10q10k10q10k.net

What changed in Athene Holding Ltd.'s 10-K — 2024 vs 2025

vs

Paragraph-level year-over-year comparison of Athene Holding Ltd.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+1027 added−1151 removedSource: 10-K (2026-02-25) vs 10-K (2025-02-24)

Top changes in Athene Holding Ltd.'s 2025 10-K

1027 paragraphs added · 1151 removed · 479 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

152 edited+357 added−75 removed312 unchanged
Biggest changeThis rule, called “Regulation Best Interest,” requires broker-dealers, among other things, to: act in the best interest of the retail customer at the time the recommendation is made, without placing the financial or other interest of the broker-dealer ahead of the interests of the retail customer; and address conflicts of interest by establishing, maintaining, and enforcing policies and procedures reasonably designed to identify and fully and fairly disclose material facts about conflicts of interest, and in certain identified areas where the SEC has determined that disclosure is insufficient to reasonably address the conflict, to mitigate or, in certain instances, eliminate the conflict.
Biggest changeThis rule, called “Regulation Best Interest,” requires broker-dealers, among other things, to act in the best interest of the retail customer at the time the recommendation is made, without placing the financial or other interest of the broker-dealer ahead of the interests of the retail customer.
Further, the SEC has asserted in examinations and enforcement actions that when an individual licensed both as an investment adviser representative or broker-dealer registered representative and as an insurance agent advises customers about allocating assets between securities and non-securities insurance products (such as indexed annuities), Regulation Best Interest and the fiduciary interpretation apply to those recommendations.
Further, the SEC has asserted in examinations and enforcement actions that when an individual licensed both as an investment adviser representative or broker-dealer registered representative and as an insurance agent advises customers about allocating assets between securities and non-securities insurance products (such as indexed annuities), Regulation Best Interest and the investment fiduciary interpretation apply to those recommendations.
There is also a risk that AI Technologies and data used therewith may be misused or misappropriated by our employees, third-party service providers or other third parties.
There is also a risk that AI Technologies and data used therewith may be misused or misappropriated by our employees or third-party service providers or other third parties.
Risk Factors In any particular year, our subsidiaries’ capital ratios and/or statutory surplus amounts may increase or decrease depending on a variety of factors, some of which are outside of our control and some of which we can only partially control, including, but not limited to, the following: • the amount of statutory income or loss generated by our insurance subsidiaries; • the amount of additional capital our insurance subsidiaries must hold to support their business growth; • changes in reserve requirements applicable to our insurance subsidiaries; • changes in market value of certain securities in our investment portfolio; • recognition of write-downs or other losses on investments held in our investment portfolio; • changes in the credit ratings of investments held in our investment portfolio; • changes in the value of certain derivative instruments; • changes in interest rates; • credit market volatility; • changes in policyholder behavior; • changes in corporate tax rates; • changes to the RBC formulas and interpretations of the NAIC instructions with respect to RBC calculation methodologies; and • changes to the ECR, BSCR, or TCL formulas and interpretations of the BMA’s instructions with respect to ECR, BSCR, or TCL calculation methodologies.
In any particular year, our subsidiaries’ capital ratios and/or statutory surplus amounts may increase or decrease depending on a variety of factors, some of which are outside of our control and some of which we can only partially control, including, but not limited to, the following: • the amount of statutory income or loss generated by our insurance subsidiaries; • the amount of additional capital our insurance subsidiaries must hold to support their business growth; • changes in reserve requirements applicable to our insurance subsidiaries; • changes in market value of certain securities in our investment portfolio; • recognition of write-downs or other losses on investments held in our investment portfolio; • changes in the credit ratings of investments held in our investment portfolio; • changes in the value of certain derivative instruments; • changes in interest rates; • credit market volatility; • changes in policyholder behavior; • changes in corporate tax rates; • changes to the RBC formulas and interpretations of the NAIC instructions with respect to RBC calculation methodologies; and • changes to the ECR, BSCR, or TCL formulas and interpretations of the BMA’s instructions with respect to ECR, BSCR, or TCL calculation methodologies.
The BEAT operates as a minimum tax and is generally calculated as a percentage (10% for taxable years before 2026 and 12.5% thereafter) of the “modified taxable income” of an “applicable taxpayer.” Modified taxable income is calculated by adding back to a taxpayer’s regular taxable income the amount of certain “base erosion tax benefits” with respect to certain payments made to foreign affiliates of the taxpayer, as well as the “base erosion percentage” of any net operating loss deductions.
The BEAT operates as a minimum tax and is generally calculated as a percentage (10% for taxable years before 2026 and 10.5% thereafter) of the “modified taxable income” of an “applicable taxpayer.” Modified taxable income is calculated by adding back to a taxpayer’s regular taxable income the amount of certain “base erosion tax benefits” with respect to certain payments made to foreign affiliates of the taxpayer, as well as the “base erosion percentage” of any net operating loss deductions.
If the IRS were to successfully challenge our reinsurance arrangements, our financial condition, results of operations and cash flows could be adversely affected. The recently enacted Bermuda Corporate Income Tax Act 2023, or other changes in Bermuda tax laws, may negatively affect our earnings and results from operations. On December 27, 2023, the Government of Bermuda enacted the Bermuda CIT.
If the IRS were to successfully challenge our reinsurance arrangements, our financial condition, results of operations and cash flows could be adversely affected. The Bermuda Corporate Income Tax Act 2023, or other changes in Bermuda tax laws, may negatively affect our earnings and results from operations. On December 27, 2023, the Government of Bermuda enacted the Bermuda CIT.
Employee Retirement Income Security Act of 1974, as amended (ERISA) We also may be subject to regulation by the US Department of Labor (DOL) when providing a variety of products and services to employee benefit plans governed by ERISA. ERISA is a comprehensive federal statute that applies to US employee benefit plans sponsored by private employers and labor unions.
Business Employee Retirement Income Security Act of 1974, as amended (ERISA) We also may be subject to regulation by the US Department of Labor (DOL) when providing a variety of products and services to employee benefit plans governed by ERISA. ERISA is a comprehensive federal statute that applies to US employee benefit plans sponsored by private employers and labor unions.
Business Innovation and Technology There has been increased scrutiny, including from state insurance regulators, regarding the use of “big data” techniques, including artificial intelligence (AI), machine learning and automated decision-making. The NAIC established the Innovation, Cybersecurity and Technology (H) Committee ((H) Committee) to address the insurance implications of cybersecurity and emerging technologies, including big data, artificial intelligence and e-commerce.
There has been increased scrutiny, including from state insurance regulators, regarding the use of “big data” techniques, including artificial intelligence (AI), machine learning and automated decision-making. The NAIC established the Innovation, Cybersecurity and Technology (H) Committee ((H) Committee) to address the insurance implications of cybersecurity and emerging technologies, including big data, artificial intelligence and e-commerce.
Risk Factors Risks Relating to Market and Credit Risk Our investments are subject to market and credit risks that could diminish their value and these risks could be greater during periods of extreme volatility or disruption in the financial and credit markets, which could adversely impact our business, financial condition, results of operations, liquidity and cash flows.
Risks Relating to Market and Credit Risk Our investments are subject to market and credit risks that could diminish their value and these risks could be greater during periods of extreme volatility or disruption in the financial and credit markets, which could adversely impact our business, financial condition, results of operations, liquidity and cash flows.
In addition, US federal, state, local and non-US tax rules are constantly under review by persons involved in the legislative process, the IRS, the US Department of the Treasury, and state, local and non-US legislative and regulatory bodies, which frequently results in revised interpretations of established concepts, statutory changes, revisions to regulations and other modifications and interpretations.
In addition, US federal, state, local and non-US tax rules are constantly under review by persons involved in the legislative process, the IRS, the US Department of the Treasury, and state, local and non-US legislative and regulatory bodies, which frequently results in revised interpretations of established concepts, statutory changes, revisions to regulations and other modifications, interpretations and practices.
Our most significant concentration risk exposure arising in the context of strategic alternative investments, on a risk-adjusted basis, is our investment in Athora, an insurance holding company focused on the European life insurance market. Given our significant exposure to these issuers, we are subject to the risks inherent in their business.
Our most significant concentration risk exposure arising in the context of alternative investments, on a risk-adjusted basis, is our investment in Athora, an insurance holding company focused on the European life insurance market. Given our significant exposure to these issuers, we are subject to the risks inherent in their business.
We have a risk management framework in place to identify, assess and prioritize risks, including the market and credit risks to which our investments are subject. As part of that framework, we test our investment portfolio based on various market scenarios.
Risk Factors We have a risk management framework in place to identify, assess and prioritize risks, including the market and credit risks to which our investments are subject. As part of that framework, we test our investment portfolio based on various market scenarios.
Management’s Discussion and Analysis of Financial Condition and Results of Operations– Liquidity and Capital Resources – Holding Company Liquidity – Dividends from Subsidiaries . AHL’s subsidiaries may not be able to, or may not be permitted to, make distributions to enable AHL to meet its obligations and pay dividends.
Management’s Discussion and Analysis of Financial Condition and Results of Operations– Liquidity and Capital Resources – Holding Company Liquidity – Dividends from Insurance Subsidiaries . AHL’s subsidiaries may not be able to, or may not be permitted to, make distributions to enable AHL to meet its obligations and pay dividends.
Our conflicts committee and our disinterested directors analyze these conflicts to protect against potential harm resulting from conflicts of interest in connection with transactions that we have entered into or will enter into with Apollo or its affiliates.
Our audit committee and our disinterested directors analyze these conflicts to protect against potential harm resulting from conflicts of interest in connection with transactions that we have entered into or will enter into with Apollo or its affiliates.
Our investments linked to real estate are subject to credit risk, market risk, servicing risk, loss from catastrophic events and other risks, which could diminish the value that we obtain from such investments.
Risk Factors Our investments linked to real estate are subject to credit risk, market risk, servicing risk, loss from catastrophic events and other risks, which could diminish the value that we obtain from such investments.
As a result of increased innovation and technology in the insurance sector, the NAIC is monitoring technology developments that impact the state insurance regulatory framework and has developed or is developing regulatory guidance, as appropriate.
Business As a result of increased innovation and technology in the insurance sector, the NAIC is monitoring technology developments that impact the state insurance regulatory framework and has developed or is developing regulatory guidance, as appropriate.
Our investment portfolio may be subject to concentration risk, particularly with respect to single issuers, including Athora, among others; industries, including financial services; and asset classes, including real estate.
Risk Factors Our investment portfolio may be subject to concentration risk, particularly with respect to single issuers, including Athora, among others; industries, including financial services; and asset classes, including real estate.
We face single issuer concentration risk both in the context of strategic alternative investments, in which we occasionally hold significant equity positions, and large asset trades, in which we generally hold significant debt positions.
We face single issuer concentration risk both in the context of alternative investments, in which we occasionally hold significant equity positions, and large asset trades, in which we generally hold significant debt positions.
Risk Factors Our certificate of incorporation provides that the Court of Chancery of the State of Delaware is the sole and exclusive forum for certain legal actions between us and our stockholders, which could limit our stockholders’ ability to obtain a judicial forum viewed by the stockholders as more favorable for disputes with us or our directors, officers or employees, and the enforceability of the exclusive forum provision may be subject to uncertainty.
Our certificate of incorporation provides that the Court of Chancery of the State of Delaware is the sole and exclusive forum for certain legal actions between us and our stockholders, which could limit our stockholders’ ability to obtain a judicial forum viewed by the stockholders as more favorable for disputes with us or our directors, officers or employees, and the enforceability of the exclusive forum provision may be subject to uncertainty.
In addition, we expect the worldwide demographic trend of population aging will cause policymakers to continue to focus on the framework of US and non-US retirement systems, which may drive additional changes regarding the manner in which individuals plan for and fund their retirement, the extent of government involvement in retirement savings and funding, the regulation of retirement products and services and the oversight of industry participants.
Risk Factors In addition, we expect the worldwide demographic trend of population aging will cause policymakers to continue to focus on the framework of US and non-US retirement systems, which may drive additional changes regarding the manner in which individuals plan for and fund their retirement, the extent of government involvement in retirement savings and funding, the regulation of retirement products and services and the oversight of industry participants.
For example, investment figures cited represent our net invested assets, which include assets held by cedants that correspond to liabilities ceded to us, but does not include amounts attributable to our noncontrolling interests in ACRA. In the context discussed, we believe that these metrics provide the most comprehensive view of our risk exposures. See Item 7.
For example, investment figures cited represent our net invested assets, which include assets held by cedants that correspond to liabilities ceded to us, but do not include amounts attributable to our noncontrolling interests in ACRA. In the context discussed, we believe that these metrics provide the most comprehensive view of our risk exposures. See Item 7.
Interruption or other operational failures in telecommunications, information technology and other operational systems, including as a result of threat actors attacking those systems, or a failure to maintain the security, integrity, confidentiality or privacy of sensitive data residing on those systems, including as a result of human error, could have a material adverse effect on our business.
Risk Factors Interruption or other operational failures in telecommunications, information technology and other operational systems, including as a result of threat actors attacking those systems, or a failure to maintain the security, integrity, confidentiality or privacy of sensitive data residing on those systems, including as a result of human error, could have a material adverse effect on our business.
The UK Resident Companies are not required to withhold tax when paying a dividend. The UK Resident Companies, as UK tax residents, will remain subject to a number of specific UK tax regimes, including the controlled foreign company regime, the anti-hybrids and other mismatches regime the diverted profits tax, and the UK’s implementation of a multinational top-up tax (MTT).
The UK Resident Companies are not required to withhold tax when paying a dividend. The UK Resident Companies, as UK tax residents, will remain subject to a number of specific UK tax regimes, including the controlled foreign company regime, the anti-hybrids and other mismatches regime, and the UK’s implementation of a multinational top-up tax (MTT).
In addition, we may in the future sacrifice our competitive or market position in order to improve our short-term profitability, particularly in the highly competitive retail markets, which may adversely affect our long-term growth and results of operations. Alternatively, we may sacrifice short-term profitability to maintain market share and long-term growth. 43 Table of Contents Item 1A.
In addition, we may in the future sacrifice our competitive or market position in order to improve our short-term profitability, particularly in the highly competitive retail markets, which may adversely affect our long-term growth and results of operations. Alternatively, we may sacrifice short-term profitability to maintain market share and long-term growth. 35 Table of Contents Item 1A.
Risk Factors Many of our invested assets are relatively illiquid and we may fail to realize profits from these assets for a considerable period of time, or lose some or all of the principal amount we invest in these assets if we are required to sell our invested assets at a loss at inopportune times.
Many of our invested assets are relatively illiquid and we may fail to realize profits from these assets for a considerable period of time, or lose some or all of the principal amount we invest in these assets if we are required to sell our invested assets at a loss at inopportune times.
Risk Factors Risks Relating to Insurance and Other Regulatory Matters Our industry is highly regulated and we are subject to significant legal restrictions and obligations, and these restrictions and obligations may have a material adverse effect on our business, financial condition, results of operations, liquidity, cash flows and prospects.
Risks Relating to Insurance and Other Regulatory Matters Our industry is highly regulated and we are subject to significant legal restrictions and obligations, and these restrictions and obligations may have a material adverse effect on our business, financial condition, results of operations, liquidity, cash flows and prospects.
Several other states have enacted comprehensive privacy legislation, and while these new laws generally include exemptions from GLBA-covered date, they add layers of complexity to compliance in the US market, and could increase our compliance costs and adversely affect our business.
Several other states have enacted comprehensive privacy legislation, and while these new laws generally include exemptions from GLBA-covered data, they add layers of complexity to compliance in the US market, and could increase our compliance costs and adversely affect our business.
In addition, our conflicts committee may exclusively rely on information provided by Apollo, including with respect to fees charged by Apollo or its affiliates, and with respect to the historical performance or fees of unrelated service providers used for comparison purposes, and may not independently verify the information so provided.
In addition, our audit committee may exclusively rely on information provided by Apollo, including with respect to fees charged by Apollo or its affiliates, and with respect to the historical performance or fees of unrelated service providers used for comparison purposes, and may not independently verify the information so provided.
Risk Factors In addition to the covenants to which we are subject pursuant to our Credit Facility, Liquidity Facility and certain letters of credit, AHL is also subject to certain limited covenants pursuant to the Indentures, dated January 12, 2018 and March 7, 2024, by and between us and U.S.
In addition to the covenants to which we are subject pursuant to our Credit Facility, Liquidity Facility and certain letters of credit, AHL is also subject to certain limited covenants pursuant to the Indentures, dated January 12, 2018 and March 7, 2024, by and between us and U.S.
NRSROs may also implement changes to their internal models, which differ from the RBC and BSCR capital models, that have the effect of increasing or decreasing the amount of statutory capital our subsidiaries must hold in order to maintain their current ratings.
Risk Factors NRSROs may also implement changes to their internal models, which differ from the RBC and BSCR capital models, that have the effect of increasing or decreasing the amount of statutory capital our subsidiaries must hold in order to maintain their current ratings.
Risks Relating to Our Relationship with Apollo There are potential conflicts of interests between Apollo, our corporate parent, and the holders of our preferred stock. AGM is the beneficial owner of 100% of our common stock and controls all of the voting power to elect members to our board of directors.
Risk Factors Risks Relating to Our Relationship with Apollo There are potential conflicts of interests between Apollo, our corporate parent, and the holders of our preferred stock. AGM is the beneficial owner of 100% of our common stock and controls all of the voting power to elect members to our board of directors.
From time to time, Apollo may acquire investments on our behalf which are senior or junior to other instruments of the same issuer that are held by, or acquired for, another Apollo client (for example, we may acquire junior debt while another Apollo client may acquire senior debt).
Risk Factors From time to time, Apollo may acquire investments on our behalf which are senior or junior to other instruments of the same issuer that are held by, or acquired for, another Apollo client (for example, we may acquire junior debt while another Apollo client may acquire senior debt).
The boards of directors of our subsidiaries may terminate an ACRA System IMA with the applicable Apollo subsidiary relating to the applicable subsidiary if such subsidiary’s board of directors determines that such termination is required in the exercise of its fiduciary duties.
Risk Factors The boards of directors of our subsidiaries may terminate an ACRA System IMA with the applicable Apollo subsidiary relating to the applicable subsidiary if such subsidiary’s board of directors determines that such termination is required in the exercise of its fiduciary duties.
In addition to these restrictions, guaranty associations may subject member insurers, including us, to assessments that require the insurers to pay funds to cover contractual obligations under insurance policies issued by insurance companies that become impaired or insolvent.
Risk Factors In addition to these restrictions, guaranty associations may subject member insurers, including us, to assessments that require the insurers to pay funds to cover contractual obligations under insurance policies issued by insurance companies that become impaired or insolvent.
Even where an audit, assessment or litigation is resolved favorably to us, the additional costs incurred in resisting or resolving such audits, assessments or litigation may adversely affect our business. 57 Table of Contents Item 1A.
Even where an audit, assessment or litigation is resolved favorably to us, the additional costs incurred in resisting or resolving such audits, assessments or litigation may adversely affect our business. 50 Table of Contents Item 1A.
Risk Factors There is US income tax risk associated with reinsurance between US insurance companies and their Bermuda affiliates.
There is US income tax risk associated with reinsurance between US insurance companies and their Bermuda affiliates.
Reports filed with or furnished to the SEC will also be available as soon as reasonably practicable after they are filed with or furnished to the SEC and are available at the SEC’s website at www.sec.gov. 41 Table of Contents Item 1A.
Reports filed with or furnished to the SEC will also be available as soon as reasonably practicable after they are filed with or furnished to the SEC and are available at the SEC’s website at www.sec.gov. 33 Table of Contents Item 1A.
Governmental authorities and standard setters in the US and worldwide (including the IAIS) have become increasingly interested in potential risks posed by the insurance industry as a whole, and to commercial and financial activities and systems in general, as indicated by the development of the ICS by the IAIS to be applicable to IAIGs and the Global Monitoring Exercise, as well as the US NAIC’s adoption of the GCC and LST.
Governmental authorities and standard setters in the US and worldwide (including the IAIS) have become increasingly interested in potential risks posed by the insurance industry as a whole, and to commercial and financial activities and systems in general, as indicated by the development of the ICS by the IAIS to be applicable to IAIGs, as well as the US NAIC’s adoption of the GCC and LST.
Belardi, our Chief Executive Officer, also serves as a member of the board of directors and an executive officer of AGM and as Chief Executive Officer of ISG and receives compensation from ISG for services he provides. Mr.
Belardi, our Executive Chairman and Chief Investment Officer, also serves as a member of the board of directors and an executive officer of AGM and as Chief Executive Officer of ISG and receives compensation from ISG for services he provides. Mr.
We are subject to a complex and extensive array of laws and regulations that are administered and enforced by many regulators, including the BMA, US state insurance regulators, US state securities administrators, US state banking authorities, the SEC, FINRA, the DOL, the IRS and the Office of the Comptroller of the Currency. See Item 1.
We are subject to a complex and extensive array of laws and regulations that are administered and enforced by many regulators, including the BMA, US state insurance regulators, US state securities administrators, US state banking authorities, the SEC, FINRA, the DOL, and the IRS. See Item 1.
Risk Factors All of these risks are also applicable where we rely on third-party suppliers to provide products and services to us and/or our customers.
All of these risks are also applicable where we rely on third-party suppliers to provide products and services to us and/or our customers.
Apollo may make such investments at its discretion, subject only to the approval of our conflicts committee in certain cases and/or certain regulatory approvals.
Apollo may make such investments at its discretion, subject only to the approval of our audit committee in certain cases and/or certain regulatory approvals.
Similarly, in the event of the impairment or insolvency of one of our US insurance subsidiaries, the applicable Commissioner will be authorized and directed to commence delinquency proceedings for the purpose of liquidating, rehabilitating, reorganizing or conserving the applicable US insurance subsidiary pursuant to applicable state insurance laws and regulations.
Policyholder Priority In the event of the impairment or insolvency of one of our US insurance subsidiaries, the applicable Commissioner will be authorized and directed to commence delinquency proceedings for the purpose of liquidating, rehabilitating, reorganizing or conserving the applicable US insurance subsidiary pursuant to applicable state insurance laws and regulations.
Business UK Corporation Tax Certain of our subsidiaries are treated as residents in the United Kingdom for UK tax purposes due to being centrally managed and controlled in the UK, and will each be treated as a fiscally opaque company from a UK tax perspective (collectively, UK Resident Companies).
UK Corporation Tax Certain of our subsidiaries are treated as residents in the UK for UK tax purposes due to being centrally managed and controlled in the UK, and will each be treated as a fiscally opaque company from a UK tax perspective (collectively, UK Resident Companies).
The risk of such defaults is generally higher in the case of mortgage securitizations that include “sub-prime” or “alt-A” mortgages. As of December 31, 2024, 3.2% of our net invested assets linked to real estate were invested in such “sub-prime” mortgages and “alt-A” mortgages.
The risk of such defaults is generally higher in the case of mortgage securitizations that include “sub-prime” or “alt-A” mortgages. As of December 31, 2025, 2.2% of our net invested assets linked to real estate were invested in such “sub-prime” mortgages and “alt-A” mortgages.
There is no assurance that our insurance subsidiaries would be able to obtain the relevant licenses and the subsidiaries’ inability to do so may impair our competitive 55 Table of Contents Item 1A. Risk Factors position and reduce our growth prospects, causing our financial position, results of operations and cash flows to fall below our current expectations.
There is no assurance that our insurance subsidiaries would be able to obtain the relevant licenses and the subsidiaries’ inability to do so may impair our competitive position and reduce our growth prospects, causing our financial position, results of operations and cash flows to fall below our current expectations. 48 Table of Contents Item 1A.
Commencing on January 1, 2025, the Bermuda CIT generally imposes a 15% corporate income tax on entities that are tax residents in Bermuda or have a Bermuda permanent establishment and are members of multi-national groups with consolidated revenues in excess of €750 million for at least two of the last four fiscal years.
On January 1, 2025, the Bermuda CIT imposed a 15% corporate income tax on entities that are tax residents in Bermuda or have a Bermuda permanent establishment and are members of multi-national groups with consolidated revenues in excess of €750 million for at least two of the last four fiscal years.
Failure to comply with these laws and regulations could subject us to administrative penalties imposed by a particular governmental or self-regulatory authority, unanticipated costs associated with remedying such failure or other claims, harm to our reputation, revocation of our certificate of incorporation or interruption of our operations, any of which could have a material and adverse effect on our financial position, results of operations and cash flows.
Failure to comply with these laws and regulations could subject us to administrative penalties imposed by a particular governmental or self-regulatory authority, unanticipated costs associated with remedying such failure or other claims, harm to our reputation, revocation of our certificate of incorporation or interruption of our operations, any of which could have a material and adverse effect on our financial position, results of operations and cash flows. 47 Table of Contents Item 1A.
Our Bermuda reinsurance subsidiaries, as Bermuda domiciled insurers, are also required to maintain licenses. Each of our Bermuda reinsurance subsidiaries is licensed as a reinsurer in Bermuda.
Risk Factors Our Bermuda reinsurance subsidiaries, as Bermuda domiciled insurers, are also required to maintain licenses. Each of our Bermuda reinsurance subsidiaries is licensed as a reinsurer in Bermuda.
The timing, scope and implementation into the domestic law of relevant jurisdictions of any measures in pursuit of aspects of the BEPS project other than Pillar One and Pillar Two remains subject to significant uncertainty, as does the content of existing and future OECD guidance and the form of legislation which enacts these changes.
Risk Factors The timing, scope and implementation into the domestic law of relevant jurisdictions of any measures in pursuit of aspects of the BEPS project other than Pillar One and Pillar Two remain subject to significant uncertainty, as does the content of existing and future OECD guidance and the form of legislation which enacts these changes.
In December 2023, the (H) Committee adopted the Model Bulletin on the Use of Artificial Intelligence Systems by Insurers (AI Bulletin), which outlines how insurance regulators should govern the development, acquisition and use of artificial intelligence technologies, as well as the types of information that regulators may request during an investigation or examination of an insurer in relation to artificial intelligence systems, which has already started to be adopted by the states.
In December 2023, the (H) Committee adopted the Model Bulletin on the Use of Artificial Intelligence Systems by Insurers (AI Bulletin), which outlines how insurance regulators should govern the development, acquisition and use of artificial intelligence technologies, as well as the types of information that regulators may request during an investigation or examination of an insurer in relation to artificial intelligence systems, which has already started to be adopted by the states. 32 Table of Contents Item 1.
Such change in regulatory requirements could disrupt market liquidity and cause securities in our investment portfolio that are not publicly traded, such as our privately placed fixed maturity securities and below investment grade securities, to lose value, which could have a material and adverse effect on our business, financial condition or results of operations.
Such change in regulatory requirements could disrupt market liquidity and cause securities in our investment portfolio that are not publicly traded, such as our privately placed fixed maturity securities and below investment grade securities, to lose value, which could have a material and adverse effect on our business, financial condition or results of operations. 42 Table of Contents Item 1A.
While we believe that we and Apollo have each implemented appropriate risk governance regarding asset allocation, it is possible that such incentives could result in increased holdings of assets with higher alpha generating abilities, and if such investments fail to perform, it could have an adverse impact on our investment results.
While we believe that we and Apollo have each implemented appropriate risk governance regarding asset allocation, it is possible that such incentives could result in increased holdings of assets with higher alpha generating abilities, and if such investments fail to perform, it could have an adverse impact on our investment results. 45 Table of Contents Item 1A.
Decreases in product sales or increases in lapse rates, in either case, brought about by changes in US tax law, may result in a decrease in net invested assets and therefore investment income and may have a material and adverse effect on our business, financial position, results of operations and cash flows. 59 Table of Contents Item 1A.
Decreases in product sales or increases in lapse rates, in either case, brought about by changes in US tax law, may result in a decrease in net invested assets and therefore investment income and may have a material and adverse effect on our business, financial position, results of operations and cash flows.
Alongside Pillar Two, the Inclusive Framework has also developed a proposal to amend existing tax laws and principles to shift taxing rights to the jurisdiction of the consumer (called “Pillar One”).
Alongside Pillar Two, the Inclusive Framework has also developed a proposal to amend existing tax laws and principles to shift taxing rights to the jurisdiction of the consumer (called Pillar One).
Business–Regulation–Regulation of an Insurance Group for further discussion. While we cannot predict the exact nature, timing or scope of possible governmental initiatives, there may be increased regulatory intervention in the insurance and financial services industry in the future.
Business–Regulation–Group Oversight and Capital Framework for further discussion. While we cannot predict the exact nature, timing or scope of possible governmental initiatives, there may be increased regulatory intervention in the insurance and financial services industry in the future.
Certain provisions of the Dodd-Frank Act are or may become applicable or relevant to us, our competitors or those entities with which we do business, including, but not limited to: the establishment of a comprehensive federal regulatory regime with respect to derivatives – see Item 1, Business–Regulation–Regulation of OTC Derivatives for further information; the establishment of consolidated federal regulation and resolution authority over SIFIs and/or systemically important financial activities; the establishment of the Federal Insurance Office; changes to the regulation of broker-dealers and investment advisors; changes to the regulation of reinsurance; changes to regulations affecting the rights of stockholders; the imposition of additional regulation over credit rating agencies; and the imposition of concentration limits on financial institutions that restrict the amount of credit that may be extended to a single person or entity.
Certain provisions of the Dodd-Frank Act are relevant to us, our competitors or those entities with which we do business, including, but not limited to: the establishment of a comprehensive federal regulatory regime with respect to derivatives; the establishment of consolidated federal regulation and resolution authority over SIFIs and/or systemically important financial activities; the establishment of the Federal Insurance Office; changes to the regulation of broker-dealers and investment advisors; changes to the regulation of reinsurance; changes to regulations affecting the rights of stockholders; the imposition of additional regulation over credit rating agencies; and the imposition of concentration limits on financial institutions that restrict the amount of credit that may be extended to a single person or entity.
We may also be subject to disruptions of any of these systems arising from events that are wholly or partially beyond our control (for example, natural disasters, acts of terrorism, war, epidemics, pandemics, computer viruses, and electrical or telecommunications outages). 44 Table of Contents Item 1A.
We may also be subject to disruptions of any of these systems arising from events that are wholly or partially beyond our control (for example, natural disasters, acts of terrorism, war, epidemics, pandemics, computer viruses, and electrical or telecommunications outages).
Rehypothecation of subject securities by the counterparty may also create risk with respect to the counterparty’s ability to perform its obligations to tender such securities on the repurchase date. Such facilities may not be available to us on favorable terms or at all in the future. 47 Table of Contents Item 1A.
Rehypothecation of subject securities by the counterparty may also create risk with respect to the counterparty’s ability to perform its obligations to tender such securities on the repurchase date. Such facilities may not be available to us on favorable terms or at all in the future.
Furthermore, our investments in CLOs are also subject to liquidity risk as there is a limited market for CLOs. Accordingly, we may suffer unrealized depreciation and could incur realized losses in connection with the sale of our CLO interests.
Furthermore, our investments in CLOs are also subject to liquidity risk as there is a limited market for CLOs. Accordingly, we may suffer unrealized depreciation and could incur realized losses in connection with the sale of our CLO interests. 40 Table of Contents Item 1A.
The Indentures contain restrictive covenants which limit, subject to certain exceptions, AHL’s and, in certain instances, some or all of its subsidiaries’ ability to make fundamental changes, create liens on any capital stock of certain of AHL’s subsidiaries, and sell or dispose of the stock of certain of AHL’s subsidiaries.
The Indentures contain restrictive covenants which limit, subject to certain exceptions, AHL’s and, in certain instances, some or all of its subsidiaries’ ability to make fundamental changes, create liens on any capital stock of certain of AHL’s subsidiaries, and sell or dispose of the stock of certain of AHL’s subsidiaries. 38 Table of Contents Item 1A.
While the Inclusive Framework continues to seek agreement regarding the form and timing of implementation of Pillar One, no concrete proposal has yet been achieved and therefore the likely impact on our business and the taxes we pay remains unclear.
While the Inclusive Framework continues to seek agreement regarding the form and timing of implementation of Pillar One, no concrete proposal has yet been achieved and therefore the likely impact on our business and the taxes we pay remains unclear. 51 Table of Contents Item 1A.
Risk Factors Financial markets have been subject to inflationary pressures, and continued rising inflation may adversely impact our business and results of operations. Financial markets have been subject to inflationary pressures, and we cannot predict the extent to which rising inflation may be transitory.
Financial markets have been subject to inflationary pressures, and continued heightened inflation may adversely impact our business and results of operations. Financial markets have been subject to inflationary pressures, and we cannot predict the extent to which heightened inflation may be transitory.
As of December 31, 2024, 40% of the carrying value of our available-for-sale (AFS) securities, including related parties, was comprised of securities of issuers based outside of the US and debt securities of foreign governments.
As of December 31, 2025, 37% of the carrying value of our available-for-sale (AFS) securities, including related parties, was comprised of securities of issuers based outside of the US and debt securities of foreign governments.
New climate change-related regulations or interpretations of existing laws may result in enhanced disclosure obligations that could negatively affect our investments and also materially increase our regulatory burden. We also face business trend-related climate risks.
Climate change-related regulations or interpretations of existing laws have resulted, and may continue to result, in enhanced disclosure obligations that could negatively affect our investments and also materially increase our regulatory burden. We also face business trend-related climate risks.
Apollo may also manage accounts whose asset management fee schedules, investment objectives and policies differ from ours, which may cause Apollo to allocate securities in a manner that may have an adverse effect on our ability to source appropriate assets and meet our strategic objectives. 52 Table of Contents Item 1A.
Apollo may also manage accounts whose asset management fee schedules, investment objectives and policies differ from ours, which may cause Apollo to allocate securities in a manner that may have an adverse effect on our ability to source appropriate assets and meet our strategic objectives.
Risk Factors The Fee Agreement gives our Independent Directors complete discretion, while acting in good faith, as to whether to determine if an AHL Cause event has occurred with respect to any ACRA System IMA with the applicable Apollo subsidiary, and therefore our Independent Directors are under no obligation to make, and accordingly may exercise their discretion never to make, such a determination.
The Fee Agreement gives our Independent Directors complete discretion, while acting in good faith, as to whether to determine if an AHL Cause event has occurred with respect to any ACRA System IMA with the applicable Apollo subsidiary, and therefore our Independent Directors are under no obligation to make, and accordingly may exercise their discretion never to make, such a determination. 46 Table of Contents Item 1A.
This may also lead to additional complexity in evaluating the tax implications of ongoing investments and restructuring transactions within our business. 58 Table of Contents Item 1A. Risk Factors Our ownership of certain non-US entities could cause us to be subject to US federal income tax in amounts greater than expected, which could adversely affect the value of your investment.
This may also lead to additional complexity in evaluating the tax implications of ongoing investments and restructuring transactions within our business. Our ownership of certain non-US entities could cause us to be subject to US federal income tax in amounts greater than expected, which could adversely affect the value of your investment.
Policyholder Priority In the event of a liquidation or winding up of one of our Bermuda reinsurance subsidiaries, policyholders’ liabilities receive prior payment ahead of general unsecured creditors.
Business Similarly, in the event of a liquidation or winding up of one of our Bermuda reinsurance subsidiaries, policyholders’ liabilities receive prior payment ahead of general unsecured creditors.
We are also subject to data privacy and security laws applicable to our business in relevant jurisdictions. See Item 1. Business–Regulation–Consumer Protection Laws and Privacy and Data Security Regulation for more information.
We are also subject to data privacy and security laws applicable to our business in relevant jurisdictions. See Item 1. Business–Regulation–Data, Cybersecurity, and Technology Regulation for more information.
SEC and State Fiduciary Standards The SEC adopted a rule in 2020 under the Exchange Act that establishes a standard of conduct for broker-dealers and associated persons of a broker-dealer when they make a recommendation to a retail customer of any securities transaction or investment strategy involving securities.
We continue to monitor this issue for any additional developments. SEC and State Fiduciary Standards The SEC adopted a rule in 2020 under the Exchange Act that establishes a standard of conduct for broker-dealers and associated persons of a broker-dealer when they make a recommendation to a retail customer of any securities transaction or investment strategy involving securities.
The limitations on our ability to terminate the ACRA System IMAs with the applicable Apollo subsidiary could have a material adverse effect on our financial condition and results of operations. 53 Table of Contents Item 1A.
The limitations on our ability to terminate the ACRA System IMAs with the applicable Apollo subsidiary could have a material adverse effect on our financial condition and results of operations.
Of our total AFS securities, including related parties, as of December 31, 2024, 11% were invested in CLOs of Cayman Islands issuers (for which the underlying assets are largely loans to US issuers) and 29% were invested in other non-US issuers.
Of our total AFS securities, including related parties, as of December 31, 2025, 7% were invested in CLOs of Cayman Islands issuers (for which the underlying assets are largely loans to US issuers) and 30% were invested in other non-US issuers.
Athene Securities continues to receive concessions on those variable annuity contracts. Athene Securities also provides supervisory oversight to Athene employees who are registered representatives. 37 Table of Contents Item 1. Business Athene Securities and employees or personnel registered with Athene Securities are subject to the Exchange Act and to regulation and examination by the SEC, FINRA and state securities commissioners.
Athene Securities continues to receive concessions on those variable annuity contracts. Athene Securities also provides supervisory oversight to Athene employees who are registered representatives. Athene Securities and employees or personnel registered with Athene Securities are subject to the Exchange Act and to regulation and examination by the SEC, FINRA and state securities commissioners.
Changes in the laws and regulations governing the insurance industry or otherwise applicable to our business, may have a material adverse effect on our business, financial condition, results of operations, liquidity, cash flows and prospects. Certain of the laws and regulations to which we are subject are summarized in Item 1. Business–Regulation .
Changes in legal and regulatory requirements, including through the adoption of executive orders, governing the insurance industry or otherwise applicable to our business, may have a material adverse effect on our business, financial condition, results of operations, liquidity, cash flows and prospects. Certain of the laws and regulations to which we are subject are summarized in Item 1. Business–Regulation .
Actual results may differ, perhaps significantly, from our current expectations. To the extent that such differences occur, our future financial performance may be materially and adversely different than that communicated herein and elsewhere. 54 Table of Contents Item 1A.
Actual results may differ, perhaps significantly, from our current expectations. To the extent that such differences occur, our future financial performance may be materially and adversely different than that communicated herein and elsewhere.
Our acquisition and block reinsurance transaction activities may also divert the attention of our management from our business, which may have an adverse effect on our business and results of operations.
Our acquisition and block reinsurance transaction activities may also divert the attention of our management from our business, which may have an adverse effect on our business and results of operations. 37 Table of Contents Item 1A.
Changes in tax law could adversely impact our earnings. Many of the products that we sell and reinsure benefit from one or more forms of tax-favored status under current US federal and state income tax regimes. For example, we sell and reinsure annuity contracts that allow the policyholders to defer the recognition of taxable income earned within the contract.
Many of the products that we sell and reinsure benefit from one or more forms of tax-favored status under current US federal and state income tax regimes. For example, we sell and reinsure annuity contracts that allow the policyholders to defer the recognition of taxable income earned within the contract.
In addition to the specific restrictions described above, AHL’s subsidiaries, as members of its insurance holding company system, are subject to various statutory and regulatory restrictions on their ability to pay dividends to AHL, as further described in Item 1. Business–Regulation–Regulation of an Insurance Group–Insurance Holding Company Regulation . 60 Table of Contents Item 1A.
In addition to the specific restrictions described above, AHL’s subsidiaries, as members of its insurance holding company system, are subject to various statutory and regulatory restrictions on their ability to pay dividends to AHL, as further described in Item 1. Business–Regulation–Group Oversight and Capital Framework–Insurance Holding Company Regulation .
Our US insurance subsidiaries are subject to state regulations that provide for MCR based on RBC formulas for life insurance companies relating to insurance, business, asset, interest rate and certain other risks. Similarly, our Bermuda reinsurance subsidiaries are subject to MCR imposed by the BMA through the BMA’s ECR and MMS. 46 Table of Contents Item 1A.
Our US insurance subsidiaries are subject to state regulations that provide for minimum capital requirements (MCR) based on RBC formulas for life insurance companies relating to insurance, business, asset, interest rate and certain other risks. Similarly, our Bermuda reinsurance subsidiaries are subject to MCR imposed by the BMA through the BMA’s ECR and MMS.

