreign exchange impact on the related asset is reported through AOCI. The change in fair value of mortgage loans decreased $568 million and the change in fair value of reinsurance assets decreased $73 million, primarily driven by an increase in US Treasury rates in 2026 compared to a decrease in 2025.

Net investment income increased by $559 million to $5.0 billionin 2026 from $4.4 billion in 2025, primarily driven by significant growth in our investment portfolio attributable to strong net flows of $37.6 billion during the previous twelve months and higher rates on new deployment in comparison to our existing portfolio related to the higher interest rate environment. These impacts were partially offset by lower floating rate income, higher investment management fees driven by the significant growth in our investment portfolio over the previous twelve months, later deployment into assets during the quarter compared to 2025 and run-off of higher-yielding assets.

VIE investment related gains (losses) increased by $191 million to $659 million in 2026 from$468 million in 2025, primarily driven by the consolidation of AAA Lux in the fourth quarter of 2025 andadditional contributions into AAA and AAA Lux in 2026.

Premiums increased by $63 million to $170 million in 2026 from$107 million in 2025, primarily driven by an increase in payout annuity premiums related to the issuance of structured settlements and life renewal premiums from the Sony Life Insurance Co., Ltd. (Sony) block reinsurance transaction executed in the fourth quarter of 2025, partially offset by an increase in ceded premium related to the retrocession of mortality risk on a pension group annuity transaction.

Benefits and Expenses

Benefits and expenses increased by $2.5 billion to $7.2 billion in 2026 from $4.7 billion in 2025. The increase was primarily driven by an increase in interest sensitive contract benefits, an increase in market risk benefits remeasurement (gains) losses, an increase in future policy and other policy benefits, an increase in the amortization of DAC, DSI and VOBA and an increase in policy and other operating expenses.

Interest sensitive contract benefits increased by$2.3 billion to $5.7 billion in 2026 from $3.4 billion in 2025, primarily driven by an increase in the change in our indexed annuity reserves, significant growth in our deferred annuity and funding agreement blocks of business over the previous twelve months, higher rates on new deferred annuity and funding agreement issuances and run-off of lower rate business, in comparison to our existing blocks of business, partially offset by lower rates on floating rate funding agreements and later origination of new business within the quarter compared to 2025. The change in our indexed annuity reserves includes the impact from changes in the fair value of indexed annuity embedded derivatives. The increase in the change in fair value of indexed annuity embedded derivatives of $1.2 billion was primarily due to theperformance of the equity indices to which our indexed annuity policies are linked. The largest percentage of our indexed annuity policies are linked to the S&P 500 Index, which increased 14.9% in 2026, compared to an increase of 10.6% in 2025. This impact was partially offset by a favorable change in discount rates used in our embedded derivative calculations as there was a smaller decrease in discount rates in 2026 compared to 2025.

Market risk benefits remeasurement (gains) losses increased by $87 million to $(24) million in 2026 from $(111) million in 2025. The decrease in gains in 2026 compared to 2025 was primarily driven by an unfavorable change in the fair value of market risk benefits. The change in fair value of market risk benefits was primarily driven by an unfavorable $213 million impact due to a smaller increase in the risk-free discount rates across the long end of the curve compared to 2025, which are used in the fair value measurement of the liability for market risk benefits, partially offset by a favorable $128 million impact related to more favorable equity market performance compared to 2025.

Future policy and other policy benefits increased by$67 million to$594 million in 2026 from$527 million in 2025, primarily driven by an increase in payout annuity reserves related to the issuance of structured settlements, as well as life reserves related to renewal premiums from the Sony block reinsurance transaction executed in the fourth quarter of 2025, partially offset by an increase in ceded benefit payments related to the retrocession of mortality risk on a pension group annuity transaction.

Amortization of DAC, DSI and VOBA increased by $58 million to $350 million in 2026 from $292 million in 2025, primarily driven by an increase in acquisition and sales incentive costs that are deferred and amortized due to strong growth in our deferred annuity business, partially offset by a decrease in VOBA amortization.

