Athene : First Quarter 2023 Financial Supplement

Table of Contents

Important Notice	3
FINANCIAL RESULTS
Financial Highlights	4
Condensed Consolidated Statements of Income (Loss) (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	21

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 adopted the US GAAP accounting standard related to Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI) as of January 1, 2023, which required AHL to apply the new standard retrospectively back to January 1, 2022, the date of AHL's merger with AGM. The 2022 financial metrics and disclosures in this supplement have been retrospectively adjusted in accordance with the requirements of the adoption guidance of LDTI. Approximately 20% of Athene's total US GAAP liabilities as of January 1, 2022 were impacted by these changes. Please refer to the discussion of Key Operating and Non-GAAP Measures herein for additional information on items that are excluded from AHL's non-GAAP measure of spread related earnings, which was retrospectively adjusted in accordance with the requirements of the adoption guidance of LDTI. Please see Notes 1, 2, 8 and 9 to the condensed consolidated financial statements included in AHL's Form 10-Q for the quarter ended March 31, 2023 as well as the 2022 Financial Supplement LDTI Recast published on May 5, 2023 for more information on LDTI.

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 debt-to-capital ratio, net invested assets and net reserve liabilities. 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.

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Financial Highlights

Unaudited (in millions, except percentages)

						Quarterly Trends								Δ			Year-to-Date		Δ
		1Q'22			2Q'22			3Q'22		4Q'22			1Q'23		Q/Q		Y/Y			2022			2023		Y/Y
SELECTED INCOME STATEMENT DATA
GAAP
Net income (loss) available to AHL common shareholder	$	(1,050)	$	(1,740)	$	(622)			$	361	$	721	100 %		NM	$	(1,050)	$	721		NM
Return on assets (ROA)		(1.72)%			(2.92)%			(1.07)%				0.60 %			1.15 %		55bps		NM			(1.72)%			1.15 %		NM
NON-GAAP
Spread related earnings	$	674	$	455	$	640			$	697	$	687	(1)%	2 %	$	674	$	687	2 %
Net spread		1.49 %			0.97 %			1.33 %				1.42 %			1.36 %		(6)bps		(13)bps			1.49 %			1.36 %		(13)bps
Net investment spread		1.87 %			1.34 %			1.73 %				1.85 %			1.83 %		(2)bps		(4)bps			1.87 %			1.83 %		(4)bps
Spread related earnings - normalized1	$	523	$	574	$	680			$	746	$	810	9 %	55 %	$	523	$	810	55 %
Net spread - normalized1		1.16 %			1.23 %			1.41 %				1.52 %			1.61 %		9bps		45bps			1.16 %			1.61 %		45bps
Net investment spread - normalized1		1.54 %			1.60 %			1.81 %				1.95 %			2.08 %		13bps		54bps			1.54 %			2.08 %		54bps
SELECTED BALANCE SHEET DATA
GAAP
Total assets	$	244,673	$	232,420	$	234,554			$	243,931	$	257,654	6 %	5 %	$	244,673	$	257,654	5 %
Goodwill		4,150			4,155			4,062				4,058			4,061		- %	(2)%			4,150			4,061	(2)%
Total liabilities		227,380			222,662			227,917				233,382			244,604	5 %	8 %			227,380			244,604	8 %
Debt		3,287			3,279			3,271				3,658			3,650		- %	11 %			3,287			3,650	11 %
Total AHL shareholders' equity		13,973			8,697			5,133				7,158			8,698	22 %	(38)%			13,973			8,698	(38)%
Debt-to-capital ratio		19.0 %			27.4 %			38.9 %				33.8 %			29.6 %		NM		NM			19.0 %			29.6 %		NM
NON-GAAP
Gross invested assets	$	221,720	$	229,545	$	236,720			$	238,310	$	247,673	4 %	12 %	$	221,720	$	247,673	12 %
Invested assets - ACRA noncontrolling interests		(37,449)			(40,240)			(41,563)				(41,859)			(40,924)	(2)%	9 %			(37,449)			(40,924)	9 %
Net invested assets		184,271			189,305			195,157				196,451			206,749	5 %	12 %			184,271			206,749	12 %
Net reserve liabilities		169,750			170,703			173,539				175,970			184,891	5 %	9 %			169,750			184,891	9 %
Notional debt		3,000			3,000			3,000				3,400			3,400		- %	13 %			3,000			3,400	13 %
Adjusted AHL common shareholder's equity		15,524			15,589			16,428				16,653			16,505	(1)%	6 %			15,524			16,505	6 %
Adjusted debt-to-capital ratio		14.2 %			14.1 %			13.6 %				14.7 %			14.7 %		0bps		50bps			14.2 %			14.7 %		50bps
INFLOWS DATA
Gross organic inflows	$	11,556	$	12,049	$	12,955			$	11,290	$	11,927	6 %	3 %	$	11,556	$	11,927	3 %
Gross inorganic inflows		-			-			-				-			-		NM		NM			-			-		NM
Total gross inflows	$	11,556	$	12,049	$	12,955			$	11,290	$	11,927	6 %	3 %	$	11,556	$	11,927	3 %