… 504 more changes not shown on this page.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

43 edited+10 added−420 removed38 unchanged
Biggest changeAUSA Athene USA Corporation BMA Bermuda Monetary Authority ISG Apollo Insurance Solutions Group LP Jackson Jackson Financial, Inc., together with its subsidiaries LIMRA Life Insurance and Market Research Association MidCap Financial MidCap FinCo Designated Activity Company NAIC National Association of Insurance Commissioners NYSDFS New York State Department of Financial Services US Treasury United States Department of the Treasury Venerable Venerable Holdings, Inc., together with its subsidiaries VIAC Venerable Insurance and Annuity Company Wheels Wheels, Inc. 6 Table of Contents Certain Terms & Acronyms Term or Acronym Definition ABS Asset-backed securities ACL Authorized control level RBC as defined by the model created by the NAIC ALM Asset liability management Alternative investments Alternative investments, including investment funds, VIEs and certain equity securities due to their underlying characteristics Base of earnings Earnings generated from our results of operations and the underlying profitability drivers of our business Bermuda capital The capital of Athene’s non-US reinsurance subsidiaries as reported in the Bermuda statutory financial statements and applying US statutory accounting principles for policyholder reserve liabilities which are subjected to US cash flow testing requirements, excluding certain items that do not exist under our applicable Bermuda requirements, such as interest maintenance reserves.
Biggest changeAUSA Athene USA Corporation BMA Bermuda Monetary Authority ISG Apollo Insurance Solutions Group LP LIMRA Life Insurance and Market Research Association MidCap Financial MidCap FinCo Designated Activity Company NAIC National Association of Insurance Commissioners NYSDFS New York State Department of Financial Services US Treasury United States Department of the Treasury Venerable Venerable Holdings, Inc., together with its subsidiaries VIAC Venerable Insurance and Annuity Company Wheels Wheels, Inc. 5 Table of Contents Certain Terms & Acronyms Term or Acronym Definition ABS Asset-backed securities ACL Authorized control level RBC as defined by the model created by the NAIC ALM Asset liability management Alternative investments Alternative investments, including investment funds and certain VIEs, adjusted for reinsurance impacts and to include our proportionate share of ACRA alternative investments based on our economic ownership.
Payout annuities Annuities with a current cash payment component, which consist primarily of single premium immediate annuities, supplemental contracts and structured settlements Policy loan A loan to a policyholder under the terms of, and which is secured by, a policyholder’s policy RBC Risk-based capital RILA Registered index-linked annuity, which is an insurance contract similar to an FIA that has the potential for higher returns but also has the potential risk of loss to principal and related earnings, subject to a floor RMBS Residential mortgage-backed securities RML Residential mortgage loan Sales 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) SPIA Single premium immediate annuity Spread Related Earnings, or SRE Pre-tax non-GAAP measure used to evaluate our financial performance excluding market volatility (other than with respect to alternative investments) as well as integration, restructuring, stock compensation and certain other expenses which are not part of our underlying profitability drivers.
Payout annuities Annuities with a current cash payment component, which consist primarily of single premium immediate annuities, supplemental contracts and structured settlements Policy loan A loan to a policyholder under the terms of, and which is secured by, a policyholder’s policy RBC Risk-based capital RILA Registered index-linked annuity, which is an insurance contract similar to an FIA that has the potential for higher returns but also has the potential risk of loss to principal and related earnings, subject to a floor RMBS Residential mortgage-backed securities RML Residential mortgage loan Sales 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) SPIA Single premium immediate annuity Spread Related Earnings, or SRE Pre-tax non-GAAP measure used to evaluate our financial performance excluding market volatility (other than with respect to alternative investments), as well as integration, restructuring, stock compensation and certain other items which are not part of our underlying profitability drivers.
Gross premiums and deposits are comprised of all products’ deposits, which generally are not included in revenues on the consolidated statements of income (loss), and premiums collected. Gross premiums and deposits include directly written business, flow reinsurance assumed as well as premiums and deposits generated from assumed block reinsurance transactions, net of those ceded through reinsurance to third-party reinsurers.
Gross premiums and deposits are comprised of all products’ deposits, which generally are not included in revenues on the consolidated statements of income, and premiums collected. Gross premiums and deposits include directly written business, flow reinsurance assumed, as well as premiums and deposits generated from assumed block reinsurance transactions, net of those ceded through reinsurance to third-party reinsurers.
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 include the reserves assumed through modified coinsurance (modco) agreements to encompass the liabilities for which costs are being recognized in the consolidated statements of income (loss).
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 include the reserves assumed through modified coinsurance (modco) agreements to encompass the liabilities for which costs are being recognized in the consolidated statements of income.
Market risk benefits Guaranteed lifetime withdrawal benefits and guaranteed minimum death benefits MCR Minimum capital requirements MMS Minimum margin of solvency Modco Modified coinsurance 7 Table of Contents Term or Acronym Definition MVA Market value adjustment MYGA Multi-year guaranteed annuity Net invested assets Represent the investments that directly back our net reserve liabilities as well as surplus assets.
Market risk benefits Guaranteed lifetime withdrawal benefits and guaranteed minimum death benefits MCR Minimum capital requirements 6 Table of Contents Term or Acronym Definition MMS Minimum margin of solvency Modco Modified coinsurance MVA Market value adjustment MYGA Multi-year guaranteed annuity Net invested assets Represent the investments that directly back our net reserve liabilities, as well as surplus assets.
Cost of funds Cost of funds includes liability costs related to cost of crediting on both deferred annuities, including, with respect to our fixed indexed annuities, option costs, and institutional costs related to 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 funds Cost of funds includes liability costs related to cost of crediting on deferred annuities, including, with respect to our indexed annuities, option costs, and institutional costs related to 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.
Net reserve liabilities Represent our policyholder liability obligations net of reinsurance and used to analyze the costs of our liabilities.
Net reserve liabilities Represent our policyholder and institutional liability obligations net of reinsurance and used to analyze the costs of our liabilities.
IMA Investment management agreement IMO Independent marketing organization Liability outflows The aggregate of withdrawals on our deferred annuities, death benefits, pension group annuity benefit payments, payments on payout annuities, repurchases and maturities of our funding agreements and block reinsurance outflows.
IMA Investment management agreement IMO Independent marketing organization Liability outflows The aggregate of withdrawals on our deferred annuities, death benefits, pension group annuity benefit payments, payments on payout annuities, payments related to interest, maturities and repurchases of funding agreements and block reinsurance outflows.
Our diverse Fixed Indexed Annuity (FIA) product offerings are complemented by a number of innovative custom indices, which allow our customers to gain access to sophisticated strategies that are designed for better performance within our products. During 2024, approximately 52% of sales went to custom indices that are only available through our products.
Our diverse Fixed Indexed Annuity (FIA) product offerings are complemented by a number of innovative custom indices, which allow our customers to gain access to sophisticated strategies that are designed for better performance within our products. During 2025, approximately 55% of sales went to custom indices that are only available through our products.
Net reserve liabilities are net of the ceded liabilities to third-party reinsurers as the costs of those 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. 12 Table of Contents Item 1.
Net reserve liabilities are net of the ceded liabilities to third-party reinsurers as the costs of those 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. 11 Table of Contents
Through this relationship, Apollo allows us to leverage the scale of its asset management platform to source attractive assets for our investment portfolio. In addition to co-founding the Company, Apollo assists us in identifying and capitalizing on acquisition and block reinsurance opportunities that have helped us significantly grow our business.
Relationship with Apollo We are a subsidiary of AGM. Through this relationship, Apollo allows us to leverage the scale of its asset management platform to source attractive assets for our investment portfolio. In addition to co-founding the Company, Apollo assists us in identifying and capitalizing on acquisition and block reinsurance opportunities that have helped us significantly grow our business.
Block reinsurance A transaction in which the ceding company cedes all or a portion of a block of previously issued annuity contracts through a reinsurance agreement BSCR Bermuda Solvency Capital Requirement CAL Company action level risk-based capital as defined by the model created by the NAIC CLO Collateralized loan obligation CMBS Commercial mortgage-backed securities CML Commercial mortgage loan Consolidated RBC The consolidated risk-based capital ratio of our non-US reinsurance and US insurance subsidiaries calculated by aggregating US RBC and Bermuda RBC.
Block reinsurance A transaction in which the ceding company cedes all or a portion of a block of previously issued annuity or life contracts through a reinsurance agreement BSCR Bermuda Solvency Capital Requirement CAL Company action level risk-based capital as defined by the model created by the NAIC CLO Collateralized loan obligation CMBS Commercial mortgage-backed securities CML Commercial mortgage loan Consolidated RBC The consolidated risk-based capital ratio of our non-US reinsurance and US insurance subsidiaries calculated by aggregating US RBC and Bermuda RBC, with immaterial adjustments for net assets at the holding company.
Organic and inorganic inflows do not correspond to the gross premiums and deposits presented above as gross premiums and deposits include renewal deposits and annuitizations, as well as premiums and deposits from certain life and other products other than deferred annuities and institutional products, all of which are not included in our organic inflows.
Organic and inorganic inflows do not correspond to the gross premiums and deposits presented above as gross premiums and deposits include renewal deposits and annuitizations, as well as premiums and deposits from certain legacy life and other products, all of which are not included in our organic inflows.
Six of our twelve directors are employees of or consultants to Apollo, including our Chairman, Chief Executive Officer and Chief Investment Officer, who is also a member of the board of directors and an executive officer of Apollo, and the Chief Executive Officer of Apollo Insurance Solutions Group LP (ISG), our investment manager and a subsidiary of AGM.
Six of our twelve directors are employees of or consultants to, or are otherwise affiliated with, Apollo, including (1) our Executive Chairman and Chief Investment Officer, who is also a member of the board of directors and an executive officer of Apollo, and the Chief Executive Officer of Apollo Insurance Solutions Group LP (ISG), our investment manager and a subsidiary of AGM, and (2) our Chief Executive Officer, who is a Partner and an executive officer of Apollo.
We also offer funding agreements, including those issued to institutions via direct issuances and those issued to special-purpose unaffiliated trusts in connection with our funding agreement backed notes (FABN) and secured funding agreement backed repurchase agreement (FABR) programs.
We also offer funding agreements, including those issued to institutions via direct issuances, those issued to the Federal Home Loan Bank (FHLB) and those issued to special-purpose unaffiliated trusts in connection with our funding agreement backed notes (FABN) and secured funding agreement backed repurchase agreement (FABR) programs.
ACRA 2 Athene Co-Invest Reinsurance Affiliate Holding 2 Ltd., together with its subsidiaries ACRA 2A Athene Co-Invest Reinsurance Affiliate 2A Ltd., a Bermuda reinsurance subsidiary ACRA 2 HoldCo Athene Co-Invest Reinsurance Affiliate Holding 2 Ltd. ADIP ADIP I and ADIP II ADIP I Apollo/Athene Dedicated Investment Program ADIP II Apollo/Athene Dedicated Investment Program II AGM Apollo Global Management, Inc.
AARe Athene Annuity Re Ltd., a Bermuda reinsurance subsidiary ACRA ACRA 1 and ACRA 2 ACRA 1 Athene Co-Invest Reinsurance Affiliate Holding Ltd., together with its subsidiaries ACRA 1A Athene Co-Invest Reinsurance Affiliate 1A Ltd., a Bermuda reinsurance subsidiary ACRA 2 Athene Co-Invest Reinsurance Affiliate Holding 2 Ltd., together with its subsidiaries ACRA 2A Athene Co-Invest Reinsurance Affiliate 2A Ltd., a Bermuda reinsurance subsidiary ADIP ADIP I and ADIP II ADIP I Apollo/Athene Dedicated Investment Program ADIP II Apollo/Athene Dedicated Investment Program II AGM Apollo Global Management, Inc.
Our ability to provide attractive solutions to reinsurance partners was demonstrated by our entry into the Japanese and other Asia-Pacific markets and the establishment of several partnerships with Japanese, other Asia-Pacific and US financial institutions over the past several years.
Our ability to provide attractive solutions to reinsurance partners was demonstrated by our entry into the Japanese and other Asia-Pacific markets with the establishment of several partnerships across the APAC region and in the US over the past several years.
Products We principally offer two product lines: annuities and funding agreements. Our primary product line is annuities, which include fixed, payout and group annuities issued in conjunction with pension group annuity transactions.
Products We principally offer two product lines: annuities and funding agreements. Our primary product line is annuities, which include fixed rate, indexed, payout and group annuities issued in connection with pension group annuity transactions and defined contribution plans.
Comparisons of results for current and any prior periods are not intended to express any future trends, or indications of future performance, unless expressed as such, and should only be viewed as historical data. Risk Factor Summary Our business faces significant risks. In addition to the summary below, you should carefully review Item 1A. Risk Factors.
Comparisons of results for current and any prior periods are not intended to express any future trends, or indications of future performance, unless expressed as such, and should only be viewed as historical data. Risk Factors Summary Our business faces significant risks.
Business Index to Business Overview 10 Growth Strategy 10 Products 12 Distribution Channels 15 Investment Management 16 Capital 19 Reinsurance 20 Outsourcing 20 Ratings 21 Competition 22 Human Capital Management 23 Regulation 24 Available Information 41 9 Table of Contents Item 1.
Business Index to Business Overview 9 Growth Strategy 9 Products 11 Distribution Channels 14 Investment Management 16 Capital 18 Reinsurance 19 Outsourcing 20 Ratings 20 Competition 21 Human Capital Management 22 Regulation 23 Available Information 33 8 Table of Contents Item 1.
See –Capital for additional information regarding ACRA. • Allocate Assets during Market Dislocations – As we have done successfully in the past, we plan to capitalize on future market dislocations to opportunistically reposition our portfolio to capture incremental yield.
Business • Allocate Assets during Market Dislocations – As we have done successfully in the past, we plan to capitalize on future market dislocations to opportunistically reposition our portfolio to capture incremental yield.
See Item 1A. Risk Factors–Risks Relating to Our Relationship with Apollo–There are potential conflicts of interests between Apollo, our corporate parent, and the holders of our preferred stock and Item 13. Certain Relationships and Related Transactions, and Director Independence . 10 Table of Contents Item 1.
Additionally, our Chief Financial Officer is a Partner and employee of Apollo. See Item 1A. Risk Factors–Risks Relating to Our Relationship with Apollo–There are potential conflicts of interests between Apollo, our corporate parent, and the holders of our preferred stock and Item 13. Certain Relationships and Related Transactions, and Director Independence .
These risks should be read in conjunction with the other information in this report. Capitalized terms used below and not previously defined herein shall have the respective meanings set forth elsewhere in this report.
Capitalized terms used below and not previously defined herein shall have the respective meanings set forth elsewhere in this report.
Finally, our relationship with Apollo will continue to provide us with access to on-demand capital through ACRA. We believe this capital will continue to be instrumental to executing our growth strategy.
Finally, our relationship with Apollo will continue to provide us with access to on-demand capital through ACRA. We believe this capital will continue to be instrumental to executing our growth strategy. See –Capital for additional information regarding ACRA. 10 Table of Contents Item 1.
Cost of funds is computed as the total liability costs divided by the average net invested assets for the relevant period, presented on an annualized basis for interim periods.
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, presented on an annualized basis for interim periods.
In 2024, Athene was recognized for its indexed annuity lineup by winning “Best Fixed Indexed Annuity/Variable Indexed Annuity Carrier” from Structured Retail Products and “Best Carrier” from Structured Product Intelligence.
In 2025, Athene was recognized for its indexed annuity lineup by winning “Deal of the Year - FIA” for its Athene Protector product from Structured Retail Products and “Best Carrier” from Structured Product Intelligence.
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.
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, product charges, excluding market value adjustments, and certain other revenues.
Going forward, we expect to build on our growth in the US and explore options for transactions in other jurisdictions. • Pursue Attractive Inorganic Growth Opportunities – We plan to continue leveraging our expertise in sourcing and evaluating inorganic transactions to grow our business profitably.
Although the competitive environment and litigation against certain of our pension group annuity clients has limited the number of transactions more recently, going forward, we expect to build on our overall growth in the US and explore options for transactions in other jurisdictions. • Pursue Attractive Inorganic Growth Opportunities – We plan to continue leveraging our expertise in sourcing and evaluating inorganic transactions to grow our business profitably.
The following summarizes our gross premiums and deposits by product, net of external ceded reinsurance: Years ended December 31, (In millions) 2024 2023 2022 Annuities Indexed $ 13,877 $ 12,012 $ 11,212 Fixed rate 23,880 34,594 15,322 Pension group annuities 918 10,374 11,218 Payout 362 318 878 Total annuity products 39,037 57,298 38,630 Funding agreements 1 28,748 7,193 10,039 Whole life and other 234 2,247 34 Gross premiums and deposits, net of external ceded reinsurance $ 68,019 $ 66,738 $ 48,703 1 Funding agreements are comprised of funding agreements issued under our FABN program, secured and other funding agreements, funding agreements issued to the Federal Home Loan Bank (FHLB) and long-term repurchase agreements.
The following summarizes our gross premiums and deposits by product, net of external ceded reinsurance: Years ended December 31, (In millions) 2025 2024 2023 Annuities Indexed $ 16,718 $ 13,877 $ 12,012 Fixed rate 28,052 23,880 34,594 Pension group annuities 752 918 10,374 Payout 637 362 318 Total annuity products 46,159 39,037 57,298 Funding agreements 1 35,375 28,748 7,193 Life and other 2 2,116 234 2,247 Gross premiums and deposits, net of external ceded reinsurance $ 83,650 $ 68,019 $ 66,738 1 Funding agreements are comprised of funding agreements issued under our FABN program, secured and other funding agreements, which include our FABR program and direct funding agreements, funding agreements issued to the FHLB and long-term repurchase agreements. 2 Life and other primarily includes premium from whole life block reinsurance transactions in 2023 and 2025 as well as deposits from guaranteed investment contracts in 2025.
We expect to grow our institutional channel by continuing to engage in programmatic issuances of funding agreements and pursuing additional pension group annuity transactions. Our demonstrated ability to create customized solutions for pension group annuity counterparties seeking to reduce or eliminate their exposure to pension obligations will continue to allow us to be active in this channel.
Our demonstrated ability to create customized solutions for pension group annuity counterparties seeking to reduce or eliminate their exposure to pension obligations will continue to allow us to be active in this channel.
As in the retail channel, we do not pursue flow volume growth at the expense of profitability and will respond rapidly to adjust pricing for changes in asset yields.
However, we do not seek to achieve volume growth at the expense of profitability. As a result, we adjust our retail pricing rapidly for changes in asset yields.
Surplus assets Assets in excess of policyholder obligations, determined in accordance with the applicable domiciliary jurisdiction’s statutory accounting principles TAC Total adjusted capital as defined by the model created by the NAIC US GAAP Accounting principles generally accepted in the United States of America US RBC The CAL RBC ratio for AAIA, our parent US insurance company VIE Variable interest entity VOBA Value of business acquired 8 Table of Contents PART I Item 1.
US GAAP Accounting principles generally accepted in the United States of America US RBC The CAL RBC ratio for AAIA, our parent US insurance company VIE Variable interest entity VOBA Value of business acquired 7 Table of Contents PART I Item 1.
Similar to our retail channel, we do not seek to achieve volume growth at the expense of profitability and therefore tend to respond more rapidly to adjust our pricing for changes in asset yields than many of our peers.
Similar to our retail channel, we do not seek to achieve volume growth at the expense of profitability and, therefore, tend to respond rapidly to adjust our pricing for changes in asset yields. We expect to grow our institutional channel by continuing to engage in programmatic issuances of funding agreements and pursuing additional pension group annuity transactions.
Consequently, we believe we are often sought out by companies looking to restructure their businesses. • Expand Our Product Offering – We seek to build products that meet our policyholders’ retirement savings objectives, such as accumulation, income and legacy planning.
Consequently, we believe that we are an attractive partner to insurance companies seeking to release capital backing asset intensive business lines or restructure certain aspects of their businesses. • Expand Our Product Offering – We seek to build products that meet our policyholders’ retirement savings objectives, such as accumulation, income and legacy planning.
Business Growth Strategy The key components of our long-term growth strategy are as follows: • Expand Our Organic Distribution Channels – We plan to grow organically by expanding our retail, flow reinsurance and institutional distribution channels with a focus on international expansion, particularly in Asia.
Growth Strategy The key components of our long-term growth strategy are as follows: • Expand Our Organic Distribution Channels – We plan to grow organically by expanding our retail, flow reinsurance and institutional distribution channels throughout the US, including expanding our product offering and distribution capabilities to help meet growing retirement needs.
As a result, we adjust our retail pricing more rapidly for changes in asset yields than many of our peers. Within our flow reinsurance channel, we expect our credit profile and growing reputation as a valuable reinsurance counterparty will enable us to attract additional flow reinsurance partners and maintain or increase our flow reinsurance volumes with existing counterparties.
Within our flow reinsurance channel, we expect our credit profile and growing reputation as a valuable reinsurance counterparty will enable us to attract additional flow reinsurance partners while continuing to support strong volumes with existing counterparties.
