Products & Liabilities
· Source: curated SEC 10-K filing analysis· 10 of 32 tables shown
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| Attribute | Detail |
|---|---|
| Product type | Deferred annuity with interest credits linked to equity index performance (S&P 500, etc.) |
| GAAP classification | Indexed annuities within Interest Sensitive Contract Liabilities |
| Issuing entities | AAIA (Athene Annuity and Life Company, Iowa -- primary); AANY (Athene Annuity & Life Assurance Company of New York) |
| Distribution channel | Retail -- independent agents, broker-dealers, banks, IMOs |
| Account value (PAB) | $97,861M (Dec 31, 2024) |
| YoY change | +$4,714M (+5.1%) from $93,147M (2023) |
| DAC balance | $2,278M (DAC) + $1,476M (DSI) = $3,754M |
| Weighted avg crediting rate | 2.7% |
| Guaranteed minimum profile | Majority at <2.0% guaranteed floor; index credits reset annually based on option budget |
| Cash surrender value | $89,511M (91.5% of PAB) |
| Net amount at risk (GMDB/GMWB) | $15,441M |
| Market risk benefits | $3,525M net liability (indexed annuity MRB); $313M asset position on favorably performing contracts |
| 2024 deposits | $16,230M |
| 2024 surrenders & withdrawals | $(12,744)M |
| 2024 interest credited | $3,524M |
| 2024 policy charges | $(709)M |
| Reinsurance treatment | 80-100% ceded internally to ALRe/AARe (Bermuda) via modco/funds withheld; a portion retroceded to ACRA 1A/2A; new business (Jan 2024+) partially ceded externally to Catalina via modco quota share |
| Hedging approach | $85.5 billion notional in equity options (primarily S&P 500 call options) hedge FIA index credits. Equity options are purchased to match the index-credit exposure each crediting term (typically 1-year). AAIA Iowa permitted practice: call options hedging FIA index credits valued at amortized cost for statutory purposes; indexed annuity reserve methodology values current-term call options at zero. Statutory surplus benefit: $38M (2024). |
| Key risks | Equity market risk (S&P 500 +23.3% in 2024 drove large option payoffs); basis risk between option payoff and credited amount; policyholder lapse risk (surrender charges mitigate); spread compression if option costs rise faster than earned rates; regulatory risk on permitted practice |
| Growth trend | Modest organic growth; deposits $16.2B in 2024 vs. $16.2B implied in prior periods. The FIA book is mature and the largest single product category. Growth has slowed relative to the MYGA channel. |
| Attribute | Detail |
|---|---|
| Product type | Fixed-rate deferred annuity with guaranteed crediting rate for a stated period (typically 3-10 years) |
| GAAP classification | Traditional deferred annuities within Interest Sensitive Contract Liabilities |
| Issuing entities | AAIA (primary); AANY |
| Distribution channel | Retail -- independent agents, broker-dealers, banks; also assumed via flow reinsurance |
| Account value (PAB) | $86,661M (Dec 31, 2024) |
| YoY change | +$21,898M (+33.8%) from $64,763M (2023); +$43,143M (+99.2%) since 2022 ($43,518M) |
| DAC balance | $1,158M |
| Weighted avg crediting rate | 4.3% |
| Guaranteed minimum profile | Mix of policies at guarantee (recent vintages at higher guaranteed rates given elevated interest rate environment) and policies above guarantee |
| Cash surrender value | $81,243M (93.7% of PAB) |
| Net amount at risk | $425M (minimal -- MYGAs generally lack living/death benefit guarantees) |
| Market risk benefits | $190M (traditional deferred annuity MRB -- small legacy GMDB/GMWB riders) |
| 2024 deposits | $25,459M (largest deposit channel by product) |
| 2024 surrenders & withdrawals | $(5,389)M |
| 2024 benefit payments | $(1,108)M |
| 2024 interest credited | $3,256M |
| Reinsurance treatment | 80-100% ceded internally to ALRe/AARe (Bermuda); retroceded to ACRA; new business (Jan 2024+) partially ceded to Catalina modco quota share |
| Hedging approach | No equity derivative hedging required. Interest rate risk managed through asset-liability duration matching. $24.9B notional in fair value hedging interest rate swaps + $4.5B notional in cash flow hedging interest rate swaps protect against rate movements on the fixed-income portfolio backing these liabilities. Foreign currency swaps ($15.7B designated + $14.9B non-designated) hedge non-USD fixed income holdings. |
| Key risks | Interest rate risk (rising rates increase new-money competitiveness but depress portfolio market values); disintermediation risk if rates rise further (policyholders surrender to reinvest); credit risk on backing portfolio; high current crediting rate (4.3%) compresses spread |
| Growth trend | Explosive growth -- the fastest-growing product category. PAB nearly doubled from $43.5B (2022) to $86.7B (2024), driven by attractive guaranteed rates in the higher-rate environment and strong retail/reinsurance demand. 2024 deposits of $25.5B were the single largest product-level inflow. |
| Attribute | Detail |
|---|---|
| Product type | Variable annuity derivative providing market-linked returns with a buffer protecting against first 10-20% of index losses; policyholder bears losses beyond the buffer |
| GAAP classification | Likely within indexed annuities or other investment-type within ISCL; Athene does not separately break out RILA in financial statements |
| Issuing entities | AAIA |
| Distribution channel | Retail -- wirehouse, bank, independent channels |