Policy and other operating expenses increased by $43 million to $614 million in 2026 from $571 million in 2025, primarily driven by an increase in interest expense, as well as increases in policy acquisition and other operating expenses related to significant growth, partially offset by a decrease in contingent investment fees ACRA is obligated to pay on behalf of ADIP. The increase in interest expense was primarily related to an increase in host accretion on business ceded to Catalina, as well as a full quarter of interest on long-term debt issued in the second quarter of 2025.

Income Tax Expense (Benefit)

Income tax expense (benefit) increased by $251 million to $217 million in 2026 from $(34) million in 2025, primarily driven by an increase in pre-tax income subject to US income tax and impacts from Bermuda CIT present in 2025, but not in 2026, as we no longer expect Athene or ACRA to incur Bermuda CIT. Our effective tax rate in thesecond quarter of 2026 was 11% compared to (5)% in 2025.

Net Income Attributable to Noncontrolling Interests

Net income attributable to noncontrolling interests increased by$476 million to$698 million in 2026 from$222 millionin 2025, primarily driven by net foreign exchange gains, realized gains on AFS securities, a favorable net change in the fair value of attributed indexed annuity derivatives and embedded derivatives and an increase in earnings and third-party contributions into AAA and AAA Lux. These impacts were partially offset by an unfavorable change in the fair value of mortgage loans related to an increase in US Treasury rates in 2026 compared to a decrease in 2025.

Preferred Stock Redemption

Preferred stock redemption decreased by $84 million to $0 million in 2026 from $84 million in 2025 driven by the redemption of our Fixed-Rate Reset Perpetual Non-Cumulative Preferred Stock, Series C (Series C preferred stock) at par value, which was below our carrying value of $684 million, in the second quarter of 2025.

Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025

In this section, references to 2026 refer to the six months ended June 30, 2026 and references to 2025 refer to the six months ended June 30, 2025.

Net Income (Loss) Available to Athene Holding Ltd. Common Stockholder

Net income (loss) available to Athene Holding Ltd. common stockholder decreased by $1.9 billion, or 211%, to $(1.0) billion in 2026 from $923 million in 2025. The decrease in net income (loss) available to Athene Holding Ltd. common stockholder was primarily driven by a $2.8 billion increase in benefits and expenses, a $1.7 billion increase in income tax expense, a $638 million increase in net income attributable to noncontrolling interests and an $84 million decrease related to the 2025 preferred stock redemption, partially offset by a $3.3 billion increase in revenues.

Revenues

Revenues increased by $3.3 billion to $12.8 billion in 2026 from $9.5 billion in 2025. The increase was primarily driven by an increase in investment related gains (losses), an increase in net investment income, an increase in premiums and an increase in VIE investment related gains (losses).

Investment related gains (losses) increased by $1.7 billion to $911 million in 2026 from $(833) million in 2025, primarily driven by a favorable change in fair value ofindexed annuity hedging derivatives, net foreign exchange gains and a$673 million gain resulting from the early call of our investment in AP Grange, partially offset by an unfavorable change in the fair value of mortgage loans, reinsurance assets and trading securities. The change in fair value of indexed annuity hedging derivatives increased $1.8 billion, primarily driven by the favorable performance of the equity indices upon which our call options are based. The largest percentage of our call options are based on the S&P 500 Index, which increased 9.6% in 2026, compared to an increase of 5.5% in 2025. The net foreign exchange gains were primarily related to the strengthening of the US dollar against foreign currencies in 2026 compared to 2025, including the impact from derivatives not designated as a hedge where the foreign exchange impact on the related asset is reported through AOCI. The change in fair value of mortgage loans decreased $1.7 billion, reinsurance assets decreased $392 million and trading securities decreased $267 million, primarily driven by an increase in US Treasury rates in 2026 compared to a decrease in 2025.

Net investment income increased by $1.3 billion to $9.8 billionin 2026 from $8.4 billion in 2025, primarily driven by significant growth in our investment portfolio attributable to strong net flows during the previous twelve months and higher rates on new deployment in comparison to our existing portfolio related to the higher interest rate environment. These impacts were partially offset by lower floating rate income, higher investment management fees driven by the significant growth in our investment portfolio over the previous twelve months, later deployment into assets during the year compared to 2025 and run-off of higher-yielding assets.