We believe that our demonstrated ability to successfully consummate complex transactions, as well as our relationship with Apollo, provides us with distinct advantages relative to other acquisition and block reinsurance counterparty candidates. Furthermore, we have achieved sufficient scale to provide meaningful operational synergies for the businesses and blocks of business that we acquire and reinsure, respectively.
Furthermore, we have achieved sufficient scale to provide meaningful operational synergies for the businesses and blocks of business that we acquire and reinsure, respectively.
We believe our demonstrated ability to source transactions, consummate complex transactions and reinvest assets into higher yielding investments as well as our access to capital provide us with distinct advantages relative to other acquisition or block reinsurance candidates.
We believe that our demonstrated ability to successfully consummate complex transactions, strong ratings, deep access to capital, and asset management expertise through our partnership with Apollo, provides us with distinct advantages relative to other acquisition and block reinsurance counterparty candidates.
Business • Maintain Risk Management Discipline – Our risk management strategy is to proactively manage our exposure to risks associated with interest rate duration, credit risk and structural complexity of our invested assets.
We intend to maintain a flexible approach to asset allocation, which will allow us to act quickly on similar opportunities that may arise in the future across a wide variety of asset types. • Maintain Risk Management Discipline – Our risk management strategy is to proactively manage our exposure to risks associated with interest rate duration, credit risk and structural complexity of our invested assets.
We believe that this should support growth in sales at our desired cost of funds through increased volumes in each of our existing retail channels, including via expanding our bank and broker-dealer networks, as well as entering new markets such as defined contribution plans. However, we do not seek to achieve volume growth at the expense of profitability.
Business We expect our retail channel to continue to benefit from our credit profile, strong financial position, suite of capital-efficient products and product design capabilities. We believe that this should support growth in sales at our desired cost of funds through increased volumes in each of our existing retail channels, including expanding our bank and broker-dealer networks.
These organic channels generally allow us to adjust our product mix to originate liabilities that meet our return targets in diverse market environments. We expect our retail channel to continue to benefit from our credit profile, strong financial position, suite of capital-efficient products and product design capabilities.
We plan to supplement our domestic growth through international expansion, particularly in Asia. These organic channels generally allow us to adjust our product mix to originate liabilities that meet our return targets in diverse market environments. 9 Table of Contents Item 1.
For example, we see continuing opportunities as banks retreat from direct mortgage lending, structured and asset-backed products, and middle-market commercial loans. We intend to maintain a flexible approach to asset allocation, which will allow us to act quickly on similar opportunities that may arise in the future across a wide variety of asset types. 11 Table of Contents Item 1.
For example, we see continuing opportunities as banks retreat from direct mortgage lending, structured and asset-backed products, and middle-market commercial loans.
In addition, we are creating products that capitalize on the capabilities of both Apollo and Athene and will facilitate Apollo’s distribution of these products. • Leverage Our Merger with Apollo – We intend to continue leveraging our close relationship with Apollo to source high-quality assets with attractive risk-adjusted returns.
We plan to continue to innovate and develop new products suitable for defined contribution plans, stable value funds, health savings accounts and international retirement markets. • Leverage Our Merger with Apollo – We intend to continue leveraging our close relationship with Apollo to source high-quality assets with attractive risk-adjusted returns.
Removed
The factors that make an investment in our business speculative or risky include: • Our business, financial condition, results of operations, liquidity and cash flows depend on the accuracy of our management’s assumptions and estimates, and we could experience significant gains or losses if these assumptions and estimates differ significantly from actual results. • A financial strength rating downgrade, potential downgrade or any other negative action by a rating agency could make our product offerings less attractive, inhibit our ability to acquire future business through acquisitions or reinsurance and increase our cost of capital, which could have a material adverse effect on our business. • We operate in a highly competitive industry that includes a number of competitors, which could limit our ability to achieve our growth strategies and could materially and adversely affect our business, financial condition, results of operations, cash flows and prospects. • If we are unable to attract and retain IMOs, banks and broker-dealers, sales of certain of our products may be adversely affected. • From time to time we may pursue acquisitions and block reinsurance transactions, and our ability to consummate these transactions on economically advantageous terms acceptable to us in the future is unknown. • Interruption or other operational failures in telecommunications, information technology and other operational systems, including as a result of threat actors attacking those systems, or a failure to maintain the security, integrity, confidentiality or privacy of sensitive data residing on those systems, including as a result of human error, could have a material adverse effect on our business. • We rely significantly on third parties for various services, and we may be held responsible for obligations that arise from the acts or omissions of third parties under their respective agreements with us. • We are subject to significant operating and financial restrictions imposed by our credit agreements and certain letters of credit, and we are also subject to certain operating restrictions imposed by the indentures to which we are a party. • We are subject to risks associated with pandemics, epidemics, disease outbreaks and other public health crises which could impact our business, financial condition and results of operations in the future. • Artificial intelligence could increase competitive, operational, legal and regulatory risks to our businesses in ways that we cannot predict. • As a financial services company, we are exposed to liquidity risk, which is the risk that we are unable to meet near-term obligations as they come due. • The amount of statutory capital that our insurance and reinsurance subsidiaries have, or that they are required to hold, can vary significantly from time to time and is sensitive to a number of factors outside of our control. • Repurchase agreement programs subject us to potential liquidity and other risks. • Our investments are subject to market and credit risks that could diminish their value and these risks could be greater during periods of extreme volatility or disruption in the financial and credit markets, which could adversely impact our business, financial condition, results of operations, liquidity and cash flows. • Interest rate fluctuations could adversely affect our business, financial condition, results of operations, liquidity and cash flows. • We are subject to the credit risk of our counterparties, including ceding companies, reinsurers, plan sponsors and derivative counterparties. • Our investment portfolio may be subject to concentration risk, particularly with respect to single issuers, including Athora, among others; industries, including financial services; and asset classes, including real estate. • Many of our invested assets are relatively illiquid and we may fail to realize profits from these assets for a considerable period of time, or lose some or all of the principal amount we invest in these assets if we are required to sell our invested assets at a loss at inopportune times. • Our investments linked to real estate are subject to credit risk, market risk, servicing risk, loss from catastrophic events and other risks, which could diminish the value that we obtain from such investments. • Our investment portfolio may include investments in securities of issuers based outside the US, including emerging markets, which may be riskier than securities of US issuers. • While we seek to hedge foreign currency risks, foreign currency fluctuations may reduce our net income and our capital levels, adversely affecting our financial condition. • Climate change and regulatory and other efforts to reduce climate change, as well as environmental, social and governance requirements could adversely affect our business. • Financial markets have been subject to inflationary pressures, and continued rising inflation may adversely impact our business and results of operations. 4 Table of Contents • There are potential conflicts of interests between Apollo, our corporate parent, and the holders of our preferred stock. • We rely on our investment management agreements with Apollo for the management of our investment portfolio.
Added
The following is only a summary of the principal risks that could materially and adversely affect our business, financial condition, results of operation and cash flows, which should be read in conjunction with the detailed description of these risks in Item 1A. Risk Factors. These risks should be read in conjunction with the other information in this report.
Removed
Apollo may terminate these arrangements at any time, and there are limitations on our ability to terminate investment management agreements covering assets backing reserves and surplus in ACRA, which may adversely affect our investment results. • Interruption or other operational failures in telecommunications, information technology and other operational systems at Apollo or a failure to maintain the security, integrity, confidentiality or privacy of sensitive data residing on Apollo’s systems, including as a result of human error, could have a material adverse effect on our business. • The historical investment portfolio performance of Apollo should not be considered as indicative of the future results of our investment portfolio, or our future results or our ability to declare and pay dividends on our preferred stock. • The returns that we expect to achieve on our investment portfolio may not be realized. • Our industry is highly regulated and we are subject to significant legal restrictions and obligations, and these restrictions and obligations may have a material adverse effect on our business, financial condition, results of operations, liquidity, cash flows and prospects. • Our failure to obtain or maintain licenses and/or other regulatory approvals as required for the operations of our insurance subsidiaries may have a material adverse effect on our business, financial condition, results of operations, liquidity, cash flows and prospects. • Changes in the laws and regulations governing the insurance industry or otherwise applicable to our business, may have a material adverse effect on our business, financial condition, results of operations, liquidity, cash flows and prospects. • The tax treatment of our structure is complex and may be subject to change as a result of new laws or regulations or differing interpretations of existing laws and regulations, under audit or otherwise, potentially on a retroactive basis. • Our ownership of certain non-US entities could cause us to be subject to US federal income tax in amounts greater than expected, which could adversely affect the value of your investment. • AHL may be subject to UK taxation by reason of its historic UK tax residency or as a result of ceasing to be a UK tax resident. • The Base Erosion and Anti-Abuse Tax (BEAT) may significantly increase our tax liability. • Changes in tax law could adversely impact our earnings. • There is US income tax risk associated with reinsurance between US insurance companies and their Bermuda affiliates. • The recently enacted Bermuda Corporate Income Tax Act 2023, or other changes in Bermuda tax laws, may negatively affect our earnings and results from operations. • AHL is a holding company with limited operations of its own.
Added
The factors that make an investment in our business speculative or risky include: • Evolving political, market and economic conditions. • Our dependence on management’s assumptions and estimates. • Our ability to maintain our financial strength ratings. • Our operations in a highly competitive industry. • Our significant reliance on third parties for various services. • Artificial intelligence increasing competitive, operational, legal and regulatory risks. • Our reliance on technology and information systems. • Our ability to effectively manage our liquidity and capital resources. • The credit risk of our counterparties, including ceding companies, reinsurers, plan sponsors and derivative counterparties. • Investments by us in illiquid assets. • Our ability to deal appropriately with conflicts of interests. • Our dependence on Apollo as our investment manager. • Our ability to comply with the extensive regulation of our business. • The tax treatment of our structure, which is complex and subject to change. • The possibility that we may be subject to U.S. federal income tax in amounts greater than expected. • The impact of a number of new minimum tax regimes and their implementation. • Our exposure to third-party litigation. 4 Table of Contents GLOSSARY OF SELECTED TERMS Unless otherwise indicated in this report, the following terms have the meanings set forth below: Entities Term or Acronym Definition AAA Apollo Aligned Alternatives Aggregator, LP AAA Lux Apollo Aligned Alternatives Lux Aggregator, LP AAIA Athene Annuity and Life Company AAM Apollo Asset Management, Inc.
Removed
As a consequence, AHL’s ability to pay dividends on its securities and to make timely payments on its debt obligations will depend on the ability of its subsidiaries to make distributions or other payments to it, which may be restricted by law. • Our certificate of incorporation provides that the Court of Chancery of the State of Delaware is the sole and exclusive forum for certain legal actions between us and our stockholders, which could limit our stockholders’ ability to obtain a judicial forum viewed by the stockholders as more favorable for disputes with us or our directors, officers or employees, and the enforceability of the exclusive forum provision may be subject to uncertainty. • Our business may be the target or subject of, and we may be required to defend against or respond to, litigation, regulatory investigations, enforcement actions or reputational harm. 5 Table of Contents GLOSSARY OF SELECTED TERMS Unless otherwise indicated in this report, the following terms have the meanings set forth below: Entities Term or Acronym Definition AAA Apollo Aligned Alternatives Aggregator, LP AADE Athene Annuity & Life Assurance Company AAIA Athene Annuity and Life Company AAM Apollo Asset Management, Inc.
Added
Base of earnings Earnings generated from our results of operations and the underlying profitability drivers of our business Bermuda capital The capital of Athene’s non-US reinsurance subsidiaries as reported in the Bermuda statutory financial statements, adjusted to exclude deferred tax assets related to the enactment of the Government of Bermuda Corporate Income Tax Act 2023.
Removed
AARe Athene Annuity Re Ltd., a Bermuda reinsurance subsidiary ACRA ACRA 1 and ACRA 2 ACRA 1 Athene Co-Invest Reinsurance Affiliate Holding Ltd., together with its subsidiaries ACRA 1A Athene Co-Invest Reinsurance Affiliate 1A Ltd., a Bermuda reinsurance subsidiary ACRA 1 HoldCo Athene Co-Invest Reinsurance Affiliate Holding Ltd.
Added
Bermuda statutory financial statements apply US statutory accounting principles for policyholder reserve liabilities, which we also subject to US cash flow testing requirements. There are certain differences between Bermuda statutory and US statutory frameworks that result in Consolidated RBC being approximately 20 RBC points higher as of December 31, 2025.
Removed
There are certain Bermuda statutory accounting differences, primarily (1) marking to market of inception date investment gains or losses relating to reinsurance transactions and (2) admission of certain deferred tax assets, that may from time to time result in material differences from the calculation of statutory capital under US statutory accounting principles.
Added
The primary driver of this difference is that Bermuda statutory financial statements require that assets assumed as part of a reinsurance transaction and any assets sold are recorded at their market value, without posting an interest maintenance reserve.
Removed
On October 11, 2024, Athene Annuity & Life Assurance Company (AADE) merged with and into Athene Annuity & Life Company (AAIA), with AAIA as the surviving entity following the receipt of all required regulatory approvals. The merger was completed to streamline our operational processes, enhance operational efficiency, and reduce administrative costs. On December 31, 2023, Athene Holding Ltd.
Added
Surplus assets Assets in excess of policyholder and institutional obligations, determined in accordance with the applicable domiciliary jurisdiction’s statutory accounting principles TAC Total adjusted capital as defined by the model created by the NAIC Unlocking Assumption unlocking is the annual process of revising current assumptions that impact the projection of benefits to align with recent experience.
Removed
(AHL) completed the redomestication of its jurisdiction of organization from Bermuda to the State of Delaware, thereby discontinuing its existence as a Bermuda exempted company and continuing its existence as a corporation organized in the State of Delaware. Relationship with Apollo We are a subsidiary of AGM.
Added
This may result in an immediate impact that may be favorable, resulting in a reduction in reserves or an increase in VOBA, or unfavorable, resulting in an increase in reserves or a decrease in VOBA.
Removed
Business The following summarizes our net reserve liabilities by product: December 31, (In millions, except percentages) 2024 2023 Annuities Indexed annuities $ 82,711 36.6 % $ 84,444 42.4 % Fixed rate annuities 62,705 27.8 % 53,282 26.7 % Pension group annuities 24,986 11.1 % 26,313 13.2 % Payout annuities 4,701 2.1 % 4,897 2.4 % Total annuity products 175,103 77.6 % 168,936 84.7 % Funding agreements 1 47,384 21.0 % 26,637 13.4 % Life and other 3,439 1.4 % 3,716 1.9 % Total net reserve liabilities $ 225,926 100.0 % $ 199,289 100.0 % 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.
Added
In addition to existing markets, we are creating products that capitalize on the capabilities of both Apollo and Athene to enter new markets to help meet growing retirement needs. In 2025, we launched and issued our first Guaranteed Investment Contract (GIC) to defined contribution stable value funds and began selling structured settlement annuities.
Removed
Annuities Fixed Indexed Annuities – FIAs are the largest percentage of our net reserve liabilities. FIAs are a type of insurance contract in which the policyholder makes one or more premium deposits that earn interest, on a tax deferred basis, at a crediting rate based on a specified market index, subject to a specified cap, spread or participation rate.
Added
To better position us to expand distribution of annuities to defined contribution plans, we acquired Advantage Retirement Solutions, which was rebranded to Vitera, and made enhancements to our annuity offering with Vitera in 2025.
Removed
FIAs allow policyholders the possibility of earning interest without significant risk to principal, unless the contract is surrendered during a surrender charge period. A market index tracks the performance of a specific group of stocks or other assets representing a particular segment of the market, or in some cases, an entire market.
Added
Vitera provides guaranteed lifetime income as an asset class by using its flagship technology to embed that asset class into a target date fund using group fixed indexed annuities with guaranteed lifetime withdrawal benefits that we and other insurance carriers issue.
Removed
We generally buy options on the indices to which the FIAs are tied to hedge the associated market risk. The cost of the option is priced into the overall economics of the product as an option budget.
Removed
We generate income on FIA products by earning an investment spread, based on the difference between (1) income earned on the investments supporting the liabilities and (2) the cost of funds, including fixed interest credited to customers, option costs, the cost of providing guarantees (net of rider fees), policy issuance and maintenance costs and commission costs.
Removed
Fixed Rate Annuities – Fixed rate annuities include annual reset annuities and multi-year guarantee annuities (MYGA). Unlike FIAs, fixed rate annuities earn interest at a set rate (or declared crediting rate), rather than at a rate that may vary based on an index. Fixed rate annual reset annuities have a crediting rate that is typically guaranteed for one year.
Removed
After such period, we have the ability to change the crediting rate at our discretion, generally once annually, to any rate at or above a guaranteed minimum rate.
Removed
MYGAs are similar to annual reset annuities except that the initial crediting rate is guaranteed for a specified number of years, rather than just one year, before it may be changed at our discretion. After the initial crediting period, MYGAs can generally be reset annually.
Removed
As of December 31, 2024, crediting rates on outstanding annual reset annuities primarily ranged from 0.5% to 6.0% and crediting rates on outstanding MYGAs primarily ranged from 0.25% to 6.20%. Registered Index-Linked Annuities (RILA) – RILAs are similar to FIAs in offering the policyholder the opportunity for tax-deferred growth based in part on the performance of a market index.
Removed
Compared to an FIA, RILAs have the potential for higher returns but also have the potential for risk of loss to principal and related earnings. RILAs provide the ability for the policyholder to participate in the positive performance of certain market indices during a term, limited by a cap or adjusted for a participation rate.
Removed
Negative performance of the market indices during a term can result in negative policyholder returns, with downside protection typically provided in the form of either a “buffer” or a “floor” to limit the policyholder’s exposure to market loss. A “buffer” is protection from negative exposure up to a certain percentage, typically 10 or 20 percent.
Removed
A “floor” is protection from negative exposure less than a stated percentage (i.e., the policyholder risks exposure of loss up to the “floor,” but is protected against any loss in excess of this amount).
Removed
Private Placement Variable Annuities (PPVA) – PPVAs are not registered with the SEC and currently are only offered by private placement to purchasers meeting both the requirements as a qualified purchaser and an accredited investor under applicable federal securities laws. Variable annuities allow policyholders to participate directly in the investment experience of the underlying investment vehicles offered through the product.
Removed
In a variable annuity, the policyholder assumes the full investment risk of the investment options chosen. The product allows the policyholder to allocate their money to a variety of variable separate account divisions that invest in a suite of underlying investment options and the potential to accumulate cash value on a tax-deferred basis.
Removed
Our PPVA product provides access to a suite of Apollo managed funds and other product offerings with no surrender charges and no guaranteed lifetime withdrawal benefit (GLWB) or guaranteed minimum death benefit (GMDB) features.
Removed
We generate income on our PPVA product by collecting a management fee that is a function of the policyholder’s account value. 13 Table of Contents Item 1. Business Income Riders to Fixed Annuity Products The income riders on our deferred annuities can be broadly categorized as either guaranteed or participating.
Removed
Guaranteed income riders provide policyholders with a guaranteed lifetime withdrawal benefit, which permits policyholders to elect to receive guaranteed payments for life from their contract without having to annuitize their policies.
Removed
Participating income riders tend to have lower levels of guaranteed income than guaranteed income riders but provide policyholders the opportunity to receive greater levels of income if the policies’ indexed crediting strategies perform well. Income riders, particularly on FIAs, have become very popular among policyholders.
Removed
The Life Insurance and Market Research Association (LIMRA) estimates that approximately 17% of fixed annuity premium in the US for the nine months ended September 30, 2024 (the most recent period that specific market share data is currently available) included an income rider. As of December 31, 2024, approximately 26% of our deferred annuity account value contained rider benefits.
Removed
This includes annuities with income riders sourced through retail and reinsurance operations as well as acquisitions. Of the deferred annuities sourced through our retail and flow reinsurance channels, for the year ended December 31, 2024, 2% contained participating income riders and 10% contained guaranteed income riders.

