Athene Holding Reports Third Quarter Results
Athene Holding Ltd. announced financial results for the third quarter 2020.
“Amid fragile economic conditions and historically low interest rates, our third quarter results demonstrate the continued resilience of Athene’s business and our ability to drive robust, highly profitable growth in any environment,” said Jim Belardi, CEO of Athene.
“Following consecutive quarters of record organic growth above target returns, we are on pace to exceed $50 billion of total organic and inorganic volumes in 2020, marking our best year of growth ever. While others have been forced to pull back in the current environment, Athene continues to serve as a source of strength for policyholders and business partners.
“Our numerous competitive advantages, highlighted by our very strong capitalization, enable our business to continue to thrive. The successful execution of our strategy year-to-date has laid the foundation to significantly increase earnings and drive compelling shareholder value in 2021 and beyond.”
The company said, “Net income available to AHL common shareholders for the third quarter 2020 was $622 million, or $3.16 per diluted Class A common share ["diluted share"], compared to $276 million, or $1.50 per diluted share for the third quarter 2019. The increase from the prior year quarter was driven by higher adjusted operating income, favorable changes in the fair value of reinsurance assets due to tightening credit spreads, and favorable changes in the net fair value of fixed indexed annuity ["FIA"] derivatives primarily due to unlocking, favorable equity market performance, and a lower discount rate resulting from declining interest rates.
“Adjusted operating income available to common shareholders for the third quarter 2020 was $302 million, or $1.53 per adjusted operating common share, compared to $243 million, or $1.34 per adjusted operating common share for the third quarter 2019. The increase from the prior year quarter was primarily driven by stronger investment income from alternatives, more than half of which are valued on a lagged basis and benefited from capital markets appreciation in the second quarter of 2020 being reflected in the current period.
“Adjusted operating income available to common shareholders excluding notables and AOG for the third quarter 2020 was $356 million, or $2.10 per adjusted operating common share, compared to $305 million, or $1.67 per adjusted operating common share for the third quarter 2019. The increase from the prior year quarter was primarily driven by the aforementioned strength of investment income from alternatives.”
