8-K: Athene Holding Ltd. Announces Preliminary Q4 2024 Alternative Investment Income

Athene Holding Ltd. estimates a pre-tax alternative net investment income of approximately $265 million for the fourth quarter of 2024, representing a 9% annualized return.

Summary

• Athene Holding Ltd. has released preliminary estimates for its alternative net investment income for the fourth quarter of 2024.
• The company estimates a pre-tax alternative net investment income of approximately $265 million.
• This income represents an estimated 9% annualized return on alternative net investments.
• The annualized return on a pooled investment vehicle, holding the majority of alternative investments, is estimated at 11%.
• The annualized return on other alternative investments, including retirement services platforms, is estimated at 5%.
• These figures exclude alternative investment income attributable to non-controlling interests.
• The company's parent, Apollo Global Management, Inc., will release its full quarterly earnings on February 4, 2025.
• These results are preliminary and may differ materially from the final results.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the strong estimated returns on alternative investments, particularly the pooled investment vehicle. However, the preliminary nature of the results and the lower return on other alternative investments temper the overall positive outlook.

Positives

• The company's alternative net investment income shows a strong estimated annualized return of 9%.
• The pooled investment vehicle performed particularly well, with an estimated 11% annualized return.

Negatives

• The preliminary nature of the results means the actual figures may differ materially.
• The 5% annualized return on other alternative investments is lower than the 11% return from the pooled investment vehicle.

Risks

• The reported figures are preliminary and have not been audited or reviewed by the company's independent accounting firm.
• Actual results may differ materially from these estimates due to a variety of factors.
• Investors should exercise caution and not draw inferences about other financial or operating data not provided.
• The preliminary results should not be viewed as indicative of future performance.

Future Outlook

The company cautions that these are preliminary results and should not be interpreted as indicative of future performance. Final results may differ materially.

Management Comments

• The preliminary financial results presented above are the responsibility of management and have been prepared in good faith on a basis consistent with prior periods.
• We have not completed our financial closing procedures for the period ended December 31, 2024, and our actual results may differ, possibly materially, from these preliminary financial results due to a variety of factors.

Industry Context

This announcement provides an early look at Athene's investment performance, which is closely tied to the broader alternative investment landscape and the performance of Apollo Global Management. The results are of interest to investors in both Athene and Apollo.

Comparison to Industry Standards

• It is difficult to make a direct comparison without knowing the specific composition of Athene's alternative investment portfolio.
• However, a 9% annualized return is generally considered a solid performance in the current market, although the 11% return from the pooled investment vehicle is particularly strong.
• Companies like Blackstone, KKR, and Brookfield Asset Management also have significant alternative investment portfolios, but their specific returns vary based on their strategies and asset mix.
• The 5% return on other alternative investments is more in line with typical returns for less risky assets.

Stakeholder Impact

• Shareholders will be interested in the preliminary results as they provide an early indication of the company's financial performance.
• The results may influence investor sentiment and potentially the share price.
• Employees may be impacted by the company's overall financial performance.

Next Steps

• The company will complete its financial closing procedures for the period ended December 31, 2024.
• Apollo Global Management will release its quarterly earnings and financial supplement on February 4, 2025, which will include Athene's final Q4 2024 results.

Key Dates

Keywords

alternative investments, net investment income, preliminary results, annualized return, financial performance, Athene Holding Ltd, Apollo Global Management, Q4 2024, retirement services