Premiums increased by $153 million to $387 million in 2026 from$234 million in 2025, primarily driven by an increase in payout annuity premiums related to the issuance of structured settlements and life renewal premiums from the Sony block reinsurance transaction executed in the fourth quarter of 2025, partially offset byan increase in ceded premium related to the retrocession of mortality risk on a pension group annuity transaction.

VIE investment related gains (losses) increased by $48 million to $1.1 billion in 2026 from $1.0 billion in 2025, primarily driven by the consolidation of AAA Lux in the fourth quarter of 2025 andadditional contributions into AAA and AAA Lux in 2026. These impacts were partially offset by lower returns on the underlying assets within AAA and AAA Lux in 2026, outperformance within A-A Onshore Fund, LLC (A-A Onshore) in 2025 and an unfavorable change in the fair value of trading securities held in VIEs related to an increase in US Treasury rates in 2026 compared to a decrease in 2025.

Benefits and Expenses

Benefits and expenses increased by $2.8 billion to $10.7 billion in 2026 from $8.0 billion in 2025. The increase was primarily driven by an increase in interest sensitive contract benefits, an increase in future policy and other policy benefits, an increase in policy and other operating expenses and an increase in the amortization of DAC, DSI and VOBA, partially offset by a decrease in market risk benefits remeasurement (gains) losses.

Interest sensitive contract benefits increased by $2.4 billion to $7.3 billion in 2026 from $4.9 billion in 2025, primarily driven by significant growth in our deferred annuity and funding agreement blocks of business over the previous twelve months, higher rates on new deferred annuity and funding agreement issuances and run-off of lower rate business, in comparison to our existing blocks of business, and an increase in the change in our indexed annuity reserves, partially offset by lower rates on floating rate funding agreements and later origination of new business within the year compared to 2025. The change in our indexed annuity reserves includes the impact from changes in the fair value of indexed annuity embedded derivatives. The increase in the change in fair value of indexed annuity embedded derivatives of $720 million was primarily due to the performance of the equity indices to which our indexed annuity policies are linked. The largest percentage of our indexed annuity policies are linked to the S&P 500 Index, which increased 9.6% in 2026, compared to an increase of 5.5% in 2025. The change in fair value of indexed annuity embedded derivatives was also driven by the unfavorable impact of rate movements on policyholder projected benefits. These impacts were partially offset by a favorable change in discount rates used in our embedded derivative calculations as discount rates increased in 2026 compared to a decrease in 2025.

Future policy and other policy benefits increased by $165 million to $1.2 billion in 2026 from $1.1 billion in 2025, primarily driven by an increase in payout annuity reserves related to the issuance of structured settlements, as well as life reserves related to renewal premiums from the Sony block reinsurance transaction executed in the fourth quarter of 2025. These impacts were partially offset byan increase in ceded benefit payments related to the retrocession of mortality risk on a pension group annuity transaction and a decrease in the AmerUs Closed Block fair value liability. The change in the AmerUs Closed Block fair value liability was primarily due to unrealized losses on the underlying assets reflecting an increase in US Treasury rates in 2026 compared to a decrease in 2025.

Policy and other operating expenses increased by $129 million to $1.3 billion in 2026 from $1.1 billion in 2025, primarily driven by an increase in interest expense, as well as increases in policy acquisition and other operating expenses related to significant growth, partially offset by a decrease in contingent investment fees ACRA is obligated to pay on behalf of ADIP. The increase in interest expense was primarily related to a full six months of interest on long-term debt issued in the second quarter of 2025, as well as an increase in host accretion on business ceded to Catalina.

Amortization of DAC, DSI and VOBA increased by $128 million to $687 million in 2026 from $559 million in 2025, primarily driven by an increase in acquisition and sales incentive costs that are deferred and amortized due to strong growth in our deferred annuity business, partially offset by a decrease in VOBA amortization.

Market risk benefits remeasurement (gains) losses decreased by $39 million to $235 million in 2026 from $274 million in 2025. The decrease in losses in 2026 compared to 2025 was primarily driven by a favorable change in the fair value of market risk benefits, partially offset by a $23 million increase in fees collected due to growth in the in-force population of policies with income rider benefits, increasing the market risk benefit reserve. The change in fair value of market risk benefits was primarily driven by a favorable $62 million impact related to more favorable equity market performance compared to 2025.

