Athene Holding Ltd. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Athene Holding Ltd. on June 13, 2017. The filing addresses an initiative to improve business process controls and data accuracy regarding blocks of business acquired from Aviva USA and subsequent deposits.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures. It focuses on the correction of immaterial errors in previously reported financial statements.
Material Changes and Restatements
- Identified Error: In May 2017, the Company identified an error in inputs used to calculate actuarial balances. This misstated the net investment earned rate used in amortizing deferred acquisition costs and calculating changes in future policy benefits.
- Impact Assessment: Management determined the impact of this adjustment, along with other adjustments for annual periods in 2013 through 2016 and interim periods in 2015 through 2017, to be immaterial.
- Restatements Filed: The Company has revised and filed its Annual Report on Form 10-K for the year ended December 31, 2016 (Exhibit 99.1) and its Quarterly Report on Form 10-Q for the three months ended March 31, 2017 (Exhibit 99.2).
Outlook, Risks, and Management Commentary
While management believes the current issue has been sufficiently mitigated, the filing explicitly states there is no assurance that the ongoing initiative to improve controls will not result in the discovery of further errors associated with the Aviva USA business blocks. Such future discoveries could have an adverse effect on the Company's financial results.
Investor Verification Checklist
- Review the revised 2016 Annual Report (Exhibit 99.1) and Q1 2017 Quarterly Report (Exhibit 99.2) to understand the specific adjustments made to deferred acquisition costs and future policy benefits.
- Monitor future filings for any additional restatements or disclosures regarding the Aviva USA acquired blocks.
- Assess the Company's internal control remediation progress as described in subsequent reports.