UNITED STATES | ||||||
SECURITIES AND EXCHANGE COMMISSION | ||||||
Washington, D.C. 20549 | ||||||
FORM 8-K | ||||||
CURRENT REPORT | ||||||
PURSUANT TO SECTION 13 OR 15(d) OF THE | ||||||
SECURITIES EXCHANGE ACT OF 1934 | ||||||
Date of report (Date of earliest event reported): May 10, 2017 | ||||||
ATHENE HOLDING LTD. | ||||||
(Exact name of registrant as specified in its charter) | ||||||
Bermuda | 001-37963 | 98-0630022 | ||||
(State or other jurisdiction of | (Commission | (I.R.S. Employer | ||||
incorporation or organization) | file number) | Identification Number) | ||||
96 Pitts Bay Road | ||||||
Pembroke, HM08, Bermuda | ||||||
(Address of principal executive offices and zip code) | ||||||
(441) 279-8400 | ||||||
(Registrant’s telephone number, including area code) | ||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | ||||||
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||||||
Emerging growth company o | ||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o |
(d) | Exhibits |
99.1 | Press release of Athene Holding Ltd., dated May 10, 2017 (furnished and not filed). |
99.2 | Quarterly Financial Supplement for Athene Holding Ltd. for first quarter 2017 (furnished and not filed). |
ATHENE HOLDING LTD. | |
Date: May 10, 2017 | /s/ Martin P. Klein |
Martin P. Klein | |
Executive Vice President and Chief Financial Officer | |
Exhibit No. | Description |
99.1 | Press release of Athene Holding Ltd., dated May 10, 2017 (furnished and not filed). |
99.2 | Quarterly Financial Supplement for Athene Holding Ltd. for first quarter 2017 (furnished and not filed). |
• | Total investments, including related parties, increased 14% year-over-year to $75.1 billion; total invested assets increased 8% year-over-year to $73.6 billion |
• | Athene shareholders' equity increased 35% year-over-year to $7.6 billion and Athene shareholders' equity ex. AOCI increased 22% year-over-year to $6.9 billion, as of March 31, 2017 |
• | Estimated Q1 U.S. RBC of 466%, as of March 31, 2017 |
• | Estimated Q1 ALRe RBC of 530%2 as of March 31, 2017; BSCR of 228%3 as of December 31, 2016 |
• | Ranked #2 writer of fixed indexed annuity sales for the second half of 20164 |
• | In March, Athene and Apollo agreed, subject to shareholder approval, to implement a new fee framework in support of further prudent growth, reducing fees from 40bps to 30bps on AUM in excess of $65.8 billion |
• | Added to the Russell 1000 index, effective March 31, 2017 |
• | In March, priced an upsized secondary offering of 31,625,000 of Class A common shares; Athene did not receive any proceeds from the sale |
• | A.M. Best upgraded the financial strength ratings of our operating companies to “A" on April 13, 2017 |
As of and for the three months ended March 31, | |||||||
(In millions, except percentages and share data) | 2017 | 2016 | |||||
Deposits | $ | 1,915 | $ | 1,575 | |||
Investments, including related parties | 75,129 | 66,071 | |||||
Invested assets | 73,573 | 67,865 | |||||
Debt to equity | — | % | — | % | |||
Book value per share | $ | 39.26 | $ | 30.28 | |||
Book value per share, ex. AOCI1 | $ | 35.17 | $ | 30.55 | |||
Common shares outstanding2 | 193.5 | 186.2 | |||||
Operating diluted Class A common shares outstanding3 | 196.8 | 186.2 | |||||
Total AHL shareholders' equity | 7,597 | 5,638 | |||||
Total AHL shareholders' equity excluding AOCI | 6,924 | 5,690 | |||||
ROE | 20.6 | % | 6.3 | % | |||
ROE ex. AOCI | 22.2 | % | 6.2 | % | |||
Operating ROE ex. AOCI | 15.3 | % | 10.8 | % | |||
Retirement Services | |||||||
Operating income, net of tax | $ | 267 | $ | 197 | |||
Operating ROE ex. AOCI | 22.8 | % | 19.7 | % | |||
Investment margin on deferred annuities | 2.85 | % | 2.63 | % |
Three months ended March 31, | |||||||
(In millions, except share data) | 2017 | 2016 | |||||
Operating income, net of tax by segment | |||||||
Retirement Services | $ | 267 | $ | 197 | |||
Corporate and Other | (9 | ) | (45 | ) | |||
Operating income, net of tax | 258 | 152 | |||||
Investment gains (losses), net of offsets | 57 | (19 | ) | ||||
Change in fair values of derivatives and embedded derivatives - FIAs, net of offsets | 94 | (69 | ) | ||||
Integration, restructuring and other non-operating expenses | (9 | ) | (1 | ) | |||
Stock compensation expense | (13 | ) | 15 | ||||
Income tax (expense) benefit - non-operating | (14 | ) | 9 | ||||
Total non-operating adjustments | 115 | (65 | ) | ||||
Net income available to AHL shareholders | $ | 373 | $ | 87 | |||
Earnings per share - basic1 | $ | 1.94 | $ | 0.47 | |||
Earnings per share - diluted Class A2 | $ | 1.87 | $ | 0.47 | |||
Operating earnings per share - operating diluted Class A3 | $ | 1.32 | $ | 0.82 | |||
Weighted average shares outstanding - basic1 | 192.5 | 186.0 | |||||
Weighted average shares outstanding - diluted Class A2 | 81.3 | 50.1 | |||||
Weighted average shares outstanding - operating diluted Class A3 | 195.6 | 186.0 |
• | Live conference call: Toll-free at 1-888-317-6003 (domestic) or 1-412-317-6061 (international) |
• | Participant entry number: 2435204 |
• | Replay available through May 25, 2017 at 1-877-344-7529 (domestic) or 1-412-317-0088 (international) |
• | Replay access code: 10103915 |
• | Live and archived webcast available at ir.athene.com |
• | Investment Gains (Losses), Net of Offsets |
• | Change in Fair Values of Derivatives and Embedded Derivatives - FIAs, Net of Offsets |
• | Integration, Restructuring, and Other Non-operating Expenses |
• | Stock Compensation Expense |
• | Bargain Purchase Gain |
• | Income Tax (Expense) Benefit - Non-operating |
• | Net investment earned rate is a non-GAAP measure we use to evaluate the performance of our invested assets that does not correspond to GAAP net investment income. Net investment earned rate is computed as the income from our invested assets divided by the average invested assets for the relevant period. To enhance the ability to analyze these measures across periods, interim periods are annualized. The adjustments to arrive at our net investment earned rate add alternative investment gains and losses, gains and losses related to trading securities for CLOs, net VIE impacts (revenues, expenses and noncontrolling interest) and the change in reinsurance embedded derivatives. We include the income and assets supporting our assumed reinsurance by evaluating the underlying investments of the funds withheld at interest receivables and we include the net investment income from those underlying investments which does not correspond to the GAAP presentation of reinsurance embedded derivatives. We exclude the income and assets supporting business that we have exited through ceded reinsurance including funds withheld agreements. We believe the adjustments for reinsurance provide a net investment earned rate on the assets for which we have economic exposure. |
• | Cost of crediting is the interest credited to the policyholders on our fixed strategies as well as the option costs on the index 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. The interest credited on fixed strategies and option costs on index annuity strategies are divided by the average account value of our deferred annuities. Under GAAP, deposits and withdrawals for fixed indexed and fixed rate annuities are reported as deposit liabilities (or policyholder funds). Our average account values are averaged over the number of quarters in the relevant period to obtain our cost of crediting for such period. To enhance the ability to analyze these measures across periods, interim periods are annualized. |
March 31, | December 31, | ||||||
(In millions) | 2017 | 2016 | |||||
Assets | |||||||
Investments | |||||||
Available-for-sale securities, at fair value | |||||||
Fixed maturity securities | $ | 54,225 | $ | 52,033 | |||
Equity securities | 422 | 353 | |||||
Trading securities, at fair value | 2,595 | 2,581 | |||||
Mortgage loans, net of allowances | 5,453 | 5,470 | |||||
Investment funds | 689 | 689 | |||||
Policy loans | 579 | 602 | |||||
Funds withheld at interest | 6,593 | 6,538 | |||||
Derivative assets | 1,708 | 1,370 | |||||
Real estate | 553 | 542 | |||||
Short-term investments, at fair value | 166 | 189 | |||||
Other investments | 82 | 81 | |||||
Total investments | 73,065 | 70,448 | |||||
Cash and cash equivalents | 2,563 | 2,445 | |||||
Restricted cash | 73 | 57 | |||||
Investments in related parties | |||||||
Available-for-sale securities, at fair value | |||||||
Fixed maturity securities | 361 | 335 | |||||
Equity securities | — | 20 | |||||
Trading securities, at fair value | 169 | 195 | |||||
Investment funds | 1,276 | 1,198 | |||||
Short-term investments | 20 | — | |||||
Other investments | 238 | 237 | |||||
Accrued investment income | 575 | 554 | |||||
Reinsurance recoverable | 5,960 | 6,001 | |||||
Deferred acquisition costs, deferred sales inducements, and value of business acquired | 2,895 | 2,964 | |||||
