Athene Holding Ltd. ("Athene"), a leading financial services
company specializing in retirement solutions, today announced
financial results for the fourth quarter and full year 2021. The
full earnings release and financial supplement are available at
ir.athene.com.
Jim Belardi, CEO of Athene said, “In the fourth
quarter, Athene generated more than $9 billion of inflows,
completing a record year of organic growth which totaled $37
billion of inflows, increasing 34% versus the prior year. This is a
remarkable achievement that demonstrates our leadership position
within the retirement services marketplace. 2021 also marked a
record level of profitability for Athene, with $2.3 billion of full
year adjusted operating earnings, excluding notable items and
appreciation in our AOG investment, an increase of 124%
year-over-year. As we have consistently done since our founding, we
achieved this result through our ability to drive attractive spread
earnings, which benefits from the upside offered by our portfolio
of differentiated alternative investments.”
Belardi continued, “Our stellar performance
drove adjusted book value to $73.84 per share, which represents a
30% increase year-over-year, and an impressive compound growth rate
of 17% per year since inception.
“On January 1, 2022, Athene completed its
strategic merger with Apollo. We’re incredibly excited about our
next stage of growth as a fully-aligned business and are energized
by the tremendous opportunity to continuing building upon our
legacy of success.”
About Athene
Athene, through its subsidiaries, is a leading
financial services company specializing in retirement services with
total assets of $235.1 billion as of December 31, 2021 and
operations in the United States, Bermuda, and Canada. Athene
specializes in helping its customers achieve financial security and
is a solutions provider to institutions. Founded in 2009, Athene is
Driven to Do More for our policyholders, business partners, and the
communities in which we work and live. For more information, please
visit www.athene.com.
Investor Relations Contact: |
Media Contact: |
Noah Gunn |
Amanda Carstens Steward |
+1 212-822-0540 |
+1 515-344-6060 |
ngunn@apollo.com |
asteward@athene.com |
Safe Harbor for Forward-Looking
Statements
This press release contains, and certain oral
statements made by Athene's representatives from time to time may
contain, forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such statements are
subject to risks and uncertainties that could cause actual results,
events and developments to differ materially from those set forth
in, or implied by, such statements. These statements are based on
the beliefs and assumptions of Athene's management and the
management of Athene's subsidiaries. Generally, forward-looking
statements include actions, events, results, strategies and
expectations and are often identifiable by use of the words
“believes,” “expects,” “intends,” “anticipates,” “plans,” “seeks,”
“estimates,” “projects,” “may,” “will,” “could,” “might,” "should,"
or “continues” or similar expressions. Forward-looking statements
within this press release include, but are not limited to,
statements regarding future growth prospects and financial
performance. Factors that could cause actual results, events and
developments to differ include, without limitation: the
accuracy of Athene's assumptions and estimates; Athene's ability to
maintain or improve financial strength ratings; Athene's ability to
manage its business in a highly regulated industry; regulatory
changes or actions; the impact of Athene's reinsurers failing to
meet their assumed obligations; the impact of interest rate
fluctuations; changes in the federal income tax laws and
regulations; the accuracy of Athene's interpretation of the Tax
Cuts and Jobs Act; litigation (including class action litigation),
enforcement investigations or regulatory scrutiny; the performance
of third parties; the loss of key personnel; telecommunication,
information technology and other operational systems failures; the
continued availability of capital; new accounting rules or changes
to existing accounting rules; general economic conditions; Athene's
ability to protect its intellectual property; the ability to
maintain or obtain approval of the Delaware Department of
Insurance, the Iowa Insurance Division and other regulatory
authorities as required for Athene's operations; the failure to
realize the expected benefits from the merger with Apollo Global
Management; and other factors discussed from time to time in
Athene's filings with the SEC, including its annual report on Form
10-K for the year ended December 31, 2020, its amendment to its
annual report on Form 10-K/A for the year ended December 31, 2020,
its quarterly report on Form 10-Q for the quarter ended September
30, 2021, and its other SEC filings, which can be found at the
SEC’s website www.sec.gov.
All forward-looking statements described herein
are qualified by these cautionary statements and there can be no
assurance that the actual results, events or developments
referenced herein will occur or be realized. Athene does not
undertake any obligation to update or revise forward-looking
statements to reflect changed assumptions, the occurrence of
unanticipated events or changes to future operating results.
Non-GAAP Measures
Adjusted operating income (loss) available to
common shareholders is a non-GAAP measure used to evaluate our
financial performance excluding market volatility and expenses
related to integration, restructuring, stock compensation and other
expenses. Our adjusted operating income (loss) available to common
shareholders equals net income (loss) available to AHL common
shareholders adjusted to eliminate the impact of the following
(collectively, the non-operating adjustments):
- Investment Gains (Losses), Net of
Offsets
- Change in Fair Values of
Derivatives and Embedded Derivatives – FIAs, Net of Offsets
- Integration, Restructuring and
Other Non-Operating Expenses
- Stock Compensation Expense
- Income Tax (Expense) Benefit –
Non-Operating
We consider these non-operating adjustments to
be meaningful adjustments to net income (loss) available to AHL
common shareholders for the reasons discussed in greater detail
above. Accordingly, we believe using a measure which excludes the
impact of these items is useful in analyzing our business
performance and the trends in our results of operations. Together
with net income (loss) available to AHL common shareholders, we
believe adjusted operating income (loss) available to common
shareholders provides a meaningful financial metric that helps
investors understand our underlying results and profitability.
