Affiliated and Unaffiliated Reinsurance as of and for the year‐to‐date June 30, 2023

This document is for the sole purpose of providing information related to Athene Annuity Re Ltd. ("AARe") and its subsidiaries for the benefit of certain rating agency analyses on the economic position of certain legal entities in the Athene Holding Ltd. consolidated group. The tables below are presented on a strictly notional basis, are not based on generally accepted accounting principles or any other accounting principles that AARe is subject to as a Bermuda reinsurance company, and are not intended for, and should not be used for any regulatory, investment, or other unrelated purpose. This information should only be viewed and analyzed in conjunction with separate Athene USA insurance subsidiary statutory financial information.

The tables below provide a proportional allocation of the total statutory capital and surplus, pre‐tax income and net income of AARe and its subsidiaries, by reinsurance counterparty, illustrating a notional allocation of capital to reinsurance treaties based on different types of reinsurance.

Allocated Capital and Surplus on a Proportional Basis ‐ Notional Allocation

The tables below include an allocation of statutory capital and surplus, pre‐tax income and net income based on the following methodology:

  • Any isolated capital is applied to the entity to which the capital relates to
  • Surplus capital is allocated on a pro‐rata basis based on total reserves (not withstanding that some isolated capital may already be associated with some reserves)
  • Net income is applied to the entity to which the income is earned for the current year
  • Surplus net income is allocated on a pro‐rata basis based on total reserves

(Unaudited, in thousands)

Financial Return

Athene Annuity and Life Company

Athene Annuity & Life Assurance Company

Athene Annuity & Life Assurance of New York

Other Affiliated Reinsurance

Unaffiliated Reinsurance

Total AARe Statutory Financial Return1

Capital and Surplus

$

11,529,700

$

1,792,627

$

344,458

$

143,556

$

4,541,831

$

18,352,171

Pre‐tax Income (YTD)

$

54,626

$

124,706

$

(15,952)

$

(8,165)

$

601,947

$

757,161

Net Income (YTD)

$

(16,712)

$

113,061

$

(17,162)

$

(8,629)

$

577,028

$

647,586

Underlying Proportional Asset Composition of Allocated Capital and Surplus ‐ Notional Allocation

The below table splits the allocated capital and surplus into NAIC invested asset categories based on the proportional mix of the actual and allocated assets for Athene Annuity and Life Company, Athene Annuity & Life Assurance Company and Athene Annuity & Life Assurance of New York. Note: the asset categorizations below are based on NAIC asset category definitions whereas the asset classifications on the AARe statutory financial return are based on US GAAP asset category definitions. For example, certain investments are classified as fixed maturity securities under US GAAP compared to other invested assets (BA Assets) based on NAIC rules.

(Unaudited, in thousands)

Athene Annuity and Life Company

Athene Annuity & Life Assurance Company

Athene Annuity & Life Assurance of New York

Asset mix:

2023

2023

2023

Non‐affiliated

Corporate Bonds

$

3,563,512

$

663,574

$

227,919

US Gov't, Agencies, Municipals, Foreign Gov't

474,645

37,102

10,814

RMBS

291,061

85,636

16,031

CMBS

266,023

51,711

18,691

Other ABS (including CLOs)

1,559,059

260,587

16,276

Mortgages & Real Estate

2,400,607

254,096

7,714

BA Assets

30,242

1,249

119

Unaffiliated Stocks

82,047

21,853

1,854

Total Non‐affiliated

$

8,667,197

$

1,375,809

$

299,416

Affiliated

Corporate Bonds

$

100,672

$

10,317

$

211

Other ABS (including CLOs)

987,322

210,606

3,115

Mortgages & Real Estate

‐

‐

‐

BA Assets

810,415

48,335

2,757

Affiliated Stocks

3,068

478

90

Total Affiliated

$

1,901,476

$

269,736

$

6,174

Other

Cash & Cash Equivalents

$

629,884

$

104,823

$

35,588

Derivatives

278,942

19,599

1,859

All Other

52,201

22,662

1,421

Total Allocated Surplus

$

11,529,700

$

1,792,627

$

344,458

Bonds by NAIC category:

