Financial Supplement (Excel) Q1 2024 XLSX

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Athene Holding Ltd. 1Q'24 Financial Supplement

Table of Contents
Important Notice	3
FINANCIAL RESULTS
Financial Highlights	4
Condensed Consolidated Statements of Income (GAAP view)	5
Spread Related Earnings (Management view)	6
Reconciliation of Earnings Measures	7
Net Flows & Outflows Attributable to Athene by Type	8
Condensed Consolidated Balance Sheets	9
ASSETS
Net Invested Assets (Management view) & Agency Ratings	11
Net Alternative Investments (Management view)	12
Credit Quality of Securities & Net Invested Assets	13
LIABILITIES
Net Reserve Liabilities & Rollforwards	17
Deferred Annuity Liability Characteristics	18
ADDITIONAL INFORMATION
Notes to the Financial Supplement	19
Non-GAAP Reconciliations	22

(3) Notice

Important Notice

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. (AGM).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 senior debt-to-capital ratio, 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.

(4) Financial Highlights

Financial Highlights Unaudited (in millions, except percentages)
Quarterly Trends	Δ	Year-to-Date	Δ
1Q'23	2Q'23	3Q'23	4Q'23	1Q'24	Q/Q	Y/Y	2023	2024	Y/Y
SELECTED INCOME STATEMENT DATA
GAAP
Net income available to AHL common stockholder	$ 721	$ 396	$ 442	$ 2,925	$ 1,147	(61)%	59 %	$ 721	$ 1,147	59 %
Retuon assets (ROA)	1.15 %	0.60 %	0.66 %	4.10 %	1.48 %	NM	33bps	1.15 %	1.48 %	33bps
NON-GAAP
Spread related earnings (SRE)	$ 687	$ 799	$ 872	$ 749	$ 816	9 %	19 %	$ 687	$ 816	19 %
Net spread	1.36 %	1.52 %	1.68 %	1.41 %	1.47 %	6bps	11bps	1.36 %	1.47 %	11bps
Net investment spread	1.83 %	1.99 %	2.13 %	1.80 %	1.83 %	3bps	0bps	1.83 %	1.83 %	0bps
Spread related earnings, excluding notable items1	$ 662	$ 799	$ 782	$ 749	$ 816	9 %	23 %	$ 662	$ 816	23 %
Net spread, excluding notable items1	1.31 %	1.52 %	1.51 %	1.41 %	1.47 %	6bps	16bps	1.31 %	1.47 %	16bps
Net investment spread, excluding notable items1	1.78 %	1.99 %	1.96 %	1.80 %	1.83 %	3bps	5bps	1.78 %	1.83 %	5bps
Alternative net investment income delta to long-term expectation2	$ 148	$ 75	$ 96	$ 132	$ 56	(58)%	(62)%	$ 148	$ 56	(62)%
Alternative net retudelta to long-term expectation	4.88 %	2.47 %	3.25 %	4.53 %	1.90 %	NM	NM	4.88 %	1.90 %	NM
Impact to net spread	0.30 %	0.14 %	0.18 %	0.25 %	0.10 %	(15)bps	(20)bps	0.30 %	0.10 %	(20)bps
SELECTED BALANCE SHEET DATA
GAAP
Total assets	$ 257,654	$ 269,437	$ 269,763	$ 300,579	$ 320,579	7 %	24 %	$ 257,654	$ 320,579	24 %
Goodwill	4,061	4,065	4,060	4,065	4,064	- %	- %	4,061	4,064	- %
Total liabilities	244,604	256,203	255,734	279,344	297,423	6 %	22 %	244,604	297,423	22 %
Debt	3,650	3,642	3,634	4,209	5,740	36 %	57 %	3,650	5,740	57 %
Total AHL stockholders' equity	8,698	8,701	8,537	13,838	14,760	7 %	70 %	8,698	14,760	70 %
Debt-to-capital ratio	29.6 %	29.5 %	29.9 %	23.3 %	28.0 %	NM	NM	29.6 %	28.0 %	NM
Leverage ratio	55.1 %	55.1 %	55.8 %	40.8 %	43.4 %	260bps	NM	55.1 %	43.4 %	NM
NON-GAAP
Gross invested assets	$ 247,673	$ 257,235	$ 261,209	$ 278,617	$ 292,837	5 %	18 %	$ 247,673	$ 292,837	18 %
Invested assets - ACRA noncontrolling interests	(40,924)	(43,565)	(53,114)	(61,190)	(65,482)	7 %	60 %	(40,924)	(65,482)	60 %
Net invested assets	206,749	213,670	208,095	217,427	227,355	5 %	10 %	206,749	227,355	10 %
Net reserve liabilities	184,891	193,431	185,744	199,289	208,523	5 %	13 %	184,891	208,523	13 %
Notional senior debt	3,400	3,400	3,400	4,000	5,000	25 %	47 %	3,400	5,000	47 %
Adjusted AHL common stockholder's equity	16,505	17,001	19,089	20,368	21,540	6 %	31 %	16,505	21,540	31 %
Adjusted senior debt-to-capital ratio	14.7 %	14.4 %	13.3 %	14.5 %	16.5 %	200bps	180bps	14.7 %	16.5 %	180bps
Adjusted leverage ratio	21.6 %	21.1 %	19.4 %	20.3 %	22.7 %	240bps	110bps	21.6 %	22.7 %	110bps
INFLOWS DATA
Gross organic inflows	$ 11,927	$ 18,714	$ 12,942	$ 19,824	$ 20,094	1 %	68 %	$ 11,927	$ 20,094	68 %
Gross inorganic inflows	-	-	-	2,214	-	NM	NM	-	-	NM
Total gross inflows	$ 11,927	$ 18,714	$ 12,942	$ 22,038	$ 20,094	(9)%	68 %	$ 11,927	$ 20,094	68 %
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. Our 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 retuwill be achieved. Actual results may differ materially.

(5) IS

Condensed Consolidated Statements of Income (GAAP view) Unaudited (in millions, except percentages)
Quarterly Trends	Δ	Year-to-Date	Δ
1Q'23	2Q'23	3Q'23	4Q'23	1Q'24	Q/Q	Y/Y	2023	2024	Y/Y
REVENUES
Premiums	$ 96	$ 9,041	$ 26	$ 3,586	$ 101	(97)%	5 %	$ 96	$ 101	5 %
Product charges	198	207	217	226	238	5 %	20 %	198	238	20 %
Net investment income	2,407	2,717	2,928	3,078	3,292	7 %	37 %	2,407	3,292	37 %
Investment related gains (losses)	1,065	366	(2,624)	2,621	1,677	(36)%	57 %	1,065	1,677	57 %
Other revenues	13	7	564	7	2	(71)%	(85)%	13	2	(85)%
Revenues of consolidated variable interest entities
Net investment income	80	55	75	47	77	64 %	(4)%	80	77	(4)%
Investment related gains (losses)	201	293	250	447	334	(25)%	66 %	201	334	66 %
Total revenues	4,060	12,686	1,436	10,012	5,721	(43)%	41 %	4,060	5,721	41 %
BENEFITS AND EXPENSES
Interest sensitive contract benefits	1,289	2,012	333	2,595	2,884	11 %	124 %	1,289	2,884	124 %
Future policy and other policy benefits	466	9,512	368	4,088	543	(87)%	17 %	466	543	17 %
Market risk benefits remeasurement (gains) losses	346	(71)	(441)	570	(154)	NM	NM	346	(154)	NM
Amortization of deferred acquisition costs, deferred sales inducements and value of business acquired	138	153	211	186	207	11 %	50 %	138	207	50 %
Policy and other operating expenses	435	452	472	489	459	(6)%	6 %	435	459	6 %
Total benefits and expenses	2,674	12,058	943	7,928	3,939	(50)%	47 %	2,674	3,939	47 %
Income before income taxes	1,386	628	493	2,084	1,782	(14)%	29 %	1,386	1,782	29 %
Income tax expense (benefit)1	163	133	162	(1,619)	307	NM	88 %	163	307	88 %
Net income	1,223	495	331	3,703	1,475	(60)%	21 %	1,223	1,475	21 %
Less: Net income (loss) attributable to noncontrolling interests	455	54	(155)	733	283	(61)%	(38)%	455	283	(38)%
Net income attributable to Athene Holding Ltd. stockholders	768	441	486	2,970	1,192	(60)%	55 %	768	1,192	55 %
Less: Preferred stock dividends	47	45	44	45	45	- %	(4)%	47	45	(4)%
Net income available to Athene Holding Ltd. common stockholder	$ 721	$ 396	$ 442	$ 2,925	$ 1,147	(61)%	59 %	$ 721	$ 1,147	59 %
1. 4Q'23 includes 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.

