Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

13. Segment Information

We operate our core business strategies out of one reportable segment, Retirement Services. In addition to Retirement Services, we report certain other operations in Corporate and Other.

Retirement Services—Retirement Services is comprised of our US and Bermuda operations, which issue and reinsure retirement savings products and institutional products. Retirement Services has retail operations, which provide annuity retirement solutions to our policyholders. Retirement Services also has reinsurance operations, which reinsure multi-year guaranteed annuities, fixed indexed annuities, traditional one-year guarantee fixed deferred annuities, immediate annuities and institutional products from our reinsurance partners. In addition, our institutional operations, including funding agreements and group annuities, are included in our Retirement Services segment.

Corporate and Other—Corporate and Other includes certain other operations related to our corporate activities such as corporate allocated expenses, merger and acquisition costs, debt costs, preferred stock dividends, certain integration and restructuring costs, certain stock-based compensation and intersegment eliminations. In addition, we also hold capital in excess of the level of capital we hold in Retirement Services to support our operating strategy.

Financial Measures—Segment adjusted operating income available to common shareholders is an internal measure used by the chief operating decision maker to evaluate and assess the results of our segments.

Adjusted operating revenue is a component of adjusted operating income available to common shareholders and excludes market volatility and adjustments for other non-operating activity. Our adjusted operating revenue equals our total revenue, adjusted to eliminate the impact of the following non-operating adjustments:

•Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets;

•Investment gains (losses), net of offsets; and

•VIE expenses, noncontrolling interests and other adjustments to revenues.

The table below reconciles segment adjusted operating revenues to total revenues presented on the condensed consolidated statements of income:

	Three months ended September 30,				Nine months ended September 30,
(In millions)	2020		2019		2020		2019
Retirement Services	$	1,711	$	4,096	$	5,769	$	9,650
Corporate and Other	(15)		28		101		84
Non-operating adjustments
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets	637		84		(280)		1,490
Investment gains (losses), net of offsets	468		373		29		1,768
VIE expenses, noncontrolling interests and other adjustments to revenues	474		3		505		10
Total revenues	$	3,275	$	4,584	$	6,124	$	13,002

Adjusted operating income available to common shareholders is an internal measure used to evaluate our financial performance excluding market volatility and expenses related to integration, restructuring, stock compensation and certain other expenses. Our adjusted operating income available to common shareholders equals net income available to Athene Holding Ltd. common shareholders adjusted to eliminate the impact of the following non-operating adjustments:

•Investment gains (losses), net of offsets;

•Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets;

•Integration, restructuring and other non-operating expenses;

•Stock-based compensation, excluding the long-term incentive plan (LTIP); and

•Income tax (expense) benefit – non-operating.

The table below reconciles segment adjusted operating income available to common shareholders to net income available to Athene Holding Ltd. common shareholders presented on the condensed consolidated statements of income:

	Three months ended September 30,				Nine months ended September 30,
(In millions)	2020		2019		2020		2019
Retirement Services	$	361	$	256	$	773	$	918
Corporate and Other	(59)		(13)		(89)		(18)
Non-operating adjustments
Investment gains (losses), net of offsets	346		166		(18)		1,041
Change in fair values of derivatives and embedded derivatives – index annuities, net of offsets	72		(117)		(268)		(201)
Integration, restructuring and other non-operating expenses	—		(34)		(13)		(46)
Stock-based compensation, excluding LTIP	(1)		(3)		(11)		(9)
Income tax (expense) benefit – non-operating	(97)		21		7		19
Net income available to Athene Holding Ltd. common shareholders	$	622	$	276	$	381	$	1,704

The following represents total assets by segment:

(In millions)	September 30, 2020		December 31, 2019
Retirement Services	$	186,400	$	143,881
Corporate and Other	4,688		2,994
Total assets	$	191,088	$	146,875