Income Tax Expense (Benefit)

Income tax expense (benefit) increased by $1.7 billion to $1.9 billion in 2026 from $141 million in 2025, primarily driven by a one-time tax expense of $1.7 billion resulting from the recognition of a full valuation allowance against our Bermuda deferred tax assets, as we no longer expect Athene or ACRA to incur Bermuda CIT or Pillar Two tax expense against which such deferred tax assets could be utilized due to the OECD guidance issued in the first quarter of 2026. The increase in income tax expense (benefit) was also driven by an increase in pre-tax income subject to US income tax, partially offset by impacts from Bermuda CIT present in 2025 but not in 2026. Our effective tax rate in 2026 was 90% compared to 9% in 2025.

Net Income Attributable to Noncontrolling Interests

Net income attributable to noncontrolling interests increased by$638 million to$1.2 billion in 2026 from$516 millionin 2025, primarily driven by net foreign exchange gains, a favorable impact from the revocation of Bermuda CIT at ACRA resulting in the reversal of tax expense recognized in 2025, realized gains on AFS securities, a favorable net change in the fair value of attributed indexed annuity derivatives and embedded derivatives and an increase in earnings and third-party contributions into AAA and AAA Lux. These impacts were partially offset by an unfavorable change in the fair value of mortgage loans and reinsurance assets related to an increase in US Treasury rates in 2026 compared to a decrease in 2025.

Preferred Stock Redemption

Preferred stock redemption decreased by $84 million to $0 million in 2026 from $84 million in 2025 driven by the redemption of our Series C preferred stock at par value, which was below our carrying value of $684 million, in the second quarter of 2025.

Summary of Non-GAAP Earnings

The following summarizes our spread related earnings:

Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

In this section, references to 2026 refer to the three months ended June 30, 2026 and references to 2025 refer to the three months ended June 30, 2025.

Spread Related Earnings

Spread related earnings increased by $57 million, or 7%, to $877 million in 2026 from $820 million in 2025. The increase in SRE was primarily driven by an increase in net investment earnings and strategic capital management fees, partially offset by an increase in cost of funds and interest and other financing costs.

Net investment earnings increased by $535 million to $4.0 billion in 2026 from $3.5 billion in 2025, primarily driven by $38.5 billion of growth in our average net invested assets during the previous twelve months, higher rates on new deployment compared to our existing portfolio related to the higher interest rate environment, favorable derivative impacts and an increase in alternative net investment income. These impacts were partially offset by lower floating rate income, higher investment management fees driven by the significant growth in our investment portfolio over the previous twelve months, later deployment into assets during the quarter compared to 2025 and run-off of higher-yielding assets. The increase in alternative net investment income compared to 2025 was primarily driven by more favorable performance within equity funds, partially offset by less favorable performance within origination and retirement services platforms, as well as within credit funds. The increase in income from equity funds was mainly attributable to significant growth in our structured equity portfolio, as well as more favorable performance within real assets in 2026 compared to 2025. The decrease in income from origination platforms was mainly attributable to a valuation increase related to strong performance from Wheels in 2025 and strong growth from origination partnerships within Aqua Finance, Inc. (Aqua Finance) in 2025, partially offset by favorable pricing that increased the valuation of an investment within our other origination platforms in 2026. The decrease in income from retirement services platforms was related to a valuation increase on Venerable in 2025 related to the announcement of the reinsurance transaction with Corebridge Financial, Inc. (Corebridge), partially offset by the upsize of our investment in Athora and a valuation increase on Athora in 2026 related to updated business plans following its acquisition.

Strategic capital management fees increased by $5 million to $37 million in 2026 from $32 million in 2025, primarily driven by additional fees received from ADIP II attributable to strong net flows into ACRA 2 over the previous twelve months.