(6) Spread Related Earnings

Spread Related Earnings (Management view) Unaudited (in millions, except percentages)
Quarterly Trends	Δ	Year-to-Date	Δ
1Q'23	2Q'23	3Q'23	4Q'23	1Q'24	Q/Q	Y/Y	2023	2024	Y/Y
SPREAD RELATED EARNINGS
Fixed income and other net investment income	$ 1,958	$ 2,208	$ 2,236	$ 2,342	$ 2,455	5 %	25 %	$ 1,958	$ 2,455	25 %
Alternative net investment income	185	259	230	190	266	40 %	44 %	185	266	44 %
Net investment earnings	2,143	2,467	2,466	2,532	2,721	7 %	27 %	2,143	2,721	27 %
Strategic capital management fees	14	16	19	23	25	9 %	79 %	14	25	79 %
Cost of funds	(1,235)	(1,437)	(1,384)	(1,594)	(1,723)	8 %	40 %	(1,235)	(1,723)	40 %
Net investment spread	922	1,046	1,101	961	1,023	6 %	11 %	922	1,023	11 %
Other operating expenses	(126)	(118)	(123)	(120)	(116)	(3)%	(8)%	(126)	(116)	(8)%
Interest and other financing costs	(109)	(129)	(106)	(92)	(91)	(1)%	(17)%	(109)	(91)	(17)%
Spread related earnings	$ 687	$ 799	$ 872	$ 749	$ 816	9 %	19 %	$ 687	$ 816	19 %
Fixed income and other net investment income	4.13 %	4.46 %	4.58 %	4.66 %	4.66 %	0bps	53bps	4.13 %	4.66 %	53bps
Alternative net investment income	6.12 %	8.53 %	7.75 %	6.47 %	9.10 %	263bps	298bps	6.12 %	9.10 %	298bps
Net investment earnings	4.25 %	4.69 %	4.76 %	4.76 %	4.89 %	13bps	64bps	4.25 %	4.89 %	64bps
Strategic capital management fees	0.03 %	0.03 %	0.04 %	0.04 %	0.04 %	0bps	1bp	0.03 %	0.04 %	1bp
Cost of funds	(2.45)%	(2.73)%	(2.67)%	(3.00)%	(3.10)%	10bps	65bps	(2.45)%	(3.10)%	65bps
Net investment spread	1.83 %	1.99 %	2.13 %	1.80 %	1.83 %	3bps	0bps	1.83 %	1.83 %	0bps
Other operating expenses	(0.25)%	(0.22)%	(0.24)%	(0.23)%	(0.21)%	(2)bps	(4)bps	(0.25)%	(0.21)%	(4)bps
Interest and other financing costs	(0.22)%	(0.25)%	(0.21)%	(0.16)%	(0.15)%	(1)bp	(7)bps	(0.22)%	(0.15)%	(7)bps
Spread related earnings	1.36 %	1.52 %	1.68 %	1.41 %	1.47 %	6bps	11bps	1.36 %	1.47 %	11bps
Average net invested assets - fixed income and other	$ 189,509	$ 198,063	$ 195,448	$ 201,035	$ 210,688	5 %	11 %	$ 189,509	$ 210,688	11 %
Average net invested assets - alternatives	12,091	12,146	11,864	11,726	11,703	- %	(3)%	12,091	11,703	(3)%
Average net invested assets	$ 201,600	$ 210,209	$ 207,312	$ 212,761	$ 222,391	5 %	10 %	$ 201,600	$ 222,391	10 %
Note: Please refer to the Notes to the Financial Supplement section for discussion on spread related earnings.

(7) Recon of SRE

Reconciliation of Earnings Measures Unaudited (in millions, except percentages)
Quarterly Trends	Δ	Year-to-Date	Δ
1Q'23	2Q'23	3Q'23	4Q'23	1Q'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	$ 721	$ 396	$ 442	$ 2,925	$ 1,147	(61)%	59 %	$ 721	$ 1,147	59 %
Preferred stock dividends	47	45	44	45	45	- %	(4)%	47	45	(4)%
Net income (loss) attributable to noncontrolling interests	455	54	(155)	733	283	(61)%	(38)%	455	283	(38)%
Net income	1,223	495	331	3,703	1,475	(60)%	21 %	1,223	1,475	21 %
Income tax expense (benefit)	163	133	162	(1,619)	307	NM	88 %	163	307	88 %
Income before income taxes	1,386	628	493	2,084	1,782	(14)%	29 %	1,386	1,782	29 %
Realized gains (losses) on sale of AFS securities	(59)	(81)	(29)	(34)	(23)	32 %	61 %	(59)	(23)	61 %
Unrealized, allowances and other investment gains (losses)	92	(338)	(261)	256	21	(92)%	(77)%	92	21	(77)%
Change in fair value of reinsurance assets	357	(153)	(384)	765	(35)	NM	NM	357	(35)	NM
Offsets to investment gains (losses)	7	9	11	12	15	25 %	114 %	7	15	114 %
Investment gains (losses), net of offsets	397	(563)	(663)	999	(22)	NM	NM	397	(22)	NM
Change in fair values of derivatives and embedded derivatives - FIAs	143	206	(141)	59	484	NM	238 %	143	484	238 %
Non-operating change in funding agreements	(6)	10	12	19	23	21 %	NM	(6)	23	NM
Change in fair value of market risk benefits	(271)	133	565	(498)	201	NM	NM	(271)	201	NM
Non-operating change in liability for future policy benefits	(1)	(45)	(5)	2	(35)	NM	NM	(1)	(35)	NM
Non-operating change in insurance liabilities and related derivatives	(135)	304	431	(418)	673	NM	NM	(135)	673	NM
Integration, restructuring and other non-operating expenses	(29)	(28)	(41)	(32)	(30)	(6)%	3 %	(29)	(30)	3 %
Stock compensation expense	(16)	(13)	(13)	(46)	(13)	(72)%	(19)%	(16)	(13)	(19)%
Preferred stock dividends	47	45	44	45	45	- %	(4)%	47	45	(4)%
Noncontrolling interests - pre-tax income (loss) and VIE adjustments	435	84	(137)	787	313	(60)%	(28)%	435	313	(28)%
Less: Total adjustments to income before income taxes	699	(171)	(379)	1,335	966	(28)%	38 %	699	966	38 %
Spread related earnings	$ 687	$ 799	$ 872	$ 749	$ 816	9 %	19 %	$ 687	$ 816	19 %
Note: Please refer to the Notes to the Financial Supplement section for discussion on spread related earnings.