Current income tax recoverable | 12 | 107 | |||||
Deferred tax assets | 233 | 369 | |||||
Other assets | 817 | 869 | |||||
Assets of consolidated variable interest entities: | |||||||
Investments | |||||||
Available-for-sale securities, at fair value | |||||||
Equity securities - related party | 191 | 161 | |||||
Trading securities, at fair value – related party | 166 | 167 | |||||
Investment funds | 599 | 573 | |||||
Cash and cash equivalents | 2 | 14 | |||||
Other assets | 5 | 6 | |||||
Total assets | $ | 89,220 | $ | 86,720 |
March 31, | December 31, | ||||||
(In millions) | 2017 | 2016 | |||||
Liabilities and Equity | |||||||
Liabilities | |||||||
Interest sensitive contract liabilities | $ | 62,634 | $ | 61,532 | |||
Future policy benefits | 14,727 | 14,569 | |||||
Other policy claims and benefits | 214 | 217 | |||||
Dividends payable to policyholders | 917 | 974 | |||||
Derivative liabilities | 32 | 40 | |||||
Payables for collateral on derivatives | 1,681 | 1,383 | |||||
Funds withheld liability | 382 | 380 | |||||
Other liabilities | 999 | 685 | |||||
Liabilities of consolidated variable interest entities | 37 | 34 | |||||
Total liabilities | 81,623 | 79,814 | |||||
Equity | |||||||
Common stock | — | — | |||||
Additional paid-in capital | 3,436 | 3,421 | |||||
Retained earnings | 3,488 | 3,117 | |||||
Accumulated other comprehensive income | 673 | 367 | |||||
Total Athene Holding Ltd. shareholders' equity | 7,597 | 6,905 | |||||
Noncontrolling interest | — | 1 | |||||
Total equity | 7,597 | 6,906 | |||||
Total liabilities and equity | $ | 89,220 | $ | 86,720 |
Three months ended March 31, | |||||||
(In millions, except per share data) | 2017 | 2016 | |||||
Revenue | |||||||
Premiums | $ | 52 | $ | 60 | |||
Product charges | 81 | 66 | |||||
Net investment income | 786 | 692 | |||||
Investment related gains (losses) | 682 | (82 | ) | ||||
OTTI investment losses: | |||||||
OTTI losses | — | (22 | ) | ||||
OTTI losses (gains) recognized in OCI | (1 | ) | 12 | ||||
Net OTTI losses | (1 | ) | (10 | ) | |||
Other revenues | 8 | 8 | |||||
Revenues of consolidated variable interest entities: | |||||||
Net investment income | 10 | 11 | |||||
Investment related gains (losses) | 1 | (23 | ) | ||||
Total revenues | 1,619 | 722 | |||||
Benefits and Expenses | |||||||
Interest sensitive contract benefits | 696 | 253 | |||||
Amortization of DSI | 18 | 4 | |||||
Future policy and other policy benefits | 214 | 224 | |||||
Amortization of DAC and VOBA | 108 | 28 | |||||
Dividends to policyholders | 32 | 17 | |||||
Policy and other operating expenses | 156 | 104 | |||||
Operating expenses of consolidated variable interest entities | — | 4 | |||||
Total benefits and expenses | 1,224 | 634 | |||||
Income before income taxes | 395 | 88 | |||||
Income tax expense | 22 | 1 | |||||
Net income | 373 | 87 | |||||
Less: Net income attributable to noncontrolling interests | — | — | |||||
Net income available to AHL shareholders | $ | 373 | $ | 87 |
Three months ended March 31, | |||||||
2017 | 2016 | ||||||
Operating income, net of tax – per operating dilutive Class A common share | $ | 1.32 | $ | 0.82 | |||
Investment gains (losses), net of offsets | 0.30 | (0.10 | ) | ||||
Change in fair values of derivatives and embedded derivatives - FIAs, net of offsets | 0.48 | (0.36 | ) | ||||
Integration, restructuring and other non-operating expenses | (0.05 | ) | (0.01 | ) | |||
Stock compensation expense | (0.07 | ) | 0.08 | ||||
Income tax (expense) benefit - non-operating | (0.07 | ) | 0.04 | ||||
Total non-operating adjustments | 0.59 | (0.35 | ) | ||||
Effect of items convertible to or settled in Class A common shares | 0.03 | — | |||||
Basic earnings per share – Class A common shares | $ | 1.94 | $ | 0.47 |
Three months ended March 31, | |||||
(In millions) | 2017 | 2016 | |||
Basic weighted average shares outstanding - Class A | 78.2 | 50.0 | |||
Conversion of Class B shares to Class A shares | 110.8 | 136.0 | |||
Conversion of Class M shares to Class A shares | 6.2 | — | |||
Effect of other stock compensation plans | 0.4 | — | |||
Weighted average shares outstanding - operating diluted Class A common shares | 195.6 | 186.0 |
March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Total AHL shareholders' equity | $ | 7,597 | $ | 5,638 | |||
Less: AOCI | 673 | (52 | ) | ||||
Total AHL shareholders' equity excluding AOCI | $ | 6,924 | $ | 5,690 | |||
Retirement Services | $ | 4,853 | $ | 4,071 | |||
Corporate and Other | 2,071 | 1,619 | |||||
Total AHL shareholders' equity excluding AOCI | $ | 6,924 | $ | 5,690 |
March 31, | |||||
(In millions) | 2017 | 2016 | |||
Class A common shares outstanding | 101.3 | 50.2 | |||
Conversion of Class B shares to Class A shares | 87.8 | 136.0 | |||
Conversion of Class M shares to Class A shares | 6.8 | — | |||
Effect of other stock compensation plans | 0.9 | — | |||
Operating diluted Class A common shares outstanding | 196.8 | 186.2 |
March 31, | |||||||
2017 | 2016 | ||||||
Book value per share | $ | 39.26 | $ | 30.28 | |||
AOCI | (3.48 | ) | 0.27 | ||||
Effect of items convertible to or settled in Class A common shares | (0.61 | ) | — | ||||
Book value per share, excluding AOCI | $ | 35.17 | $ | 30.55 |
Three months ended March 31, | |||||||||||||
2017 | 2016 | ||||||||||||
(In millions) | Dollar | Rate | Dollar | Rate | |||||||||
GAAP net investment income | $ | 786 | 4.32 | % | $ | 692 | 4.10 | % | |||||
Reinsurance embedded derivative impacts | 45 | 0.25 | % | 36 | 0.21 | % | |||||||
Net VIE earnings | 11 | 0.06 | % | (16 | ) | (0.09 | )% | ||||||
Alternative income gain (loss) | (13 | ) | (0.07 | )% | (32 | ) | (0.19 | )% | |||||
Other | (15 | ) | (0.08 | )% | — | — | % | ||||||
Total adjustments to arrive at net investment earnings/earned rate | 28 | 0.16 | % | (12 | ) | (0.07 | )% | ||||||
Total net investment earnings/earned rate | $ | 814 | 4.48 | % | $ | 680 | 4.03 | % | |||||
Retirement Services | $ | 780 | 4.76 | % | $ | 691 | 4.59 | % | |||||
Corporate and Other | 34 | 1.88 | % | (11 | ) | (0.62 | )% | ||||||
Total net investment earnings/earned rate | $ | 814 | 4.48 | % | $ | 680 | 4.03 | % | |||||
Retirement Services average invested assets | $ | 65,580 | $ | 60,259 | |||||||||
Corporate and Other average invested assets | 7,123 | 7,153 | |||||||||||
Average invested assets | $ | 72,703 | $ | 67,412 |
Three months ended March 31, | |||||||||||||
2017 | 2016 | ||||||||||||
(In millions) | Dollar | Rate | Dollar | Rate | |||||||||
GAAP interest sensitive contract benefits | $ | 696 | 5.05 | % | $ | 253 | 2.03 | % | |||||
Interest credited other than deferred annuities | (30 | ) | (0.22 | )% | (29 | ) | (0.23 | )% | |||||
FIA option costs | 145 | 1.04 | % | 136 | 1.11 | % | |||||||
Product charges (strategy fees) | (17 | ) | (0.12 | )% | (11 | ) | (0.09 | )% | |||||
Reinsurance embedded derivative impacts | 9 | 0.07 | % | 6 | 0.05 | % | |||||||
Change in fair values of embedded derivatives - FIAs | (534 | ) | (3.87 | )% | (136 | ) | (1.10 | )% | |||||
Negative VOBA amortization | 12 | 0.09 | % | 9 | 0.07 | % | |||||||
Unit linked change in reserve | (18 | ) | (0.13 | )% | 15 | 0.12 | % | ||||||
Total adjustments to arrive at cost of crediting on deferred annuities | (433 | ) | (3.14 | )% | (10 | ) | (0.07 | )% | |||||
Retirement Services cost of crediting on deferred annuities | $ | 263 | 1.91 | % | $ | 243 | 1.96 | % | |||||
Average account value on deferred annuities | $ | 55,154 | $ | 49,626 |
March 31, | |||||||
(In millions) | 2017 | 2016 | |||||
Total investments, including related parties | $ | 75,129 | $ | 66,071 | |||
Derivative assets | (1,708 | ) | (835 | ) | |||
Cash and cash equivalents (including restricted cash) | 2,636 | 2,798 | |||||
Accrued income | 575 | 519 | |||||
Derivative collateral | (1,681 | ) | (761 | ) | |||
Reinsurance funds withheld and modified coinsurance | (410 | ) | (179 | ) | |||
VIE assets, liabilities and noncontrolling interest | 926 | 1,061 | |||||
AFS unrealized (gain) loss | (1,561 | ) | (459 | ) | |||
Ceded policy loans | (333 | ) | (350 | ) | |||
Total adjustments to arrive at invested assets | (1,556 | ) | 1,794 | ||||
Total invested assets | $ | 73,573 | $ | 67,865 |
A. | Financial Highlights | |
B. | Product Summary - Retirement Services | |
C. | Consolidated Investment Summary | |
D. | Additional Information | |