NAIC 1

$

4,028,933

$

665,812

$

132,343

NAIC 2

2,983,605

561,380

145,330

Investment Grade

$

7,012,538

$

1,227,192

$

277,673

NAIC 3

$

149,081

$

67,086

$

6,669

NAIC 4

50,024

20,904

2,603

NAIC 5

11,169

925

76

NAIC 6

19,484

3,427

6,035

Below Investment Grade

229,757

92,342

15,383

Total Bonds

$

7,242,295

$

1,319,533

$

293,056

Bonds by ASC 820 Fair Value Level:

Level 1

$

368,701

$

11,605

$

1,911

Level 2

5,699,977

1,129,830

288,268

Level 3

1,173,616

178,099

2,876

Total Bonds

$

7,242,295

$

1,319,533

$

293,056

Allocated Surplus account Investment Income on a Proportional Basis ‐ Notional Allocation

The below table shows a notional allocation of certain income items to affiliated reinsurance counterparties proportionately based on reserves. The surplus net investment income includes asset management fees on funds withheld and modco assets contractually required to be funded by AARe but does not include the income on the funds withheld and modco assets.

(Unaudited, in thousands)

Athene Annuity and Life Company

Athene Annuity & Life Assurance Company

Athene Annuity & Life Assurance of New York

Investment Income:

2023

2023

2023

Bonds & Equities

$

220,343

$

35,968

$

3,738

Mortgages & Real Estate

11,761

1,920

200

BA Assets

14,232

2,323

241

Other

42,000

6,856

713

Gross Investment Income

$

288,337

$

47,067

$

4,892

Investment Expenses

$

(170,089)

$

(27,764)

$

(2,886)

Net Investment Income

$

118,248

$

19,302

$

2,006

Capital Gains and Losses:

Bonds & Equities

(27,526)

(4,493)

(467)

BA Assets

(1,344)

(219)

(23)

Other, including FX

(195,398)

(31,896)

(3,315)

Total

$

(224,268)

$

(36,608)

$

(3,805)

Capital and Surplus

Net Income

1Reconciliation between ALIRT document and Statutory Return (in thousands)

Total AARe Statutory Financial Return Capital and

18,352,171

Surplus ‐ ALIRT

Athene Co‐invest Reinsurance Affiliate 1A Ltd.

(2,692,052)

("ACRA") Adjustment

Athene Co‐invest Reinsurance Affiliate 2A Ltd.

(832,979)

("ACRA 2") Adjustment

Investment in US subs & holdcos

2,273,578

Total AARe Statutory Financial Return Capital and

17,100,717

Surplus

To reflect AARe's 36.55% ownership of ACRA, reported in the Statutory Financial Statement

To reflect AARe's 50% ownership of ACRA 2, reported in the Statutory Financial Statement

Equity in subsidiaries and associated transactions

1Reconciliation between ALIRT document and Statutory Return (in thousands)

Total AARe Statutory Financial Return Net Income ‐ ALIRT

Athene Co‐invest Reinsurance Affiliate 1A Ltd.

("ACRA") Adjustment

Athene Co‐invest Reinsurance Affiliate 2A Ltd.

("ACRA 2") Adjustment

Investment in US subs & holdcos

Total AARe Statutory Financial Return Net

Income

647,586

27,881

(27,937)

56,637

704,167

To reflect AARe's 36.55% ownership of ACRA, reported in the Statutory Financial Statement

To reflect AARe's 50% ownership of ACRA 2, reported in the Statutory Financial Statement

Earnings pick up in subsidiaries and associated transactions

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Disclaimer

Athene Holding Ltd. published this content on 15 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2023 15:12:59 UTC.