(8) Net Flows & Outflow by Type

Net Flows & Outflows Attributable to Athene by Type Unaudited (in millions, except percentages)
Quarterly Trends	Δ	Year-to-Date	Δ
1Q'23	2Q'23	3Q'23	4Q'23	1Q'24	Q/Q	Y/Y	2023	2024	Y/Y
NET FLOWS
Retail	$ 8,578	$ 6,782	$ 6,523	$ 13,410	$ 9,663	(28)%	13 %	$ 8,578	$ 9,663	13 %
Flow reinsurance	1,793	2,782	3,174	2,798	2,390	(15)%	33 %	1,793	2,390	33 %
Funding agreements1	1,500	148	3,245	2,300	8,041	250 %	NM	1,500	8,041	NM
Pension group annuities	56	9,002	-	1,316	-	NM	NM	56	-	NM
Gross organic inflows	11,927	18,714	12,942	19,824	20,094	1 %	68 %	11,927	20,094	68 %
Gross inorganic inflows2	-	-	-	2,214	-	NM	NM	-	-	NM
Total gross inflows	11,927	18,714	12,942	22,038	20,094	(9)%	68 %	11,927	20,094	68 %
Gross outflows3	(6,879)	(9,135)	(10,738)	(7,116)	(8,035)	13 %	17 %	(6,879)	(8,035)	17 %
Net flows	$ 5,048	$ 9,579	$ 2,204	$ 14,922	$ 12,059	(19)%	139 %	$ 5,048	$ 12,059	139 %
Inflows attributable to Athene4	$ 11,896	$ 14,977	$ 3,101	$ 13,026	$ 14,591	12 %	23 %	$ 11,896	$ 14,591	23 %
Inflows attributable to ADIP4,5	31	3,737	9,841	9,012	4,437	(51)%	NM	31	4,437	NM
Inflows ceded to third-party reinsurers6	-	-	-	-	1,066	NM	NM	-	1,066	NM
Total gross inflows	$ 11,927	$ 18,714	$ 12,942	$ 22,038	$ 20,094	(9)%	68 %	$ 11,927	$ 20,094	68 %
Outflows attributable to Athene	$ (5,531)	$ (7,891)	$ (9,550)	$ (5,791)	$ (6,748)	17 %	22 %	$ (5,531)	$ (6,748)	22 %
Outflows attributable to ADIP5	(1,348)	(1,244)	(1,188)	(1,325)	(1,287)	(3)%	(5)%	(1,348)	(1,287)	(5)%
Total gross outflows3	$ (6,879)	$ (9,135)	$ (10,738)	$ (7,116)	$ (8,035)	13 %	17 %	$ (6,879)	$ (8,035)	17 %
OUTFLOWS ATTRIBUTABLE TO ATHENE BY TYPE
Maturity-driven, contractual-based outflows7	$ (1,717)	$ (3,981)	$ (3,243)	$ (1,952)	$ (2,818)	44 %	64 %	$ (1,717)	$ (2,818)	64 %
Policyholder-driven outflows8	(3,814)	(3,910)	(3,584)	(3,839)	(3,930)	2 %	3 %	(3,814)	(3,930)	3 %
Income oriented withdrawals (planned)9	(1,766)	(1,750)	(1,617)	(1,831)	(1,691)	(8)%	(4)%	(1,766)	(1,691)	(4)%
From policies out-of-surrender-charge (planned)10	(1,480)	(1,377)	(1,326)	(1,365)	(1,512)	11 %	2 %	(1,480)	(1,512)	2 %
From policies in-surrender-charge (unplanned)11	(568)	(783)	(641)	(643)	(727)	13 %	28 %	(568)	(727)	28 %
Core outflows	(5,531)	(7,891)	(6,827)	(5,791)	(6,748)	17 %	22 %	(5,531)	(6,748)	22 %
Strategic reinsurance transactions12	-	-	(2,723)	-	-	NM	NM	-	-	NM
Outflows attributable to Athene	$ (5,531)	$ (7,891)	$ (9,550)	$ (5,791)	$ (6,748)	17 %	22 %	$ (5,531)	$ (6,748)	22 %
Annualized rate13
Maturity-driven, contractual-based outflows7	(3.4)%	(7.6)%	(6.3)%	(3.7)%	(5.1)%	140bps	170bps	(3.4)%	(5.1)%	170bps
Policyholder-driven outflows8	(7.6)%	(7.4)%	(6.9)%	(7.2)%	(7.0)%	(20)bps	(60)bps	(7.6)%	(7.0)%	(60)bps
Income oriented withdrawals (planned)9	(3.5)%	(3.3)%	(3.1)%	(3.4)%	(3.0)%	(40)bps	(50)bps	(3.5)%	(3.0)%	(50)bps
From policies out-of-surrender-charge (planned)10	(3.0)%	(2.6)%	(2.6)%	(2.6)%	(2.7)%	10bps	(30)bps	(3.0)%	(2.7)%	(30)bps
From policies in-surrender-charge (unplanned)11	(1.1)%	(1.5)%	(1.2)%	(1.2)%	(1.3)%	10bps	20bps	(1.1)%	(1.3)%	20bps
Core outflows	(11.0)%	(15.0)%	(13.2)%	(10.9)%	(12.1)%	120bps	110bps	(11.0)%	(12.1)%	110bps
Strategic reinsurance transactions12	- %	- %	(5.2)%	- %	- %	NM	NM	- %	- %	NM
Outflows attributable to Athene	(11.0)%	(15.0)%	(18.4)%	(10.9)%	(12.1)%	120bps	110bps	(11.0)%	(12.1)%	110bps
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, funding agreement repurchases and maturities 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 Apollo/Athene Dedicated Investment Program II (ADIP II), resulting in approximately $6.8 billion of inflows attributable to Athene for the first six months of 2023 being retroactively attributed to ADIP II. Effective December 31, 2023, ADIP II's ownership of economic interests in ACRA 2 increased to 60%, with ALRe owning the remaining 40% of the economic interests. This resulted in approximately $3.0 billion of inflows attributable to Athene for the year ended December 31, 2023 being retroactively attributed to ADIP II. These were reflected as an inflow for ADIP and a reduction of Athene inflows in 3Q'23 and 4Q'23, respectively. 5 ADIP refers to Apollo/Athene Dedicated Investment Program (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 (MYGA), 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.

(9) BS

Condensed Consolidated Balance Sheets Unaudited (in millions, except percentages)
December 31, 2023	March 31, 2024	Δ
ASSETS
Investments
Available-for-sale securities, at fair value	$ 134,338	$ 142,873	6 %
Trading securities, at fair value	1,706	1,685	(1)%
Equity securities	1,293	1,651	28 %
Mortgage loans, at fair value	44,115	48,207	9 %
Investment funds	109	110	1 %
Policy loans	334	330	(1)%
Funds withheld at interest	24,359	23,230	(5)%
Derivative assets	5,298	7,159	35 %
Short-term investments, at fair value	341	340	- %
Other investments	1,206	1,371	14 %
Total investments	213,099	226,956	7 %
Cash and cash equivalents	13,020	15,250	17 %
Restricted cash	1,761	1,575	(11)%
Investments in related parties
Available-for-sale securities, at fair value	14,009	16,378	17 %
Trading securities, at fair value	838	781	(7)%
Equity securities, at fair value	318	315	(1)%
Mortgage loans, at fair value	1,281	1,263	(1)%
Investment funds	1,632	1,626	- %
Funds withheld at interest	6,474	6,028	(7)%
Short-term investments	947	556	(41)%
Other investments, at fair value	343	336	(2)%
Accrued investment income	1,933	2,332	21 %
Reinsurance recoverable	4,154	5,183	25 %
Deferred acquisition costs, deferred sales inducements and value of business acquired	5,979	6,408	7 %
Goodwill	4,065	4,064	- %
Other assets	10,179	10,185	- %
Assets of consolidated variable interest entities
Investments
Trading securities, at fair value	2,136	2,034	(5)%
Mortgage loans, at fair value	2,173	2,147	(1)%
Investment funds, at fair value	15,927	16,816	6 %
Other investments, at fair value	103	121	17 %
Cash and cash equivalents	98	93	(5)%
Other assets	110	132	20 %
Total assets	$ 300,579	$ 320,579	7 %

(10) BS cont

Condensed Consolidated Balance Sheets, continued Unaudited (in millions, except percentages)
December 31, 2023	March 31, 2024	Δ
LIABILITIES
Interest sensitive contract liabilities	$ 204,670	$ 220,234	8 %
Future policy benefits	53,287	51,672	(3)%
Market risk benefits	3,751	3,723	(1)%
Debt	4,209	5,740	36 %
Derivative liabilities	1,995	2,429	22 %
Payables for collateral on derivatives and securities to repurchase	7,536	8,147	8 %
Other liabilities	2,781	4,396	58 %
Liabilities of consolidated variable interest entities	1,115	1,082	(3)%
Total liabilities	279,344	297,423	6 %
EQUITY
Preferred stock	-	-	NM
Common stock	-	-	NM
Additional paid-in capital	19,499	19,520	- %
Retained earnings (accumulated deficit)	(92)	868	NM
Accumulated other comprehensive loss	(5,569)	(5,628)	(1)%
Total Athene Holding Ltd. stockholders' equity	13,838	14,760	7 %
Noncontrolling interests	7,397	8,396	14 %
Total equity	21,235	23,156	9 %
Total liabilities and equity	$ 300,579	$ 320,579	7 %