• | Investment Gains (Losses), Net of Offsets - Investment gains (losses), net of offsets, consist of the realized gains and losses on the sale of AFS securities, the change in assumed modco and funds withheld reinsurance embedded derivatives, unrealized gains and losses, impairments, and other investment gains and losses. Unrealized, impairments and other investment gains and losses are comprised of the fair value adjustments of trading securities (other than CLOs) and investments held under the fair value option, derivative gains and losses not hedging FIA index credits, and the net OTTI impacts recognized in operations net of the change in AmerUs Closed Block fair value reserve related to the corresponding change in fair value of investments and the change in unit linked reserves related to the corresponding trading securities. Investment gains and losses are net of offsets related to DAC, DSI, and VOBA amortization and changes to GLWB and guaranteed minimum death benefits (GMDB) reserves as well as the MVAs associated with surrenders or terminations of contracts. |
• | Change in Fair Values of Derivatives and Embedded Derivatives - FIAs, Net of Offsets - Impacts related to the fair value accounting for derivatives hedging the FIA index credits and the related embedded derivative liability fluctuate from period-to-period. 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 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, net of offsets related to DAC, DSI, and VOBA amortization and changes to GLWB and GMDB reserves. |
• | Integration, Restructuring, and Other Non-operating Expenses - Integration, restructuring, and other non-operating expenses consist of restructuring and integration expenses related to mergers and acquisitions as well as certain other expenses which are not part of our core operations or likely to re-occur in the foreseeable future. |
• | Stock Compensation Expense - To date, stock compensation expenses associated with our share incentive plans, excluding our long term incentive plan, are not part of our core operating expenses and fluctuate from time to time due to the structure of our plans. |
• | Bargain Purchase Gain - Bargain purchase gains associated with acquisitions are adjustments to net income as they are not consistent with our core operations. |
• | Provision for Income Taxes - Non-operating - The non-operating income tax expense is comprised of the appropriate jurisdiction's tax rate applied to the non-operating adjustments that are subject to income tax. |
Year-to-date | 2017 | 2016 | |||||||||||||||||||||||||
2017 | 2016 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Deposits | |||||||||||||||||||||||||||
$ | 1,099 | $ | 663 | Retail sales | $ | 1,099 | $ | 1,492 | $ | 2,011 | $ | 1,143 | $ | 663 | |||||||||||||
166 | 912 | Flow reinsurance | 166 | 348 | 871 | 1,318 | 912 | ||||||||||||||||||||
650 | — | FABN | 650 | — | — | — | — | ||||||||||||||||||||
$ | 1,915 | $ | 1,575 | Total deposits | $ | 1,915 | $ | 1,840 | $ | 2,882 | $ | 2,461 | $ | 1,575 | |||||||||||||
Consolidated results of operations | |||||||||||||||||||||||||||
$ | 373 | $ | 87 | Net income | $ | 373 | $ | 368 | $ | 158 | $ | 192 | $ | 87 | |||||||||||||
258 | 152 | Operating income, net of taxes | 258 | 284 | 146 | 178 | 152 | ||||||||||||||||||||
20.6 | % | 6.3 | % | ROE | 20.6 | % | 21.0 | % | 9.4 | % | 12.7 | % | 6.3 | % | |||||||||||||
22.2 | % | 6.2 | % | ROE excluding AOCI | 22.2 | % | 23.2 | % | 10.5 | % | 13.3 | % | 6.2 | % | |||||||||||||
15.3 | % | 10.8 | % | Operating ROE excluding AOCI | 15.3 | % | 17.9 | % | 9.7 | % | 12.3 | % | 10.8 | % | |||||||||||||
Retirement Services | |||||||||||||||||||||||||||
$ | 267 | $ | 197 | Operating income, net of taxes | $ | 267 | $ | 246 | $ | 171 | $ | 195 | $ | 197 | |||||||||||||
22.8 | % | 19.7 | % | Operating ROE excluding AOCI | 22.8 | % | 21.8 | % | 15.4 | % | 18.6 | % | 19.7 | % | |||||||||||||
Earnings per share | |||||||||||||||||||||||||||
$ | 1.94 | $ | 0.47 | Basic1 | $ | 1.94 | $ | 1.94 | $ | 0.85 | $ | 1.03 | $ | 0.47 | |||||||||||||
$ | 1.87 | $ | 0.47 | Diluted - Class A2 | $ | 1.87 | $ | 1.80 | $ | 0.85 | $ | 1.03 | $ | 0.47 | |||||||||||||
$ | 1.32 | $ | 0.82 | Operating earnings per share - operating diluted Class A3 | $ | 1.32 | $ | 1.46 | $ | 0.78 | $ | 0.95 | $ | 0.82 | |||||||||||||
Book Value per share: | |||||||||||||||||||||||||||
$ | 39.26 | $ | 30.28 | Book value per share | $ | 39.26 | $ | 35.91 | $ | 38.00 | $ | 34.62 | $ | 30.28 | |||||||||||||
$ | 35.17 | $ | 30.55 | Book value per share, excluding AOCI3 | $ | 35.17 | $ | 33.29 | $ | 31.76 | $ | 31.46 | $ | 30.55 | |||||||||||||
Balance sheet items: | |||||||||||||||||||||||||||
$ | 89,220 | $ | 81,601 | Total assets | $ | 89,220 | $ | 86,720 | $ | 87,000 | $ | 84,301 | $ | 81,601 | |||||||||||||
73,573 | 67,865 | Invested assets | 73,573 | 71,834 | 71,595 | 69,859 | 67,865 | ||||||||||||||||||||
81,623 | 75,962 | Total liabilities | 81,623 | 79,814 | 79,926 | 77,863 | 75,962 | ||||||||||||||||||||
72,202 | 66,461 | Reserve liabilities | 72,202 | 70,951 | 70,892 | 68,335 | 66,461 | ||||||||||||||||||||
7,597 | 5,638 | Total Athene Holding Ltd. shareholders' equity | 7,597 | 6,905 | 7,073 | 6,437 | 5,638 | ||||||||||||||||||||
6,924 | 5,690 | Athene Holding Ltd. shareholders' equity excluding AOCI | 6,924 | 6,538 | 6,153 | 5,868 | 5,690 | ||||||||||||||||||||
— | % | — | % | Debt to equity (excluding AOCI) ratio | — | % | — | % | — | % | — | % | — | % | |||||||||||||
Share data: | |||||||||||||||||||||||||||
192.5 | 186.0 | Weighted average shares outstanding - basic1 | 192.5 | 189.2 | 185.8 | 186.0 | 186.0 | ||||||||||||||||||||
81.3 | 50.1 | Weighted average shares outstanding - diluted - Class A common shares2 | 81.3 | 63.9 | 49.9 | 50.1 | 50.1 | ||||||||||||||||||||
195.6 | 186.0 | Weighted average shares outstanding - operating diluted Class A common shares3 | 195.6 | 194.2 | 185.9 | 186.1 | 186.0 | ||||||||||||||||||||
193.5 | 186.2 | Common shares outstanding4 | 193.5 | 192.3 | 185.9 | 185.9 | 186.2 | ||||||||||||||||||||
196.8 | 186.2 | Operating diluted Class A common shares outstanding3 | 196.8 | 196.4 | 193.8 | 186.5 | 186.2 |
Year-to-date | 2017 | 2016 | |||||||||||||||||||||||||
2017 | 2016 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Capitalization | |||||||||||||||||||||||||||
$ | — | $ | — | Total debt1 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
7,597 | 5,638 | Total Athene Holding Ltd. shareholders' equity | 7,597 | 6,905 | 7,073 | 6,437 | 5,638 | ||||||||||||||||||||
7,597 | 5,638 | Total capitalization | 7,597 | 6,905 | 7,073 | 6,437 | 5,638 | ||||||||||||||||||||
673 | (52 | ) | Less: AOCI | 673 | 367 | 920 | 569 | (52 | ) | ||||||||||||||||||
$ | 6,924 | $ | 5,690 | Total capitalization excluding AOCI | $ | 6,924 | $ | 6,538 | $ | 6,153 | $ | 5,868 | $ | 5,690 | |||||||||||||
Equity by segment | |||||||||||||||||||||||||||
$ | 4,853 | $ | 4,071 | Retirement Services | $ | 4,853 | $ | 4,495 | $ | 4,584 | $ | 4,243 | $ | 4,071 | |||||||||||||
2,071 | 1,619 | Corporate and Other | 2,071 | 2,043 | 1,569 | 1,625 | 1,619 | ||||||||||||||||||||
6,924 | 5,690 | Total AHL shareholders' equity excluding AOCI | 6,924 | 6,538 | 6,153 | 5,868 | 5,690 | ||||||||||||||||||||
673 | (52 | ) | AOCI | 673 | 367 | 920 | 569 | (52 | ) | ||||||||||||||||||
$ | 7,597 | $ | 5,638 | Total AHL shareholders' equity | $ | 7,597 | $ | 6,905 | $ | 7,073 | $ | 6,437 | $ | 5,638 | |||||||||||||
— | % | — | % | Debt to equity (excluding AOCI) ratio | — | % | — | % | — | % | — | % | — | % |
March 31, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Investments: | |||||||
Available-for-sale securities, at fair value | |||||||
Fixed maturity securities | $ | 54,225 | $ | 52,033 | |||
Equity securities | 422 | 353 | |||||
Trading securities, at fair value | 2,595 | 2,581 | |||||
Mortgage loans, net of allowances | 5,453 | 5,470 | |||||
Investment funds | 689 | 689 | |||||
Policy loans | 579 | 602 | |||||
Funds withheld at interest | 6,593 | 6,538 | |||||
Derivative assets | 1,708 | 1,370 | |||||
Real estate | 553 | 542 | |||||
Short-term investments, at fair value | 166 | 189 | |||||
Other investments | 82 | 81 | |||||
Total investments | 73,065 | 70,448 | |||||
Cash and cash equivalents | 2,563 | 2,445 | |||||
Restricted cash | 73 | 57 | |||||
Investments in related parties | |||||||
Available-for-sale securities, at fair value | |||||||
Fixed maturity securities | 361 | 335 | |||||
Equity securities | — | 20 | |||||
Trading securities, at fair value | 169 | 195 | |||||
Investment funds | 1,276 | 1,198 | |||||
Short-term investments | 20 | — | |||||
Other investments | 238 | 237 | |||||
Accrued investment income | 575 | 554 | |||||
Reinsurance recoverable | 5,960 | 6,001 | |||||
Deferred acquisition costs, deferred sales inducements, and value of business acquired | 2,895 | 2,964 | |||||
Current income tax recoverable | 12 | 107 | |||||
Deferred tax assets | 233 | 369 | |||||
Other assets | 817 | 869 | |||||
Assets of consolidated variable interest entities | |||||||
Investments | |||||||
Available-for-sale securities, at fair value | |||||||
Equity securities | 191 | 161 | |||||
Trading securities, at fair value | 166 | 167 | |||||
Investment funds | 599 | 573 | |||||
Cash and cash equivalents | 2 | 14 | |||||
Other assets | 5 | 6 | |||||