Cost of funds increased by $472 million to $2.9 billion in 2026 from $2.5 billion in 2025, primarily driven by significant growth in deferred annuity and funding agreement business, higher rates on new business, as well as run-off of lower rate business, compared to existing blocks and an increase in the amortization of DAC and DSI. These impacts were partially offset by lower rates on floating rate funding agreements, later origination of new business within the quarter compared to 2025, lower VOBA amortization and increased product charge income.

Interest and other financing costs increased by $9 million to $141 million in 2026 from $132 million in 2025, primarily driven bya full quarter of interest expense on long-term debt issued in the second quarter of 2025, partially offset by a decrease in preferred stock dividends due to the redemption of our Series C preferred stock in the second quarter of 2025.

Net investment spread decreased 11 basis points to 1.47% in 2026 from 1.58% in 2025, driven by higher cost of funds, partially offset by a higher net investment earned rate.

Cost of funds increased 15 basis points to 3.83% in 2026 from 3.68% in 2025, primarily driven by higher rates on new business, as well as run-off of lower rate business, compared to existing blocks and an increase in the amortization of DAC and DSI, partially offset by lower rates on floating rate funding agreements, later origination of new business within the quarter compared to 2025, lower VOBA amortization and increased product charge income.

Net investment earned rate increased 4 basis points to 5.25% in 2026 from 5.21% in 2025, primarily driven by higher returns on our fixed income portfolio, partially offset by lower returns on our alternative investment portfolio. Our fixed income and other net investment earned rate was 5.05% in 2026, an increase from 4.97% in 2025, primarily driven byhigher rates on new deployment compared to our existing portfolio related to the higher interest rate environment and favorable derivative impacts, partially offset by lower floating rate income, later deployment into assets during the quarter compared to 2025 and run-off of higher-yielding assets. Our alternative net investment earned rate was 9.04% in 2026, a decrease from 9.86% in 2025, primarily due to growth in our average alternative net invested assets of $2.5 billion compared to 2025, which outpaced the increase in alternative net investment income. The lower alternative net investment earned rate wasprimarily driven by lower returns within origination and retirement services platforms, as well as within credit funds, partially offset by higher returns within equity funds. The lower returns from origination platforms were mainly attributable to a valuation increase related to strong performance from Wheels in 2025 and strong growth from origination partnerships within Aqua Finance in 2025, partially offset by favorable pricing that increased the valuation of an investment within our other origination platforms in 2026. The lower returns from retirement services platforms were related to a valuation increase on Venerable in 2025 related to the announcement of the reinsurance transaction with Corebridge, partially offset by a valuation increase on Athora in 2026 related to updated business plans following its acquisition. The higher returns from equity funds were primarily driven by strong performance within real assets.

Adjustments to Net Income (Loss) Available to Athene Holding Ltd. Common Stockholder

The adjustments tonet income (loss) available to Athene Holding Ltd. common stockholder represent investment gains (losses), net of offsets; non-operating change in insurance liabilities and related derivatives; inte gration, restructuring and other non-operating items; stock compensation expense and the non-operating income tax expense (benefit) related to these adjustments. The increase in adjustments tonet income (loss) available to Athene Holding Ltd. common stockholder in 2026 compared to 2025 was primarily driven by an increase in investment gains (losses), net of offsets and an increase in non-operating change in insurance liabilities and related derivatives.

Investment gains (losses), net of offsets, increased $532 million, primarily driven by net foreign exchange gains and realized gains on AFS securities compared to realized losses in 2025, partially offset by the unfavorable change in the fair value of mortgage loans. The net foreign exchange gains were primarily related to the strengthening of the US dollar against foreign currencies in 2026 compared to 2025, including the impact from derivatives not designated as a hedge where the foreign exchange impact on the related asset is reported through AOCI. The realized gains on AFS securities in 2026 were primarily due to the $458 million gain, net of the ACRA noncontrolling interests, resulting from the early call of our investment in AP Grange. The unfavorable change in the fair value of mortgage loans of $411 million was primarily driven by an increase in US Treasury rates in 2026 compared to a decrease in 2025.