(11) Invested Assets & Ratings

Net Invested Assets (Management view) & Agency Ratings Unaudited (in millions, except percentages)
December 31, 2023	March 31, 2024
Invested Asset Value1	Percent of Total	Invested Asset Value1	Percent of Total
NET INVESTED ASSETS
Corporate	$ 82,883	38.1 %	$ 86,528	38.1 %
CLO	20,538	9.4 %	21,466	9.4 %
Credit	103,421	47.5 %	107,994	47.5 %
CML	25,977	11.9 %	27,008	11.9 %
RML	18,021	8.3 %	19,859	8.7 %
RMBS	7,795	3.6 %	7,741	3.4 %
CMBS	5,580	2.6 %	5,805	2.6 %
Real estate	57,373	26.4 %	60,413	26.6 %
ABS	22,202	10.2 %	23,897	10.5 %
Alternative investments	11,659	5.4 %	11,747	5.2 %
State, municipal, political subdivisions and foreign government	3,384	1.5 %	3,373	1.5 %
Equity securities	1,727	0.8 %	1,979	0.9 %
Short-term investments	1,048	0.5 %	859	0.4 %
US government and agencies	4,052	1.9 %	4,420	1.9 %
Other investments	44,072	20.3 %	46,275	20.4 %
Cash and equivalents	10,467	4.8 %	10,294	4.5 %
Policy loans and other	2,094	1.0 %	2,379	1.0 %
Net invested assets	$ 217,427	100.0 %	$ 227,355	100.0 %
AM Best	Standard & Poor's	Fitch	Moody's
FINANCIAL STRENGTH RATINGS
Athene Annuity & Life Assurance Company	A	A+	A+	A1
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.	bbb+	A-	A-	NR
Senior notes	bbb+	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, including net alternative investments, 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.

(12) Net Alternative Investment

Net Alternative Investments (Management view) Unaudited (in millions, except percentages)
December 31, 2023	March 31, 2024
Invested Asset Value1	Percent of Total	Invested Asset Value1	Percent of Total
NET ALTERNATIVE INVESTMENTS
Strategic origination platforms
Wheels	$ 691	5.9 %	$ 683	5.8 %
Redding Ridge	571	4.9 %	564	4.8 %
MidCap Financial	528	4.5 %	495	4.2 %
NNN Lease	459	3.9 %	428	3.6 %
Aqua Finance	215	1.8 %	269	2.3 %
PK AirFinance	251	2.2 %	241	2.1 %
Foundation Home Loans	242	2.1 %	229	1.9 %
Other	243	2.1 %	230	2.0 %
Total strategic origination platforms	3,200	27.4 %	3,139	26.7 %
Retirement services platforms
Athora	1,106	9.5 %	1,116	9.5 %
Catalina	382	3.3 %	372	3.2 %
FWD	358	3.1 %	358	3.0 %
Challenger	274	2.4 %	298	2.5 %
Venerable	181	1.5 %	184	1.6 %
Total retirement services platforms	2,301	19.8 %	2,328	19.8 %
Apollo and other fund investments
Equity
Traditional private equity	1,157	9.9 %	1,140	9.7 %
Real estate	969	8.3 %	884	7.5 %
Other	189	1.6 %	190	1.6 %
Total equity	2,315	19.8 %	2,214	18.8 %
Hybrid
Real estate	1,123	9.6 %	1,069	9.1 %
Other	1,479	12.7 %	1,465	12.5 %
Total hybrid	2,602	22.3 %	2,534	21.6 %
Yield	867	7.5 %	887	7.6 %
Total Apollo and other fund investments	5,784	49.6 %	5,635	48.0 %
Other2	374	3.2 %	645	5.5 %
Net alternative investments3	$ 11,659	100.0 %	$ 11,747	100.0 %
1 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 66% and 69% as of March 31, 2024 and December 31, 2023, respectively. 2 Other primarily includes cash and royalties. 3 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, royalties and other investments.

(13) Credit Quality

Credit Quality of Securities Unaudited (in millions, except percentages)
December 31, 2023	March 31, 2024
CREDIT QUALITY OF AFS SECURITIES (GAAP VIEW)	Fair Value	Percent of Total	Fair Value	Percent of Total
National Association of Insurance Commissioners (NAIC) designation
1 A-G	$ 81,549	55.0 %	$ 86,887	54.5 %
2 A-C	61,664	41.5 %	67,476	42.4 %
Total investment grade	143,213	96.5 %	154,363	96.9 %
3 A-C	3,544	2.4 %	3,269	2.1 %
4 A-C	1,013	0.7 %	1,090	0.7 %
5 A-C	129	0.1 %	144	0.1 %
6	448	0.3 %	385	0.2 %
Total below investment grade	5,134	3.5 %	4,888	3.1 %
Total AFS securities including related parties	$ 148,347	100.0 %	$ 159,251	100.0 %
Nationally Recognized Statistical Rating Organization (NRSRO) designation
AAA/AA/A	$ 71,887	48.5 %	$ 76,596	48.1 %
BBB	58,010	39.1 %	62,833	39.4 %
Non-rated1	11,427	7.7 %	13,293	8.3 %
Total investment grade	141,324	95.3 %	152,722	95.8 %
BB	3,421	2.3 %	3,110	2.0 %
B	826	0.6 %	769	0.5 %
CCC	1,037	0.6 %	1,049	0.7 %
CC and lower	739	0.5 %	715	0.4 %
Non-rated1	1,000	0.7 %	886	0.6 %
Total below investment grade	7,023	4.7 %	6,529	4.2 %
Total AFS securities including related parties	$ 148,347	100.0 %	$ 159,251	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.

(14) Credit Quality cont

Credit Quality of Net Invested Assets (Management view) Unaudited (In millions, except percentages)
December 31, 2023	March 31, 2024	December 31, 2023	March 31, 2024
Invested Asset Value1	% of Total	Invested Asset Value1	% of Total	Invested Asset Value1	% of Total	Invested Asset Value1	% 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 %	$ 83,181	54.0 %	AAA/AA/A	$ 67,768	45.9 %	$ 71,367	46.3 %
2 A-C	61,775	41.9 %	64,882	42.1 %	BBB	57,345	38.9 %	59,565	38.7 %
Non-rated	322	0.2 %	387	0.2 %	Non-rated2	14,397	9.8 %	15,764	10.2 %
Total investment grade	141,600	96.0 %	148,450	96.3 %	Total investment grade	139,510	94.6 %	146,696	95.2 %
3 A-C	3,833	2.6 %	3,485	2.3 %	BB	3,551	2.4 %	3,182	2.1 %
4 A-C	1,170	0.8 %	1,319	0.9 %	B	915	0.6 %	856	0.6 %
5 A-C	357	0.2 %	391	0.2 %	CCC	1,280	0.9 %	1,288	0.8 %
6	522	0.4 %	444	0.3 %	CC and lower	940	0.6 %	909	0.6 %
Non-rated	-	- %	-	- %	Non-rated2	1,286	0.9 %	1,158	0.7 %
Total below investment grade	5,882	4.0 %	5,639	3.7 %	Total below investment grade	7,972	5.4 %	7,393	4.8 %
Total NAIC designated assets3	147,482	100.0 %	154,089	100.0 %	Total NRSRO designated assets3	147,482	100.0 %	154,089	100.0 %
Assets without NAIC designation	Assets without NRSRO designation
Commercial mortgage loans	Commercial mortgage loans
CM1	4,384	16.9 %	4,354	16.1 %	CM1	4,384	16.9 %	4,354	16.1 %
CM2	15,645	60.2 %	16,644	61.6 %	CM2	15,645	60.2 %	16,644	61.6 %
CM3	5,304	20.4 %	5,319	19.7 %	CM3	5,304	20.4 %	5,319	19.7 %
CM4	623	2.4 %	631	2.3 %	CM4	623	2.4 %	631	2.3 %
CM5	-	- %	-	- %	CM5	-	- %	-	- %
CM6	13	0.1 %	20	0.1 %	CM6	13	0.1 %	20	0.1 %
CM7	8	- %	40	0.2 %	CM7	8	- %	40	0.2 %
Total CMLs	25,977	100.0 %	27,008	100.0 %	Total CMLs	25,977	100.0 %	27,008	100.0 %
Residential mortgage loans	Residential mortgage loans
In good standing	17,503	97.1 %	19,335	97.4 %	In good standing	17,503	97.1 %	19,335	97.4 %
90 days late	407	2.3 %	400	2.0 %	90 days late	407	2.3 %	400	2.0 %
In foreclosure	111	0.6 %	124	0.6 %	In foreclosure	111	0.6 %	124	0.6 %
Total RMLs	18,021	100.0 %	19,859	100.0 %	Total RMLs	18,021	100.0 %	19,859	100.0 %
Alternative investments	11,659	11,747	Alternative investments	11,659	11,747
Cash and equivalents	10,467	10,294	Cash and equivalents	10,467	10,294
Equity securities	1,727	1,979	Equity securities	1,727	1,979
Other4	2,094	2,379	Other4	2,094	2,379
Net invested assets	$ 217,427	$ 227,355	Net invested assets	$ 217,427	$ 227,355
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 corporates, CLO, RMBS, CMBS, ABS, state, municipal, political subdivisions and foreign government securities, short-term investments and US government and agency securities. 4 Other includes policy loans, accrued interest and other net invested assets.