Total assets | $ | 89,220 | $ | 86,720 | |||
(Continued) |
March 31, 2017 | December 31, 2016 | ||||||
Liabilities and Equity | |||||||
Liabilities | |||||||
Interest sensitive contract liabilities | $ | 62,634 | $ | 61,532 | |||
Future policy benefits | 14,727 | 14,569 | |||||
Other policy claims and benefits | 214 | 217 | |||||
Dividends payable to policyholders | 917 | 974 | |||||
Derivative liabilities | 32 | 40 | |||||
Payables for collateral on derivatives | 1,681 | 1,383 | |||||
Funds withheld liability | 382 | 380 | |||||
Other liabilities | 999 | 685 | |||||
Liabilities of consolidated variable interest entities | 37 | 34 | |||||
Total liabilities | 81,623 | 79,814 | |||||
Equity | |||||||
Common Stock | — | — | |||||
Additional paid-in-capital | 3,436 | 3,421 | |||||
Retained earnings | 3,488 | 3,117 | |||||
Accumulated other comprehensive income (loss) | 673 | 367 | |||||
Total Athene Holding Ltd. shareholders' equity | 7,597 | 6,905 | |||||
Noncontrolling interests | — | 1 | |||||
Total equity | 7,597 | 6,906 | |||||
Total liabilities and equity | $ | 89,220 | $ | 86,720 | |||
(Concluded) |
Year-to-date | 2017 | 2016 | |||||||||||||||||||||||||
2017 | 2016 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||
$ | 52 | $ | 60 | Premiums | $ | 52 | $ | 35 | $ | 85 | $ | 60 | $ | 60 | |||||||||||||
81 | 66 | Product charges | 81 | 75 | 71 | 69 | 66 | ||||||||||||||||||||
786 | 692 | Net investment income | 786 | 773 | 747 | 704 | 692 | ||||||||||||||||||||
682 | (82 | ) | Investment related gains (losses) | 682 | 129 | 380 | 225 | (82 | ) | ||||||||||||||||||
Other-than-temporary impairment investment losses | |||||||||||||||||||||||||||
— | (22 | ) | Other-than-temporary impairment losses | — | (1 | ) | (7 | ) | (2 | ) | (22 | ) | |||||||||||||||
(1 | ) | 12 | Other-than-temporary impairment losses recognized in other comprehensive income | (1 | ) | (2 | ) | 1 | (9 | ) | 12 | ||||||||||||||||
(1 | ) | (10 | ) | Net other-than-temporary impairment losses | (1 | ) | (3 | ) | (6 | ) | (11 | ) | (10 | ) | |||||||||||||
8 | 8 | Other revenues | 8 | 9 | 8 | 9 | 8 | ||||||||||||||||||||
Revenues related to consolidated variable interest entities | |||||||||||||||||||||||||||
10 | 11 | Net investment income | 10 | 27 | 7 | 22 | 11 | ||||||||||||||||||||
1 | (23 | ) | Investment related gains (losses) | 1 | 17 | (16 | ) | (31 | ) | (23 | ) | ||||||||||||||||
1,619 | 722 | Total revenues | 1,619 | 1,062 | 1,276 | 1,047 | 722 | ||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||||
696 | 253 | Interest sensitive contract benefits | 696 | 225 | 482 | 333 | 253 | ||||||||||||||||||||
18 | 4 | Amortization of deferred sales inducements | 18 | 20 | 14 | 2 | 4 | ||||||||||||||||||||
214 | 224 | Future policy and other policy benefits | 214 | 181 | 377 | 261 | 224 | ||||||||||||||||||||
108 | 28 | Amortization of deferred acquisition costs and value of business acquired | 108 | 101 | 113 | 62 | 28 | ||||||||||||||||||||
32 | 17 | Dividends to policyholders | 32 | (28 | ) | 35 | 13 | 17 | |||||||||||||||||||
156 | 104 | Policy and other operating expenses | 156 | 177 | 180 | 163 | 104 | ||||||||||||||||||||
— | 4 | Operating expenses of consolidated variable interest entities | — | — | 4 | 5 | 4 | ||||||||||||||||||||
1,224 | 634 | Total benefits and expenses | 1,224 | 676 | 1,205 | 839 | 634 | ||||||||||||||||||||
395 | 88 | Income before income taxes | 395 | 386 | 71 | 208 | 88 | ||||||||||||||||||||
22 | 1 | Income tax expense (benefit) | 22 | 18 | (87 | ) | 16 | 1 | |||||||||||||||||||
373 | 87 | Net income | 373 | 368 | 158 | 192 | 87 | ||||||||||||||||||||
— | — | Less: Net income attributable to noncontrolling interests | — | — | — | — | — | ||||||||||||||||||||
$ | 373 | $ | 87 | Net income available to Athene Holding Ltd. shareholders | $ | 373 | $ | 368 | $ | 158 | $ | 192 | $ | 87 |
Year-to-date | 2017 | 2016 | |||||||||||||||||||||||||
2017 | 2016 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Operating income, net of tax by segment | |||||||||||||||||||||||||||
$ | 267 | $ | 197 | Retirement Services | $ | 267 | $ | 246 | $ | 171 | $ | 195 | $ | 197 | |||||||||||||
(9 | ) | (45 | ) | Corporate and Other | (9 | ) | 38 | (25 | ) | (17 | ) | (45 | ) | ||||||||||||||
258 | 152 | Operating income, net of tax | 258 | 284 | 146 | 178 | 152 | ||||||||||||||||||||
11 | 8 | Realized gains (losses) on sale of AFS securities | 11 | 40 | 18 | 11 | 8 | ||||||||||||||||||||
3 | (25 | ) | Unrealized, impairments, and other investment gains (losses) | 3 | (19 | ) | (13 | ) | 1 | (25 | ) | ||||||||||||||||
68 | (3 | ) | Assumed modco and funds withheld reinsurance embedded derivatives | 68 | (76 | ) | 73 | 74 | (3 | ) | |||||||||||||||||
(25 | ) | 1 | Offsets to investment gains (losses) | (25 | ) | 5 | (21 | ) | (27 | ) | 1 | ||||||||||||||||
57 | (19 | ) | Investment gains (losses), net of offsets | 57 | (50 | ) | 57 | 59 | (19 | ) | |||||||||||||||||
94 | (69 | ) | Change in fair values of derivatives and embedded derivatives - FIAs, net of offsets | 94 | 179 | 3 | (16 | ) | (69 | ) | |||||||||||||||||
(9 | ) | (1 | ) | Integration, restructuring and other non-operating expenses | (9 | ) | (14 | ) | (2 | ) | (5 | ) | (1 | ) | |||||||||||||
(13 | ) | 15 | Stock compensation expense | (13 | ) | (20 | ) | (46 | ) | (28 | ) | 15 | |||||||||||||||
(14 | ) | 9 | Income tax (expense) benefit - non-operating | (14 | ) | (11 | ) | — | 4 | 9 | |||||||||||||||||
115 | (65 | ) | Total non-operating adjustments | 115 | 84 | 12 | 14 | (65 | ) | ||||||||||||||||||
$ | 373 | $ | 87 | Net income available to AHL shareholders | $ | 373 | $ | 368 | $ | 158 | $ | 192 | $ | 87 | |||||||||||||
$ | 1.32 | $ | 0.82 | Operating income, net of tax – per operating dilutive Class A common share | $ | 1.32 | $ | 1.46 | $ | 0.78 | $ | 0.95 | $ | 0.82 | |||||||||||||
0.07 | 0.06 | Realized gains (losses) on sale of AFS securities | 0.07 | 0.21 | 0.09 | 0.05 | 0.06 | ||||||||||||||||||||
0.02 | (0.14 | ) | Unrealized, impairments, and other investment gains (losses) | 0.02 | (0.10 | ) | (0.07 | ) | 0.01 | (0.14 | ) | ||||||||||||||||
0.34 | (0.02 | ) | Assumed modco and funds withheld reinsurance embedded derivatives | 0.34 | (0.39 | ) | 0.40 | 0.40 | (0.02 | ) | |||||||||||||||||
(0.13 | ) | — | Offsets to investment gains (losses) | (0.13 | ) | 0.03 | (0.11 | ) | (0.14 | ) | — | ||||||||||||||||
0.30 | (0.10 | ) | Investment gains (losses), net of offsets | 0.30 | (0.25 | ) | 0.31 | 0.32 | (0.10 | ) | |||||||||||||||||
0.48 | (0.36 | ) | Change in fair values of derivatives and embedded derivatives - FIAs, net of offsets | 0.48 | 0.92 | 0.02 | (0.09 | ) | (0.36 | ) | |||||||||||||||||
(0.05 | ) | (0.01 | ) | Integration, restructuring and other non-operating expenses | (0.05 | ) | (0.07 | ) | (0.02 | ) | (0.02 | ) | (0.01 | ) | |||||||||||||
(0.07 | ) | 0.08 | Stock compensation expense | (0.07 | ) | (0.10 | ) | (0.25 | ) | (0.16 | ) | 0.08 | |||||||||||||||
(0.07 | ) | 0.04 | Income tax (expense) benefit - non-operating | (0.07 | ) | (0.07 | ) | 0.01 | 0.03 | 0.04 | |||||||||||||||||
0.59 | (0.35 | ) | Total non-operating adjustments | 0.59 | 0.43 | 0.07 | 0.08 | (0.35 | ) | ||||||||||||||||||
0.03 | — | Effect of items convertible to or settled in Class A common shares | 0.03 | 0.05 | — | — | — | ||||||||||||||||||||
$ | 1.94 | $ | 0.47 | Basic earnings per share – Class A common shares | $ | 1.94 | $ | 1.94 | $ | 0.85 | $ | 1.03 | $ | 0.47 |
Year-to-date | 2017 | 2016 | |||||||||||||||||||||||||
2017 | 2016 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
$ | 745 | $ | 683 | Fixed income and other investment income | $ | 745 | $ | 720 | $ | 696 | $ | 668 | $ | 683 | |||||||||||||
69 | (3 | ) | Alternative investment income | 69 | 122 | 86 | 60 | (3 | ) | ||||||||||||||||||
814 | 680 | Net investment earnings | 814 | 842 | 782 | 728 | 680 | ||||||||||||||||||||
(263 | ) | (243 | ) | Cost of crediting on deferred annuities | (263 | ) | (264 | ) | (259 | ) | (253 | ) | (243 | ) | |||||||||||||
(211 | ) | (206 | ) | Other liability costs1 | (211 | ) | (213 | ) | (396 | ) | (206 | ) | (206 | ) | |||||||||||||
(74 | ) | (69 | ) | Operating expenses | (74 | ) | (74 | ) | (68 | ) | (71 | ) | (69 | ) | |||||||||||||
266 | 162 | Operating income, before tax | 266 | 291 | 59 | 198 | 162 | ||||||||||||||||||||
(8 | ) | (10 | ) | Income tax (expense) benefit - operating income | (8 | ) | (7 | ) | 87 | (20 | ) | (10 | ) | ||||||||||||||
$ | 258 | $ | 152 | Operating income, net of tax | $ | 258 | $ | 284 | $ | 146 | $ | 178 | $ | 152 |
Year-to-date | 2017 | 2016 | |||||||||||||||||||||||||
2017 | 2016 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
$ | 712 | $ | 657 | Fixed income and other investment income | $ | 712 | $ | 689 | $ | 665 | $ | 640 | $ | 657 | |||||||||||||
68 | 34 | Alternative investment income | 68 | 104 | 94 | 72 | 34 | ||||||||||||||||||||