Note: "NM" represents changes that are not meaningful. Please refer to Notes to the Financial Supplement section and the Non-GAAP Measure Reconciliations for discussion of non-GAAP metrics. 1 Spread related earnings - normalized, net spread - normalized and net investment spread - normalized reflect adjustments to exclude notable items and normalize alternative income to an 11% long-term return. See further discussion over this non-GAAP metric in the Notes to the Financial Supplement section.

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Condensed Consolidated Statements of Income (Loss) (GAAP view)

Unaudited (in millions, except percentages)

						Quarterly Trends								Δ			Year-to-Date		Δ
		1Q'22			2Q'22			3Q'22		4Q'22			1Q'23		Q/Q		Y/Y			2022			2023		Y/Y
REVENUES
Premiums	$	2,110	$	5,614	$	3,045			$	869	$	96	(89)%	(95)%	$	2,110	$	96	(95)%
Product charges		166			175			184				193			198	3 %	19 %			166			198	19 %
Net investment income		1,683			1,726			1,843				2,319			2,407	4 %	43 %			1,683			2,407	43 %
Investment related gains (losses)		(4,212)			(5,751)			(2,848)				105			1,065		NM		NM			(4,212)			1,065		NM
Other revenues		(3)			(9)			(26)				10			13	30 %		NM			(3)			13		NM
Revenues of consolidated variable interest entities
Net investment income		17			30			33				31			80	158 %		NM			17			80		NM
Investment related gains (losses)		(42)			22			79				260			201	(23)%		NM			(42)			201		NM
Total revenues		(281)			1,807			2,310				3,787			4,060	7 %		NM			(281)			4,060		NM
BENEFITS AND EXPENSES
Interest sensitive contract benefits		(99)			(653)			171				1,119			1,289	15 %		NM			(99)			1,289		NM
Future policy and other policy benefits		2,184			5,776			3,270				1,235			466	(62)%	(79)%			2,184			466	(79)%
Market risk benefits remeasurement (gains) losses		(622)			(609)			(458)				32			346		NM		NM			(622)			346		NM
Amortization of deferred acquisition costs, deferred sales		98			108			112				126			138	10 %	41 %			98			138	41 %
inducements and value of business acquired
Policy and other operating expenses		338			357			388				412			435	6 %	29 %			338			435	29 %
Total benefits and expenses		1,899			4,979			3,483				2,924			2,674	(9)%	41 %			1,899			2,674	41 %
Income (loss) before income taxes		(2,180)			(3,172)			(1,173)				863			1,386	61 %		NM			(2,180)			1,386		NM
Income tax expense (benefit)		(284)			(378)			(121)				137			163	19 %		NM			(284)			163		NM
Net income (loss)		(1,896)			(2,794)			(1,052)				726			1,223	68 %		NM			(1,896)			1,223		NM
Less: Net income (loss) attributable to noncontrolling interests		(881)			(1,089)			(465)				329			455	38 %		NM			(881)			455		NM
Net income (loss) attributable to Athene Holding Ltd.		(1,015)			(1,705)			(587)				397			768	93 %		NM			(1,015)			768		NM
shareholders
Less: Preferred stock dividends		35			35			35				36			47	31 %	34 %			35			47	34 %
Net income (loss) available to Athene Holding Ltd. common	$	(1,050)	$	(1,740)	$	(622)			$	361	$	721	100 %		NM	$	(1,050)	$	721		NM
shareholder

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