… 393 more changes not shown on this page.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

2 edited+0 added−1 removed12 unchanged
Biggest changeIn addition, the CIO, CISO, General Counsel and certain other members of senior management meet periodically with the audit, risk, and legal and regulatory committees of the board of directors to review our information technology and cybersecurity risk profile and to discuss risk mitigation plans.
Biggest changeDirectors, Executive Officers and Corporate Governance—Corporate Governance—Committees of the Board of Directors—Management Committees for additional information about the management operational risk committee, which is responsible for overseeing operational risk, including cybersecurity risk, and the management risk committee, which is responsible for overseeing overall corporate risk. 55 Table of Contents In addition, the CIO, CISO, General Counsel and certain other members of senior management meet periodically with the audit, risk, and legal and regulatory committees of the board of directors to review our information technology and cybersecurity risk profile and to discuss risk mitigation plans.
Risk Factors—Risks Relating to Our Business Operations—Interruption or other operational failures in telecommunications, information technology and other operational systems, including as a result of threat actors attacking those systems, or a failure to maintain the security, integrity, confidentiality or privacy of sensitive data residing on those systems, including as a result of human error, could have a 62 Table of Contents material adverse effect on our business and Item 1A.
Risk Factors—Risks Relating to Our Business Operations—Interruption or other operational failures in telecommunications, information technology and other operational systems, including as a result of threat actors attacking those systems, or a failure to maintain the security, integrity, confidentiality or privacy of sensitive data residing on those systems, including as a result of human error, could have a material adverse effect on our business and Item 1A.
Removed
Directors, Executive Officers and Corporate Governance—Corporate Governance—Committees of the Board of Directors—Management Committees for additional information about the management operational risk committee, which is responsible for overseeing operational risk, including cybersecurity risk, and the management risk committee, which is responsible for overseeing overall corporate risk.

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed6 unchanged
Biggest changeDescriptions of certain legal proceedings affecting us, if any, are included in Note 16 – Commitments and Contingencies to the consolidated financial statements. Item 4. Mine Safety Disclosures Not applicable. 63 Table of Contents PART II
Biggest changeDescriptions of certain legal proceedings affecting us, if any, are included in Note 16 – Commitments and Contingencies to the consolidated financial statements. Item 4. Mine Safety Disclosures Not applicable. 56 Table of Contents PART II

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

2 edited+0 added−0 removed8 unchanged
Biggest changeRecently, similar claims have been filed against customers of other insurance companies that have transferred their pension obligations to such other insurance companies.
Biggest changeMore recently, similar claims have been filed against customers of other insurance companies that have transferred their pension obligations to such other insurance companies.
However, there are no assurances that we would be successful in replacing any future pension group annuity inflows with inflows from other distribution channels or that such other inflows would result in comparable spreads. 61 Table of Contents Item 1B. Unresolved Staff Comments None.
However, there are no assurances that we would be successful in replacing any future pension group annuity inflows with inflows from other distribution channels or that such other inflows would result in comparable spreads. 54 Table of Contents Item 1B. Unresolved Staff Comments None.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

1 edited+0 added−0 removed0 unchanged
Biggest changeItem 4. Mine Safety Disclosures 63 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 64 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 65 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 110 Item 8. Financial Statements 114
Biggest changeItem 4. Mine Safety Disclosures 56 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 57 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 58 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 106 Item 8. Financial Statements 110