780 | 691 | Net investment earnings | 780 | 793 | 759 | 712 | 691 | ||||||||||||||||||||
(263 | ) | (243 | ) | Cost of crediting on deferred annuities | (263 | ) | (264 | ) | (259 | ) | (253 | ) | (243 | ) | |||||||||||||
(189 | ) | (188 | ) | Other liability costs | (189 | ) | (217 | ) | (364 | ) | (198 | ) | (188 | ) | |||||||||||||
(52 | ) | (49 | ) | Operating expenses | (52 | ) | (56 | ) | (50 | ) | (51 | ) | (49 | ) | |||||||||||||
276 | 211 | Operating income, before tax | 276 | 256 | 86 | 210 | 211 | ||||||||||||||||||||
(9 | ) | (14 | ) | Income tax (expense) benefit - operating income | (9 | ) | (10 | ) | 85 | (15 | ) | (14 | ) | ||||||||||||||
$ | 267 | $ | 197 | Operating income, net of tax | $ | 267 | $ | 246 | $ | 171 | $ | 195 | $ | 197 |
Year-to-date | 2017 | 2016 | |||||||||||||||||||||||||
2017 | 2016 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
$ | 33 | $ | 26 | Fixed income and other investment income | $ | 33 | $ | 31 | $ | 31 | $ | 28 | $ | 26 | |||||||||||||
1 | (37 | ) | Alternative investment income | 1 | 18 | (8 | ) | (12 | ) | (37 | ) | ||||||||||||||||
34 | (11 | ) | Net investment earnings | 34 | 49 | 23 | 16 | (11 | ) | ||||||||||||||||||
— | — | Cost of crediting on deferred annuities | — | — | — | — | — | ||||||||||||||||||||
(22 | ) | (18 | ) | Other liability costs | (22 | ) | 4 | (32 | ) | (8 | ) | (18 | ) | ||||||||||||||
(22 | ) | (20 | ) | Operating expenses | (22 | ) | (18 | ) | (18 | ) | (20 | ) | (20 | ) | |||||||||||||
(10 | ) | (49 | ) | Operating income, before tax | (10 | ) | 35 | (27 | ) | (12 | ) | (49 | ) | ||||||||||||||
1 | 4 | Income tax (expense) benefit - operating income | 1 | 3 | 2 | (5 | ) | 4 | |||||||||||||||||||
$ | (9 | ) | $ | (45 | ) | Operating income, net of tax | $ | (9 | ) | $ | 38 | $ | (25 | ) | $ | (17 | ) | $ | (45 | ) |
Year-to-date | 2017 | 2016 | ||||||||||||||||||
2017 | 2016 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||
4.76 | % | 4.59 | % | Net investment earned rate | 4.76 | % | 4.91 | % | 4.77 | % | 4.62 | % | 4.59 | % | ||||||
1.91 | % | 1.96 | % | Cost of crediting on deferred annuities | 1.91 | % | 1.95 | % | 1.96 | % | 1.99 | % | 1.96 | % | ||||||
2.85 | % | 2.63 | % | Investment margin on deferred annuities | 2.85 | % | 2.96 | % | 2.81 | % | 2.63 | % | 2.63 | % |
Year-to-date | 2017 | 2016 | |||||||||||||||||||||||||
2017 | 2016 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
4.52 | % | 4.54 | % | Fixed income and other investments | 4.52 | % | 4.44 | % | 4.36 | % | 4.32 | % | 4.54 | % | |||||||||||||
10.58 | % | 5.79 | % | Alternative investments | 10.58 | % | 16.25 | % | 14.90 | % | 11.82 | % | 5.79 | % | |||||||||||||
4.76 | % | 4.59 | % | Total net investment earned rate | 4.76 | % | 4.91 | % | 4.77 | % | 4.62 | % | 4.59 | % | |||||||||||||
$ | 712 | $ | 657 | Fixed income and other investment income | $ | 712 | $ | 689 | $ | 665 | $ | 640 | $ | 657 | |||||||||||||
68 | 34 | Alternatives investment income | 68 | 104 | 94 | 72 | 34 | ||||||||||||||||||||
$ | 780 | $ | 691 | Total net investment earnings | $ | 780 | $ | 793 | $ | 759 | $ | 712 | $ | 691 | |||||||||||||
Average invested assets | |||||||||||||||||||||||||||
$ | 62,986 | $ | 57,902 | Fixed income and other investments | $ | 62,986 | $ | 62,096 | $ | 61,117 | $ | 59,235 | $ | 57,902 | |||||||||||||
2,594 | 2,357 | Alternative investments | 2,594 | 2,543 | 2,521 | 2,451 | 2,357 | ||||||||||||||||||||
$ | 65,580 | $ | 60,259 | Total average invested assets | $ | 65,580 | $ | 64,639 | $ | 63,638 | $ | 61,686 | $ | 60,259 |
Year-to-date | 2017 | 2016 | |||||||||||||||||||||||||
2017 | 2016 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
$ | 137 | $ | 130 | FIA option costs | $ | 137 | $ | 136 | $ | 135 | $ | 133 | $ | 130 | |||||||||||||
126 | 113 | Fixed interest credited to policyholders | 126 | 128 | 124 | 120 | 113 | ||||||||||||||||||||
$ | 263 | $ | 243 | Cost of crediting on deferred annuities | $ | 263 | $ | 264 | $ | 259 | $ | 253 | $ | 243 | |||||||||||||
1.91 | % | 1.96 | % | Cost of crediting on deferred annuities rate | 1.91 | % | 1.95 | % | 1.96 | % | 1.99 | % | 1.96 | % | |||||||||||||
$ | 55,154 | $ | 49,626 | Average account value on deferred annuities | $ | 55,154 | $ | 54,358 | $ | 52,739 | $ | 50,817 | $ | 49,626 |
Year-to-date | 2017 | 2016 | |||||||||||||||||||||||||
2017 | 2016 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
$ | 54,880 | $ | 49,257 | Account value at beginning of period | $ | 54,880 | $ | 53,837 | $ | 51,640 | $ | 49,994 | $ | 49,257 | |||||||||||||
1,308 | 1,598 | Deposits1 | 1,308 | 1,878 | 2,914 | 2,497 | 1,598 | ||||||||||||||||||||
36 | 37 | Premium and interest bonuses | 36 | 56 | 60 | 47 | 37 | ||||||||||||||||||||
461 | 164 | Fixed and index credits to policyholders | 461 | 304 | 268 | 174 | 164 | ||||||||||||||||||||
(1,194 | ) | (1,014 | ) | Surrenders and benefits paid | (1,194 | ) | (1,135 | ) | (990 | ) | (1,020 | ) | (1,014 | ) | |||||||||||||
(62 | ) | (48 | ) | Fee and product charges | (62 | ) | (60 | ) | (55 | ) | (52 | ) | (48 | ) | |||||||||||||
$ | 55,429 | $ | 49,994 | Account value at end of period | $ | 55,429 | $ | 54,880 | $ | 53,837 | $ | 51,640 | $ | 49,994 |
Surrender Charge | Net Account Value | ||||||||||||||
Average years at issue | Average years remaining | Average percent remaining | Dollars | Percent of Total | |||||||||||
Fixed index annuities | 10.2 | 5.6 | 8.0 | % | $ | 42,273 | 76.3 | % | |||||||
Single-year fixed rate guaranteed annuities | 7 | 1.7 | 3.0 | % | 8,000 | 14.4 | % | ||||||||
Multi-year fixed rate guaranteed annuities | 5.3 | 3.8 | 9.0 | % | 5,156 | 9.3 | % | ||||||||
Total | $ | 55,429 | 100.0 | % |
Net account value | |||||||||||||
Surrender charge (gross) | Percent of Total | Surrender charge (net of MVA) | Percent of Total | ||||||||||
No surrender charge | $ | 7,951 | 14.3 | % | $ | 7,951 | 14.3 | % | |||||
0.0% < 2.0% | 151 | 0.3 | % | 524 | 0.9 | % | |||||||
2.0% < 4.0% | 1,609 | 2.9 | % | 2,971 | 5.4 | % | |||||||
4.0% < 6.0% | 3,647 | 6.6 | % | 8,448 | 15.2 | % | |||||||
6.0% < 8.0% | 11,466 | 20.7 | % | 8,460 | 15.3 | % | |||||||
8.0% < 10.0% | 14,299 | 25.8 | % | 9,292 | 16.8 | % | |||||||
10.0% or greater | 16,306 | 29.4 | % | 17,783 | 32.1 | % | |||||||
$ | 55,429 | 100.0 | % | $ | 55,429 | 100.0 | % | ||||||
Surrender charge (gross) | MVA benefit | Surrender charge (net) | |||||||||||
Aggregate surrender charge protection | 7.5 | % | 0.3 | % | 7.8 | % |
Years of surrender charge remaining | Deferred annuities account value | Percent of total | Average surrender charge percent (gross of MVA) | ||||||
No Surrender Charge | $ | 7,951 | 14.4 | % | — | % | |||
> 0 to less than 2 | 8,690 | 15.7 | % | 5.2 | % | ||||
2 to less than 4 | 10,768 | 19.4 | % | 7.3 | % | ||||
4 to less than 6 | 11,911 | 21.5 | % | 8.9 | % | ||||
6 to less than 8 | 6,361 | 11.5 | % | 10.1 | % | ||||
8 to less than 10 | 6,178 | 11.1 | % | 11.4 | % | ||||
10 to less than 12 | 2,547 | 4.6 | % | 14.1 | % | ||||
12 or greater | 1,023 | 1.8 | % | 14.8 | % | ||||
$ | 55,429 | 100.0 | % |
At minimum guarantees | Total account value | Percent of total account value at minimum guarantees | ||||||||
Fixed indexed annuities | $ | 15,573 | $ | 42,273 | 36.8 | % | ||||
Fixed rate annuities | 6,639 | 13,156 | 50.5 | % | ||||||
Total deferred annuities | $ | 22,212 | $ | 55,429 | 40.1 | % | ||||
March 31, 2017 | ||||||||||
Distance to guarantees1 | 75 - 85 bps |
March 31, 2017 | December 31, 2016 | ||||||||||||
Dollars | Percent of Total | Dollars | Percent of Total | ||||||||||
Fixed indexed annuities | $ | 44,502 | 61.6 | % | $ | 43,501 | 61.3 | % | |||||
Fixed rate annuities | 13,398 | 18.6 | % | 13,490 | 19.0 | % | |||||||
Total deferred annuities | 57,900 | 80.2 | % | 56,991 | 80.3 | % | |||||||
Payout annuities | 5,378 | 7.4 | % | 5,446 | 7.7 | % | |||||||
Funding agreements | 1,531 | 2.1 | % | 1,109 | 1.6 | % | |||||||
Life and other (excluding German products) | 2,181 | 3.1 | % | 2,176 | 3.0 | % | |||||||
Retirement Services reserve liabilities | 66,990 | 92.8 | % | 65,722 | 92.6 | % | |||||||
Germany products | 5,367 | 7.4 | % | 5,381 | 7.6 | % | |||||||
Intersegment eliminations | (155 | ) | (0.2 | )% | (152 | ) | (0.2 | )% | |||||
Total reserve liabilities | $ | 72,202 | 100.0 | % | $ | 70,951 | 100.0 | % |
Year-to-date | 2017 | 2016 | |||||||||||||||||||||||||
March 31, 2017 | March 31, 2016 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
$ | 65,722 | $ | 59,854 | Retirement Services reserve liabilities - beginning | $ | 65,722 | $ | 65,073 | $ | 62,650 | $ | 60,708 | $ | 59,854 | |||||||||||||
2,059 | 1,680 | Deposits1 | 2,059 | 1,884 | 2,979 | 2,537 | 1,680 | ||||||||||||||||||||
(1,674 | ) | (1,352 | ) | Withdrawals | (1,674 | ) | (1,350 | ) | (1,412 | ) | (1,282 | ) | (1,352 | ) | |||||||||||||
883 | 526 | Other reserve changes | 883 | 115 | 856 | 687 | 526 | ||||||||||||||||||||