(15) Credit Quality cont

Credit Quality of Net Invested Assets - ABS and CLOs (Management view) Unaudited (In millions, except percentages)
December 31, 2023	March 31, 2024	December 31, 2023	March 31, 2024
Invested Asset Value1	% of Total	Invested Asset Value1	% of Total	Invested Asset Value1	% of Total	Invested Asset Value1	% of Total
CREDIT QUALITY OF ABS - NAIC DESIGNATION	CREDIT QUALITY OF ABS - NRSRO DESIGNATION
1 A-G	$ 13,700	61.7 %	$ 15,575	65.2 %	AAA/AA/A	$ 12,117	54.6 %	$ 13,467	56.4 %
2 A-C	7,227	32.6 %	7,125	29.8 %	BBB	8,407	37.9 %	7,206	30.1 %
Non-rated	-	- %	-	- %	Non-rated2	403	1.8 %	2,027	8.5 %
Total investment grade	20,927	94.3 %	22,700	95.0 %	Total investment grade	20,927	94.3 %	22,700	95.0 %
3 A-C	809	3.6 %	758	3.2 %	BB	822	3.6 %	770	3.2 %
4 A-C	261	1.2 %	232	1.0 %	B	248	1.1 %	220	0.9 %
5 A-C	125	0.5 %	127	0.4 %	CCC	12	0.1 %	12	0.1 %
6	80	0.4 %	80	0.4 %	CC and lower	35	0.2 %	36	0.2 %
Non-rated	-	- %	-	- %	Non-rated2	158	0.7 %	159	0.6 %
Total below investment grade	1,275	5.7 %	1,197	5.0 %	Total below investment grade	1,275	5.7 %	1,197	5.0 %
ABS net invested assets	$ 22,202	100.0 %	$ 23,897	100.0 %	ABS net invested assets	$ 22,202	100.0 %	$ 23,897	100.0 %
CREDIT QUALITY OF CLOs - NAIC DESIGNATION	CREDIT QUALITY OF CLOs - NRSRO DESIGNATION
1 A-G	$ 13,232	64.4 %	$ 13,924	64.9 %	AAA/AA/A	$ 13,232	64.4 %	$ 13,918	64.9 %
2 A-C	7,161	34.9 %	7,414	34.5 %	BBB	7,161	34.9 %	7,414	34.5 %
Non-rated	-	- %	-	- %	Non-rated2	-	- %	6	- %
Total investment grade	20,393	99.3 %	21,338	99.4 %	Total investment grade	20,393	99.3 %	21,338	99.4 %
3 A-C	126	0.6 %	109	0.5 %	BB	126	0.6 %	109	0.5 %
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 %	128	0.6 %	Total below investment grade	145	0.7 %	128	0.6 %
CLO net invested assets	$ 20,538	100.0 %	$ 21,466	100.0 %	CLO net invested assets	$ 20,538	100.0 %	$ 21,466	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) Credit Quality cont

Credit Quality of Net Invested Assets - RMBS and CMBS (Management view) Unaudited (In millions, except percentages)
December 31, 2023	March 31, 2024	December 31, 2023	March 31, 2024
Invested Asset Value1	% of Total	Invested Asset Value1	% of Total	Invested Asset Value1	% of Total	Invested Asset Value1	% of Total
CREDIT QUALITY OF RMBS - NAIC DESIGNATION	CREDIT QUALITY OF RMBS - NRSRO DESIGNATION
1 A-G	$ 6,714	86.1 %	$ 6,682	86.3 %	AAA/AA/A	$ 2,344	30.1 %	$ 2,443	31.6 %
2 A-C	262	3.4 %	270	3.5 %	BBB	475	6.1 %	407	5.2 %
Non-rated	-	- %	-	- %	Non-rated2	2,324	29.8 %	2,350	30.4 %
Total investment grade	6,976	89.5 %	6,952	89.8 %	Total investment grade	5,143	66.0 %	5,200	67.2 %
3 A-C	335	4.3 %	325	4.2 %	BB	99	1.3 %	61	0.8 %
4 A-C	323	4.2 %	306	4.0 %	B	128	1.6 %	150	1.9 %
5 A-C	89	1.1 %	87	1.1 %	CCC	1,144	14.7 %	1,113	14.4 %
6	72	0.9 %	71	0.9 %	CC and lower	835	10.7 %	800	10.3 %
Non-rated	-	- %	-	- %	Non-rated2	446	5.7 %	417	5.4 %
Total below investment grade	819	10.5 %	789	10.2 %	Total below investment grade	2,652	34.0 %	2,541	32.8 %
RMBS net invested assets	$ 7,795	100.0 %	$ 7,741	100.0 %	RMBS net invested assets	$ 7,795	100.0 %	$ 7,741	100.0 %
CREDIT QUALITY OF CMBS - NAIC DESIGNATION	CREDIT QUALITY OF CMBS - NRSRO DESIGNATION
1 A-G	$ 4,000	71.7 %	$ 4,195	72.3 %	AAA/AA/A	$ 3,447	61.8 %	$ 3,647	62.8 %
2 A-C	993	17.8 %	749	12.9 %	BBB	962	17.2 %	978	16.8 %
Non-rated	-	- %	-	- %	Non-rated2	291	5.2 %	298	5.2 %
Total investment grade	4,993	89.5 %	4,944	85.2 %	Total investment grade	4,700	84.2 %	4,923	84.8 %
3 A-C	293	5.3 %	299	5.2 %	BB	550	9.9 %	540	9.3 %
4 A-C	151	2.7 %	418	7.2 %	B	216	3.8 %	203	3.5 %
5 A-C	75	1.3 %	76	1.2 %	CCC	89	1.6 %	113	2.0 %
6	68	1.2 %	68	1.2 %	CC and lower	25	0.5 %	26	0.4 %
Non-rated	-	- %	-	- %	Non-rated2	-	- %	-	- %
Total below investment grade	587	10.5 %	861	14.8 %	Total below investment grade	880	15.8 %	882	15.2 %
CMBS net invested assets	$ 5,580	100.0 %	$ 5,805	100.0 %	CMBS net invested assets	$ 5,580	100.0 %	$ 5,805	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.