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

173 edited+49 added−161 removed54 unchanged
Biggest changeManagement’s Discussion and Analysis of Financial Condition and Results of Operations The following table presents the carrying values of our total investments including related parties and consolidated VIEs: December 31, 2024 2023 (In millions, except percentages) Carrying Value Percentage of Total Carrying Value Percentage of Total AFS securities, at fair value $ 165,364 52.5 % $ 134,338 51.8 % Trading securities, at fair value 1,583 0.5 % 1,706 0.7 % Equity securities 1,290 0.4 % 1,293 0.5 % Mortgage loans, at fair value 63,239 20.1 % 44,115 17.0 % Investment funds 107 — % 109 0.1 % Policy loans 318 0.1 % 334 0.1 % Funds withheld at interest 18,866 6.0 % 24,359 9.4 % Derivative assets 8,154 2.6 % 5,298 2.1 % Short-term investments 447 0.2 % 341 0.1 % Other investments 2,915 0.9 % 1,206 0.5 % Total investments 262,283 83.3 % 213,099 82.3 % Investments in related parties AFS securities, at fair value 19,127 6.1 % 14,009 5.4 % Trading securities, at fair value 573 0.2 % 838 0.3 % Equity securities, at fair value 234 0.1 % 318 0.1 % Mortgage loans, at fair value 1,297 0.4 % 1,281 0.5 % Investment funds 1,853 0.6 % 1,632 0.6 % Funds withheld at interest 5,050 1.6 % 6,474 2.5 % Short-term investments 743 0.2 % 947 0.4 % Other investments, at fair value 331 0.1 % 343 0.1 % Total related party investments 29,208 9.3 % 25,842 9.9 % Total investments, including related parties 291,491 92.6 % 238,941 92.2 % Investments of consolidated VIEs Trading securities, at fair value 2,301 0.7 % 2,136 0.8 % Mortgage loans, at fair value 2,579 0.8 % 2,173 0.8 % Investment funds, at fair value 17,765 5.6 % 15,927 6.2 % Other investments 884 0.3 % 103 — % Total investments of consolidated VIEs 23,529 7.4 % 20,339 7.8 % Total investments, including related parties and consolidated VIEs $ 315,020 100.0 % $ 259,280 100.0 % The increase in our total investments, including related parties and consolidated VIEs, as of December 31, 2024 of $55.7 billion compared to December 31, 2023 was primarily driven by significant growth from gross organic inflows of $71.0 billion in excess of gross liability outflows of $33.5 billion, reinvestment of earnings and an increase in derivative assets primarily related to the impact of favorable equity market performance in 2024 on our call options as well as market impacts on our derivative swaps and forward contracts.
Biggest changeManagement’s Discussion and Analysis of Financial Condition and Results of Operations The following table presents the carrying values of our total investments including related parties and consolidated VIEs: December 31, 2025 2024 (In millions, except percentages) Carrying Value Percentage of Total Carrying Value Percentage of Total Available-for-sale securities, at fair value $ 192,597 49.8 % $ 165,364 52.5 % Trading securities, at fair value 6,409 1.7 % 1,583 0.5 % Equity securities, at fair value 822 0.2 % 1,290 0.4 % Mortgage loans, at fair value 91,918 23.8 % 63,239 20.1 % Investment funds 108 — % 107 — % Policy loans 301 0.1 % 318 0.1 % Funds withheld at interest 15,413 4.0 % 18,866 6.0 % Derivative assets 9,190 2.4 % 8,154 2.6 % Short-term investments 175 — % 447 0.2 % Other investments 4,148 1.1 % 2,915 0.9 % Total investments 321,081 83.1 % 262,283 83.3 % Investments in related parties Available-for-sale securities, at fair value 26,444 6.8 % 19,127 6.1 % Trading securities, at fair value 454 0.1 % 573 0.2 % Equity securities, at fair value 266 0.1 % 234 0.1 % Mortgage loans, at fair value 1,486 0.4 % 1,297 0.4 % Investment funds 2,149 0.6 % 1,853 0.6 % Funds withheld at interest 4,215 1.1 % 5,050 1.6 % Short-term investments 18 — % 743 0.2 % Other investments, at fair value 344 0.1 % 331 0.1 % Total related party investments 35,376 9.2 % 29,208 9.3 % Total investments, including related parties 356,457 92.3 % 291,491 92.6 % Investments of consolidated VIEs Trading securities, at fair value 3,120 0.8 % 2,301 0.7 % Mortgage loans, at fair value 2,140 0.5 % 2,579 0.8 % Investment funds, at fair value 24,070 6.2 % 17,765 5.6 % Other investments 844 0.2 % 884 0.3 % Total investments of consolidated VIEs 30,174 7.7 % 23,529 7.4 % Total investments, including related parties and consolidated VIEs $ 386,631 100.0 % $ 315,020 100.0 % Our total investments, including related parties and consolidated VIEs, were $386.6 billion and $315.0 billion as of December 31, 2025 and 2024, respectively.
Overall sales were strong across our bank, IMO and broker-dealer channels, exhibiting strong sales execution, the current rate environment, growing product offerings and our continued expansion into large financial institutions. We have maintained our disciplined approach to pricing and our targeted underwritten returns.
Overall sales were strong across our bank, broker-dealer and IMO channels, exhibiting strong sales execution, the current rate environment, growing product offerings and our continued expansion into large financial institutions. We have maintained our disciplined approach to pricing and our targeted underwritten returns.
Our investment portfolio consists predominantly of fixed maturity investments. See – Investment Portfolio . If prevailing interest rates were to rise, we believe the yield on our new investment purchases may also rise and our investment income from floating rate investments would increase, while the value of our existing investments may decline.
Our investment portfolio predominantly consists of fixed maturity investments. See – Investment Portfolio . If prevailing interest rates were to rise, we believe the yield on our new investment purchases may also rise and our investment income from floating rate investments would increase, while the value of our existing investments may decline.
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.
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 items which are not part of our underlying profitability drivers, as such items fluctuate from period to period in a manner inconsistent with these drivers.
We believe that our credit profile, current product offerings and product design capabilities, as well as our growing reputation as both a seasoned funding agreement issuer and a reliable pension group annuity counterparty, will continue to enable us to grow our existing organic channels and source additional volumes of profitably underwritten liabilities in various market environments.
We believe that our credit profile, current product offerings and product design capabilities, as well as our reputation as both a seasoned funding agreement issuer and a reliable pension group annuity counterparty, will continue to enable us to grow our existing organic channels and source additional volumes of profitably underwritten liabilities in various market environments.
A significant majority of our deferred annuity products have crediting rates that we may reset annually upon renewal, following the expiration of the current guaranteed period. While we have the contractual ability to lower these crediting rates to the guaranteed minimum levels, our willingness to do so may be limited by competitive pressures.
A significant majority of our deferred annuity products have crediting rates that we may reset annually upon renewal, following the expiration of the current guaranteed period. While we have the contractual ability to lower these crediting rates to the guaranteed minimum levels at renewal, our willingness to do so may be limited by competitive pressures.
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 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 indexed annuities, the cost of providing index credits includes the expenses incurred to fund the annual index credits, and where applicable, minimum guaranteed interest credited.
In periods of prolonged low interest rates, the net investment spread may be negatively impacted by reduced investment income to the extent that we are unable to adequately reduce policyholder crediting rates due to policyholder guarantees in the form of minimum crediting rates or otherwise due to market conditions.
In periods of prolonged low interest rates, the net investment spread may be negatively impacted by reduced investment income to the extent we are unable to adequately reduce policyholder crediting rates due to policyholder guarantees in the form of minimum crediting rates or otherwise due to market conditions.
In addition to our fixed income portfolio, we opportunistically allocate approximately 5% of our portfolio to alternative investments where we primarily focus on fixed income-like, cash flow-based investments. Net investment income on the consolidated statements of income (loss) includes management fees under our investment management arrangements with Apollo.
In addition to our fixed income portfolio, we opportunistically allocate approximately 5% of our portfolio to alternative investments where we primarily focus on fixed income-like, cash flow-based investments. Net investment income on the consolidated statements of income includes management fees under our investment management arrangements with Apollo.
Net Reserve Liabilities In managing our business, we also analyze net reserve liabilities, which does not correspond to total liabilities as disclosed in our 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 In managing our business, we also analyze net reserve liabilities, which does not correspond to total liabilities as disclosed in our consolidated financial statements and notes thereto. Net reserve liabilities represent our policyholder and institutional liability obligations net of reinsurance and are used to analyze the costs of our liabilities.
We intend to continue to grow organically by expanding each of our retail, flow reinsurance and institutional distribution channels. We believe that we have the right people, infrastructure, scale and capital discipline to position us for continued growth.
We intend to continue to grow organically by expanding each of our retail, flow reinsurance, institutional and other distribution channels. We believe that we have the right people, infrastructure, scale and capital discipline to position us for continued growth.
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 funds includes liability costs related to cost of crediting on 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.
Other Operating Expense s Other operating expenses excludes interest expense, policy acquisition expenses, net of deferrals, integration, restructuring and other non-operating expenses, stock compensation and long-term incentive plan expenses and the proportionate share of the ACRA operating expenses associated with the noncontrolling interests.
Other Operating Expense s Other operating expenses excludes interest expense, policy acquisition expenses, net of deferrals, integration, restructuring and other non-operating items, stock compensation and long-term incentive plan expenses and the proportionate share of the ACRA operating expenses associated with the noncontrolling interests.
Industry Trends and Competition Economic and Market Conditions As a leading financial services company specializing in retirement services, we are affected by the condition of global financial markets and the economy.
US Industry Trends and Competition Economic and Market Conditions As a leading financial services company specializing in retirement services, we are affected by the condition of global financial markets and the economy.
We have a strong preference for alternative investments that have some or all of the following characteristics, among others: (1) investments with credit- or debt-like characteristics (for example, a stipulated maturity and par value), or alternatively, investments with reduced volatility when compared to pure equity; or (2) investments that we believe have less downside risk. 79 Table of Contents Item 7.
We have a strong preference for alternative investments that have some or all of the following characteristics, among others: (1) investments with credit- or debt-like characteristics (for example, a stipulated maturity and par value), or alternatively, investments with reduced volatility when compared to pure equity; or (2) investments that we believe have less downside risk. 73 Table of Contents Item 7.
Our primary use of derivative instruments relates to providing the income needed to fund the annual index credits on our FIA products. We primarily use fixed indexed options to economically hedge indexed annuity products that guarantee the return of principal to the policyholder and credit interest based on a percentage of the gain in a specific market index.
Our primary use of derivative instruments relates to providing the income needed to fund the annual index credits on our indexed annuity products. We primarily use indexed options to economically hedge indexed annuity products that guarantee the return of principal to the policyholder and credit interest based on a percentage of the gain in a specific market index.
Changes in fair value of our AFS securities, are charged or credited to other comprehensive income (loss), net of tax.
Changes in fair value of our AFS securities, are charged or credited to other comprehensive income, net of tax.
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.
However, because the term of an embedded derivative in an indexed annuity 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.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information, Stockholders, Dividends, and Securities Authorized for Issuance under Equity Compensation Plans Not applicable. Recent Sales of Unregistered Securities and Issuer Purchases of Securities None. 64 Table of Contents Item 7.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information, Stockholders, Dividends, and Securities Authorized for Issuance under Equity Compensation Plans Not applicable. Recent Sales of Unregistered Securities and Issuer Purchases of Securities None. 57 Table of Contents Item 7.
During the commitment period, ACRA 1 participated in certain transactions by drawing a portion of the required capital for such transactions from third-party investors equal to ADIP I’s proportionate economic interest in ACRA 1. The commitment period for ACRA 1 expired in August 2023.
During the commitment period, ACRA 1 participated in certain transactions by drawing a portion of the required capital for such transactions from third-party investors equal to ADIP I’s proportionate economic interests in ACRA 1. The commitment period for ACRA 1 expired in August 2023.
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).
The difference in duration between the indexed annuity hedging derivatives and the index credit reserves creates a timing difference in earnings. This timing difference of the indexed annuity 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 indexed annuity products (typically 1–2 years).
Common Stockholder The adjustments to net income (loss) available to Athene Holding Ltd. common stockholder are comprised of investment gains (losses), net of offsets; non-operating change in insurance liabilities and related derivatives; inte gration, restructuring and other non-operating expenses; stock compensation expense and the non-operating income tax expense (benefit) related to these adjustments.
Common Stockholder The adjustments to net income available to Athene Holding Ltd. common stockholder are comprised of investment gains (losses), net of offsets; non-operating change in insurance liabilities and related derivatives; inte gration, restructuring and other non-operating items; stock compensation expense and the non-operating income tax expense (benefit) related to these adjustments.
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.
Further included are adjustments for gains associated with our early repurchases of funding agreements, when applicable. • 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.
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 index reserve is measured at fair value for the current period and all periods beyond the current policyholder index term. However, the indexed annuity hedging derivatives are purchased to hedge only the current index period. Upon policyholder renewal at the end of the period, new indexed annuity hedging derivatives are purchased to align with the new term.
We have established a significant base of earnings and, as of December 31, 2024, have an expected annual net investment spread, which measures our investment performance plus strategic capital management fees less the total cost of our liabilities, of 1–2% over the estimated 7.8 year weighted-average life of our net reserve liabilities.
We have established a significant base of earnings and, as of December 31, 2025, have an expected annual net investment spread, which measures our investment performance plus strategic capital management fees less the total cost of our liabilities, of 1–2% over the estimated 7.4 year weighted-average life of our net reserve liabilities.
In addition, our investment portfolio is constrained by its scenario-based capital ratio limits and its liquidity limits. 78 Table of Contents Item 7.
In addition, our investment portfolio is constrained by its scenario-based capital ratio limits and its liquidity limits. 72 Table of Contents Item 7.
Our net invested assets, which are those that directly back our net reserve liabilities as well as surplus assets, were $248.6 billion and $217.4 billion as of December 31, 2024 and 2023, respectively. Apollo’s knowledge of our funding structure and regulatory requirements allows it to design customized strategies and investments for our portfolio.
Our net invested assets, which are those that directly back our net reserve liabilities, as well as surplus assets, were $292.4 billion and $248.6 billion as of December 31, 2025 and 2024, respectively. Apollo’s knowledge of our funding structure and regulatory requirements allows it to design customized strategies and investments for our portfolio.
As of December 31, 2024, we estimate that we had approximately $8.8 billion in capital available to deploy, consisting of approximately $2.0 billion in excess equity capital, $3.3 billion in untapped leverage capacity (assuming an adjusted leverage ratio of not more than 30%, subject to maintaining a sufficient level of capital required to maintain our desired financial strength ratings from rating agencies), and $3.5 billion in available undrawn capital at ACRA.
As of December 31, 2025, we estimate that we had approximately $8.6 billion in capital available to deploy, consisting of approximately $3.2 billion in excess equity capital, $2.6 billion in untapped leverage capacity (assuming an adjusted leverage ratio of not more than 30%, subject to maintaining a sufficient level of capital required to maintain our desired financial strength ratings from rating agencies), and $2.8 billion in available undrawn capital at ACRA.
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 and mortgage loans, 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.
Our spread related earnings equals net income available to Athene Holding Ltd. 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 and mortgage loans, 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.
Investment gains and losses are net of offsets related to the MVAs 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.
Investment gains and losses are net of offsets related to the MVAs 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 – Indexed Annuities— Consists of impacts related to the fair value accounting for derivatives hedging the index credits on indexed annuities and the related embedded derivative liability fluctuations from period to period.
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.
We consider these adjustments to be meaningful adjustments to net income available to Athene Holding Ltd. 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.
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, all 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.
Unrealized, allowances and other investment gains and losses are comprised of the fair value adjustments of trading securities and mortgage loans, other investments held under the fair value option, derivative gains and losses not hedging annuity index credits, all 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.
For our non-GAAP measure of net invested assets, we provide visibility into the underlying assets within these reinsurance portfolios. The below table looks through to the underlying assets within our reinsurance portfolios to determine the related party status. As of December 31, 2024, $31.9 billion, or 12.8% of our total net invested assets were related party investments.
For our non-GAAP measure of net invested assets, we provide visibility into the underlying assets within these reinsurance portfolios. The below table looks through to the underlying assets within our reinsurance portfolios to determine the related party status. As of December 31, 2025, $37.0 billion, or 12.8% of our total net invested assets were related party investments.
We expect that our credit profile and our reputation as a solutions provider will help us continue to source additional reinsurance partners, which will further diversify our flow reinsurance channel. Within our institutional channel, we generated inflows of $29.7 billion, $17.6 billion and $21.3 billion for the years ended December 31, 2024, 2023 and 2022, respectively.
We expect that our credit profile and our reputation as a solutions provider will help us continue to source additional reinsurance partners, which will further diversify our flow reinsurance channel. Within our institutional channel, we generated inflows of $36.1 billion, $29.7 billion and $17.6 billion for the years ended December 31, 2025, 2024 and 2023, respectively.
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.
Adjusted Athene Holding Ltd. common stockholder’s equity is calculated as the ending Athene Holding Ltd. 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.
The increase in alternative net investment income compared to 2023 was primarily driven by more favorable performance within retirement services and strategic origination platforms, as well as credit, partially offset by less favorable performance within equity.
The increase in alternative net investment income compared to 2024 was primarily driven by more favorable performance within origination and retirement services platforms as well as equity funds, partially offset by less favorable performance within credit funds.
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).
Our sales statistics include inflows for deferred and indexed annuities 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).
All changes in the allowance for expected credit losses, whether due to passage of time, change in expected cash flows or change in fair value are recorded through the provision for credit losses within investment related gains (losses) on the consolidated statements of income (loss). 81 Table of Contents Item 7.
All changes in the allowance for expected credit losses, whether due to passage of time, change in expected cash flows or change in fair value are recorded through the provision for credit losses within investment related gains (losses) on the consolidated statements of income. 75 Table of Contents
Spread Related Earnings (SRE) 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.
Spread Related Earnings (SRE) 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 and stock compensation as well as other one-time items.
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.
Together with net income available to Athene Holding Ltd. 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 available to Athene Holding Ltd. common stockholder.
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.
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. 65 Table of Contents Item 7.
The increase in our institutional channel was driven by higher funding agreement inflows, partially offset by lower pension group annuity inflows. We issued funding agreements in the aggregate principal amount of $28.7 billion, $7.2 billion and $10.0 billion for the years ended December 31, 2024, 2023 and 2022, respectively.
The increase in our institutional channel was driven by higher funding agreement inflows, partially offset by lower pension group annuity inflows. We issued funding agreements in the aggregate principal amount of $35.4 billion, $28.7 billion and $7.2 billion for the years ended December 31, 2025, 2024 and 2023, respectively.
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 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 the notional value of our preferred stock divided by adjusted capitalization.
The decrease was driven by a decrease in future policy and other policy benefits and a decrease in market risk benefits remeasurement (gains) losses, partially offset by an increase in interest sensitive contract benefits, an increase in policy and other operating expenses and an increase in DAC, DSI and VOBA amortization.
The increase was driven by an increase in interest sensitive contract benefits, an increase in future policy and other policy benefits, an increase in market risk benefits remeasurement (gains) losses, an increase in the amortization of DAC, DSI and VOBA and an increase in policy and other operating expenses.
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.
Management’s Discussion and Analysis of Financial Condition and Results of Operations 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.
The 2024 unlocking was driven by an increase of $62 million in market risk benefits, an increase of $21 million related to DAC, DSI and VOBA and an increase of $8 million in interest sensitive contract benefits, partially offset by a decrease of $60 million in future policy and other policy benefits, compared to a decrease of $94 million in interest sensitive contract benefits and a decrease of $45 million in future policy and other policy benefits, partially offset by an increase of $81 million in market risk benefits and an increase of $36 million related to DAC, DSI and VOBA in 2023.
The 2024 unlocking was driven by an increase of $62 million in market risk benefits, an increase of $21 million related to DAC, DSI and VOBA amortization and an increase of $8 million in interest sensitive contract benefits, partially offset by a decrease of $60 million in future policy and other policy benefits.
Our annual unlocking of assumptions resulted in an increase in total benefits and expenses of $31 million compared to a decrease of $22 million in 2023.
Our annual unlocking of assumptions resulted in a decrease in total benefits and expenses of $55 million compared to an increase of $31 million in 2024.
Of these, approximately $18.5 billion, or 7.4% of our net invested assets, were structured securities for which Apollo or an affiliated direct origination platform was the manager of the underlying securitization vehicle, but the underlying collateral, borrower or other credit party is generally unaffiliated with us.
Of these, approximately $21.2 billion, or 7.3% of our net invested assets, were structured securities for which Apollo or an affiliated asset origination platform was the manager of the underlying securitization vehicle, but the underlying collateral, borrower or other credit party is generally unaffiliated with us.
Since entering the pension group annuity market in 2017, we have closed 49 deals resulting in the issuance or reinsurance of group annuities of $52.7 billion with more than 550,000 plan participants as of December 31, 2024. We expect to grow our institutional channel by continuing to engage in pension group annuity transactions and programmatic issuances of funding agreements.
Since entering the pension group annuity market in 2017, we have closed 50 deals resulting in the issuance or reinsurance of group annuities of $53.4 billion with more than 528,000 plan participants as of December 31, 2025. We expect to grow our institutional channel by continuing to engage in pension group annuity transactions and programmatic issuances of funding agreements.
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. 3 Gross outflows include full and partial policyholder withdrawals on deferred annuities, death benefits, pension group annuity benefit payments, payments on payout annuities, payments related to interest, maturities and repurchases of funding agreements and block reinsurance outflows.
On October 1, 2025, we entered into an agreement with another Japanese counterparty to reinsure a block of whole life insurance policies on a coinsurance basis. 4 Gross outflows include full and partial policyholder withdrawals on deferred annuities, death benefits, pension group annuity benefit payments, payments on payout annuities, payments related to interest, maturities and repurchases of funding agreements and block reinsurance outflows.
Our inorganic channel has contributed significantly to our growth through both acquisitions and block reinsurance transactions. We plan to continue to grow and diversify our business, both organically and inorganically, with a focus on international expansion, particularly in Asia. We believe our corporate development team, with support from Apollo, has an industry-leading ability to source, underwrite and expeditiously close transactions.
We plan to continue to grow and diversify our business, both organically and inorganically, with a focus on international expansion, particularly in Asia. We believe our corporate development team, with support from Apollo, has an industry-leading ability to source, underwrite and expeditiously close transactions.
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 consolidated statements of income (loss).
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 consolidated statements of income. 66 Table of Contents Item 7.
Interest Rate Environment Medium and long-term rates increased in 2024, with the US 10-year Treasury yield at 4.58% as of December 31, 2024 compared to 3.88% as of December 31, 2023. Short-term rates decreased in 2024, with the 3-month secured overnight financing rate at 4.31% as of December 31, 2024 compared to 5.33% as of December 31, 2023.
Interest Rate Environment Medium and long-term rates decreased in 2025, with the US 10-year Treasury yield at 4.18% as of December 31, 2025 compared to 4.58% as of December 31, 2024. Short-term rates decreased in 2025, with the 3-month secured overnight financing rate at 3.65% as of December 31, 2025 compared to 4.31% as of December 31, 2024.
Gross organic inflows for the year ended December 31, 2024 increased $7.6 billion, or 12%, reflecting the strength of our multi-channel distribution platform and our ability to quickly pivot into optimal and profitable channels as opportunities arise.
Gross organic inflows for the year ended December 31, 2025 increased $11.1 billion, or 16%, reflecting the strength of our multi-channel distribution platform and our ability to quickly pivot into optimal and profitable channels as opportunities arise.
Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations in our 2023 Annual Report for the results of operations discussion for the year ended December 31, 2023 compared to the year ended December 31, 2022. 75 Table of Contents Item 7.
Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023 See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations in our 2024 Annual Report for the results of operations discussion for the year ended December 31, 2024 compared to the year ended December 31, 2023.
Alternative net investment earned rate was 8.03% in 2024, an increase from 7.22% in 2023, primarily driven by more favorable performance within retirement services and strategic origination platforms, as well as credit, partially offset by less favorable performance within equity.
Alternative net investment earned rate was 10.01% in 2025, an increase from 8.03% in 2024, primarily driven by more favorable performance within origination and retirement services platforms as well as equity funds, partially offset by less favorable performance within credit funds.
For the nine months ended September 30, 2024 (the most recent period for which specific market share data is available), we were the largest provider of FIAs based on sales of $10.9 billion, translating to an 11.5% market share.
For the nine months ended September 30, 2025 (the most recent period for which specific market share data is available), we were the largest provider of FIAs based on sales of $11.5 billion, translating to a 12.3% market share.
According to LIMRA, total annuity market sales in the US were $332.0 billion for the nine months ended September 30, 2024, a 23.1% increase from the same time period in 2023.
According to LIMRA, total annuity market sales in the US were $347.0 billion for the nine months ended September 30, 2025, a 4.4% increase from the same time period in 2024.
Management’s Discussion and Analysis of Financial Condition and Results of Operations – Summary of Non-GAAP Earnings in our 2023 Annual Report for the summary of non-GAAP earnings discussion for the year ended December 31, 2023 compared to the year ended December 31, 2022.
Management’s Discussion and Analysis of Financial Condition and Results of Operations – Summary of Non-GAAP Earnings in our 2024 Annual Report for the summary of non-GAAP earnings discussion for the year ended December 31, 2024 compared to the year ended December 31, 2023. 71 Table of Contents Item 7.
US inflation eased in 2024 with the US Bureau of Labor Statistics reporting the annual US inflation rate decreased to 2.9% as of December 31, 2024, compared to 3.4% as of December 31, 2023.
US inflation eased slightly in 2025 with the US Bureau of Labor Statistics reporting the annual US inflation rate decreased to 2.7% as of December 31, 2025, compared to 2.9% as of December 31, 2024.
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’s Discussion and Analysis of Financial Condition and Results of Operations 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.
To support our growth strategies and capital deployment opportunities, we established ACRA 1 as a long-duration, on-demand capital vehicle. We directly own 37% of the economic interests in ACRA 1, with the remaining 63% of the economic interests being owned by ADIP I, a series of funds managed by Apollo.
ACRA To support growth strategies and capital deployment opportunities, we established ACRA 1 as a long-duration, on-demand capital vehicle. ALRe directly owns 37% of the economic interests in ACRA 1 and all of ACRA 1’s voting interests, with ADIP I, a series of funds managed by Apollo, owning the remaining 63% of the economic interests.
If prevailing interest rates were to rise, we believe our products would be more attractive to consumers and our sales would likely increase. If prevailing interest rates were to decline, it is likely that our products would be less attractive to consumers and our sales would likely decrease.
Management’s Discussion and Analysis of Financial Condition and Results of Operations If prevailing interest rates were to rise, we believe our products would be more attractive to consumers and our sales would likely increase. If prevailing interest rates were to decline, it is likely that our products would be less attractive to consumers and our sales would likely decrease.
Management’s Discussion and Analysis of Financial Condition and Results of Operations A summary of our related party net invested assets reflecting the nature of the affiliation is as follows: December 31, 2024 2023 (In millions, except percentages) Net Invested Asset Value Percentage of Net Invested Assets Net Invested Asset Value Percentage of Net Invested Assets Securitizations of unaffiliated assets where Apollo is manager $ 18,472 7.4 % $ 16,759 7.7 % Investments in Apollo funds 7,131 2.9 % 5,928 2.7 % Strategic investments in Apollo direct origination platforms 4,006 1.6 % 3,518 1.6 % Investments in retirement services platforms 2,285 0.9 % 2,459 1.1 % Other — — % 13 — % Total related party net invested assets $ 31,894 12.8 % $ 28,677 13.1 % A summary of our related party gross invested assets, which includes the proportionate share of investments associated with the ACRA noncontrolling interests, reflecting the nature of the affiliation is as follows: December 31, 2024 2023 (In millions, except percentages) Gross Invested Asset Value Percentage of Gross Invested Assets Gross Invested Asset Value Percentage of Gross Invested Assets Securitizations of unaffiliated assets where Apollo is manager $ 25,327 7.7 % $ 21,550 7.7 % Investments in Apollo funds 9,557 2.9 % 7,640 2.7 % Strategic investments in Apollo direct origination platforms 5,281 1.6 % 5,089 1.8 % Investments in retirement services platforms 2,374 0.7 % 2,539 0.9 % Other — — % 13 — % Total related party gross invested assets $ 42,539 12.9 % $ 36,831 13.1 % AFS Securities We invest in AFS securities and attempt to source investments that match our future cash flow needs.
Management’s Discussion and Analysis of Financial Condition and Results of Operations A summary of our related party net invested assets reflecting the nature of the affiliation is as follows: December 31, 2025 2024 (In millions, except percentages) Net Invested Asset Value Percentage of Net Invested Assets Net Invested Asset Value Percentage of Net Invested Assets Securitizations of unaffiliated assets where Apollo is manager $ 21,203 7.3 % $ 18,472 7.4 % Investments in Apollo funds 7,820 2.7 % 7,131 2.9 % Investments in asset origination platforms 5,442 1.9 % 4,006 1.6 % Investments in retirement services platforms 2,496 0.9 % 2,285 0.9 % Total related party net invested assets $ 36,961 12.8 % $ 31,894 12.8 % A summary of our related party gross invested assets, which includes the proportionate share of investments associated with the ACRA noncontrolling interests, reflecting the nature of the affiliation is as follows: December 31, 2025 2024 (In millions, except percentages) Gross Invested Asset Value Percentage of Gross Invested Assets Gross Invested Asset Value Percentage of Gross Invested Assets Securitizations of unaffiliated assets where Apollo is manager $ 29,565 7.6 % $ 25,327 7.7 % Investments in Apollo funds 10,181 2.6 % 9,557 2.9 % Investments in asset origination platforms 6,963 1.8 % 5,281 1.6 % Investments in retirement services platforms 2,614 0.7 % 2,374 0.7 % Total related party gross invested assets $ 49,323 12.7 % $ 42,539 12.9 % AFS Securities We invest in AFS securities and attempt to source investments that match our future cash flow needs.
A summary of our related party investments reflecting the nature of the affiliation is as follows: December 31, 2024 2023 (In millions, except percentages) Carrying Value Percentage of Total Assets Carrying Value Percentage of Total Assets Venerable funds withheld reinsurance portfolio $ 5,050 1.4 % $ 6,474 2.2 % Securitizations of unaffiliated assets where Apollo is manager 20,389 5.6 % 16,072 5.3 % Investments in Apollo funds 12,272 3.4 % 10,683 3.6 % Strategic investments in Apollo direct origination platforms 7,329 2.0 % 6,464 2.2 % Investments in retirement services platforms 2,249 0.6 % 2,575 0.9 % Other 86 — % 81 — % Total related party investments $ 47,375 13.0 % $ 42,349 14.2 % As of December 31, 2024, a $5.1 billion funds withheld reinsurance asset with Venerable was included in our US GAAP related party investments.
A summary of our related party investments reflecting the nature of the affiliation is as follows: December 31, 2025 2024 (In millions, except percentages) Carrying Value Percentage of Total Assets Carrying Value Percentage of Total Assets Venerable funds withheld reinsurance portfolio $ 4,215 1.0 % $ 5,050 1.4 % Securitizations of unaffiliated assets where Apollo is manager 26,880 6.1 % 20,389 5.6 % Investments in Apollo funds 16,306 3.7 % 12,272 3.4 % Investments in asset origination platforms 10,037 2.3 % 7,329 2.0 % Investments in retirement services platforms 2,700 0.6 % 2,249 0.6 % Other — — % 86 — % Total related party investments $ 60,138 13.7 % $ 47,375 13.0 % As of December 31, 2025, a $4.2 billion funds withheld reinsurance asset with Venerable was included in our US GAAP related party investments.
Spread Related Earnings SRE increased by $114 million, or 4%, to $3.2 billion in 2024 from $3.1 billion in 2023. The increase in SRE was primarily driven by higher net investment earnings and strategic capital management fees, partially offset by higher cost of funds and interest and other financing costs.
Spread Related Earnings SRE increased by $140 million, or 4%, to $3.4 billion in 2025 from $3.2 billion in 2024. The increase in SRE was primarily driven by an increase in net investment earnings and strategic capital management fees, partially offset by an increase in cost of funds and interest and other financing costs. 69 Table of Contents Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Net Investment Spread Years ended December 31, 2024 2023 2022 Fixed income and other net investment earned rate 4.87 % 4.45 % 3.22 % Alternative net investment earned rate 8.03 % 7.22 % 10.42 % Net investment earned rate 5.03 % 4.61 % 3.66 % Strategic capital management fees 0.04 % 0.03 % 0.03 % Cost of funds (3.29) % (2.71) % (1.98) % Net investment spread 1.78 % 1.93 % 1.71 % Net investment spread decreased 15 basis points to 1.78% in 2024 from 1.93% in 2023, primarily driven by higher cost of funds, partially offset by a higher net investment earned rate.
Net Investment Spread Years ended December 31, 2025 2024 2023 Fixed income and other net investment earned rate 5.01 % 4.87 % 4.45 % Alternative net investment earned rate 10.01 % 8.03 % 7.22 % Net investment earned rate 5.25 % 5.03 % 4.61 % Strategic capital management fees 0.05 % 0.04 % 0.03 % Cost of funds (3.69) % (3.29) % (2.71) % Net investment spread 1.61 % 1.78 % 1.93 % Net investment spread decreased 17 basis points to 1.61% in 2025 from 1.78% in 2024, primarily driven by higher cost of funds, partially offset by a higher net investment earned rate.
For the nine months ended September 30, 2024 (the most recent period for which specific market share data is available), we were the eleventh largest provider of RILAs based on sales of $823 million, translating to a 1.7% market share.
For the nine months ended September 30, 2025 (the most recent period for which specific market share data is available), we were the thirteenth largest provider of RILAs based on sales of $1.0 billion, translating to a 1.8% market share.
For the nine months ended September 30, 2023, we were the eleventh largest provider of RILAs based on sales of $650 million, translating to a 1.9% market share. We believe RILAs represent a significant growth opportunity for Athene.
For the nine months ended September 30, 2024, we were the eleventh largest provider of RILAs based on sales of $823 million, translating to a 1.7% market share. We believe RILAs represent a significant growth opportunity for Athene. 63 Table of Contents Item 7.
The fair value of market risk benefits unlocking, net of the noncontrolling interests, in 2024 was $14 million favorable primarily due to updated economics, while 2023 unlocking resulted in no market risk benefit impacts.
The fair value of market risk benefits unlocking, net of the noncontrolling interests, in 2025 resulted in no impact, while 2024 unlocking was $14 million favorable primarily due to updated economic assumptions.
Related party investments in strategic affiliated companies or Apollo funds represented $13.4 billion, or 5.4% of our net invested assets. 80 Table of Contents Item 7.
Related party investments in affiliated companies or Apollo funds represented $15.8 billion, or 5.5% of our net invested assets. 74 Table of Contents Item 7.
In the total annuity market, for the nine months ended September 30, 2024 (the most recent period for which specific market share data is available), we were the largest provider of annuities based on sales of $28.0 billion, translating to an 8.4% market 69 Table of Contents Item 7.
In the total annuity market, for the nine months ended September 30, 2025 (the most recent period for which specific market share data is available), we were the largest provider of annuities based on sales of $26.8 billion, translating to a 7.7% market share.
In the total fixed annuity market, for the nine months ended September 30, 2024 (the most recent period for which specific market share data is available), we were the largest provider of fixed annuities based on sales of $27.2 billion, translating to an 11.3% market share.
In the total fixed annuity market, for the nine months ended September 30, 2025 (the most recent period for which specific market share data is available), we were the largest provider of fixed annuities based on sales of $25.8 billion, translating to a 10.6% market share.
According to LIMRA, total fixed indexed annuity market sales in the US were $95.1 billion for the nine months ended September 30, 2024, a 33.9% increase from the same time period in 2023.
According to LIMRA, total fixed indexed annuity market sales in the US were $93.8 billion for the nine months ended September 30, 2025, a 1.4% decrease from the same time period in 2024.
Gross outflows in 2023 include the $2.7 billion of reserves recaptured by Venerable Insurance and Annuity Company (VIAC). Gross outflows in 2022 include the cession of $4.9 billion of certain inforce funding agreements to Catalina General Insurance Ltd. (Catalina). 4 Effective July 1, 2023, ALRe sold 50% of ACRA 2’s economic interests to ADIP II.
Gross outflows in 2023 include the $2.7 billion of reserves recaptured by Venerable Insurance and Annuity Company (VIAC). 5 Effective July 1, 2023, ALRe sold 50% of ACRA 2’s economic interests to ADIP II.
Our annual unlocking of assumptions, net of the noncontrolling interests, resulted in a decrease in our adjustments to net income (loss) available to AHL common stockholder of $11 million compared to an increase of $71 million in 2023.
Our annual unlocking of assumptions, net of the noncontrolling interests, resulted in an increase in our adjustments to net income available to Athene Holding Ltd. common stockholder of $74 million compared to a decrease of $11 million in 2024.
See Note 9 – Long-duration Contracts to the consolidated financial statements for policyholder account balances by range of guaranteed minimum crediting rates and the related distance to those respective guaranteed minimums. The policyholder account balances represent deferred annuities, funding agreements and other investment-type products.
See Note 9 – Long-duration Contracts to the consolidated financial statements for our deferred and indexed annuity policyholder account balances by range of guaranteed minimum crediting rates and the related distance to those respective guaranteed minimums.
For the nine months ended September 30, 2023, we were the second largest provider of FIAs based on sales of $7.6 billion, translating to a 10.7% market share. According to LIMRA, total RILA market sales in the US were $47.9 billion for the nine months ended September 30, 2024, a 39.6% increase from the same time period in 2023.
For the nine months ended September 30, 2024, we were the largest provider of FIAs based on sales of $10.9 billion, translating to an 11.5% market share. According to LIMRA, total RILA market sales in the US were $57.4 billion for the nine months ended September 30, 2025, a 19.0% increase from the same time period in 2024.
The decrease in adjustments to net income (loss) available to Athene Holding Ltd. common stockholder in 2024 compared to 2023 was primarily driven by non-operating income tax expense compared to a significant benefit in 2023 and an increase in integration, restructuring and other non-operating expenses, partially offset by an increase i n non-operating change in insurance liabilities and related derivatives and an increase in investment gains (losses), net of offsets.
The decrease in adjustments to net income available to Athene Holding Ltd. common stockholder in 2025 compared to 2024 was primarily driven by a decrease in non-operating change in insurance liabilities and related derivatives and a decrease in investment gains (losses), net of offsets, partially offset b y a decrease in integration, restructuring and other non-operating items.
The following summarizes the consolidated results of operations: Years ended December 31, (In millions) 2024 2023 2022 Revenues $ 20,689 $ 28,194 $ 7,623 Benefits and expenses 15,055 23,603 13,285 Income (loss) before income taxes 5,634 4,591 (5,662) Income tax expense (benefit) 730 (1,161) (646) Net income (loss) 4,904 5,752 (5,016) Less: Net income (loss) attributable to noncontrolling interests 1,443 1,087 (2,106) Net income (loss) attributable to Athene Holding Ltd. stockholders 3,461 4,665 (2,910) Less: Preferred stock dividends 181 181 141 Net income (loss) available to Athene Holding Ltd. common stockholder $ 3,280 $ 4,484 $ (3,051) Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023 In this section, references to 2024 refer to the year ended December 31, 2024 and references to 2023 refer to the year ended December 31, 2023.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Results of Operations The following summarizes the consolidated results of operations: Years ended December 31, (In millions) 2025 2024 2023 Revenues $ 25,677 $ 20,689 $ 28,194 Benefits and expenses 20,570 15,055 23,603 Income before income taxes 5,107 5,634 4,591 Income tax expense (benefit) 886 730 (1,161) Net income 4,221 4,904 5,752 Less: Net income attributable to noncontrolling interests 1,510 1,443 1,087 Net income attributable to Athene Holding Ltd. stockholders 2,711 3,461 4,665 Less: Preferred stock dividends 161 181 181 Add: Preferred stock redemption 84 — — Net income available to Athene Holding Ltd. common stockholder $ 2,634 $ 3,280 $ 4,484 Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 In this section, references to 2025 refer to the year ended December 31, 2025 and references to 2024 refer to the year ended December 31, 2024.