66,990 | 60,708 | Retirement Services reserve liabilities - ending | 66,990 | 65,722 | 65,073 | 62,650 | 60,708 | ||||||||||||||||||||
5,367 | 5,918 | Germany reserve liabilities | 5,367 | 5,381 | 5,982 | 5,846 | 5,918 | ||||||||||||||||||||
(155 | ) | (165 | ) | Intersegment eliminations | (155 | ) | (152 | ) | (163 | ) | (161 | ) | (165 | ) | |||||||||||||
$ | 72,202 | $ | 66,461 | Consolidated reserve liabilities - ending | $ | 72,202 | $ | 70,951 | $ | 70,892 | $ | 68,335 | $ | 66,461 |
March 31, 2017 | December 31, 2016 | ||||||||||||
Carrying Value | Percent of Total | Carrying Value | Percent of Total | ||||||||||
Available for sale securities at fair value: | |||||||||||||
Fixed maturity securities: | |||||||||||||
U.S. government and agencies | $ | 60 | 0.1 | % | $ | 60 | 0.1 | % | |||||
State, municipals and political subdivisions | 1,140 | 1.5 | % | 1,140 | 1.6 | % | |||||||
Foreign governments | 2,031 | 2.7 | % | 2,235 | 3.1 | % | |||||||
Corporate | 31,567 | 42.0 | % | 30,020 | 41.4 | % | |||||||
CLOs | 5,021 | 6.7 | % | 4,822 | 6.7 | % | |||||||
RMBS | 9,286 | 12.4 | % | 8,973 | 12.4 | % | |||||||
CMBS | 1,860 | 2.5 | % | 1,847 | 2.5 | % | |||||||
ABS | 3,260 | 4.3 | % | 2,936 | 4.0 | % | |||||||
Equity securities | 422 | 0.6 | % | 353 | 0.5 | % | |||||||
Trading securities, at fair value | 2,595 | 3.5 | % | 2,581 | 3.6 | % | |||||||
Mortgage loans, net of allowances | 5,453 | 7.2 | % | 5,470 | 7.5 | % | |||||||
Investment funds | 689 | 0.9 | % | 689 | 1.0 | % | |||||||
Policy loans | 579 | 0.8 | % | 602 | 0.8 | % | |||||||
Funds withheld at interest | 6,593 | 8.8 | % | 6,538 | 9.0 | % | |||||||
Derivative assets | 1,708 | 2.3 | % | 1,370 | 1.9 | % | |||||||
Real estate | 553 | 0.7 | % | 542 | 0.7 | % | |||||||
Short-term investments | 166 | 0.2 | % | 189 | 0.3 | % | |||||||
Other investments | 82 | 0.1 | % | 81 | 0.1 | % | |||||||
Total investments | 73,065 | 97.3 | % | 70,448 | 97.2 | % | |||||||
Investment in related parties: | |||||||||||||
Available for sale securities at fair value: | |||||||||||||
Fixed maturity securities | 361 | 0.5 | % | 335 | 0.5 | % | |||||||
Equity securities | — | — | % | 20 | — | % | |||||||
Trading securities, at fair value | 169 | 0.2 | % | 195 | 0.3 | % | |||||||
Investment funds | 1,276 | 1.7 | % | 1,198 | 1.7 | % | |||||||
Other investments | 238 | 0.3 | % | 237 | 0.3 | % | |||||||
Short term investments | 20 | — | % | — | — | % | |||||||
Total related party investments | 2,064 | 2.7 | % | 1,985 | 2.8 | % | |||||||
Total investments, including related parties | $ | 75,129 | 100.0 | % | $ | 72,433 | 100.0 | % |
March 31, 2017 | December 31, 2016 | ||||||||||||||||||||
Amortized Cost | Fair Value | Percent of Total | Amortized Cost | Fair Value | Percent of Total | ||||||||||||||||
Corporate: | |||||||||||||||||||||
Industrial other1 | $ | 10,877 | $ | 11,167 | 20.5 | % | $ | 10,417 | $ | 10,645 | 20.3 | % | |||||||||
Financial | 9,455 | 9,724 | 17.8 | % | 8,957 | 9,156 | 17.5 | % | |||||||||||||
Utilities | 6,726 | 6,843 | 12.5 | % | 6,512 | 6,588 | 12.6 | % | |||||||||||||
Communication | 2,260 | 2,313 | 4.2 | % | 2,182 | 2,235 | 4.3 | % | |||||||||||||
Transportation | 1,488 | 1,520 | 2.8 | % | 1,365 | 1,396 | 2.7 | % | |||||||||||||
Total corporate | 30,806 | 31,567 | 57.8 | % | 29,433 | 30,020 | 57.4 | % | |||||||||||||
Other government-related securities | |||||||||||||||||||||
State, municipals and political subdivisions | 1,016 | 1,140 | 2.1 | % | 1,024 | 1,140 | 2.2 | % | |||||||||||||
Foreign governments | 1,959 | 2,031 | 3.7 | % | 2,098 | 2,235 | 4.3 | % | |||||||||||||
U.S. treasuries | 59 | 60 | 0.1 | % | 59 | 60 | 0.1 | % | |||||||||||||
Total non-structured securities | 33,840 | 34,798 | 63.7 | % | 32,614 | 33,455 | 64.0 | % | |||||||||||||
Structured securities: | |||||||||||||||||||||
CLOs | 5,343 | 5,327 | 9.8 | % | 5,234 | 5,101 | 9.7 | % | |||||||||||||
ABS | 3,334 | 3,315 | 6.1 | % | 3,037 | 2,992 | 5.7 | % | |||||||||||||
CMBS | 1,835 | 1,860 | 3.4 | % | 1,835 | 1,847 | 3.5 | % | |||||||||||||
RMBS | |||||||||||||||||||||
Agency | 104 | 106 | 0.2 | % | 110 | 112 | 0.2 | % | |||||||||||||
Non-agency | 8,753 | 9,180 | 16.8 | % | 8,621 | 8,861 | 16.9 | % | |||||||||||||
Total structured securities | 19,369 | 19,788 | 36.3 | % | 18,837 | 18,913 | 36.0 | % | |||||||||||||
Total fixed maturity securities, including related parties | $ | 53,209 | $ | 54,586 | 100.0 | % | $ | 51,451 | $ | 52,368 | 100.0 | % |
March 31, 2017 | December 31, 2016 | ||||||||||||
Fair Value | Percent of Total | Fair Value | Percent of Total | ||||||||||
NAIC designation | |||||||||||||
1 | $ | 30,635 | 56.2 | % | $ | 30,211 | 57.7 | % | |||||
2 | 20,109 | 36.8 | % | 18,617 | 35.5 | % | |||||||
Total investment grade | 50,744 | 93.0 | % | 48,828 | 93.2 | % | |||||||
3 | 3,110 | 5.7 | % | 2,812 | 5.4 | % | |||||||
4 | 624 | 1.1 | % | 622 | 1.2 | % | |||||||
5 | 91 | 0.2 | % | 82 | 0.2 | % | |||||||
6 | 17 | — | % | 24 | — | % | |||||||
Total below investment grade | 3,842 | 7.0 | % | 3,540 | 6.8 | % | |||||||
Total fixed maturity securities, including related parties | $ | 54,586 | 100.0 | % | $ | 52,368 | 100.0 | % |
March 31, 2017 | December 31, 2016 | ||||||||||||
Fair Value | Percent of Total | Fair Value | Percent of Total | ||||||||||
NRSRO rating agency designation | |||||||||||||
AAA/AA/A | $ | 19,069 | 34.8 | % | $ | 18,791 | 35.9 | % | |||||
BBB | 19,352 | 35.5 | % | 18,002 | 34.4 | % | |||||||
Non-rated1 | 5,936 | 10.9 | % | 5,650 | 10.8 | % | |||||||
Total investment grade2 | 44,357 | 81.2 | % | 42,443 | 81.1 | % | |||||||
BB | 3,349 | 6.1 | % | 3,286 | 6.3 | % | |||||||
B | 1,286 | 2.4 | % | 1,372 | 2.6 | % | |||||||
CCC | 2,438 | 4.5 | % | 2,374 | 4.5 | % | |||||||
CC and lower | 2,576 | 4.7 | % | 2,404 | 4.6 | % | |||||||
Non-rated 1 | 580 | 1.1 | % | 489 | 0.9 | % | |||||||
Total below investment grade | 10,229 | 18.8 | % | 9,925 | 18.9 | % | |||||||
Total fixed maturity securities, including related parties | $ | 54,586 | 100.0 | % | $ | 52,368 | 100.0 | % |
March 31, 2017 | December 31, 2016 | ||||||||||||||||||||||||||||
Principal Amount | Amortized Cost | Fair Value | Percent of Total | Principal Amount | Amortized Cost | Fair Value | Percent of Total | ||||||||||||||||||||||
NAIC designation | |||||||||||||||||||||||||||||
1 | $ | 10,032 | $ | 8,464 | $ | 8,884 | 95.7 | % | $ | 9,960 | $ | 8,414 | $ | 8,652 | 96.4 | % | |||||||||||||
2 | 214 | 194 | 197 | 2.1 | % | 152 | 141 | 140 | 1.6 | % | |||||||||||||||||||
Total investment grade | 10,246 | 8,658 | 9,081 | 97.8 | % | 10,112 | 8,555 | 8,792 | 98.0 | % | |||||||||||||||||||
3 | 135 | 121 | 124 | 1.3 | % | 104 | 92 | 96 | 1.1 | % | |||||||||||||||||||
4 | 24 | 23 | 25 | 0.3 | % | 31 | 29 | 29 | 0.3 | % | |||||||||||||||||||
5 | 54 | 53 | 54 | 0.6 | % | 54 | 53 | 54 | 0.6 | % | |||||||||||||||||||
6 | 3 | 2 | 2 | — | % | 2 | 2 | 2 | — | % | |||||||||||||||||||
Total below investment grade | 216 | 199 | 205 | 2.2 | % | 191 | 176 | 181 | 2.0 | % | |||||||||||||||||||
Total | $ | 10,462 | $ | 8,857 | $ | 9,286 | 100.0 | % | $ | 10,303 | $ | 8,731 | $ | 8,973 | 100.0 | % |
March 31, 2017 | December 31, 2016 | ||||||||||||
Net Carrying Value | Percent of Total | Net Carrying Value | Percent of Total | ||||||||||
Property type | |||||||||||||
Hotels | $ | 998 | 18.3 | % | $ | 1,025 | 18.7 | % | |||||
Retail | 1,138 | 20.8 | % | 1,135 | 20.7 | % | |||||||
Office building | 1,139 | 20.9 | % | 1,217 | 22.2 | % | |||||||
Industrial | 682 | 12.5 | % | 742 | 13.6 | % | |||||||
Apartment | 572 | 10.5 | % | 616 | 11.3 | % | |||||||
Other commercial 1 | 450 | 8.3 | % | 397 | 7.3 | % | |||||||
Total commercial mortgage loans | 4,979 | 91.3 | % | 5,132 | 93.8 | % | |||||||
Residential loans | 474 | 8.7 | % | 338 | 6.2 | % | |||||||
Total mortgage loans, net of allowances | $ | 5,453 | 100.0 | % | $ | 5,470 | 100.0 | % | |||||
US Region: | |||||||||||||
East North Central | $ | 405 | 7.4 | % | $ | 450 | 8.2 | % | |||||
East South Central | 148 | 2.7 | % | 158 | 2.9 | % | |||||||
Middle Atlantic | 662 | 12.1 | % | 628 | 11.5 | % | |||||||
Mountain | 538 | 9.9 | % | 543 | 9.9 | % | |||||||
New England | 192 | 3.5 | % | 194 | 3.5 | % | |||||||
Pacific | 810 | 14.9 | % | 833 | 15.2 | % | |||||||
South Atlantic | 1,192 | 21.9 | % | 1,284 | 23.5 | % | |||||||
West North Central | 296 | 5.4 | % | 306 | 5.6 | % | |||||||
West South Central | 663 | 12.2 | % | 662 | 12.1 | % | |||||||
Total US Region | 4,906 | 90.0 | % | 5,058 | 92.4 | % | |||||||
International Region | 73 | 1.3 | % | 74 | 1.4 | % | |||||||
Total commercial mortgage loans | 4,979 | 91.3 | % | 5,132 | 93.8 | % | |||||||
Residential loans | 474 | 8.7 | % | 338 | 6.2 | % | |||||||
Total mortgage loans, net of allowances | $ | 5,453 | 100.0 | % | $ | 5,470 | 100.0 | % |
March 31, 2017 | December 31, 2016 | ||||||||||||
Carrying Value | Percent of Total | Carrying Value | Percent of Total | ||||||||||