(17) Net Reserve Liab. & RF

Net Reserve Liabilities & Rollforwards Unaudited (in millions, except percentages)
December 31, 2023	March 31, 2024
Dollars	Percent of Total	Dollars	Percent of Total
NET RESERVE LIABILITIES
Indexed annuities	$ 84,444	42.4 %	$ 85,056	40.8 %
Fixed rate annuities	53,282	26.7 %	56,581	27.1 %
Total deferred annuities	137,726	69.1 %	141,637	67.9 %
Pension group annuities	26,313	13.2 %	25,502	12.2 %
Payout annuities	4,897	2.4 %	4,781	2.3 %
Funding agreements1	26,637	13.4 %	32,921	15.8 %
Life and other	3,716	1.9 %	3,682	1.8 %
Total net reserve liabilities	$ 199,289	100.0 %	$ 208,523	100.0 %
Quarterly Trends	Δ	Year-to-Date	Δ
1Q'23	2Q'23	3Q'23	4Q'23	1Q'24	Q/Q	Y/Y	2023	2024	Y/Y
NET RESERVE LIABILITY ROLLFORWARD
Net reserve liabilities - beginning	$ 175,970	$ 184,891	$ 193,431	$ 185,744	$ 199,289	7 %	13 %	$ 175,970	$ 199,289	13 %
Gross inflows2	12,111	18,989	13,257	20,167	20,408	1 %	69 %	12,111	20,408	69 %
Acquisition and block reinsurance3	-	-	-	2,214	-	NM	NM	-	-	NM
Inflows attributable to ACRA noncontrolling interests	(60)	(3,751)	(3,192)	(6,025)	(4,519)	(25)%	NM	(60)	(4,519)	NM
Inflows ceded to third-party reinsurers4	-	-	-	-	(1,083)	NM	NM	-	(1,083)	NM
Net inflows	12,051	15,238	10,065	16,356	14,806	(9)%	23 %	12,051	14,806	23 %
Net withdrawals	(5,531)	(7,891)	(6,827)	(5,791)	(6,748)	17 %	22 %	(5,531)	(6,748)	22 %
Strategic reinsurance outflows5	-	-	(2,723)	-	-	NM	NM	-	-	NM
ACRA ownership changes6	-	-	(7,023)	(3,239)	-	NM	NM	-	-	NM
Other reserve changes	2,401	1,193	(1,179)	6,219	1,176	(81)%	(51)%	2,401	1,176	(51)%
Net reserve liabilities - ending	$ 184,891	$ 193,431	$ 185,744	$ 199,289	$ 208,523	5 %	13 %	$ 184,891	$ 208,523	13 %
ACRA NONCONTROLLING INTERESTS RESERVE LIABILITY ROLLFORWARD
Reserve liabilities - beginning	$ 35,981	$ 35,281	$ 37,775	$ 46,576	$ 56,651	22 %	57 %	$ 35,981	$ 56,651	57 %
Inflows	60	3,751	3,192	6,025	4,519	(25)%	NM	60	4,519	NM
Withdrawals	(1,348)	(1,244)	(1,188)	(1,325)	(1,287)	(3)%	(5)%	(1,348)	(1,287)	(5)%
ACRA ownership changes6	-	-	7,023	3,239	-	NM	NM	-	-	NM
Other reserve changes	588	(13)	(226)	2,136	259	(88)%	(56)%	588	259	(56)%
Reserve liabilities - ending	$ 35,281	$ 37,775	$ 46,576	$ 56,651	$ 60,142	6 %	70 %	$ 35,281	$ 60,142	70 %
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 on older blocks of business, 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. 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, resulting in approximately $6.8 billion of inflows attributable to Athene for the first six months of 2023 being retroactively attributed to ADIP II. The ADIP II reserve liabilities at inception on July 1, 2023 were $7.0 billion. Effective December 31, 2023, ADIP II's ownership of economic interests in ACRA 2 increased to 60%, with ALRe owning the remaining 40% of the economic interests.

(18) Liab. Metrics

Deferred Annuity Liability Characteristics Unaudited (in millions, except percentages)
Surrender charge (gross)	Percent of total	Surrender charge (net of MVA)	Percent of total
SURRENDER CHARGE PERCENTAGES ON DEFERRED ANNUITIES NET ACCOUNT VALUE
No Surrender Charge	$ 26,188	19.5 %	$ 26,188	19.5 %
0.0% <>2.0%	5,249	3.9 %	4,027	3.0 %
2.0% <>4.0%	7,364	5.5 %	5,224	3.9 %
4.0% <>6.0%	12,975	9.7 %	10,011	7.5 %
6.0% or greater	82,232	61.4 %	88,558	66.1 %
$ 134,008	100.0 %	$ 134,008	100.0 %
Surrender charge (gross)	MVA benefit	Surrender charge (net)
Aggregate surrender charge protection	5.9 %	1.6 %	7.5 %
Deferred annuities	Percent of total	Average surrender charge (gross)
YEARS OF SURRENDER CHARGE REMAINING ON DEFERRED ANNUITIES NET ACCOUNT VALUE
No Surrender Charge	$ 26,188	19.5 %	- %
Less than 2	19,498	14.5 %	5.7 %
2 to less than 4	29,072	21.7 %	6.6 %
4 to less than 6	29,610	22.1 %	7.0 %
6 to less than 8	13,035	9.8 %	8.9 %
8 to less than 10	13,833	10.3 %	8.6 %
10 or greater	2,772	2.1 %	14.2 %
$ 134,008	100.0 %

(19) Notes

Notes to the Financial Supplement

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, 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, 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.

(20) Notes cont

Notes to the Financial Supplement, continued

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 adjustments to net investment income to arrive at our net investment earnings add (a) alternative investment gains and losses, (b) gains and losses related to certain equity securities, (c) net VIE impacts (revenues, expenses and noncontrolling interests), (d) forward points gains and losses on foreign exchange derivative hedges, (e) amortization of premium/discount on held-for-trading securities and (f) the change in fair value of reinsurance assets, and remove 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 integration, restructuring and other non-operating expenses, stock compensation and long-term incentive plan expenses, interest expense, policy acquisition expenses, net of deferrals, 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 SENIOR DEBT-TO-CAPITAL RATIO

Adjusted senior debt-to-capital 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 senior debt-to-capital ratio is calculated as senior debt at notional value 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 senior debt-to-capital ratio should not be used as a substitute for the debt-to-capital ratio. However, we believe the adjustments to stockholders' equity and debt are significant to gaining an understanding of our capitalization, debt utilization and debt capacity.

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.

(21) Notes cont

Notes to the Financial Supplement, continued

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 condensed 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 condensed 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 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 condensed 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. The majority of our ceded reinsurance is a result of strategic reinsurance transactions as well as reinsuring large blocks of life insurance business following acquisitions. 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 condensed consolidated statements of income (loss).

(22) Non-GAAP Recs

Non-GAAP Reconciliations Unaudited (in millions, except percentages)
Quarterly Trends
1Q'23	2Q'23	3Q'23	4Q'23	1Q'24
RECONCILIATION OF TOTAL AHL STOCKHOLDERS' EQUITY TO TOTAL ADJUSTED AHL COMMON STOCKHOLDER'S EQUITY
Total AHL stockholders' equity	$ 8,698	$ 8,701	$ 8,537	$ 13,838	$ 14,760
Less: Preferred stock	3,154	3,154	3,154	3,154	3,154
Total AHL common stockholder's equity	5,544	5,547	5,383	10,684	11,606
Less: Accumulated other comprehensive loss	(6,148)	(6,376)	(8,079)	(5,569)	(5,628)
Less: Accumulated change in fair value of reinsurance assets	(2,791)	(2,843)	(2,807)	(1,882)	(1,880)
Less: Accumulated change in fair value of mortgage loan assets	(2,022)	(2,235)	(2,820)	(2,233)	(2,426)
Total adjusted AHL common stockholder's equity	$ 16,505	$ 17,001	$ 19,089	$ 20,368	$ 21,540
RECONCILIATION OF DEBT-TO-CAPITAL RATIO TO ADJUSTED SENIOR DEBT-TO-CAPITAL RATIO
Total debt	$ 3,650	$ 3,642	$ 3,634	$ 4,209	$ 5,740
Less: Subordinated debt	-	-	-	-	575
Less: Adjustment to arrive at notional debt	250	242	234	209	165
Notional senior debt	$ 3,400	$ 3,400	$ 3,400	$ 4,000	$ 5,000
Total debt	$ 3,650	$ 3,642	$ 3,634	$ 4,209	$ 5,740
Total AHL stockholders' equity	8,698	8,701	8,537	13,838	14,760
Total capitalization	12,348	12,343	12,171	18,047	20,500
Less: Accumulated other comprehensive loss	(6,148)	(6,376)	(8,079)	(5,569)	(5,628)
Less: Accumulated change in fair value of reinsurance assets	(2,791)	(2,843)	(2,807)	(1,882)	(1,880)
Less: Accumulated change in fair value of mortgage loan assets	(2,022)	(2,235)	(2,820)	(2,233)	(2,426)
Less: Adjustment to arrive at notional debt	250	242	234	209	165
Total adjusted capitalization	$ 23,059	$ 23,555	$ 25,643	$ 27,522	$ 30,269
Debt-to-capital ratio	29.6 %	29.5 %	29.9 %	23.3 %	28.0 %
Accumulated other comprehensive loss	(7.8)%	(7.9)%	(9.4)%	(4.7)%	(5.2)%
Accumulated change in fair value of reinsurance assets	(3.5)%	(3.5)%	(3.2)%	(1.6)%	(1.7)%
Accumulated change in fair value of mortgage loan assets	(2.6)%	(2.8)%	(3.3)%	(1.9)%	(2.2)%
Adjustment to exclude subordinated debt	- %	- %	- %	- %	(1.9)%
Adjustment to arrive at notional debt	(1.0)%	(0.9)%	(0.7)%	(0.6)%	(0.5)%
Adjusted senior debt-to-capital ratio	14.7 %	14.4 %	13.3 %	14.5 %	16.5 %