… 303 more changes not shown on this page.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

81 edited+131 added−14 removed111 unchanged
Biggest changeManagement’s Discussion and Analysis of Financial Condition and Results of Operations The reconciliation of net investment income to net investment earnings and earned rate is as follows: Years ended December 31, 2024 2023 2022 (In millions, except percentages) Dollar Rate Dollar Rate Dollar Rate US GAAP net investment income $ 14,481 6.19 % $ 11,130 5.34 % $ 7,571 4.01 % Change in fair value of reinsurance assets (129) (0.05) % 86 0.04 % 333 0.18 % VIE earnings and noncontrolling interests 1,310 0.56 % 1,078 0.52 % 586 0.31 % Forward points adjustment on FX derivative hedges 133 0.06 % 187 0.09 % 125 0.07 % Held-for-trading amortization (108) (0.05) % (191) (0.09) % (228) (0.12) % Reinsurance impacts (223) (0.09) % (264) (0.13) % (41) (0.02) % Apollo investment (gain) loss — — % — — % (33) (0.02) % ACRA noncontrolling interests (3,864) (1.65) % (2,377) (1.14) % (1,505) (0.80) % Other 150 0.06 % (41) (0.02) % 105 0.05 % Total adjustments to arrive at net investment earnings/earned rate (2,731) (1.16) % (1,522) (0.73) % (658) (0.35) % Total net investment earnings/earned rate $ 11,750 5.03 % $ 9,608 4.61 % $ 6,913 3.66 % Average net invested assets $ 233,809 $ 208,479 $ 188,742 The reconciliation of benefits and expenses to cost of funds is as follows: Years ended December 31, 2024 2023 2022 (In millions, except percentages) Dollar Rate Dollar Rate Dollar Rate US GAAP benefits and expenses $ 15,055 6.44 % $ 23,603 11.32 % $ 13,285 7.04 % Premiums (1,318) (0.56) % (12,749) (6.12) % (11,638) (6.17) % Product charges (1,016) (0.44) % (848) (0.41) % (718) (0.38) % Other revenues (19) (0.01) % (150) (0.07) % 28 0.01 % FIA option costs 1,617 0.69 % 1,512 0.73 % 1,264 0.67 % Reinsurance impacts (157) (0.07) % (155) (0.07) % 17 0.01 % Non-operating change in insurance liabilities and embedded derivatives (2,647) (1.13) % (2,930) (1.41) % 2,825 1.50 % Policy and other operating expenses, excluding policy acquisition expenses (1,760) (0.75) % (1,341) (0.64) % (1,110) (0.59) % Forward points adjustment on FX derivative hedges 293 0.12 % 141 0.07 % — — % AmerUs Closed Block fair value liability 25 0.01 % (58) (0.03) % 291 0.15 % ACRA noncontrolling interests (2,624) (1.12) % (1,587) (0.76) % (549) (0.29) % Other 253 0.11 % 212 0.10 % 60 0.03 % Total adjustments to arrive at cost of funds (7,353) (3.15) % (17,953) (8.61) % (9,530) (5.06) % Total cost of funds $ 7,702 3.29 % $ 5,650 2.71 % $ 3,755 1.98 % Average net invested assets $ 233,809 $ 208,479 $ 188,742 The reconciliation of policy and other operating expenses to other operating expenses is as follows: Years ended December 31, (In millions) 2024 2023 2022 US GAAP policy and other operating expenses $ 2,213 $ 1,848 $ 1,495 Interest expense (552) (459) (227) Policy acquisition expenses, net of deferrals (453) (507) (385) Integration, restructuring and other non-operating expenses (239) (130) (133) Stock compensation expenses (50) (88) (56) ACRA noncontrolling interests (406) (143) (231) Other (46) (34) 3 Total adjustments to arrive at other operating expenses (1,746) (1,361) (1,029) Other operating expenses $ 467 $ 487 $ 466 97 Table of Contents Item 7.
Biggest changeManagement’s Discussion and Analysis of Financial Condition and Results of Operations The reconciliation of benefits and expenses to cost of funds is as follows: Years ended December 31, 2025 2024 2023 (In millions, except percentages) Dollar Rate Dollar Rate Dollar Rate US GAAP benefits and expenses $ 20,570 7.54 % $ 15,055 6.44 % $ 23,603 11.32 % Premiums (2,628) (0.96) % (1,318) (0.56) % (12,749) (6.12) % Product charges (1,137) (0.42) % (1,016) (0.44) % (848) (0.41) % Other revenues (25) (0.01) % (19) (0.01) % (150) (0.07) % Indexed annuity option costs 1,835 0.67 % 1,617 0.69 % 1,512 0.73 % Reinsurance impacts (111) (0.04) % (157) (0.07) % (155) (0.07) % Non-operating change in insurance liabilities and embedded derivatives (3,391) (1.24) % (2,647) (1.13) % (2,930) (1.41) % Policy and other operating expenses, excluding policy acquisition expenses (1,832) (0.67) % (1,760) (0.75) % (1,341) (0.64) % Forward points adjustment on FX derivative hedges 278 0.10 % 293 0.12 % 141 0.07 % AmerUs Closed Block fair value liability (42) (0.02) % 25 0.01 % (58) (0.03) % ACRA noncontrolling interests (3,736) (1.37) % (2,624) (1.12) % (1,587) (0.76) % Other 302 0.11 % 253 0.11 % 212 0.10 % Total adjustments to arrive at cost of funds (10,487) (3.85) % (7,353) (3.15) % (17,953) (8.61) % Total cost of funds $ 10,083 3.69 % $ 7,702 3.29 % $ 5,650 2.71 % Average net invested assets $ 272,928 $ 233,809 $ 208,479 The reconciliation of policy and other operating expenses to other operating expenses is as follows: Years ended December 31, (In millions) 2025 2024 2023 US GAAP policy and other operating expenses $ 2,354 $ 2,213 $ 1,848 Interest expense (769) (552) (459) Policy acquisition expenses, net of deferrals (522) (453) (507) Integration, restructuring and other non-operating items (121) (239) (130) Stock compensation expenses (49) (50) (88) ACRA noncontrolling interests (371) (406) (143) Other (70) (46) (34) Total adjustments to arrive at other operating expenses (1,902) (1,746) (1,361) Other operating expenses $ 452 $ 467 $ 487 93 Table of Contents Item 7.
The primary cash outflows from financing activities are withdrawals on our investment-type policies and contracts, changes of cash collateral posted for derivative transactions posted by counterparties, capital distributions, repayments of outstanding borrowings and payment of preferred and common stock dividends.
The primary cash outflows from financing activities are withdrawals on our investment-type policies and contracts, changes of cash collateral for derivative transactions posted by counterparties, capital distributions, repayments of outstanding borrowings and payment of preferred and common stock dividends.
If the discount rates used were to fluctuate, there would be a resulting change in reserves for the market risk benefits recorded through the consolidated statements of income (loss), except for the portion related to the change in nonperformance risk, which is recorded through other comprehensive income (loss).
If the discount rates used were to fluctuate, there would be a resulting change in reserves for the market risk benefits recorded through the consolidated statements of income, except for the portion related to the change in nonperformance risk, which is recorded through other comprehensive income (loss).
In general, the reserve for future policy benefits associated with life-contingent payout annuities will decrease when longevity decreases, resulting in remeasurement gains in the consolidated statements of income (loss). Changes in the discount rate in periods after a cohort has closed will not impact interest expense recognition within the consolidated statements of income (loss).
In general, the reserve for future policy benefits associated with life-contingent payout annuities will decrease when longevity decreases, resulting in remeasurement gains in the consolidated statements of income. Changes in the discount rate in periods after a cohort has closed will not impact interest expense recognition within the consolidated statements of income.
Dividends from Subsidiaries AHL is a holding company whose primary liquidity needs include the cash-flow requirements relating to its corporate activities, including its day-to-day operations, debt servicing, preferred and common stock dividend payments and strategic transactions, such as acquisitions.
Dividends from Insurance Subsidiaries AHL is a holding company whose primary liquidity needs include the cash-flow requirements relating to its corporate activities, including its day-to-day operations, debt servicing, preferred and common stock dividend payments and strategic transactions, such as acquisitions.
All else constant, the increase in the projected account balance will, therefore, result in a decrease to the market risk benefit liability, or an increase if the market risk benefit is in an asset position, with remeasurement gains recorded in the consolidated statements of income (loss).
All else constant, the increase in the projected account balance will, therefore, result in a decrease to the market risk benefit liability, or an increase if the market risk benefit is in an asset position, with remeasurement gains recorded in the consolidated statements of income.
We are primarily exposed to credit risk, interest rate risk, equity price risk and inflation risk. Credit Risk and Counterparty Risk To operate our business model, which is based on generating spread related earnings, we must bear credit risk.
We are primarily exposed to credit risk, interest rate risk and equity price risk. Credit Risk and Counterparty Risk To operate our business model, which is based on generating spread related earnings, we must bear credit risk.
During the commitment period, we may sell and BNP Paribas is required to purchase eligible investment grade corporate bonds pursuant to repurchase transactions at pre-agreed discounts in exchange for a commitment fee. As of December 31, 2024, we had no outstanding payables under this facility. We have a $1.0 billion committed repurchase facility with Societe Generale.
During the commitment period, we may sell and BNP Paribas is required to purchase eligible investment grade corporate bonds pursuant to repurchase transactions at pre-agreed discounts in exchange for a commitment fee. As of December 31, 2025, we had no outstanding payables under this facility. We have a $1.0 billion committed repurchase facility with Societe Generale.
We require that, at all times during the term of the repurchase agreements, we maintain sufficient cash or other liquid assets to allow us to fund all of the repurchase price.
We require that, at all times during the term of the repurchase agreements, we maintain sufficient cash or other liquid assets to allow us to fund substantially all of the repurchase price.
Other equity securities, typically private equities or equity securities not traded on an exchange, are valued based on other sources, such as commercial pricing services or brokers. 106 Table of Contents Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations For mortgage loans, we use independent commercial pricing services.
Other equity securities, typically private equities or equity securities not traded on an exchange, are valued based on other sources, such as commercial pricing services or brokers. 102 Table of Contents Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations For mortgage loans, we use independent commercial pricing services.
The Credit Facility has a borrowing capacity of $1.25 billion, subject to being increased up to $1.75 billion in total on the terms described in the Credit Facility. The Credit Facility has a commitment termination date of June 30, 2028, subject to up to two one-year extensions, and was undrawn as of December 31, 2024.
The Credit Facility has a borrowing capacity of $1.25 billion, subject to being increased up to $1.75 billion in total on the terms described in the Credit Facility. The Credit Facility has a commitment termination date of June 30, 2028, subject to up to two one-year extensions, and was undrawn as of December 31, 2025.
The risk management team is led by our Chief Risk Officer, who reports to the chair of the AHL Risk Committee. Our risk management team is comprised of more than 50 dedicated, full-time employees. Asset and Liability Management Asset and liability risk management is a joint effort that spans business management and the entire risk management team.
The risk management team is led by our Chief Risk Officer, who reports to the chair of the AHL Risk Committee. Our risk management team is comprised of more than 60 dedicated, full-time employees. Asset and Liability Management Asset and liability risk management is a joint effort that spans business management and the entire risk management team.
The assessment of whether an entity is a VIE and the determination of whether we should consolidate such VIE requires judgment.
The assessment of whether an entity is a VIE and the determination of whether we should consolidate the VIE requires judgment.
If we are not the primary beneficiary, the general partner or another limited partner may consolidate the investment fund, and we record the investment as an equity method investment. See Note 5 – Variable Interest Entities to the consolidated financial statements.
If we are not the primary beneficiary, the general partner or another limited partner may consolidate the investment fund, and we record the investment as an equity method investment. See Note 4 – Variable Interest Entities to the consolidated financial statements.
We further seek to mitigate liquidity risk by maintaining access to alternative, external sources of liquidity as described below. Our liquidity risk management framework is codified in the company’s Liquidity Risk Policy that is reviewed and approved by our board of directors.
We further seek to mitigate liquidity risk by maintaining access to alternative, external sources of liquidity as described below. Our liquidity risk management framework is codified in our Liquidity Risk Policy that is reviewed and approved by our board of directors.
The note has a borrowing capacity of $500 million and maturity date of December 13, 2025, or earlier at AGM’s request. There was no outstanding balance on the note payable as of December 31, 2024.
The note has a borrowing capacity of $500 million and maturity date of December 13, 2028, or earlier at AGM’s request. There was no outstanding balance on the note payable as of December 31, 2025.
Impact of Recent Accounting Pronouncements For a discussion of new accounting pronouncements affecting us, see Note 1 – Business, Basis of Presentation and Significant Accounting Policies to the consolidated financial statements. 109 Table of Contents Item 7A.
Impact of Recent Accounting Pronouncements For a discussion of new accounting pronouncements affecting us, see Note 1 – Business, Basis of Presentation and Significant Accounting Policies to the consolidated financial statements. 105 Table of Contents Item 7A.
Debt – The following summarizes our outstanding long-term senior and subordinated notes as of December 31, 2024 (in millions, except percentages): Issuance Issue Date Maturity Date Interest Rate Principal Balance 2028 Senior Notes January 12, 2018 January 12, 2028 4.125% $1,000 2030 Senior Notes April 3, 2020 April 3, 2030 6.150% $500 2031 Senior Notes October 8, 2020 January 15, 2031 3.500% $500 2051 Senior Notes May 25, 2021 May 25, 2051 3.950% $500 2052 Senior Notes December 13, 2021 May 15, 2052 3.450% $500 2033 Senior Notes November 21, 2022 February 1, 2033 6.650% $400 2034 Senior Notes December 12, 2023 January 15, 2034 5.875% $600 2064 Subordinated Notes March 7, 2024 March 30, 2064 7.250% 1 $575 2054 Senior Notes March 22, 2024 April 1, 2054 6.250% $1,000 2054 Subordinated Notes October 10, 2024 October 15, 2054 6.625% 2 $600 1 The 2064 Subordinated Notes bear interest at an annual fixed rate of 7.250% until March 30, 2029.
Debt – The following summarizes our outstanding long-term senior and subordinated notes as of December 31, 2025 (in millions, except percentages): Issuance Issue Date Maturity Date Interest Rate Principal Balance 2028 Senior Notes January 12, 2018 January 12, 2028 4.125% $1,000 2030 Senior Notes April 3, 2020 April 3, 2030 6.150% $500 2031 Senior Notes October 8, 2020 January 15, 2031 3.500% $500 2051 Senior Notes May 25, 2021 May 25, 2051 3.950% $500 2052 Senior Notes December 13, 2021 May 15, 2052 3.450% $500 2033 Senior Notes November 21, 2022 February 1, 2033 6.650% $400 2034 Senior Notes December 12, 2023 January 15, 2034 5.875% $600 2064 Subordinated Notes March 7, 2024 March 30, 2064 7.250% 1 $575 2054 Senior Notes March 22, 2024 April 1, 2054 6.250% $1,000 2054 Subordinated Notes October 10, 2024 October 15, 2054 6.625% 2 $600 2055 Senior Notes May 19, 2025 May 19, 2055 6.625% $1,000 2055 Subordinated Notes June 27, 2025 June 28, 2055 6.875% 3 $600 1 The 2064 Subordinated Notes bear interest at an annual fixed rate of 7.250% until March 30, 2029.
Concentration and portfolio limits are designed to ensure that exposure to default and impairment risk is sufficiently modest to not represent a solvency risk, even in severe economic conditions. 110 Table of Contents
Concentration and portfolio limits are designed to ensure that exposure to default and impairment risk is sufficiently modest to not represent a solvency risk, even in severe economic conditions. 106 Table of Contents
Future Policy Benefits The future policy benefit liabilities associated with long duration contracts include term and whole-life products, accident and health, disability, and deferred and immediate annuities with life contingencies, which include pension group annuities with life contingencies.
Future Policy Benefits The future policy benefit liabilities associated with long duration contracts include term and whole-life products, accident and health, disability, and deferred and immediate annuities with life contingencies, which include pension group annuities and structured settlements with life contingencies.
In general, liquid assets include cash and cash equivalents, highly rated bonds, short-term investments, unaffiliated preferred stock and public common stock, all of which generally have liquid markets with a large number of buyers, but exclude pledged assets, mainly associated with funding agreement and repurchase agreement liabilities.
In general, liquid assets include cash and cash equivalents, highly rated bonds, short-term investments, unaffiliated preferred stock and publicly traded common stock, all of which generally have liquid markets with a large number of buyers, but exclude pledged assets, mainly associated with funding agreement and repurchase agreement liabilities.
The borrowings must be secured by eligible collateral such as mortgage loans, eligible CMBS or RMBS, government or agency securities and guaranteed loans. As of December 31, 2024 and 2023, we had no outstanding borrowings under these arrangements. We have issued funding agreements to the FHLB.
The borrowings must be secured by eligible collateral such as mortgage loans, eligible CMBS or RMBS, government or agency securities and guaranteed loans. As of each of December 31, 2025 and 2024, we had no outstanding borrowings under these arrangements. We have issued funding agreements to the FHLB.
Although our investment portfolio does contain assets that are generally considered less liquid for liquidity monitoring purposes (primarily mortgage loans, policy loans, real estate, investment funds and affiliated common stock), there is some ability to raise cash from these assets if needed.
Although our investment portfolio does contain assets that are generally considered less liquid for liquidity monitoring purposes (primarily mortgage loans, policy loans, real estate and investment funds), there is some ability to raise cash from these assets if needed.
For immediate annuities with life contingencies, the liability for future policy benefits is equal to the present value of future benefits and related expenses. 107 Table of Contents Item 7.
For immediate annuities with life contingencies, the liability for future policy benefits is equal to the present value of future benefits and related expenses. 103 Table of Contents Item 7.
During the commitment period, we may sell and Societe Generale is required to purchase eligible investment grade corporate bonds pursuant to repurchase transactions at pre-agreed rates in exchange for an ongoing commitment fee for the facility. As of December 31, 2024, we had no outstanding payables under this facility. 100 Table of Contents Item 7.
During the commitment period, we may sell and Societe Generale is required to purchase eligible investment grade corporate bonds pursuant to repurchase transactions at pre-agreed rates in exchange for an ongoing commitment fee for the facility. As of December 31, 2025, we had no outstanding payables under this facility. 96 Table of Contents Item 7.
An expected increase in decrements and decrease in rider utilization, all else constant, will result in a decrease to the market risk benefit liability or an increase in the market risk benefit asset with remeasurement gains recorded in the consolidated statements of income (loss). 108 Table of Contents Item 7.
An expected increase in decrements and decrease in rider utilization, all else constant, will result in a decrease to the market risk benefit liability or an increase in the market risk benefit asset with remeasurement gains recorded in the consolidated statements of income. 104 Table of Contents Item 7.
Our Liquidity Facility also contains various standard covenants with which we must comply, including maintaining an ALRe minimum consolidated net worth of no less than $10.2 billion and restrictions on our ability to incur liens, with certain exceptions. Rates and terms are as defined in the Liquidity Facility.
Our Liquidity Facility also contains various standard covenants with which we must comply, including maintaining an AARe minimum consolidated net worth of no less than $23.2 billion and restrictions on our ability to incur liens, with certain exceptions. Rates and terms are as defined in the Liquidity Facility.
Specifically, the level of capital needed to maintain desired financial strength ratings from rating agencies, including S&P, AM Best, Fitch and Moody’s, is of particular concern when determining the amount of capital available for distributions.
Specifically, the level of capital needed to maintain desired financial strength ratings from rating agencies, including S&P, A.M. Best, Fitch and Moody’s, is of particular concern when determining the amount of capital available for distributions.
Intercompany Note – AHL has an unsecured revolving note payable with ALRe, which permits AHL to borrow up to $4.0 billion with a fixed interest rate of 2.29% and a maturity date of December 15, 2028. As of December 31, 2024 and 2023, the revolving note payable had an outstanding balance of $1.6 billion and $486 million, respectively.
Intercompany Note – AHL has an unsecured revolving note payable with ALRe, which permits AHL to borrow up to $4.0 billion with a fixed interest rate of 2.29% and a maturity date of December 15, 2028. As of December 31, 2025 and 2024, the revolving note payable had an outstanding balance of $2.2 billion and $1.6 billion, respectively.
In addition, as of December 31, 2024 and 2023, approximately 66% and 64%, respectively, of policies contained MVAs that may also have the effect of limiting early withdrawals if interest rates increase but may encourage early withdrawals by effectively subsidizing a portion of surrender charges when interest rates decrease.
In addition, as of December 31, 2025 and 2024, approximately 69% and 66%, respectively, of policies contained MVAs that may also have the effect of limiting early withdrawals if interest rates increase but may encourage early withdrawals by effectively subsidizing a portion of surrender charges when interest rates decrease.
We entered into a new Liquidity Facility on June 28, 2024, which replaced our previous agreement dated as of June 30, 2023. The Liquidity Facility has a borrowing capacity of $2.6 billion, subject to being increased up to $3.1 billion in total on the terms described in the Liquidity Facility.
We entered into a new Liquidity Facility on June 27, 2025, which replaced our previous agreement dated as of June 28, 2024. The Liquidity Facility has a borrowing capacity of $2.6 billion, subject to being increased up to $3.1 billion in total on the terms described in the Liquidity Facility.
As discussed in Note 14 – Statutory Requirements to the consolidated financial statements, a permitted practice of the state of Vermont allows the captive to include issued and outstanding letters of credit in the amount of $86 million and $96 million as of December 31, 2024 and 2023, respectively, as admitted assets in its statutory financial statements.
As discussed in Note 14 – Statutory Requirements to the consolidated financial statements, a permitted practice of the state of Vermont allows the captive to include issued and outstanding letters of credit in the amount of $76 million and $86 million as of December 31, 2025 and 2024, respectively, as admitted assets in its statutory financial statements.
The increase (decrease) to the embedded derivatives on indexed annuity products from hypothetical changes in discount rates is summarized as follows: (In millions) December 31, 2024 +100 bps discount rate $ (569) –100 bps discount rate 626 However, these estimated effects do not take into account potential changes in other variables, such as equity price levels and market volatility, which can also contribute significantly to changes in carrying values.
The increase (decrease) to the embedded derivatives on indexed annuity products from hypothetical changes in discount rates is summarized as follows: (In millions) December 31, 2025 +100 bps discount rate $ (714) –100 bps discount rate 783 However, these estimated effects do not take into account potential changes in other variables, such as equity price levels and market volatility, which can also contribute significantly to changes in carrying values.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Preferred Stock – The following summarizes our perpetual non-cumulative preferred stock issuances as of December 31, 2024 (in millions, except share, per share data and percentages): Issuance Fixed/Floating Rate Issue Date Optional Redemption Date 1 Shares Issued Par Value Per Share Liquidation Value Per Share Aggregate Net Proceeds Series A Fixed-to-Floating Rate 6.350% June 10, 2019 June 30, 2029 34,500 $1.00 $25,000 $839 Series B Fixed-Rate 5.625% September 19, 2019 September 30, 2024 13,800 $1.00 $25,000 $333 Series C Fixed-Rate Reset 6.375% June 11, 2020 Variable 2 24,000 $1.00 $25,000 $583 Series D Fixed-Rate 4.875% December 18, 2020 December 30, 2025 23,000 $1.00 $25,000 $557 Series E Fixed-Rate Reset 7.750% December 12, 2022 Variable 3 20,000 $1.00 $25,000 $487 1 We may redeem preferred stock anytime on or after the dates set forth in this column, subject to the terms of the applicable certificate of designations. 2 We may redeem during a period from and including June 30 of each year in which there is a Reset Date to and including such Reset Date.
Preferred Stock – The following summarizes our perpetual non-cumulative preferred stock issuances as of December 31, 2025 (in millions, except share, per share data and percentages): Issuance Fixed/Floating Rate Issue Date Optional Redemption Date 1 Shares Issued Par Value Per Share Liquidation Value Per Share Aggregate Net Proceeds Series A Fixed-to-Floating Rate 6.350% June 10, 2019 June 30, 2029 34,500 $1.00 $25,000 $839 Series B Fixed-Rate 5.625% September 19, 2019 September 30, 2024 13,800 $1.00 $25,000 $333 Series D Fixed-Rate 4.875% December 18, 2020 December 30, 2025 23,000 $1.00 $25,000 $557 Series E Fixed-Rate Reset 7.750% December 12, 2022 Variable 2 20,000 $1.00 $25,000 $487 1 We may redeem preferred stock anytime on or after the dates set forth in this column, subject to the terms of the applicable certificate of designations. 2 We may redeem during a period from and including December 30 of each year in which there is a Reset Date to and including such Reset Date.
The Liquidity Facility has a commitment termination date of June 27, 2025 subject to additional 364-day extensions, and was undrawn as of December 31, 2024. We also have access to $2.0 billion of committed repurchase facilities.
The Liquidity Facility has a commitment termination date of June 26, 2026, subject to additional 364-day extensions, and was undrawn as of December 31, 2025. We also have access to $2.0 billion of committed repurchase facilities.
The increase (decrease) to the net market risk benefit balance from hypothetical changes in the discount rate is summarized as follows: (In millions) December 31, 2024 +100 bps discount rate $ (867) –100 bps discount rate 748 Consolidation We consolidate all entities in which we hold a controlling financial interest as of the financial statement date whether through a majority voting interest or otherwise, including those investment funds that meet the definition of a VIE in which we are determined to be the primary beneficiary.
The increase (decrease) to the net market risk benefit balance from hypothetical changes in the discount rate is summarized as follows: (In millions) December 31, 2025 +100 bps discount rate $ (859) –100 bps discount rate 1,063 Consolidation We consolidate all entities in which we hold a controlling financial interest as of the financial statement date whether through a majority voting interest or otherwise, including those investment funds that meet the definition of a VIE in which we are determined to be the primary beneficiary.
We manage credit risk by avoiding idiosyncratic risk concentrations, understanding and managing our systematic exposure to economic and market conditions through stress testing, monitoring investment activity daily and distinguishing between price and default risk from credit exposures.
We manage credit risk by evaluating and calibrating idiosyncratic risk concentrations, understanding and managing our systematic exposure to economic and market conditions through stress testing, monitoring investment activity and distinguishing between price and default risk from credit exposures.
The maximum FHLB indebtedness by a member is determined by the amount of collateral pledged and cannot exceed a specified percentage of the member’s total statutory assets dependent on the internal credit rating assigned to the member by the FHLB. As of December 31, 2024, our total maximum borrowing capacity under the FHLB facilities was limited to $49.5 billion.
The maximum FHLB indebtedness by a member is determined by the amount of collateral pledged and cannot exceed a specified percentage of the member’s total statutory assets dependent on the internal credit rating assigned to the member by the FHLB. As of December 31, 2025, our total maximum borrowing capacity under the FHLB facilities was limited to $66.4 billion.
Our Bermuda insurance companies adhere to BMA regulatory capital requirements to maintain statutory capital and surplus to meet the MMS and maintain minimum EBS capital and surplus to meet the ECR.
Our Bermuda insurance companies adhere to BMA regulatory capital requirements to maintain statutory capital and surplus to meet the MMS and maintain minimum Economic Balance Sheet (EBS) capital and surplus to meet the ECR.
The increase (decrease) to future policy benefit reserves from hypothetical changes in discount rates is summarized as follows: (In millions) December 31, 2024 +100 bps discount rate $ (3,393) –100 bps discount rate 4,048 Market Risk Benefits Market risk benefits represent contracts or contract features that both provide protection to the contract holder from, and expose the insurance entity to, other-than-nominal capital market risk.
The increase (decrease) to future policy benefit reserves from hypothetical changes in discount rates is summarized as follows: (In millions) December 31, 2025 +100 bps discount rate $ (3,023) –100 bps discount rate 3,486 Market Risk Benefits Market risk benefits represent contracts or contract features that both provide protection to the contract holder from, and expose the insurance entity to, other-than-nominal capital market risk.
These funding agreements were issued in an investment spread strategy, consistent with other investment spread operations. As of December 31, 2024 and 2023, we had funding agreements outstanding with the FHLB in the aggregate principal amount of $15.6 billion and $6.5 billion, respectively.
These funding agreements were issued in an investment spread strategy, consistent with other investment spread operations. As of December 31, 2025 and 2024, we had funding agreements outstanding with the FHLB in the aggregate principal amount of $23.3 billion and $15.6 billion, respectively.
The carrying value of these assets, excluding assets within modified coinsurance and funds withheld portfolios, as of December 31, 2024 was $119.0 billion. Assets included in modified coinsurance and funds withheld portfolios, including assets held in reinsurance trusts, are available to fund the benefits for the associated obligations but are restricted from other uses.
