Athene Holding Ltd. — Third Quarter 2026 Earnings Summary

Financial Performance

• GAAP net income available to Athene Holding Ltd. common stockholders was $(1,158) million for the quarter ended September 30, 2026, compared to $953 million in the second quarter of 2026 and $(1,973) million in the first quarter of 2026.
• Year-to-date 2026 GAAP net income available to common stockholders was $(2,178) million, compared to $2,146 million for the full year 2025.
• Spread related earnings were $844 million for the quarter ended September 30, 2026, a 4% decrease from the second quarter of 2026 and a 3% decrease from the third quarter of 2025.
• Year-to-date 2026 spread related earnings were $2,440 million, a 2% decrease from $2,496 million in 2025.
• Spread related earnings, excluding notable items, were $909 million for the quarter ended September 30, 2026, a 7% increase from the third quarter of 2025.
• Net investment spread was 1.38% for the quarter ended September 30, 2026, a 9 basis point decrease from the second quarter of 2026 and a 22 basis point decrease from the third quarter of 2025.
• Net spread was 1.06% for the quarter ended September 30, 2026, an 8 basis point decrease from the second quarter of 2026 and an 18 basis point decrease from the third quarter of 2025.
• Total assets were $477,571 million as of September 30, 2026, an 11% increase from $429,915 million as of December 31, 2025.
• Total liabilities were $448,427 million as of September 30, 2026, a 13% increase from $396,874 million as of December 31, 2025.
• Debt was $8,813 million as of September 30, 2026, a 12% increase from $7,856 million as of December 31, 2025.
• Total Athene Holding Ltd. stockholders' equity was $13,413 million as of September 30, 2026, a 34% decrease from $20,411 million as of December 31, 2025.
• Leverage ratio was 50.8% as of September 30, 2026, compared to 36.5% as of December 31, 2025.
• Net invested assets were $322,491 million as of September 30, 2026, a 13% increase from $286,174 million as of December 31, 2025.
• Net reserve liabilities were $298,118 million as of September 30, 2026, a 12% increase from $266,451 million as of December 31, 2025.
• Adjusted Athene Holding Ltd. common stockholder's equity was $21,826 million as of September 30, 2026, a 5% decrease from $22,924 million as of December 31, 2025.
• Adjusted leverage ratio was 27.5% as of September 30, 2026, compared to 24.3% as of December 31, 2025.

Guidance and Future Outlook

• Management's long-term expectation for alternative net investment income is an 11% average annual return; the alternative net investment income delta to this expectation was $54 million (1.35%) for the quarter ended September 30, 2026.
• Year-to-date 2026 alternative net investment income delta to long-term expectation was $318 million (2.74%), compared to $102 million (1.02%) for 2025.

Business Segments and Product Lines

• Gross organic inflows were $18,746 million for the quarter ended September 30, 2026, a 15% decrease from the second quarter of 2026 and a 17% decrease from the third quarter of 2025.
• Year-to-date 2026 gross organic inflows were $60,562 million, a 13% decrease from $69,411 million in 2025.
• Retail inflows were $10,363 million for the quarter ended September 30, 2026, a 3% increase from the third quarter of 2025.
• Flow reinsurance inflows were $1,611 million for the quarter ended September 30, 2026, a 37% decrease from the third quarter of 2025.
• Funding agreements inflows were $6,241 million for the quarter ended September 30, 2026, a 36% decrease from the third quarter of 2025.
• Gross outflows were $13,316 million for the quarter ended September 30, 2026, a 31% increase from the second quarter of 2026 and a 25% increase from the third quarter of 2025.
• Net flows were $5,430 million for the quarter ended September 30, 2026, a 54% decrease from the second quarter of 2026 and a 55% decrease from the third quarter of 2025.
• Year-to-date 2026 net flows were $26,337 million, a 39% decrease from $43,151 million in 2025.
• Maturity-driven, contractual-based outflows were $5,791 million for the quarter ended September 30, 2026, a 48% increase from the second quarter of 2026.
• Policyholder-driven outflows were $3,857 million for the quarter ended September 30, 2026, a 5% increase from the second quarter of 2026.
• Indexed annuities net reserve liabilities were $91,257 million as of September 30, 2026, compared to $87,322 million as of December 31, 2025.
• Fixed rate annuities net reserve liabilities were $93,844 million as of September 30, 2026, compared to $77,774 million as of December 31, 2025.
• Funding agreements net reserve liabilities were $80,245 million as of September 30, 2026, compared to $71,433 million as of December 31, 2025.
• On October 1, 2025, the company entered into an agreement with a Japanese counterparty to reinsure a small block of whole life insurance policies on a coinsurance basis and retrocede the mortality risk to a leading mortality reinsurer.