(23) Non-GAAP Recs cont

Non-GAAP Reconciliations Unaudited (in millions, except percentages)
Quarterly Trends
1Q'23	2Q'23	3Q'23	4Q'23	1Q'24
RECONCILIATION OF LEVERAGE RATIO TO ADJUSTED LEVERAGE RATIO
Total debt	$ 3,650	$ 3,642	$ 3,634	$ 4,209	$ 5,740
Add: 50% of preferred stock	1,577	1,577	1,577	1,577	1,577
Less: 50% of subordinated debt	-	-	-	-	288
Less: Adjustment to arrive at notional debt	250	242	234	209	165
Adjusted leverage	$ 4,977	$ 4,977	$ 4,977	$ 5,577	$ 6,864
Total debt	$ 3,650	$ 3,642	$ 3,634	$ 4,209	$ 5,740
Total AHL stockholders' equity	8,698	8,701	8,537	13,838	14,760
Total capitalization	12,348	12,343	12,171	18,047	20,500
Less: Accumulated other comprehensive loss	(6,148)	(6,376)	(8,079)	(5,569)	(5,628)
Less: Accumulated change in fair value of reinsurance assets	(2,791)	(2,843)	(2,807)	(1,882)	(1,880)
Less: Accumulated change in fair value of mortgage loan assets	(2,022)	(2,235)	(2,820)	(2,233)	(2,426)
Less: Adjustment to arrive at notional debt	250	242	234	209	165
Total adjusted capitalization	$ 23,059	$ 23,555	$ 25,643	$ 27,522	$ 30,269
Leverage ratio	55.1 %	55.1 %	55.8 %	40.8 %	43.4 %
Accumulated other comprehensive loss	(14.5)%	(14.8)%	(17.4)%	(8.2)%	(8.0)%
Accumulated change in fair value of reinsurance assets	(6.6)%	(6.6)%	(6.1)%	(2.8)%	(2.7)%
Accumulated change in fair value of mortgage loan assets	(4.8)%	(5.2)%	(6.1)%	(3.3)%	(3.5)%
Adjustment to exclude 50% of preferred stock	(6.8)%	(6.6)%	(6.1)%	(5.6)%	(5.2)%
Adjustment to exclude 50% of subordinated debt	- %	- %	- %	- %	(0.9)%
Adjustment to arrive at notional debt	(0.8)%	(0.8)%	(0.7)%	(0.6)%	(0.4)%
Adjusted leverage ratio	21.6 %	21.1 %	19.4 %	20.3 %	22.7 %

(24) Non-GAAP Recs cont

Non-GAAP Reconciliations Unaudited (in millions, except percentages)
Quarterly Trends	Year-to-Date
1Q'23	2Q'23	3Q'23	4Q'23	1Q'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	$ 721	$ 396	$ 442	$ 2,925	$ 1,147	$ 721	$ 1,147
Preferred stock dividends	47	45	44	45	45	47	45
Net income (loss) attributable to noncontrolling interests	455	54	(155)	733	283	455	283
Net income	1,223	495	331	3,703	1,475	1,223	1,475
Income tax expense (benefit)	163	133	162	(1,619)	307	163	307
Income before income taxes	1,386	628	493	2,084	1,782	1,386	1,782
Less: Total adjustments to income before income taxes	699	(171)	(379)	1,335	966	699	966
Spread related earnings	687	799	872	749	816	687	816
Notable items	(25)	-	(90)	-	-	(25)	-
Spread related earnings, excluding notable items	$ 662	$ 799	$ 782	$ 749	$ 816	$ 662	$ 816
RECONCILIATION OF NET INVESTMENT INCOME TO NET INVESTMENT EARNINGS
US GAAP net investment income	$ 2,407	$ 2,717	$ 2,928	$ 3,078	$ 3,292	$ 2,407	$ 3,292
Change in fair value of reinsurance assets	70	37	(42)	21	(10)	70	(10)
VIE earnings and noncontrolling interests	200	279	264	335	311	200	311
Alternative gains (losses)	(9)	2	1	1	5	(9)	5
Reinsurance impacts	(64)	(69)	(66)	(65)	(64)	(64)	(64)
ACRA noncontrolling interests	(448)	(504)	(676)	(749)	(868)	(448)	(868)
Held-for-trading amortization and other	(13)	5	57	(89)	55	(13)	55
Total adjustments to arrive at net investment earnings	(264)	(250)	(462)	(546)	(571)	(264)	(571)
Total net investment earnings	$ 2,143	$ 2,467	$ 2,466	$ 2,532	$ 2,721	$ 2,143	$ 2,721
RECONCILIATION OF NET INVESTMENT INCOME RATE TO NET INVESTMENT EARNED RATE
US GAAP net investment income	4.78 %	5.17 %	5.65 %	5.79 %	5.92 %	4.78 %	5.92 %
Change in fair value of reinsurance assets	0.14 %	0.07 %	(0.08)%	0.04 %	(0.02)%	0.14 %	(0.02)%
VIE earnings and noncontrolling interests	0.40 %	0.53 %	0.51 %	0.63 %	0.56 %	0.40 %	0.56 %
Alternative gains (losses)	(0.02)%	- %	- %	- %	0.01 %	(0.02)%	0.01 %
Reinsurance impacts	(0.13)%	(0.13)%	(0.13)%	(0.12)%	(0.12)%	(0.13)%	(0.12)%
ACRA noncontrolling interests	(0.89)%	(0.96)%	(1.30)%	(1.41)%	(1.56)%	(0.89)%	(1.56)%
Held-for-trading amortization and other	(0.03)%	0.01 %	0.11 %	(0.17)%	0.10 %	(0.03)%	0.10 %
Total adjustments to arrive at net investment earned rate	(0.53)%	(0.48)%	(0.89)%	(1.03)%	(1.03)%	(0.53)%	(1.03)%
Net investment earned rate	4.25 %	4.69 %	4.76 %	4.76 %	4.89 %	4.25 %	4.89 %
Average net invested assets	$ 201,600	$ 210,209	$ 207,312	$ 212,761	$ 222,391	$ 201,600	$ 222,391

(25) Non-GAAP Recs cont

Non-GAAP Reconciliations Unaudited (in millions, except percentages)
Quarterly Trends	Year-to-Date
1Q'23	2Q'23	3Q'23	4Q'23	1Q'24	2023	2024
RECONCILIATION OF BENEFITS AND EXPENSES TO COST OF FUNDS
US GAAP benefits and expenses	$ 2,674	$ 12,058	$ 943	$ 7,928	$ 3,939	$ 2,674	$ 3,939
Premiums	(96)	(9,041)	(26)	(3,586)	(101)	(96)	(101)
Product charges	(198)	(207)	(217)	(226)	(238)	(198)	(238)
Other revenues	(13)	(7)	(123)	(7)	(2)	(13)	(2)
FIA option costs	365	385	374	388	392	365	392
Reinsurance impacts	(37)	(38)	(41)	(39)	(42)	(37)	(42)
Non-operating change in insurance liabilities and embedded derivatives	(873)	(1,113)	969	(1,913)	(1,339)	(873)	(1,339)
Policy and other operating expenses, excluding policy acquisition expenses	(310)	(323)	(335)	(373)	(341)	(310)	(341)
AmerUs Closed Block fair value liability	(42)	17	52	(85)	15	(42)	15
ACRA noncontrolling interests	(287)	(379)	(311)	(610)	(692)	(287)	(692)
Other	52	85	99	117	132	52	132
Total adjustments to arrive at cost of funds	(1,439)	(10,621)	441	(6,334)	(2,216)	(1,439)	(2,216)
Total cost of funds	$ 1,235	$ 1,437	$ 1,384	$ 1,594	$ 1,723	$ 1,235	$ 1,723
RECONCILIATION OF TOTAL BENEFITS AND EXPENSES RATE TO COST OF FUNDS RATE
US GAAP benefits and expenses	5.31 %	22.94 %	1.83 %	14.90 %	7.08 %	5.31 %	7.08 %
Premiums	(0.19)%	(17.20)%	(0.05)%	(6.74)%	(0.18)%	(0.19)%	(0.18)%
Product charges	(0.39)%	(0.39)%	(0.42)%	(0.42)%	(0.43)%	(0.39)%	(0.43)%
Other revenues	(0.03)%	(0.01)%	(0.24)%	(0.01)%	- %	(0.03)%	- %
FIA option costs	0.72 %	0.73 %	0.72 %	0.73 %	0.70 %	0.72 %	0.70 %
Reinsurance impacts	(0.07)%	(0.07)%	(0.08)%	(0.07)%	(0.08)%	(0.07)%	(0.08)%
Non-operating change in insurance liabilities and embedded derivatives	(1.73)%	(2.12)%	1.87 %	(3.60)%	(2.41)%	(1.73)%	(2.41)%
Policy and other operating expenses, excluding policy acquisition expenses	(0.62)%	(0.61)%	(0.65)%	(0.70)%	(0.61)%	(0.62)%	(0.61)%
AmerUs Closed Block fair value liability	(0.08)%	0.03 %	0.10 %	(0.16)%	0.03 %	(0.08)%	0.03 %
ACRA noncontrolling interests	(0.57)%	(0.72)%	(0.60)%	(1.15)%	(1.24)%	(0.57)%	(1.24)%
Other	0.10 %	0.15 %	0.19 %	0.22 %	0.24 %	0.10 %	0.24 %
Total adjustments to arrive at cost of funds	(2.86)%	(20.21)%	0.84 %	(11.90)%	(3.98)%	(2.86)%	(3.98)%
Total cost of funds	2.45 %	2.73 %	2.67 %	3.00 %	3.10 %	2.45 %	3.10 %
Average net invested assets	$ 201,600	$ 210,209	$ 207,312	$ 212,761	$ 222,391	$ 201,600	$ 222,391