Non-operating change in insurance liabilities and related derivatives increased $209 million, primarily driven by a favorable change in the fair value of net indexed annuity derivatives, partially offset by an unfavorable change in the fair value of market risk benefits. The $292 million favorable change in the fair value of net indexed annuity derivatives was primarily due to the favorable performance of the equity indices to which our indexed annuity policies are linked, as well as favorable rate impacts. The largest percentage of our indexed annuity policies are linked to the S&P 500 Index, which increased 14.9% in 2026, compared to an increase of 10.6% in 2025. The favorable rate impact was driven by the change in discount rates used in our embedded derivative calculations as there was a smaller decrease in discount rates in 2026 compared to 2025. The $67 million unfavorable change in the fair value of market risk benefits was primarily driven by a smaller increase in the risk-free discount rates across the long end of the curve compared to 2025, which are used in the fair value measurement of the liability for market risk benefits, partially offset by more favorable equity market performance compared to 2025.

Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025

In this section, references to 2026 refer to the six months ended June 30, 2026 and references to 2025 refer to the six months ended June 30, 2025.

Spread Related Earnings

SRE decreased by $28 million, or 2%, to $1.6 billion in 2026 from $1.6 billion in 2025. The decrease in SRE was primarily driven by an increase in cost of funds and interest and other financing costs, partially offset by an increase in net investment earnings and strategic capital management fees.

Cost of funds increased by $1.1 billion to $5.7 billion in 2026 from $4.7 billion in 2025, primarily driven by significant growth in deferred annuity and funding agreement business, higher rates on new business, as well as run-off of lower rate business, compared to existing blocks, and an increase in the amortization of DAC and DSI. These impacts were partially offset by lower rates on floating rate funding agreements, later origination of new business within the year compared to 2025, lower VOBA amortization and increased product charge income.

Interest and other financing costs increased by $32 million to $294 million in 2026 from $262 million in 2025, primarily driven bya full six months of interest expense on long-term debt issued in the second quarter of 2025, partially offset by a decrease in preferred stock dividends due to the redemption of our Series C preferred stock in the second quarter of 2025.

Net investment earnings increased by $1.1 billion to $7.8 billion in 2026 from $6.7 billion in 2025, primarily driven by $40.2 billion of growth in our average net invested assets, higher rates on new deployment compared to our existing portfolio related to the higher interest rate environment and favorable derivative impacts. These impacts were partially offset by a decrease in alternative net investment income, lower floating rate income, higher investment management fees driven by the significant growth in our investment portfolio, later deployment into assets during the year compared to 2025 and run-off of higher-yielding assets. The decrease in alternative net investment income compared to 2025 was primarily driven by less favorable performance within origination platforms and credit funds, partially offset by more favorable performance within equity funds and retirement services platforms. The decrease in income from origination platforms was mainly attributable to a valuation increase related to strong performance from Wheels in 2025, outsized performance from MidCap Financial attributable to increased projections in 2025, strong performance from Redding Ridge Asset Management, LLC (Redding Ridge) related to greater issuance in 2025 and a valuation decrease on Atlas resulting from an underlying asset impairment in 2026, partially offset by favorable pricing that increased the valuation of an investment within our other origination platforms in 2026. The increase in income from equity funds was mainly attributable to significant growth in our structured equity portfolio, as well as more favorable performance within real assets in 2026 compared to 2025, partially offset by outperformance from A-A Onshore in 2025. The increase in income from retirement services platforms was primarily related to the upsize of our investment in Athora and a valuation increase on Athora in 2026 related to updated business plans following its acquisition, partially offset by a valuation increase on Venerable in 2025 related to the announcement of the reinsurance transaction with Corebridge.

Strategic capital management fees increased by $12 million to $73 million in 2026 from $61 million in 2025, primarily driven by additional fees received from ADIP II attributable to strong net flows into ACRA 2 in 2026.

Net investment spread decreased 21 basis points to 1.41% in 2026 from 1.62% in 2025, driven by higher cost of funds, partially offset by a higher net investment earned rate.

Cost of funds increased by 23 basis points to 3.80% in 2026, from 3.57% in 2025, primarily driven by higher rates on new business, as well as run-off of lower rate business, compared to existing blocks and an increase in the amortization of DAC and DSI, partially offset by lower rates on floating rate funding agreements, later origination of new business within the year compared to 2025, lower VOBA amortization and increased product charge income.

