Athene Holding Ltd. 2025 Q3 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended September 30, 2025. Athene Holding Ltd. (Athene) is a leading financial services company specializing in retirement savings products, including annuities and funding agreements. The company is a direct subsidiary of Apollo Global Management, Inc. (AGM), which owns 100% of Athene's common stock. Athene operates through US and Bermuda subsidiaries, utilizing a strategy of sourcing long-duration liabilities and deploying capital into high-quality fixed income and alternative investments managed by Apollo.
Key Financial Metrics
| Metric | Q3 2025 (3 Months) | Q3 2024 (3 Months) | YTD 2025 (9 Months) | YTD 2024 (9 Months) |
|---|---|---|---|---|
| Total Revenues | $7,998 million | $6,522 million | $17,543 million | $16,907 million |
| Net Income | $1,878 million | $1,484 million | $3,323 million | $3,825 million |
| Net Income Attributable to Common Stockholders | $1,223 million | $580 million | $2,146 million | $2,310 million |
| Spread Related Earnings (SRE) | $872 million | $855 million | $2,496 million | $2,383 million |
| Net Investment Spread (Annualized) | 1.60% | 1.83% | 1.61% | 1.76% |
| Total Assets | $429.9 billion | $363.3 billion (Dec 31, 2024) | N/A | N/A |
| Total Debt | $7.86 billion | $6.31 billion (Dec 31, 2024) | N/A | N/A |
| Net Invested Assets | $286.2 billion | $248.6 billion (Dec 31, 2024) | N/A | N/A |
Material Changes vs. Prior Period
- Revenue Growth: Revenues increased by $1.48 billion (23%) in Q3 2025 compared to Q3 2024, driven primarily by a $895 million increase in net investment income due to portfolio growth and higher rates on new deployments, and a $715 million increase in investment-related gains.
- Profitability: Net income available to common stockholders surged 111% to $1.22 billion in Q3 2025 from $580 million in Q3 2024. This was driven by higher revenues and a $240 million decrease in net income attributable to noncontrolling interests.
- YTD Performance: On a year-to-date basis, net income available to common stockholders decreased 7% to $2.15 billion, primarily due to a $1.4 billion increase in benefits and expenses, partially offset by higher revenues and a $252 million decrease in income tax expense.
- Liability Growth: Interest-sensitive contract liabilities grew significantly, with policyholder account balances increasing to $302.5 billion as of September 30, 2025, from $247.3 billion at year-end 2024, reflecting strong organic inflows of $69.4 billion YTD.
- Debt Issuances: In Q2 2025, Athene issued $1.0 billion of 6.625% Senior Notes due 2055 and $600 million of 6.875% Fixed-Rate Reset Junior Subordinated Debentures due 2055.
Guidance, Outlook, and Risks
- Outlook: Management expects to continue growing organically across retail, flow reinsurance, and institutional channels. The company estimates approximately $8.6 billion in capital available to deploy as of September 30, 2025, consisting of excess equity capital, untapped leverage capacity, and available undrawn capital at ACRA.
- Market Environment: The company notes that medium and long-term interest rates decreased in Q3 2025. Equity market performance was strong, with the S&P 500 increasing 7.8% in the quarter. The US dollar strengthened against the euro and Japanese yen.
- Key Risks:
- Interest Rate Risk: A 100 basis point parallel increase in interest rates would result in an estimated $3.5 billion net decrease to point-in-time income before taxes due to fair value changes.
- Regulatory & Tax: Uncertainty remains regarding the applicability of the OECD Pillar Two global minimum tax initiative to ACRA and potential changes to Bermuda's corporate income tax regime.
- Counterparty Risk: Exposure to credit-related losses from derivative counterparties and reinsurance partners, though managed through collateral and master netting agreements.
- Market Volatility: Fluctuations in equity markets and implied volatilities impact the fair value of market risk benefits and embedded derivatives in fixed indexed annuities.
Investor Verification Checklist
- Noncontrolling Interests (NCI): Verify the impact of NCI on net income, which decreased significantly in Q3 2025, boosting attributable earnings. Review the composition of ACRA and other VIEs.
- Investment Portfolio Quality: Confirm the credit quality of the $219.1 billion AFS portfolio, noting that 97.1% is investment grade by NAIC designation, despite $11.8 billion in gross unrealized losses.
- Related Party Transactions: Review the $55.3 billion in related party investments (12.8% of total assets), primarily managed by Apollo, and the associated management fees ($364 million in Q3 2025).
- Debt Structure: Examine the maturity profile of the $7.86 billion debt, including the recent issuances of long-term senior and subordinated notes.
- Spread Related Earnings (SRE): Analyze the reconciliation from GAAP net income to SRE to understand the impact of non-operating items like fair value changes in derivatives and market risk benefits.