Adjusted operating income (loss) available to common shareholders
should not be used as a substitute for net income (loss) available
to AHL common shareholders.
Adjusted book value per common share is a
non-GAAP measure used to evaluate our financial performance and
financial condition. The non-GAAP measure adjusts the number of
shares included in the corresponding GAAP measure to reflect the
conversion or settlement of all shares and other stock-based awards
outstanding. We believe this measure represents an economic view of
our share counts and provides a simplified and consistent view of
our outstanding shares. Adjusted book value per common share is
calculated as the adjusted AHL common shareholders’ equity divided
by the adjusted operating common shares outstanding. Adjusted AHL
common shareholders’ equity is calculated as the ending AHL
shareholders’ equity excluding AOCI, the cumulative change in fair
value of funds withheld and modco reinsurance assets and preferred
stock. Effective February 28, 2020, all Class B common shares were
converted into Class A common shares and all Class M common shares
were converted into warrants and Class A common shares. Our Class B
common shares were economically equivalent to Class A common shares
and were convertible to Class A common shares on a one-for-one
basis at any time. Our Class M common shares were in the legal form
of shares but economically functioned as options as they were
convertible into Class A common shares after vesting and payment of
the conversion price. Adjusted operating common shares outstanding
assumes conversion or settlement of all outstanding items that are
able to be converted to or settled in Class A common shares,
including the impacts of Class B common shares on a one-for-one
basis, the impacts of all Class M common shares net of the
conversion price and any other stock-based awards, but excluding
any awards for which the exercise or conversion price exceeds the
market value of our Class A common shares on the applicable
measurement date. For certain historical periods, Class M shares
were not included due to issuance restrictions which were
contingent upon our IPO. Adjusted book value per common share
should not be used as a substitute for book value per common share.
However, we believe the adjustments to the shares and equity are
significant to gaining an understanding of our overall results of
operations and financial condition.
The reconciliation of net income available to
Athene Holding Ltd. common shareholders to adjusted operating
income available to common shareholders excluding notables and AOG
is as follows:
|
Years ended December 31, |
(In millions) |
|
2020 |
|
|
|
2021 |
|
Net income available to Athene Holding Ltd. common
shareholders |
$ |
1,446 |
|
|
$ |
3,718 |
|
Less: Total non-operating adjustments |
|
204 |
|
|
|
652 |
|
Adjusted operating income available to common shareholders |
|
1,242 |
|
|
|
3,066 |
|
Notable items |
|
(35 |
) |
|
|
(50 |
) |
Adjusted operating income available to common shareholders
excluding notable items |
$ |
1,207 |
|
|
$ |
3,016 |
|
|
|
|
|
Retirement Services adjusted operating income available to common
shareholders |
$ |
1,266 |
|
|
$ |
2,423 |
|
Non-recurring adjustment on derivative collateral |
|
(18 |
) |
|
|
— |
|
Actuarial experience and market impacts |
|
(16 |
) |
|
|
(143 |
) |
Unlocking |
|
(6 |
) |
|
|
91 |
|
Tax impact of notable items |
|
5 |
|
|
|
2 |
|
Retirement Services notable items |
|
(35 |
) |
|
|
(50 |
) |
Retirement Services adjusted operating income available to common
shareholders excluding notable items |
|
1,231 |
|
|
|
2,373 |
|
|
|
|
|
Corporate and Other adjusted operating income (loss) available to
common shareholders |
|
(24 |
) |
|
|
643 |
|
Consolidated adjusted operating income available to common
shareholders excluding notable items |
|
1,207 |
|
|
|
3,016 |
|
Less: Change in fair value of Apollo investment, net of tax |
|
165 |
|
|
|
682 |
|
Adjusted operating income available to common shareholders
excluding notables and AOG |
$ |
1,042 |
|
|
$ |
2,334 |
|
The reconciliation of book value per common share
to adjusted book value per common share is as follows:
|
December 31, |
|
December 31, |
|
|
2009 |
|
|
|
2020 |
|
|
|
2021 |
|
Book value per common share |
$ |
11.62 |
|
|
$ |
85.51 |
|
|
$ |
92.83 |
|
AOCI |
|
(0.13 |
) |
|
|
(20.77 |
) |
|
|
(12.66 |
) |
Accumulated change in fair value of reinsurance assets |
|
— |
|
|
|
(5.98 |
) |
|
|
(3.05 |
) |
Effect of items convertible to or settled in Class A common
shares |
|
— |
|
|
|
(1.81 |
) |
|
|
(3.28 |
) |
Adjusted book value per common share |
$ |
11.49 |
|
|
$ |
56.95 |
|
|
$ |
73.84 |
|
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