Net investment earned rate increased 2 basis points to 5.16% in 2026 from 5.14% in 2025, primarily driven by higher returns on our fixed income portfolio, partially offset by lower returns on our alternative investment portfolio. Our fixed income and other net investment earned rate was 5.04% in 2026, an increase from 4.89% in 2025, primarily driven byhigher rates on new deployment compared to our existing portfolio related to the higher interest rate environment and favorable derivative impacts, partially offset by lower floating rate income, later deployment into assets during the year compared to 2025 and run-off of higher-yielding assets. Our alternative net investment earned rate was 7.49% in 2026, a decrease from 10.05% in 2025, primarily driven by lower returns within origination and retirement services platforms, as well as within credit funds, partially offset by higher returns within equity funds. The lower returns from origination platforms were mainly attributable to a valuation increase related to strong performance from Wheels in 2025, outsized performance from MidCap Financial attributable to increased projections in 2025, strong performance from Redding Ridge related to greater issuance in 2025 and a valuation decrease on Atlas resulting from an underlying asset impairment in 2026, partially offset by favorable pricing that increased the valuation of an investment within our other origination platforms in 2026. The lower returns from retirement services platforms were primarily related to a valuation increase on Venerable in 2025 related to the announcement of the reinsurance transaction with Corebridge, partially offset by a valuation increase on Athora in 2026 related to updated business plans following its acquisition. The higher equity fund returns were primarily driven by strong performance within real assets, partially offset by outperformance from A-A Onshore in 2025.

Adjustments to Net Income (Loss) Available to Athene Holding Ltd. Common Stockholder

The decrease in adjustments tonet income (loss) available to Athene Holding Ltd. common stockholder in 2026 compared to 2025 was primarily driven by an increase in non-operating income tax expense and a decrease in investment gains (losses), net of offsets, partially offset by an increase in non-operating change in insurance liabilities and related derivatives.

Non-operating income tax expense increased $2.0 billion, primarily driven by a one-time tax expense of $1.7 billion resulting from the recognition of a full valuation allowance against our Bermuda deferred tax assets, as we no longer expect Athene or ACRA to incur Bermuda CIT or Pillar Two tax expense against which such deferred tax assets could be utilized due to the OECD guidance issued in the first quarter of 2026.

Investment gains (losses), net of offsets, decreased $315 million, primarily driven by the unfavorable change in the fair value of mortgage loans, reinsurance assets and trading securities, partially offset by net foreign exchange gains and realized gains on AFS securities compared to realized losses in 2025. The unfavorable changes in the fair value of mortgage loans of $1.3 billion, reinsurance assets of $175 million and trading securities were primarily driven by an increase in US Treasury rates in 2026 compared to a decrease in 2025. The net foreign exchange gains were primarily related to the strengthening of the US dollar against foreign currencies in 2026 compared to 2025, including the impact from derivatives not designated as a hedge where the foreign exchange impact on the related asset is reported through AOCI. The realized gains on AFS securities in 2026 were primarily due to the $458 million gain, net of the ACRA noncontrolling interests, resulting from the early call of our investment in AP Grange.

Non-operating change in insurance liabilities and related derivatives increased $534 million, primarily driven by a favorable change in the fair value of net indexed annuity derivatives and a favorable change in the fair value of market risk benefits. The $477 million favorable change in the fair value of net indexed annuity derivatives was primarily due to the favorable performance of the equity indices to which our indexed annuity policies are linked, favorable rate impacts and favorable model updates in 2026. The largest percentage of our indexed annuity policies are linked to the S&P 500 Index, which increased 9.6% in 2026, compared to an increase of 5.5% in 2025. The favorable rate impact was driven by the change in discount rates used in our embedded derivative calculations as discount rates increased in 2026 compared to a decrease in 2025, partially offset by the unfavorable impact of rates on policyholder projected benefits. The $82 million favorable change in the fair value of market risk benefits was primarily driven by an increase in risk-free discount rates across the long end of the curve compared to 2025, which are used in the fair value measurement of the liability for market risk benefits, and more favorable equity market performance compared to 2025.