Market and Competitive Landscape

• Net invested assets in corporate securities were $94,065 million as of September 30, 2026, representing 29.2% of the total, compared to $86,664 million (29.6%) as of December 31, 2025.
• Net invested assets in real estate were $98,413 million as of September 30, 2026, representing 30.4% of the total, compared to $92,584 million (31.7%) as of December 31, 2025.
• Net invested assets in asset-backed securities (ABS) were $55,822 million as of September 30, 2026, representing 17.3% of the total, compared to $38,417 million (13.1%) as of December 31, 2025.
• Net invested assets in collateralized loan obligations (CLO) were $18,602 million as of September 30, 2026, representing 5.8% of the total, compared to $25,401 million (8.7%) as of December 31, 2025.
• Credit quality of net invested assets (NAIC designation) showed 97.0% investment grade as of September 30, 2026, compared to 96.1% as of December 31, 2025.
• Credit quality of net invested assets (NRSRO designation) showed 96.2% investment grade as of September 30, 2026, compared to 95.1% as of December 31, 2025.
• Athene Annuity and Life Company maintains an A+ financial strength rating from A.M. Best, S&P Global, and Fitch, and an A1 rating from Moody's.
• Athene Holding Ltd. maintains an a- rating from A.M. Best, an A- rating from S&P Global and Fitch, and no rating from Moody's.

Risks and Challenges

• A one-time tax expense of $1.7 billion was recognized in the first quarter of 2026 due to the revocation of ACRA's election to be subject to Bermuda Corporate Income Tax (CIT), leading to the recognition of a full valuation allowance against remaining Bermuda deferred tax assets.
• The adjusted leverage ratio increased to 27.5% as of September 30, 2026, from 24.3% as of December 31, 2025, driven by the one-time tax expense and market volatility impacts excluded from adjusted equity.
• GAAP net income available to common stockholders was negative for the first and third quarters of 2026, driven by investment-related gains and losses and changes in fair value of derivatives and embedded derivatives.
• Gross outflows increased 31% in the third quarter of 2026 compared to the second quarter, with maturity-driven outflows increasing 48%.
• Net flows decreased 54% in the third quarter of 2026 compared to the second quarter.

Management Commentary and Tone

• Management uses spread related earnings and net spread to evaluate financial performance, excluding market volatility and one-time items to provide insight into underlying profitability drivers.
• Management believes net invested assets and net reserve liabilities provide a meaningful view of the assets and liabilities for which the company has economic exposure, adjusting for reinsurance and noncontrolling interests.
• Management notes that the adjusted leverage ratio provides insight into how rating agencies measure capitalization, which is a consideration in managing leverage capacity.
• Management states that the decrease in adjusted equity and increase in adjusted leverage in 1Q'26 was primarily driven by the one-time tax expense.

Other Key Points

• The financial supplement includes non-GAAP measures such as spread related earnings, net spread, net investment spread, and adjusted leverage ratio, which are reconciled to GAAP measures.
• Net invested assets include the company's economic ownership of ACRA investments but exclude investments associated with noncontrolling interests.
• Net alternative investments were $16,280 million as of September 30, 2026, an increase from $13,868 million as of December 31, 2025.
• The company's combined net ownership percentage of AAA and AAA Lux was approximately 45% as of September 30, 2026, compared to 41% as of December 31, 2025.
• Preferred stock dividends were $35 million for the quarter ended September 30, 2026.
• No preferred stock redemption occurred in the quarter ended September 30, 2026.
• The document notes that "Non-designated" status for certain debt securities is not an indication of security quality.