Investment funds | |||||||||||||
Private equity | $ | 245 | 9.6 | % | $ | 268 | 10.9 | % | |||||
Mortgage and real estate | 143 | 5.6 | % | 118 | 4.8 | % | |||||||
Natural resources | 5 | 0.2 | % | 5 | 0.2 | % | |||||||
Hedge funds | 69 | 2.7 | % | 72 | 2.9 | % | |||||||
Credit funds | 227 | 8.9 | % | 226 | 9.2 | % | |||||||
Total investment funds | 689 | 27.0 | % | 689 | 28.0 | % | |||||||
Investment funds - related parties | |||||||||||||
Private equity - A-A Mortgage | 366 | 14.3 | % | 343 | 13.9 | % | |||||||
Private equity | 152 | 5.9 | % | 131 | 5.3 | % | |||||||
Mortgage and real estate | 262 | 10.1 | % | 247 | 10.1 | % | |||||||
Natural resources | 76 | 3.0 | % | 49 | 2.0 | % | |||||||
Hedge funds | 180 | 7.0 | % | 192 | 7.8 | % | |||||||
Credit funds | 240 | 9.4 | % | 236 | 9.6 | % | |||||||
Total investment funds - related parties | 1,276 | 49.7 | % | 1,198 | 48.7 | % | |||||||
Total investment funds - assets of consolidated VIEs | |||||||||||||
Private equity - MidCap 1 | 528 | 20.6 | % | 524 | 21.3 | % | |||||||
Credit funds | 39 | 1.5 | % | 38 | 1.6 | % | |||||||
Mortgage and real assets | 32 | 1.2 | % | 11 | 0.4 | % | |||||||
Total investment funds - assets of consolidated VIEs | 599 | 23.3 | % | 573 | 23.3 | % | |||||||
Total investment funds, including related parties and VIEs | $ | 2,564 | 100.0 | % | $ | 2,460 | 100.0 | % |
March 31, 2017 | December 31, 2016 | ||||||||||||
Carrying Value | Percent of Total | Carrying Value | Percent of Total | ||||||||||
Fixed maturity securities | |||||||||||||
U.S. state, municipal, and political subdivisions | $ | 116 | 1.8 | % | $ | 118 | 1.8 | % | |||||
Corporate | 1,901 | 28.8 | % | 1,800 | 27.6 | % | |||||||
CLOs | 668 | 10.1 | % | 591 | 9.0 | % | |||||||
ABS | 756 | 11.5 | % | 736 | 11.3 | % | |||||||
CMBS | 288 | 4.4 | % | 292 | 4.5 | % | |||||||
RMBS | 1,603 | 24.3 | % | 1,551 | 23.7 | % | |||||||
Equity securities | 29 | 0.4 | % | 29 | 0.4 | % | |||||||
Mortgage loans | 768 | 11.6 | % | 773 | 11.8 | % | |||||||
Investment funds | 328 | 5.0 | % | 329 | 5.0 | % | |||||||
Derivative assets | 58 | 0.9 | % | 53 | 0.8 | % | |||||||
Short-term investments | 31 | 0.5 | % | 80 | 1.2 | % | |||||||
Cash and cash equivalents | 61 | 0.9 | % | 105 | 1.6 | % | |||||||
Accrued investment income and other assets | (14 | ) | (0.2 | )% | 81 | 1.3 | % | ||||||
Total funds withheld at interest | $ | 6,593 | 100.0 | % | $ | 6,538 | 100.0 | % |
March 31, 2017 | December 31, 2016 | ||||||||||||||||||||||||||||
U.S. and Bermuda Invested Asset Value | Germany Invested Asset Value | Total Invested Asset Value1 | Percent of Total | U.S. and Bermuda Invested Asset Value | Germany Invested Asset Value | Total Invested Asset Value1 | Percent of Total | ||||||||||||||||||||||
Corporates | $ | 32,345 | $ | 1,789 | $ | 34,134 | 46.3 | % | $ | 31,000 | $ | 1,682 | $ | 32,682 | 45.4 | % | |||||||||||||
CLOs | 5,978 | — | 5,978 | 8.1 | % | 5,798 | — | 5,798 | 8.1 | % | |||||||||||||||||||
Credit | 38,323 | 1,789 | 40,112 | 54.4 | % | 36,798 | 1,682 | 38,480 | 53.5 | % | |||||||||||||||||||
RMBS | 10,758 | — | 10,758 | 14.6 | % | 10,619 | — | 10,619 | 14.8 | % | |||||||||||||||||||
Mortgage loans | 6,122 | 94 | 6,216 | 8.4 | % | 6,145 | 95 | 6,240 | 8.7 | % | |||||||||||||||||||
CMBS | 2,187 | — | 2,187 | 3.0 | % | 2,202 | — | 2,202 | 3.1 | % | |||||||||||||||||||
Real estate held for investment | — | 553 | 553 | 0.8 | % | — | 542 | 542 | 0.8 | % | |||||||||||||||||||
Real estate | 19,067 | 647 | 19,714 | 26.8 | % | 18,966 | 637 | 19,603 | 27.4 | % | |||||||||||||||||||
ABS | 4,187 | — | 4,187 | 5.7 | % | 3,873 | — | 3,873 | 5.4 | % | |||||||||||||||||||
Alternative investments | 3,341 | 131 | 3,472 | 4.7 | % | 3,297 | 128 | 3,425 | 4.8 | % | |||||||||||||||||||
State, municipals, political subdivisions and foreign government | 1,379 | 1,795 | 3,174 | 4.3 | % | 1,387 | 1,936 | 3,323 | 4.6 | % | |||||||||||||||||||
Equity securities | 171 | 257 | 428 | 0.6 | % | 199 | 185 | 384 | 0.5 | % | |||||||||||||||||||
Unit-linked assets | — | 370 | 370 | 0.5 | % | — | 363 | 363 | 0.5 | % | |||||||||||||||||||
Short-term investments | 188 | — | 188 | 0.3 | % | 250 | — | 250 | 0.3 | % | |||||||||||||||||||
U.S. government and agencies | 30 | 29 | 59 | 0.1 | % | 32 | 27 | 59 | 0.1 | % | |||||||||||||||||||
Other investments | 9,296 | 2,582 | 11,878 | 16.2 | % | 9,038 | 2,639 | 11,677 | 16.2 | % | |||||||||||||||||||
Cash and equivalents | 896 | 113 | 1,009 | 1.4 | % | 1,111 | 111 | 1,222 | 1.7 | % | |||||||||||||||||||
Policy loans and other | 645 | 215 | 860 | 1.2 | % | 631 | 221 | 852 | 1.2 | % | |||||||||||||||||||
Total invested assets | $ | 68,227 | $ | 5,346 | $ | 73,573 | 100.0 | % | $ | 66,544 | $ | 5,290 | $ | 71,834 | 100.0 | % |
March 31, 2017 | December 31, 2016 | ||||||||||||
Invested Asset Value | Percent of Total | Invested Asset Value | Percent of Total | ||||||||||
Credit funds | $ | 800 | 23.0 | % | $ | 834 | 24.3 | % | |||||
Private equity - MidCap | 528 | 15.2 | % | 524 | 15.3 | % | |||||||
Private equity - A-A Mortgage | 449 | 12.9 | % | 417 | 12.2 | % | |||||||
Private equity - other | 491 | 14.1 | % | 519 | 15.2 | % | |||||||
Mortgage and real assets | 512 | 14.7 | % | 470 | 13.7 | % | |||||||
Hedge funds | 297 | 8.7 | % | 311 | 9.1 | % | |||||||
Public equities | 226 | 6.5 | % | 215 | 6.3 | % | |||||||
Natural resources and other real assets | 169 | 4.9 | % | 135 | 3.9 | % | |||||||
Alternative investments | $ | 3,472 | 100.0 | % | $ | 3,425 | 100.0 | % |
Year-to-date | 2017 | 2016 | ||||||||||||||||||
2017 | 2016 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||
3.91 | % | 3.93 | % | Corporate securities | 3.91 | % | 3.91 | % | 4.06 | % | 3.81 | % | 3.93 | % | ||||||
Structured securities | ||||||||||||||||||||
5.45 | % | 5.30 | % | RMBS | 5.45 | % | 5.30 | % | 5.21 | % | 4.92 | % | 5.30 | % | ||||||
4.94 | % | 4.37 | % | CLO | 4.94 | % | 4.96 | % | 4.81 | % | 4.73 | % | 4.37 | % | ||||||
4.15 | % | 10.93 | % | ABS | 4.15 | % | 4.24 | % | 4.16 | % | 6.54 | % | 10.93 | % | ||||||
4.03 | % | 3.66 | % | CMBS | 4.03 | % | 4.19 | % | 3.79 | % | 4.10 | % | 3.66 | % | ||||||
4.95 | % | 5.82 | % | Total structured securities | 4.95 | % | 4.92 | % | 4.79 | % | 5.05 | % | 5.82 | % | ||||||
9.35 | % | 4.57 | % | State, municipal, political subdivisions and U.S. and foreign government | 9.35 | % | 5.80 | % | 3.57 | % | 5.46 | % | 4.57 | % | ||||||
5.90 | % | 5.42 | % | Mortgage loans | 5.90 | % | 6.26 | % | 6.22 | % | 5.82 | % | 5.42 | % | ||||||
8.12 | % | (0.40 | )% | Alternative investments | 8.12 | % | 14.82 | % | 9.77 | % | 7.11 | % | (0.40 | )% | ||||||
1.66 | % | 0.32 | % | Other U.S. and Bermuda invested assets | 1.66 | % | 1.27 | % | 1.04 | % | 1.29 | % | 0.32 | % | ||||||
4.70 | % | 4.27 | % | U.S. and Bermuda | 4.70 | % | 4.96 | % | 4.64 | % | 4.47 | % | 4.27 | % | ||||||
1.74 | % | 1.56 | % | Germany | 1.74 | % | 1.51 | % | 1.94 | % | 1.62 | % | 1.56 | % | ||||||
4.48 | % | 4.03 | % | Consolidated total | 4.48 | % | 4.69 | % | 4.42 | % | 4.23 | % | 4.03 | % |
March 31, 2017 | December 31, 2016 | ||||
Corporate securities | 92.6 | % | 92.4 | % | |
Structured securities | |||||
RMBS | 97.7 | % | 98.0 | % | |
CLO | 81.9 | % | 83.1 | % | |
ABS | 90.9 | % | 91.5 | % | |
CMBS | 97.7 | % | 97.7 | % | |
Total structured securities | 92.4 | % | 93.0 | % | |
State, municipal, political subdivisions and U.S. and foreign government | 94.6 | % | 96.5 | % | |
Germany fixed maturity securities1 | 94.0 | % | 95.0 | % |
A.M. Best | Standard & Poor's | Fitch | |||
Athene Annuity & Life Assurance Company | A- | A- | A- | ||
Athene Annuity and Life Company | A- | A- | A- | ||
Athene Annuity & Life Assurance Company of New York | A- | A- | A- | ||
Athene Life Insurance Company of New York | A- | Not Rated | Not Rated | ||
Athene Life Re Ltd. | A- | A- | A- |
A.M. Best | Standard & Poor's | Fitch | |||
Athene Holding Ltd. | bbb- | BBB | BBB |
December 31, | |||||
2016 | 2015 | ||||
U.S. RBC - Athene Annuity & Life Assurance Company | 478 | % | 552 | % | |
BSCR - Athene Life Re Ltd.1 | 228 | % | 323 | % | |
Athene Life Re Ltd. RBC2 | 529 | % | 468 | % |
Year-to-date | 2017 | 2016 | ||||||||||||||||||
2017 | 2016 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||
78.2 | 50.0 | Basic weighted average shares outstanding - Class A | 78.2 | 58.3 | 49.8 | 50.0 | 50.0 | |||||||||||||
110.8 | 136.0 | Conversion of Class B shares to Class A shares | 110.8 | 130.0 | 136.0 | 136.0 | 136.0 | |||||||||||||
6.2 | — | Conversion of Class M shares to Class A shares | 6.2 | 5.5 | — | — | — | |||||||||||||
0.4 | — | Effect of other stock compensation plans | 0.4 | 0.4 | 0.1 | 0.1 | — | |||||||||||||
195.6 | 186.0 | Weighted average shares outstanding - operating diluted Class A common shares | 195.6 | 194.2 | 185.9 | 186.1 | 186.0 |
2017 | 2016 | |||||||||||||
Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||
Class A common shares outstanding | 101.3 | 77.0 | 50.2 | 50.2 | 50.2 | |||||||||
Conversion of Class B shares to Class A shares | 87.8 | 111.8 | 136.0 | 136.0 | 136.0 | |||||||||
Conversion of Class M shares to Class A shares | 6.8 | 6.8 | 7.2 | — | — | |||||||||
Effect of other stock compensation plans | 0.9 | 0.8 | 0.4 | 0.3 | — | |||||||||
Operating diluted Class A common shares outstanding | 196.8 | 196.4 | 193.8 | 186.5 | 186.2 | |||||||||
2017 | 2016 | ||||||||||||||||||
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Book value per share | $ | 39.26 | $ | 35.91 | $ | 38.00 | $ | 34.62 | $ | 30.28 | |||||||||
AOCI | (3.48 | ) | (1.91 | ) | (4.94 | ) | (3.06 | ) | 0.27 | ||||||||||
Effect of items convertible to or settled in Class A common shares | (0.61 | ) | (0.71 | ) | (1.30 | ) | (0.10 | ) | — | ||||||||||
Book value per share, excluding AOCI | $ | 35.17 | $ | 33.29 | $ | 31.76 | $ | 31.46 | $ | 30.55 |
Year-to-date | 2017 | 2016 | |||||||||||||||||||||||||
2017 | 2016 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
$ | 786 | $ | 692 | GAAP net investment income | $ | 786 | $ | 773 | $ | 747 | $ | 704 | $ | 692 | |||||||||||||
45 | 36 | Reinsurance embedded derivative impacts | 45 | 45 | 55 | 53 | 36 | ||||||||||||||||||||
11 | (16 | ) | Net VIE earnings | 11 | 44 | (13 | ) | (14 | ) | (16 | ) | ||||||||||||||||
(13 | ) | (32 | ) | Alternative income gain (loss) | (13 | ) | (4 | ) | (3 | ) | — | (32 | ) | ||||||||||||||
(15 | ) | — | Other | (15 | ) | (16 | ) | (4 | ) | (15 | ) | — | |||||||||||||||
28 | (12 | ) | Total adjustments to arrive at net investment earnings | 28 | 69 | 35 | 24 | (12 | ) | ||||||||||||||||||
$ | 814 | $ | 680 | Total net investment earnings | $ | 814 | $ | 842 | $ | 782 | $ | 728 | $ | 680 | |||||||||||||
$ | 780 | $ | 691 | Retirement Services | $ | 780 | $ | 793 | $ | 759 | $ | 712 | $ | 691 | |||||||||||||
34 | (11 | ) | Corporate and Other | 34 | 49 | 23 | 16 | (11 | ) | ||||||||||||||||||
$ | 814 | $ | 680 | Total net investment earnings | $ | 814 | $ | 842 | $ | 782 | $ | 728 | $ | 680 | |||||||||||||
4.32 | % | 4.10 | % | GAAP net investment income rate | 4.32 | % | 4.30 | % | 4.22 | % | 4.09 | % | 4.10 | % | |||||||||||||
0.25 | % | 0.21 | % | Reinsurance embedded derivative impacts | 0.25 | % | 0.25 | % | 0.31 | % | 0.31 | % | 0.21 | % | |||||||||||||
0.06 | % | (0.09 | )% | Net VIE earnings | 0.06 | % | 0.25 | % | (0.07 | )% | (0.08 | )% | (0.09 | )% | |||||||||||||
(0.07 | )% | (0.19 | )% | Alternative income gain (loss) | (0.07 | )% | (0.02 | )% | (0.02 | )% | — | % | (0.19 | )% | |||||||||||||
(0.08 | )% | — | % | Other | (0.08 | )% | (0.09 | )% | (0.02 | )% | (0.09 | )% | — | % | |||||||||||||
0.16 | % | (0.07 | )% | Total adjustments to arrive at net investment earned rate | 0.16 | % | 0.39 | % | 0.20 | % | 0.14 | % | (0.07 | )% | |||||||||||||
4.48 | % | 4.03 | % | Consolidated net investment earned rate | 4.48 | % | 4.69 | % | 4.42 | % | 4.23 | % | 4.03 | % | |||||||||||||
4.76 | % | 4.59 | % | Retirement Services | 4.76 | % | 4.91 | % | 4.77 | % | 4.62 | % | 4.59 | % | |||||||||||||
1.88 | % | (0.62 | )% | Corporate and Other | 1.88 | % | 2.76 | % | 1.26 | % | 0.93 | % | (0.62 | )% | |||||||||||||
4.48 | % | 4.03 | % | Consolidated net investment earned rate | 4.48 | % | 4.69 | % | 4.42 | % | 4.23 | % | 4.03 | % | |||||||||||||
$ | 65,580 | $ | 60,259 | Retirement Services average invested assets | $ | 65,580 | $ | 64,639 | $ | 63,638 | $ | 61,686 | $ | 60,259 | |||||||||||||
7,123 | 7,153 | Corporate and Other average invested assets | 7,123 | 7,074 | 7,089 | 7,177 | 7,153 | ||||||||||||||||||||
$ | 72,703 | $ | 67,412 | Average invested assets | $ | 72,703 | $ | 71,713 | $ | 70,727 | $ | 68,863 | $ | 67,412 |
Year-to-date | 2017 | 2016 | |||||||||||||||||||||||||
2017 | 2016 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
$ | 696 | $ | 253 | GAAP interest sensitive contract benefits | $ | 696 | $ | 225 | $ | 482 | $ | 333 | $ | 253 | |||||||||||||
(30 | ) | (29 | ) | Interest credited other than deferred annuities | (30 | ) | (21 | ) | (33 | ) | (27 | ) | (29 | ) | |||||||||||||
145 | 136 | FIA option costs | 145 | 143 | 141 | 139 | 136 | ||||||||||||||||||||
(17 | ) | (11 | ) | Product charges (strategy fees) | (17 | ) | (15 | ) | (14 | ) | (13 | ) | (11 | ) | |||||||||||||
9 | 6 | Reinsurance embedded derivative impacts | 9 | 8 | 8 | 7 | 6 | ||||||||||||||||||||
(534 | ) | (136 | ) | Change in fair values of embedded derivatives - FIAs | (534 | ) | (72 | ) | (318 | ) | (204 | ) | (136 | ) | |||||||||||||
12 | 9 | Negative VOBA amortization | 12 | 12 | 12 | 15 | 9 | ||||||||||||||||||||
(18 | ) | 15 | Unit linked change in reserve | (18 | ) | (14 | ) | (20 | ) | 4 | 15 | ||||||||||||||||
— | — | Other changes in interest sensitive contract liabilities | — | (2 | ) | 1 | (1 | ) | — | ||||||||||||||||||
(433 | ) | (10 | ) | Total adjustments to arrive at cost of crediting on deferred annuities | (433 | ) | 39 | (223 | ) | (80 | ) | (10 | ) | ||||||||||||||
$ | 263 | $ | 243 | Retirement Services cost of crediting on deferred annuities | $ | 263 | $ | 264 | $ | 259 | $ | 253 | $ | 243 | |||||||||||||
5.05 | % | 2.03 | % | GAAP interest sensitive contract benefits | 5.05 | % | 1.65 | % | 3.65 | % | 2.63 | % | 2.03 | % | |||||||||||||
(0.22 | )% | (0.23 | )% | Interest credited other than deferred annuities | (0.22 | )% | (0.15 | )% | (0.25 | )% | (0.21 | )% | (0.23 | )% | |||||||||||||
1.04 | % | 1.11 | % | FIA option costs | 1.04 | % | 1.05 | % | 1.07 | % | 1.08 | % | 1.11 | % | |||||||||||||
(0.12 | )% | (0.09 | )% | Product charges (strategy fees) | (0.12 | )% | (0.11 | )% | (0.11 | )% | (0.10 | )% | (0.09 | )% | |||||||||||||
0.07 | % | 0.05 | % | Reinsurance embedded derivative impacts | 0.07 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.05 | % | |||||||||||||
(3.87 | )% | (1.10 | )% | Change in fair values of embedded derivatives - FIAs | (3.87 | )% | (0.53 | )% | (2.41 | )% | (1.61 | )% | (1.10 | )% | |||||||||||||
0.09 | % | 0.07 | % | Negative VOBA amortization | 0.09 | % | 0.09 | % | 0.09 | % | 0.12 | % | 0.07 | % | |||||||||||||
(0.13 | )% | 0.12 | % | Unit linked change in reserve | (0.13 | )% | (0.10 | )% | (0.15 | )% | 0.03 | % | 0.12 | % | |||||||||||||
— | % | — | % | Other changes in interest sensitive contract liabilities | — | % | (0.01 | )% | 0.01 | % | (0.01 | )% | — | % | |||||||||||||
(3.14 | )% | (0.07 | )% | Total adjustments to arrive at cost of crediting on deferred annuities | (3.14 | )% | 0.30 | % | (1.69 | )% | (0.64 | )% | (0.07 | )% | |||||||||||||
1.91 | % | 1.96 | % | Retirement Services cost of crediting on deferred annuities | 1.91 | % | 1.95 | % | 1.96 | % | 1.99 | % | 1.96 | % | |||||||||||||
$ | 55,154 | $ | 49,626 | Average account value on deferred annuities | $ | 55,154 | $ | 54,358 | $ | 52,739 | $ | 50,817 | $ | 49,626 |
March 31, 2017 | December 31, 2016 | ||||||
Total investments, including related parties | $ | 75,129 | $ | 72,433 | |||
Derivative assets | (1,708 | ) | (1,370 | ) | |||
Cash and cash equivalents (including restricted cash) | 2,636 | 2,502 | |||||
Accrued investment income | 575 | 554 | |||||
Payables for collateral on derivatives | (1,681 | ) | (1,383 | ) | |||
Reinsurance funds withheld and modified coinsurance | (410 | ) | (414 | ) | |||
VIE assets, liabilities and noncontrolling interest | 926 | 886 | |||||
AFS unrealized (gain) loss | (1,561 | ) | (1,030 | ) | |||
Ceded policy loans | (333 | ) | (344 | ) | |||
Total adjustments to arrive at invested assets | (1,556 | ) | (599 | ) | |||
Total invested assets | $ | 73,573 | $ | 71,834 |
March 31, 2017 | December 31, 2016 | ||||||
Investment funds, including related parties and VIEs | $ | 2,564 | $ | 2,460 | |||
CLO equities included in trading securities | 218 | 260 | |||||
Investment funds within funds withheld at interest | 328 | 329 | |||||
Royalties, other assets included in other investments and other assets | 82 | 81 | |||||
Net assets of the VIE, excluding investment funds | 280 | 295 | |||||
Total adjustments to arrive at alternative investments | 908 | 965 | |||||
Alternative investments | $ | 3,472 | $ | 3,425 |
March 31, 2017 | December 31, 2016 | ||||||
Total liabilities | $ | 81,623 | $ | 79,814 | |||
Derivative liabilities | (32 | ) | (40 | ) | |||
Payables for collateral on derivatives | (1,681 | ) | (1,383 | ) | |||
Funds withheld liability | (382 | ) | (380 | ) | |||
Other liabilities | (999 | ) | (685 | ) | |||
Liabilities of consolidated VIEs | (37 | ) | (34 | ) | |||
Reinsurance ceded receivables | (5,960 | ) | (6,001 | ) | |||
Policy loans ceded | (333 | ) | (344 | ) | |||
Other | 3 | 4 | |||||
Total adjustments to arrive at reserve liabilities | (9,421 | ) | (8,863 | ) | |||
Total reserve liabilities | $ | 72,202 | $ | 70,951 |
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