(26) Non-GAAP Recs cont

Non-GAAP Reconciliations Unaudited (in millions)
Quarterly Trends	Year-to-Date
1Q'23	2Q'23	3Q'23	4Q'23	1Q'24	2023	2024
RECONCILIATION OF POLICY AND OTHER OPERATING EXPENSES TO OTHER OPERATING EXPENSES
US GAAP policy and other operating expenses	$ 435	$ 452	$ 472	$ 489	$ 459	$ 435	$ 459
Interest expense	(115)	(132)	(113)	(99)	(102)	(115)	(102)
Policy acquisition expenses, net of deferrals	(125)	(129)	(137)	(116)	(118)	(125)	(118)
Integration, restructuring and other non-operating expenses	(29)	(28)	(41)	(32)	(30)	(29)	(30)
Stock compensation expenses	(16)	(13)	(13)	(46)	(13)	(16)	(13)
ACRA noncontrolling interests	(17)	(31)	(30)	(65)	(70)	(17)	(70)
Other	(7)	(1)	(15)	(11)	(10)	(7)	(10)
Total adjustments to arrive at other operating expenses	(309)	(334)	(349)	(369)	(343)	(309)	(343)
Other operating expenses	$ 126	$ 118	$ 123	$ 120	$ 116	$ 126	$ 116
December 31, 2023	March 31, 2024
RECONCILIATION OF INVESTMENT FUNDS, INCLUDING RELATED PARTIES AND VIES, TO NET ALTERNATIVE INVESTMENTS
Investment funds, including related parties and consolidated VIEs	$ 17,668	$ 18,552
Equity securities	430	436
Certain equity securities included in AFS or trading securities	201	205
Investment funds within funds withheld at interest	827	852
Royalties	14	10
Net assets of the VIE, excluding investment funds	(4,508)	(5,178)
Unrealized (gains) losses	26	53
ACRA noncontrolling interests	(2,829)	(3,011)
Other assets	(170)	(172)
Total adjustments to arrive at net alternative investments	(6,009)	(6,805)
Net alternative investments	$ 11,659	$ 11,747

(27) Non-GAAP Recs cont

Non-GAAP Reconciliations Unaudited (in millions)
Quarterly Trends
1Q'23	2Q'23	3Q'23	4Q'23	1Q'24
RECONCILIATION OF TOTAL INVESTMENTS, INCLUDING RELATED PARTIES, TO NET INVESTED ASSETS
Total investments, including related parties	$ 203,230	$ 215,322	$ 214,953	$ 238,941	$ 254,239
Derivative assets	(3,956)	(5,114)	(4,571)	(5,298)	(7,159)
Cash and cash equivalents (including restricted cash)	14,992	12,804	11,214	14,781	16,825
Accrued investment income	1,458	1,646	1,792	1,933	2,332
Net receivable (payable) for collateral on derivatives	(1,909)	(2,940)	(2,485)	(2,835)	(4,293)
Reinsurance impacts	942	1,046	882	(572)	(1,358)
VIE assets, liabilities and noncontrolling interests	12,799	13,693	14,340	14,818	14,979
Unrealized (gains) losses	19,782	20,676	25,078	16,445	17,809
Ceded policy loans	(175)	(174)	(174)	(174)	(171)
Net investment receivables (payables)	39	(217)	(375)	11	(950)
Allowance for credit losses	521	536	592	608	615
Other investments	(50)	(43)	(37)	(41)	(31)
Total adjustments to arrive at gross invested assets	44,443	41,913	46,256	39,676	38,598
Gross invested assets	247,673	257,235	261,209	278,617	292,837
ACRA noncontrolling interests	(40,924)	(43,565)	(53,114)	(61,190)	(65,482)
Net invested assets	$ 206,749	$ 213,670	$ 208,095	$ 217,427	$ 227,355
RECONCILIATION OF TOTAL LIABILITIES TO NET RESERVE LIABILITIES
Total liabilities	$ 244,604	$ 256,203	$ 255,734	$ 279,344	$ 297,423
Debt	(3,650)	(3,642)	(3,634)	(4,209)	(5,740)
Derivative liabilities	(1,518)	(1,753)	(1,892)	(1,995)	(2,429)
Payables for collateral on derivatives and securities to repurchase	(7,331)	(6,979)	(4,786)	(4,370)	(5,481)
Other liabilities	(1,381)	(1,712)	(2,324)	(2,590)	(4,195)
Liabilities of consolidated VIEs	(847)	(1,189)	(1,255)	(1,115)	(1,082)
Reinsurance impacts	(9,090)	(9,115)	(8,918)	(8,574)	(9,277)
Policy loans ceded	(175)	(174)	(174)	(174)	(171)
Market risk benefit asset	(440)	(433)	(431)	(377)	(383)
ACRA noncontrolling interests	(35,281)	(37,775)	(46,576)	(56,651)	(60,142)
Total adjustments to arrive at net reserve liabilities	(59,713)	(62,772)	(69,990)	(80,055)	(88,900)
Net reserve liabilities	$ 184,891	$ 193,431	$ 185,744	$ 199,289	$ 208,523

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Athene Holding Ltd. published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 20:36:14 UTC.

Financial Supplement (Excel) Q1 2024 XLSX

Cover

Table of Contents

(3) Notice

(4) Financial Highlights

(5) IS

(6) Spread Related Earnings

(7) Recon of SRE

(8) Net Flows & Outflow by Type

(9) BS

(10) BS cont

(11) Invested Assets & Ratings

(12) Net Alternative Investment

(13) Credit Quality

(14) Credit Quality cont

(15) Credit Quality cont

(16) Credit Quality cont

(17) Net Reserve Liab. & RF

(18) Liab. Metrics

(19) Notes

(20) Notes cont

(21) Notes cont

(22) Non-GAAP Recs

(23) Non-GAAP Recs cont

(24) Non-GAAP Recs cont

(25) Non-GAAP Recs cont

(26) Non-GAAP Recs cont

(27) Non-GAAP Recs cont

Advisor News

Annuity News

Health/Employee Benefits News

Life Insurance News

Financial Supplement (Excel) Q1 2024 XLSX

Cover

Table of Contents

(3) Notice

(4) Financial Highlights

(5) IS

(6) Spread Related Earnings

(7) Recon of SRE

(8) Net Flows & Outflow by Type

(9) BS

(10) BS cont

(11) Invested Assets & Ratings

(12) Net Alternative Investment

(13) Credit Quality

(14) Credit Quality cont

(15) Credit Quality cont

(16) Credit Quality cont

(17) Net Reserve Liab. & RF

(18) Liab. Metrics

(19) Notes

(20) Notes cont

(21) Notes cont

(22) Non-GAAP Recs

(23) Non-GAAP Recs cont

(24) Non-GAAP Recs cont

(25) Non-GAAP Recs cont

(26) Non-GAAP Recs cont

(27) Non-GAAP Recs cont

Advisor News

Annuity News

Health/Employee Benefits News

Life Insurance News

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