The carrying value of these assets, excluding assets within modified coinsurance and funds withheld portfolios, as of December 31, 2025 was $126.6 billion. Assets included in modified coinsurance and funds withheld portfolios, including assets held in reinsurance trusts, are available to fund the benefits for the associated obligations but are restricted from other uses.
However, our ability to borrow under the facilities is constrained by the availability of assets that qualify as eligible collateral under the facilities and certain other limitations. Considering these limitations, as of December 31, 2024, we had the ability to draw up to an estimated $18.9 billion, inclusive of borrowings then outstanding.
However, our ability to borrow under the facilities is constrained by the availability of assets that qualify as eligible collateral under the facilities and certain other limitations. Considering these limitations, as of December 31, 2025, we had the ability to draw up to an estimated $30.7 billion, inclusive of borrowings then outstanding.
For a discussion of our investment funds for which we have elected the fair value option, see Note 6 – Fair Value to the consolidated financial statements. 105 Table of Contents Item 7.
For a discussion of our investment funds for which we have elected the fair value option, see Note 5 – Fair Value to the consolidated financial statements. 101 Table of Contents Item 7.
The maximum distribution permitted by law or contract is not necessarily indicative of our actual ability to pay such distributions, which may be further restricted by business and other considerations, such as the impact of such distributions on surplus, which could affect our ratings or competitive position and the amount of premiums that can be written.
Management’s Discussion and Analysis of Financial Condition and Results of Operations The maximum distribution permitted by law or contract is not necessarily indicative of our actual ability to pay such distributions, which may be further restricted by business and other considerations, such as the impact of such distributions on surplus, which could affect our ratings or competitive position and the amount of premiums that can be written.
If the discount rates used to discount the indexed strategy cash flows were to fluctuate, there would be a resulting change in reserves for indexed annuities recorded through the consolidated statements of income (loss). As of December 31, 2024, we had embedded derivative liabilities classified as Level 3 in the fair value hierarchy of $11.2 billion.
If the discount rates used to discount the indexed strategy cash flows were to fluctuate, there would be a resulting change in reserves for indexed annuities recorded through the consolidated statements of income. As of December 31, 2025, we had embedded derivative liabilities classified as Level 3 in the fair value hierarchy of $14.7 billion.
As of December 31, 2024, approximately 33% of our net reserve liabilities were generally non-surrenderable, including buy-out pension group annuities other than those that can be withdrawn as lump sums, funding agreements and payout annuities, while 54% were subject to penalty upon surrender. 99 Table of Contents Item 7.
As of December 31, 2025, approximately 36% of our net reserve liabilities were generally non-surrenderable, including buy-out pension group annuities other than those that can be withdrawn as lump sums, funding agreements and payout annuities, while 53% were subject to penalty upon surrender. 95 Table of Contents Item 7.
As of December 31, 2024, payables for repurchase agreements, based on original issuance, were comprised of $3.0 billion of short-term and $2.7 billion of long-term repurchase agreements. As of December 31, 2023, payables for repurchase agreements, based on original issuance, were comprised of $686 million of short-term and $3.2 billion of long-term repurchase agreements.
As of December 31, 2025, payables for repurchase agreements, based on original issuance, were comprised of $2.8 billion of short-term and $3.2 billion of long-term repurchase agreements. As of December 31, 2024, payables for repurchase agreements, based on original issuance, were comprised of $3.0 billion of short-term and $2.7 billion of long-term repurchase agreements.
As of December 31, 2024 and 2023, approximately 82% and 79%, respectively, of our deferred annuity liabilities were subject to penalty upon surrender.
As of December 31, 2025 and 2024, approximately 85% and 82%, respectively, of our deferred annuity liabilities were subject to penalty upon surrender.
The carrying value of the underlying assets in these modified coinsurance and funds withheld portfolios that we consider liquid as of December 31, 2024 was $11.8 billion.
The carrying value of the underlying assets in these modified coinsurance and funds withheld portfolios that we consider liquid as of December 31, 2025 was $10.1 billion.
Our financing activities provided cash flows totaling $59.4 billion, $44.8 billion and $26.5 billion for the years ended December 31, 2024, 2023 and 2022, respectively.
Our financing activities provided cash flows totaling $61.3 billion, $59.4 billion and $44.8 billion for the years ended December 31, 2025, 2024 and 2023, respectively.
As of December 31, 2024 and 2023, the payables for repurchase agreements were $5.7 billion and $3.9 billion, respectively, while the fair value of securities and collateral held by counterparties backing the repurchase agreements was $5.9 billion and $4.1 billion, respectively.
As of December 31, 2025 and 2024, the payables for repurchase agreements were $6.0 billion and $5.7 billion, respectively, while the fair value of securities and collateral held by counterparties backing the repurchase agreements was $6.2 billion and $5.9 billion, respectively.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Cash Flows Our cash flows were as follows: Years ended December 31, (In millions) 2024 2023 2022 Net income (loss) $ 4,904 $ 5,752 $ (5,016) Non-cash revenues and expenses (3,028) (769) 11,274 Net cash provided by operating activities 1,876 4,983 6,258 Sales, maturities and repayments of investments 59,369 27,801 28,163 Purchases of investments (120,220) (71,779) (62,386) Other investing activities (1,067) 328 (152) Net cash used in investing activities (61,918) (43,650) (34,375) Inflows on investment-type policies and contracts 71,323 53,660 33,920 Withdrawals on investment-type policies and contracts (19,119) (14,125) (10,209) Other financing activities 7,221 5,232 2,761 Net cash provided by financing activities 59,425 44,767 26,472 Effect of exchange rate changes on cash and cash equivalents (3) 10 (15) Net (decrease) increase in cash and cash equivalents 1 $ (620) $ 6,110 $ (1,660) 1 Includes cash and cash equivalents, restricted cash and cash and cash equivalents of consolidated variable interest entities.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Cash Flows Our cash flows were as follows: Years ended December 31, (In millions) 2025 2024 2023 Net income $ 4,221 $ 4,904 $ 5,752 Non-cash revenues and expenses 939 (3,028) (769) Net cash provided by operating activities 5,160 1,876 4,983 Sales, maturities and repayments of investments 92,636 59,369 27,801 Purchases of investments (154,833) (120,220) (71,779) Other investing activities (1,608) (1,067) 328 Net cash used in investing activities (63,805) (61,918) (43,650) Inflows on investment-type policies and contracts 81,183 71,323 53,660 Withdrawals on investment-type policies and contracts (22,657) (19,119) (14,125) Other financing activities 2,750 7,221 5,232 Net cash provided by financing activities 61,276 59,425 44,767 Effect of exchange rate changes on cash and cash equivalents 5 (3) 10 Net increase (decrease) in cash and cash equivalents $ 2,636 $ (620) $ 6,110 Note: Cash and cash equivalents includes cash and cash equivalents, restricted cash and cash and cash equivalents of consolidated variable interest entities.
In addition to the cash dividends paid, we provided an assets in kind dividend valued at an aggregate amount of $499 million to AGM during the third quarter of 2024.
We declared and paid common stock cash dividends of $452 million during the year ended December 31, 2024. In addition to the cash dividends paid, we provided an assets in kind dividend valued at an aggregate amount of $499 million to AGM during the third quarter of 2024.
The formulas for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of TAC to its ACL.
Each US domestic insurance subsidiary’s state of domicile imposes minimum RBC requirements that were developed by the NAIC. The formulas for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of TAC to its ACL.
The increase in cash used in investing activities for the year ended December 31, 2024 compared to 2023 was primarily driven by an increase in the purchases of investments due to the deployment of greater cash inflows from strong organic growth compared to 2023 and a decrease in net investment payables, partially offset by an increase in sales, maturities and repayments of investments.
The increase in cash used in investing activities for the year ended December 31, 2025 compared to 2024 was primarily driven by an increase in the purchases of investments due to the deployment of greater cash inflows from strong growth compared to 2024, an increase in cash collateral posted by us for derivative transactions and an increase in cash paid for the settlement of derivatives, partially offset by an increase in the sales, maturities and repayments of investments and a favorable change in investment payables net of receivables.
The consolidated RBC ratio is calculated by aggregating US RBC and Bermuda RBC. ACRA 1 – ACRA 1 provided us with access to on-demand capital to support our growth strategies and capital deployment opportunities. ACRA 1 provided a capital source to fund both our inorganic and organic channels. The commitment period for ACRA 1 expired in August 2023.
The Consolidated RBC ratio is calculated by aggregating US RBC and Bermuda RBC, with immaterial adjustments for net assets at the holding company. ACRA 1 – ACRA 1 provided us with access to on-demand capital to support our growth strategies and capital deployment opportunities. ACRA 1 provided a capital source to fund both our inorganic and organic channels.
On October 15, 2034, and every fifth annual anniversary thereafter, the interest rate resets to the five-year US Treasury rate (as defined in the applicable prospectus supplement) plus 2.607%. See Note 11 – Debt to the consolidated financial statements for further information on debt. 103 Table of Contents Item 7.
On June 28, 2035, and every fifth annual anniversary thereafter, the interest rate resets to the five-year US Treasury rate (as defined in the applicable prospectus supplement) plus 2.582%. See Note 11 – Debt to the consolidated financial statements for further information on debt.
Reset Date means December 30, 2027 and each date falling on the fifth anniversary of the preceding Reset Date. See Note 12 – Equity to the consolidated financial statements for further information on preferred stock. Unsecured Revolving Promissory Note Payable with AGM – AHL has an unsecured revolving promissory note with AGM which allows AHL to borrow funds from AGM.
See Note 12 – Equity to the consolidated financial statements for further information on preferred stock. Unsecured Revolving Promissory Note Payable with AGM – AHL has an unsecured revolving promissory note with AGM which allows AHL to borrow funds from AGM.
Distributions in excess of this amount require the approval of the BMA.
Distributions in excess of this amount require the approval of the BMA. 98 Table of Contents Item 7.
We declared common stock cash dividends of $78 million on November 18, 2024, payable to the holder of AHL’s Class A common stock with a record date of December 11, 2024 and payment date of December 13, 2024. We paid $452 million in common stock cash dividends during the year ended December 31, 2024.
We declared common stock cash dividends of $189 million on October 22, 2025, payable to the holder of AHL’s common stock with a record date of December 12, 2025 and payment date of December 15, 2025. We paid $752 million in common stock cash dividends during the year ended December 31, 2025.
The primary source of AHL’s cash flow is dividends from its subsidiaries, which are expected to be adequate to fund cash flow requirements based on current estimates of future obligations. 102 Table of Contents Item 7.
The primary sources of AHL’s cash flows are dividends from its subsidiaries, capital market issuances and intercompany borrowings, which are expected to be adequate to fund cash flow requirements based on current estimates of future obligations.
Management’s Discussion and Analysis of Financial Condition and Results of Operations The reconciliation of total investments, including related parties, to net invested assets is as follows: December 31, (In millions) 2024 2023 Total investments, including related parties $ 291,491 $ 238,941 Derivative assets (8,154) (5,298) Cash and cash equivalents (including restricted cash) 13,676 14,781 Accrued investment income 2,816 1,933 Net receivable (payable) for collateral on derivatives (4,602) (2,835) Reinsurance impacts (4,435) (572) VIE and VOE assets, liabilities and noncontrolling interests 17,289 14,818 Unrealized (gains) losses 18,320 16,445 Ceded policy loans (167) (174) Net investment receivables (payables) 97 11 Allowance for credit losses 720 608 Other investments (87) (41) Total adjustments to arrive at gross invested assets 35,473 39,676 Gross invested assets 326,964 278,617 ACRA noncontrolling interests (78,321) (61,190) Net invested assets $ 248,643 $ 217,427 The reconciliation of total investment funds, including related parties and consolidated VIEs, to net alternative investments within net invested assets is as follows: December 31, (In millions) 2024 2023 Investment funds, including related parties and consolidated VIEs $ 19,725 $ 17,668 Equity securities — 430 Certain equity securities included in AFS or trading securities 34 201 Investment funds within funds withheld at interest 900 827 Royalties 7 14 Net assets of the VIE, excluding investment funds (4,850) (4,508) Unrealized (gains) losses 92 26 ACRA noncontrolling interests (3,731) (2,829) Other assets (177) (170) Total adjustments to arrive at net alternative investments (7,725) (6,009) Net alternative investments $ 12,000 $ 11,659 The reconciliation of total liabilities to net reserve liabilities is as follows: December 31, (In millions) 2024 2023 Total liabilities $ 337,469 $ 279,344 Debt (6,309) (4,209) Derivative liabilities (3,556) (1,995) Payables for collateral on derivatives and short-term securities to repurchase (8,988) (4,370) Other liabilities (6,546) (2,590) Liabilities of consolidated VIEs (1,640) (1,115) Reinsurance impacts (11,861) (8,574) Ceded policy loans (167) (174) Market risk benefit asset (312) (377) ACRA noncontrolling interests (72,164) (56,651) Total adjustments to arrive at net reserve liabilities (111,543) (80,055) Net reserve liabilities $ 225,926 $ 199,289 98 Table of Contents Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations The reconciliation of total investments, including related parties, to net invested assets is as follows: December 31, (In millions) 2025 2024 Total investments, including related parties $ 356,457 $ 291,491 Derivative assets (9,190) (8,154) Cash and cash equivalents (including restricted cash) 16,326 13,676 Accrued investment income 3,395 2,816 Net receivable (payable) for collateral on derivatives (3,458) (4,602) Reinsurance impacts (6,350) (4,435) VIE and VOE assets, liabilities and noncontrolling interests 19,023 17,289 Unrealized (gains) losses 10,002 18,320 Ceded policy loans (160) (167) Net investment receivables (payables) 217 97 Allowance for credit losses 763 720 Other investments (52) (87) Total adjustments to arrive at gross invested assets 30,516 35,473 Gross invested assets 386,973 326,964 ACRA noncontrolling interests (94,559) (78,321) Net invested assets $ 292,414 $ 248,643 The reconciliation of total investment funds, including related parties and consolidated VIEs, to net alternative investments within net invested assets is as follows: December 31, (In millions) 2025 2024 Investment funds, including related parties and consolidated VIEs $ 26,327 $ 19,725 Certain equity securities included in trading securities 4 34 Investment funds within funds withheld at interest 859 900 Net assets of the VIE, excluding investment funds (9,098) (4,850) Unrealized (gains) losses (49) 92 Investment in ADIP (231) — Other assets (173) (170) Total adjustments to arrive at gross alternative investments (8,688) (3,994) Gross alternative investments 17,639 15,731 ACRA noncontrolling interests (3,771) (3,731) Net alternative investments $ 13,868 $ 12,000 The reconciliation of total liabilities to net reserve liabilities is as follows: December 31, (In millions) 2025 2024 Total liabilities $ 406,567 $ 337,469 Debt (7,848) (6,309) Derivative liabilities (5,742) (3,556) Payables for collateral on derivatives and short-term securities to repurchase (7,838) (8,988) Other liabilities (8,888) (6,546) Liabilities of consolidated VIEs (1,712) (1,640) Reinsurance impacts (13,209) (11,861) Ceded policy loans (160) (167) Market risk benefit asset (212) (312) Total adjustments to arrive at gross reserve liabilities (45,609) (39,379) Gross reserve liabilities 360,958 298,090 ACRA noncontrolling interests (89,725) (72,164) Net reserve liabilities $ 271,233 $ 225,926 94 Table of Contents Item 7.
The decrease in cash provided by operating activities for the year ended December 31, 2024 compared to 2023 was primarily driven by lower cash received from pension group annuity transactions, net of cash outflows, and an increase in cash paid for taxes, interest on funding agreements and other operating expenses.
The increase in cash provided by operating activities for the year ended December 31, 2025 compared to 2024 was primarily driven by an increase in net investment income, premium received from a whole life block reinsurance transaction executed in 2025 and less cash paid for taxes, partially offset by an increase in cash paid for interest on funding agreements and debt, policy acquisition expenses and other operating expenses as well as less cash received from pension group annuity transactions.
Risk Management The risk management team consists of eight teams: Business and Operational Risk, ALM, Regulatory and Risk Analytics, Risk Policy and Derivatives Risk, Derivatives and Structured Solutions, Asset Risk Management, Strategic and Emerging Risk and Risk Operations and Change Management.
Risk Management The risk management team consists of seven teams: Strategic, Liability and Model Risk; Market, Credit and ALM Risk; Liquidity, Business and Operational Risk; Risk Platform and Analytics; Derivatives and Structured Solutions; Derivatives Risk Management; and Risk Operations and Change Management.
Management’s Discussion and Analysis of Financial Condition and Results of Operations The ability of AHL’s insurance subsidiaries to pay dividends is limited by applicable laws and regulations of the jurisdictions where the subsidiaries are domiciled, as well as agreements entered into with regulators.
The ability of AHL’s insurance subsidiaries to pay dividends is limited by applicable laws and regulations of the jurisdictions where the subsidiaries are domiciled, as well as agreements entered into with regulators. These laws and regulations require, among other things, the insurance subsidiaries to maintain minimum solvency requirements and limit the amount of dividends these subsidiaries can pay.
As of December 31, 2024 and 2023, our US insurance companies’ TAC, as defined by the NAIC, was $7.7 billion and $5.8 billion, respectively, and our US RBC ratio was 419% and 392%, respectively. Each US domestic insurance subsidiary’s state of domicile imposes minimum RBC requirements that were developed by the NAIC.
As of December 31, 2025, our estimated US insurance companies’ TAC, as defined by the NAIC, and RBC ratio were $9.5 billion and 436%, respectively. As of December 31, 2024, our US insurance companies’ TAC and RBC ratio were $7.7 billion and 419%, respectively.
The Bermuda RBC ratio is calculated using Bermuda capital and applying NAIC RBC factors on an aggregate basis, excluding US subsidiaries which are included within our US RBC ratio.
As of December 31, 2024, our Bermuda statutory capital and surplus and RBC ratio for our Bermuda insurance companies in aggregate were $17.0 billion and 450%, respectively. The Bermuda RBC ratio is calculated using Bermuda Capital (as defined below) and applying NAIC RBC factors on an aggregate basis, excluding US subsidiaries which are included within our US RBC ratio.
As of December 31, 2024 and 2023, our consolidated statutory capital and surplus in the aggregate was $24.8 billion and $21.8 billion, respectively, and our consolidated RBC ratio was 430% and 412%, respectively.
Management’s Discussion and Analysis of Financial Condition and Results of Operations As of December 31, 2025, our estimated consolidated statutory capital and surplus and RBC ratio in the aggregate were $28.5 billion and 441%, respectively. As of December 31, 2024 our consolidated statutory capital and surplus and RBC ratio in the aggregate were $24.8 billion and 430%, respectively.
Our investing activities used cash flows totaling $61.9 billion, $43.7 billion and $34.4 billion for the years ended December 31, 2024, 2023 and 2022, respectively.
Cash flows from investing activities The primary cash inflows from investing activities are the sales, maturities and repayments of investments. The primary cash outflows from investing activities are the purchases and acquisitions of new investments. Our investing activities used cash flows totaling $63.8 billion, $61.9 billion and $43.7 billion for the years ended December 31, 2025, 2024 and 2023, respectively.
An insurer must have a BSCR ratio of 100% or greater to be considered solvent by the BMA. As of December 31, 2024 and 2023, our Bermuda insurance companies held the appropriate capital to adhere to these regulatory standards. As of December 31, 2024 and 2023, our Bermuda RBC ratio was 450% and 400%, respectively.
As of December 31, 2024, AARe’s EBS capital and surplus resulted in a BSCR ratio of 243%. An insurer must have a BSCR ratio of 100% or greater to be considered solvent by the BMA.
Cash flows from operating activities The primary cash inflows from operating activities include net investment income and insurance premiums. The primary cash outflows from operating activities are comprised of benefit payments and operating expenses. Our operating activities generated cash flows totaling $1.9 billion, $5.0 billion and $6.3 billion for the years ended December 31, 2024, 2023 and 2022, respectively.
Our operating activities generated cash flows totaling $5.2 billion, $1.9 billion and $5.0 billion for the years ended December 31, 2025, 2024 and 2023, respectively.
For the Bermuda group, which includes the capital and surplus of AARe and all of its subsidiaries, including AAIA and its subsidiaries, EBS capital and surplus was $27.7 billion and $26.6 billion, resulting in a BSCR ratio of 238% and 291% as of December 31, 2024 and 2023, respectively.
For the Bermuda group, which includes the capital and surplus of AARe and all of its subsidiaries, including AAIA and its subsidiaries, EBS capital and surplus resulted in a BSCR ratio in excess of TCL as of December 31, 2025, computed as available statutory economic capital and surplus divided by ECR.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Valuation of Fixed Maturity Securities, Equity Securities and Mortgage Loans The following table presents the fair value of fixed maturity securities, equity securities and mortgage loans, including those with related parties and those held by consolidated VIEs, by pricing source and fair value hierarchy: December 31, 2024 (In millions, except percentages) Total Level 1 Level 2 Level 3 Fixed maturity securities AFS securities Priced via commercial pricing services $ 116,317 $ 7,818 $ 108,495 $ 4 Priced via independent broker-dealer quotations 37,582 — 34,896 2,686 Priced via models or other methods 30,592 — 278 30,314 Trading securities Priced via commercial pricing services 1,130 21 1,109 — Priced via independent broker-dealer quotations 453 1 430 22 Priced via models or other methods 573 — — 573 Trading securities of consolidated VIEs 2,301 — 347 1,954 Total fixed maturity securities, including related parties and consolidated VIEs 188,948 7,840 145,555 35,553 Equity securities Priced via commercial pricing services 1,263 190 1,073 — Priced via independent broker-dealer quotations — — — — Priced via models or other methods 261 — — 261 Total equity securities, including related parties 1,524 190 1,073 261 Mortgage loans Priced via commercial pricing services 61,057 — — 61,057 Priced via independent broker-dealer quotations — — — — Priced via models or other methods 3,479 — — 3,479 Mortgage loans of consolidated VIEs 2,579 — — 2,579 Total mortgage loans, including related parties and consolidated VIEs 67,115 — — 67,115 Total fixed maturity securities, equity securities and mortgage loans, including related parties and consolidated VIEs $ 257,587 $ 8,030 $ 146,628 $ 102,929 Percentage of total 100.0 % 3.1 % 56.9 % 40.0 % We measure the fair value of our securities based on assumptions used by market participants in pricing the assets, which may include inherent risk, restrictions on the sale or use of an asset, or nonperformance risk.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Valuation of Fixed Maturity Securities, Equity Securities and Mortgage Loans The following table presents the fair value of fixed maturity securities, equity securities and mortgage loans, including those with related parties and those held by consolidated VIEs, by pricing source within the fair value hierarchy: December 31, 2025 (In millions, except percentages) Total Level 1 Level 2 Level 3 Fixed maturity securities AFS securities Priced via commercial pricing services $ 166,398 $ 17,424 $ 148,974 $ — Priced via independent broker-dealer quotations 2,542 — 6 2,536 Priced via models or other methods 50,101 — 5,081 45,020 Trading securities Priced via commercial pricing services 6,391 24 6,367 — Priced via independent broker-dealer quotations 5 — — 5 Priced via models or other methods 467 — — 467 Trading securities of consolidated VIEs 3,120 — 683 2,437 Total fixed maturity securities, including related parties and consolidated VIEs 229,024 17,448 161,111 50,465 Equity securities Priced via commercial pricing services 814 185 629 — Priced via independent broker-dealer quotations — — — — Priced via models or other methods 274 — — 274 Total equity securities, including related parties 1,088 185 629 274 Mortgage loans Priced via commercial pricing services 87,380 — — 87,380 Priced via independent broker-dealer quotations — — — — Priced via models or other methods 6,024 — — 6,024 Mortgage loans of consolidated VIEs 2,140 — — 2,140 Total mortgage loans, including related parties and consolidated VIEs 95,544 — — 95,544 Total fixed maturity securities, equity securities and mortgage loans, including related parties and consolidated VIEs $ 325,656 $ 17,633 $ 161,740 $ 146,283 Percentage of total 100.0 % 5.4 % 49.7 % 44.9 % We measure the fair value of our securities based on assumptions used by market participants in pricing the assets, which may include inherent risk, restrictions on the sale or use of an asset, or nonperformance risk.
The increase in cash provided by financing activities for the year ended December 31, 2024 compared to 2023 was primarily attributable to higher cash received from funding agreement inflows, net of cash outflows, an increase in the issuance of short-term repurchase agreements, net of the repayment of a long-term repurchase agreement in 2024, the issuance of more debt in 2024, a favorable change in cash collateral posted by counterparties for derivative transactions and the payment of less common stock cash dividends as 2024 included an assets in kind dividend of certain alternative investments to AGM in lieu of a cash dividend and 2023 included the payment of the fourth quarter 2022 common stock dividend.
These increases were partially offset by a decrease in cash collateral posted by counterparties for derivative transactions, less cash received from repurchase agreement issuances in 2025 compared to 2024, cash paid for the redemption of our Series C preferred stock in the second quarter of 2025, less proceeds from the issuance of debt in 2025 and the payment of more common stock cash dividends in 2025 as 2024 included an assets in kind dividend of certain alternative investments to AGM in lieu of a cash dividend. 97 Table of Contents Item 7.
ACRA 2 participates in certain transactions by drawing a portion of the required capital for such transactions from third-party investors equal to ADIP II’s proportionate economic interest in ACRA 2. These strategic capital solutions allow us the flexibility to simultaneously deploy capital across multiple accretive avenues, while maintaining a strong financial position.
These stockholder-friendly, strategic capital solutions allow us the flexibility to simultaneously deploy capital across multiple accretive avenues, while maintaining a strong financial position.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Bermuda statutory capital and surplus for our Bermuda insurance companies in aggregate was $17.0 billion and $14.6 billion as of December 31, 2024 and 2023, respectively.
Our TAC was significantly in excess of all regulatory standards as of December 31, 2025 and 2024, respectively. As of December 31, 2025, our estimated Bermuda statutory capital and surplus and RBC ratio for our Bermuda insurance companies in aggregate were $18.6 billion and 454%, respectively.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Material Cash Obligations The following table summarizes estimated future cash obligations as of December 31, 2024: Payments Due by Period (In millions) 2025 2026-2027 2028-2029 2030 and thereafter Total Interest sensitive contract liabilities $ 21,781 $ 59,626 $ 77,107 $ 95,123 $ 253,637 Future policy benefits 2,944 5,617 4,932 36,409 49,902 Market risk benefits — — — 6,219 6,219 Other policy claims and benefits 107 — — — 107 Dividends payable to policyholders 8 15 13 56 92 Debt 1 333 664 1,603 10,234 12,834 Securities to repurchase 2 4,281 1,689 — — 5,970 Total $ 29,454 $ 67,611 $ 83,655 $ 148,041 $ 328,761 1 The obligations for debt payments include contractual maturities of principal and estimated future interest payments based on the terms of the debt agreements. 2 The obligations for securities to repurchase payments include contractual maturities of principal and estimated future interest payments based on the terms of the agreements.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Material Cash Obligations The following table summarizes estimated future cash obligations as of December 31, 2025: Payments Due by Period (In millions) 2026 2027-2028 2029-2030 2031 and thereafter Total Interest sensitive contract liabilities $ 27,794 $ 93,823 $ 82,381 $ 111,891 $ 315,889 Future policy benefits 3,262 6,200 5,470 35,332 50,264 Market risk benefits — — — 7,489 7,489 Other policy claims and benefits 121 — — — 121 Dividends payable to policyholders 9 16 13 50 88 Debt 1 440 1,859 1,282 13,692 17,273 Securities to repurchase 2 2,980 2,380 1,145 — 6,505 Total $ 34,606 $ 104,278 $ 90,291 $ 168,454 $ 397,629 1 The obligations for debt payments include contractual maturities of principal and estimated future interest payments based on the terms of the debt agreements. 2 The obligations for securities to repurchase payments include contractual maturities of principal and estimated future interest payments based on the terms of the agreements.
Effective October 1, 2024, ACRA 2 repurchased a portion of its shares held by ALRe, which increased ADIP II’s ownership of economic interests in ACRA 2 to 63%, with ALRe owning the remaining 37%. ALRe holds all of ACRA 2’s voting interests.
ALRe directly owns 37% of the economic interests in ACRA 2 and all of ACRA 2’s voting interests, with ADIP II owning the remaining 63% of the economic interests. ACRA 2 participates in certain transactions by drawing a portion of the required capital for such transactions from third-party investors equal to ADIP II’s proportionate economic interests in ACRA 2.
Our TAC was significantly in excess of all regulatory standards as of December 31, 2024 and 2023, respectively. 104 Table of Contents Item 7.
Our ABS holdings were $51.8 billion and $34.8 billion as of December 31, 2025 and 2024, respectively. 79 Table of Contents Item 7.

… 146 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

24 edited+1 added−1 removed28 unchanged
Biggest changeScenario Analysis We evaluate our exposure to credit risk by analyzing our portfolio’s performance during simulated periods of economic stress.
Biggest changeAdditionally, inflation-linked liabilities are priced to parity with other payout options available to the policyholders accounting for the forward-looking risk. We attempt to hedge the majority of inflation risk arising from the pension group annuity business that we reinsure. Scenario Analysis We evaluate our exposure to credit risk by analyzing our portfolio’s performance during simulated periods of economic stress.
Assuming a parallel increase in interest rates of 25 basis points, the estimated impact to spread related earnings over a 12-month period related to market risk benefits would be an increase of approximately $30 – $50 million, and a parallel decrease in interest rates of 25 basis points would generally result in a similar decrease.
Assuming a parallel increase in interest rates of 25 basis points, the estimated impact to spread related earnings over a 12-month period related to market risk benefits would be an increase of approximately $30 to $50 million, and a parallel decrease in interest rates of 25 basis points would generally result in a similar decrease.
Alternative investments are comprised of several categories, including at the most liquid end of the spectrum “liquid strategies”, (which is mostly exposure to publicly traded equities), followed by “equity” and “credit” strategies. Our alternatives portfolio also includes strategic equity investments in origination platforms, insurance platforms and others. Our investment mandate in our alternative investment portfolio is inherently opportunistic.
Alternative investments are comprised of several categories, including at the most liquid end of the spectrum “liquid strategies”, (which is mostly exposure to publicly traded equities), followed by “equity” and “credit” strategies. Our alternatives portfolio also includes equity investments in origination platforms, insurance platforms and others. Our investment mandate in our alternative investment portfolio is inherently opportunistic.
See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measure Reconciliations for the reconciliation of net income (loss) available to Athene Holding Ltd. common stockholder to spread related earnings. The impact of changing rates on these adjustments is likely to be significant.
See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measure Reconciliations for the reconciliation of net income available to Athene Holding Ltd. common stockholder to spread related earnings. The impact of changing rates on these adjustments is likely to be significant.
Changes in the fair value of market risk benefits due to current period movement in the interest rate curve used to discount the reserve are reflected in net income (loss) but excluded from spread related earnings.
Changes in the fair value of market risk benefits due to current period movement in the interest rate curve used to discount the reserve are reflected in net income but excluded from spread related earnings.
The alternative investment portfolio is monitored to ensure diversification across asset classes and strategy, and the portfolio's performance under stress scenarios is evaluated routinely as part of management and board reviews. Since alternative investments are marked-to-market on the consolidated balance sheets, risk analyses focus on potential changes in market value across a variety of market stresses.
The alternative investment portfolio is monitored to ensure diversification across asset classes and strategy, and the portfolio's performance under stress scenarios is evaluated routinely as part of management and board reviews. Since alternative investments are marked-to-market on the consolidated balance sheets, risk analyses focus on potential changes in valuation across a variety of market stresses.
Risk measures that have term structure sensitivity, such as index volatility risk and interest rate risk, are monitored and risk managed along the term structure. 111 Table of Contents Item 7A. Quantitative and Qualitative Disclosures About Market Risk We are also exposed to equity risk in our alternative investment portfolio.
Risk measures that have term structure sensitivity, such as index volatility risk and interest rate risk, are monitored and risk managed along the term structure. 107 Table of Contents Item 7A. Quantitative and Qualitative Disclosures About Market Risk We are also exposed to equity risk in our alternative investment portfolio.
The increase in sensitivity to point-in-time income (loss) before income taxes from changes in the fair value of these financial instruments as of December 31, 2024, when compared to December 31, 2023, is primarily driven by equity market performance during the year, which has resulted in more equity exposure to public equity market price declines.
The increase in sensitivity to point-in-time income before income taxes from changes in the fair value of these financial instruments as of December 31, 2025, when compared to December 31, 2024, is primarily driven by equity market performance during the year, which has resulted in more equity exposure to public equity market price declines.
Quantitative and Qualitative Disclosures About Market Risk Assuming a 25 basis point increase in interest rates that persists for a 12-month period, the estimated impact to spread related earnings due to the change in net investment spread from floating rate assets and liabilities would be an increase of approximately $30 – $40 million, and a 25 basis point decrease would generally result in a similar decrease.
Quantitative and Qualitative Disclosures About Market Risk Assuming a 25 basis point increase in interest rates that persists for a 12-month period, the estimated impact to spread related earnings due to the change in net investment spread from floating rate assets and liabilities would be an increase of approximately $10 to $15 million, and a 25 basis point decrease would generally result in a similar decrease.
See above for a discussion regarding the estimated impact on income (loss) before income taxes of an immediate, parallel increase in interest rates of 100 basis points from levels as of December 31, 2024, which discussion encompasses the impact of such an increase on certain of the adjustment items.
See above for a discussion regarding the estimated impact on income before income taxes of an immediate, parallel increase in interest rates of 100 basis points from levels as of December 31, 2025, which discussion encompasses the impact of such an increase on certain of the adjustment items.
Equity Risk Our FIAs require us to make payments to policyholders that are dependent on the performance of equity market indices. We seek to minimize the equity risk from our liabilities by economically defeasing this equity exposure with granular, policy-level-based hedging.
Equity Risk Our indexed annuities require us to make payments to policyholders that are dependent on the performance of equity market indices. We seek to minimize the equity risk from our liabilities by economically defeasing this equity exposure with granular, policy-level-based hedging.
We are unable to make forward-looking estimates regarding the impact on net income (loss) of changes in interest rates that persist for a longer period of time, or changes in the shape of the yield curve over time, as a result of an inability to determine how such changes will affect certain of the items that we characterize as “adjustments to income (loss) before income taxes” in our reconciliation between net income (loss) available to AHL common stockholder and spread related earnings.
We are unable to make forward-looking estimates regarding the impact on net income of changes in interest rates that persist for a longer period of time, or changes in the shape of the yield curve over time, as a result of an inability to determine how such changes will affect certain of the items that we characterize as “adjustments to income before income taxes” in our reconciliation between net income available to Athene Holding Ltd. common stockholder and spread related earnings.
The form of those investments is typically a limited partnership interest in a fund. We currently target fund investments that have characteristics resembling fixed income investments versus those resembling pure equity investments, but as holders of partnership positions, our investments are generally held as equity positions.
The form of those investments is typically a limited partnership interest in a fund. We generally target fund investments that have characteristics resembling fixed income or hybrid investments versus those resembling pure equity investments, but as holders of partnership positions, our investments are generally held as equity positions.
Assuming all other factors are constant, if there was a decline in public equity market prices of 10% as of December 31, 2024, we estimate a net decrease to our point-in-time income (loss) before income taxes from changes in the fair value of these financial instruments of $617 million.
Assuming all other factors are constant, if there was a decline in public equity market prices of 10% as of December 31, 2025, we estimate a net decrease to our point-in-time income before income taxes from changes in the fair value of these financial instruments of $833 million.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk The investment teams within Apollo, which manage substantially all of our fixed income assets, focus on in-depth, bottom-up portfolio construction, and disciplined risk management.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk The investment teams within Apollo, which manage substantially all of our investments, focus on in-depth, bottom-up portfolio construction, and disciplined risk management.
As of December 31, 2023, we estimate that a decline in public equity market prices of 10% would cause a net decrease to our point-in-time income (loss) before income taxes from changes in the fair value of these financial instruments of $538 million.
As of December 31, 2024, we estimate that a decline in public equity market prices of 10% would cause a net decrease to our point-in-time income before income taxes from changes in the fair value of these financial instruments of $617 million.
Assuming all other factors are constant, if there was an immediate parallel increase in interest rates of 100 basis points from levels as of December 31, 2024, we estimate a net decrease to our point-in-time income (loss) before income taxes from changes in the fair value of these financial instruments of $3.0 billion, net of offsets.
Assuming all other factors are constant, if there was an immediate parallel increase in interest rates of 100 basis points from levels as of December 31, 2025, we estimate a net decrease to our point-in-time income before income taxes from changes in the fair value of these financial instruments of $4.2 billion, net of offsets.
The financial instruments included in the sensitivity analysis are carried at fair value and changes in fair value are recognized in earnings. These financial instruments include public equity investments, derivative instruments, market risk benefits and the FIA embedded derivative. 113 Table of Contents
The financial instruments included in the sensitivity analysis are carried at fair value and changes in fair value are recognized in earnings. These financial instruments include public equity investments, derivative instruments, market risk benefits and the indexed annuity embedded derivative. 109 Table of Contents
If there was a similar parallel increase in interest rates from levels as of December 31, 2023, we estimate a net decrease to our point-in-time income (loss) before income taxes from changes in the fair value of these financial instruments of $2.5 billion, net of offsets.
If there was a similar parallel increase in interest rates from levels as of December 31, 2024, we estimate a net decrease to our point-in-time income before income taxes from changes in the fair value of these financial instruments of $3.0 billion, net of offsets.
As of December 31, 2024 the balance in cash and cash equivalents plus restricted cash, net investment payables and receivables, reinsurance impacts and the net derivative collateral offsetting the related cash positions, was $6.8 billion, net of the amount attributable to the noncontrolling interests.
As of December 31, 2025, the balance in cash and cash equivalents plus restricted cash, net investment payables and receivables, reinsurance impacts and the net derivative collateral offsetting the related cash positions, was $10.5 billion, net of the amount attributable to the noncontrolling interests.
The decrease in sensitivity to spread related earnings due to the change in net investment spread from floating rate assets and liabilities as of December 31, 2024, when compared to December 31, 2023, was driven by the decrease in our net floating rate position related to hedging actions as well as additional issuances of floating rate funding agreements in 2024.
The decrease in sensitivity to spread related earnings due to the change in net investment spread from floating rate assets and liabilities as of December 31, 2025, when compared to December 31, 2024, was driven by the decrease in our net floating rate position primarily related to hedging actions undertaken in 2025.
These financial instruments include derivative instruments, embedded derivatives, mortgage loans, certain fixed maturity securities and market risk benefits. The sensitivity analysis excludes those financial instruments carried at fair value for which changes in fair value are recognized in equity, such as AFS fixed maturity securities. 112 Table of Contents Item 7A.
The sensitivity analysis excludes those financial instruments carried at fair value for which changes in fair value are recognized in equity, such as AFS fixed maturity securities. 108 Table of Contents Item 7A.
The increase in sensitivity to point-in-time pre-tax income from changes in the fair value of these financial instruments as of December 31, 2024, when compared to December 31, 2023, was primarily driven by the growth experienced in 2024. The financial instruments included in the sensitivity analysis are carried at fair value and changes in fair value are recognized in earnings.
The increase in sensitivity to point-in-time income before income taxes from changes in the fair value of these financial instruments as of December 31, 2025, when compared to December 31, 2024, is primarily driven by the growth experienced in 2025.
When the currency denominations of the assets and liabilities do not match, we generally undertake hedging activities to eliminate or mitigate currency mismatch risk. Inflation Risk We manage our inflation risk to maintain minimal exposure to changes in purchasing power. In general, we attempt to match inflation exposure of assets and liabilities.
When the currency denominations of the assets and liabilities do not match, we generally undertake hedging activities to eliminate or mitigate currency mismatch risk. Inflation Risk Exposure to inflation-linked outflows (liabilities) is not a significant risk. These liabilities generally have caps on the amount of inflation applied to annual growth of payments.
Removed
When the inflation exposure profiles of assets and liabilities do not match, we generally undertake hedging activities to eliminate or mitigate inflation mismatch risk. We attempt to hedge the majority of inflation risk arising from the pension group annuity business that we reinsure.
Added
The financial instruments included in the sensitivity analysis are carried at fair value and changes in fair value are recognized in earnings. These financial instruments include derivative instruments, embedded derivatives, mortgage loans, certain fixed maturity securities and market risk benefits.

Other ATHS 10-K year-over-year comparisons