| Account value (PAB) | Not separately disclosed; embedded within indexed annuity and/or other investment-type balances. Based on competitive intelligence, Athene launched its RILA product (Athene Amplify) in recent years but it remains a small share of total reserves. |
| Crediting rate | Market-linked with caps; not separately disclosed |
| Reinsurance treatment | Same internal cession structure as other retail products |
| Hedging approach | Combination of equity options (put spreads, call spreads) and futures ($37M notional in 2024) to replicate the buffered return profile |
| Key risks | Equity market tail risk beyond the buffer; new product with limited seasoning; competitive pressure from established RILA issuers |
| Growth trend | Early stage for Athene. The RILA market has been growing rapidly industrywide. Athene's RILA volumes are not separately quantified in filings. |
| Attribute | Detail |
|---|---|
| Product type | Single premium group annuity contracts assuming defined benefit pension obligations from corporate plan sponsors; benefits are irrevocable life-contingent payout annuities |
| GAAP classification | Future Policy Benefits (FPB) -- payout annuities with life contingencies |
| Issuing entities | AAIA (primary) |
| Distribution channel | Institutional -- competitive bidding process with corporate pension plan sponsors; intermediated by pension consultants and advisors |
| Reserve (FPB) | $42,261M payout annuities with life contingencies (Dec 31, 2024); this includes PRT plus retail payout/immediate annuities -- PRT is the dominant component |
| YoY change | Declined from $45,001M (2023) to $42,261M (2024) as benefit payments ($4,476M) and discount rate effects exceeded new issuances ($1,115M) |
| 2024 gross premiums (PGA channel) | $918M (down sharply from $10,374M in 2023 and $11,218M in 2022) |
| Weighted avg liability duration | 9.4 years |
| Weighted avg interest accretion rate | 3.7% |
| Weighted avg current discount rate | 5.6% |
| Expected future undiscounted benefit payments | $72,793M |
| Reinsurance treatment | Ceded internally to ALRe/AARe (Bermuda); ACRA 2A has right to participate in PGA transactions. Mortality risk on Japan-originated whole life block retroceded to a highly rated third-party reinsurer. |
| Hedging approach | Duration matched via long-dated fixed income (>10 year maturity bucket holds $45.8B fair value of AFS). Interest rate swaps (fair value hedge $24.9B notional) manage duration gaps. |
| Key risks | Longevity risk (annuitants living longer than assumed); interest rate risk (discount rate changes directly impact FPB reserve through OCI); concentration risk in large single-transaction exposures; competitive dynamics (2024 premiums collapsed 91% YoY) |
| Growth trend | Highly lumpy. PGA premiums swung from $11.2B (2022) to $10.4B (2023) to just $0.9B (2024). The 2024 decline reflects market dynamics and Athene's pricing discipline -- PRT is an opportunistic channel, not a steady-state source. New FPB issuances of $1.1B in 2024 vs. implied ~$10B+ in 2023. |
| Attribute | Detail |
|---|---|
| Product type | Institutional spread products: (a) Funding Agreement Backed Notes (FABN) -- medium-term notes backed by funding agreements; (b) FHLB advances -- borrowings from Federal Home Loan Bank collateralized by funding agreements; (c) Secured and other funding agreements -- bilateral/private institutional placements |
| GAAP classification | Funding agreements within Interest Sensitive Contract Liabilities |
| Issuing entities | AAIA (primary for FHLB); ALRe/AARe (Bermuda) for certain FABN issuances; various Athene entities |
| Distribution channel | Institutional -- capital markets (FABN program), FHLB (advances), bilateral institutional investors |
| Funding Agreement Type | Outstanding ($M) | 2023 ($M) | YoY Change |
|---|---|---|---|
| FHLB funding agreements | $15,600 | $6,500 | +$9,100 (+140%) |
| FABN program | $24,100 | $19,900 | +$4,200 (+21%) |
| Secured and other funding agreements | $14,800 | $6,000 | +$8,800 (+147%) |
| Total funding agreements | $54,500 | $32,400 | +$22,100 (+68%) |
| Attribute | Detail |
|---|---|
| Account value (PAB) | $54,768M (Dec 31, 2024) -- note: PAB differs slightly from face amounts due to accrued interest and fair value adjustments |
| YoY change | +$22,418M (+69.3%) from $32,350M (2023) |
| DAC balance | $40M (minimal -- low acquisition costs) |
| Weighted avg crediting rate | 4.4% |
| 2024 deposits | $29,249M (largest single deposit channel) |
| 2024 benefit payments (maturities) | $(8,304)M |
| 2024 interest credited | $1,707M |
| Remaining FABN capacity | $10.2 billion (board-authorized) |
| Reinsurance treatment | Ceded internally to ALRe/AARe (Bermuda); ACRA 2A participates in funding agreement transactions. Catalina strategic modco cedes certain inforce funding agreements ($221M liability at Dec 31, 2024). A historical $4.9B cession to Catalina General Insurance occurred in 2022. |
| Hedging approach | Interest rate risk managed through portfolio duration matching. Foreign currency swaps hedge non-USD FABN issuances. Funding agreements are floating-rate or short-duration instruments, reducing duration mismatch. |
| Key risks | Liquidity risk (FABN maturities create refinancing requirements); FHLB access risk (regulatory changes could restrict FHLB membership/advances); spread compression if funding costs rise; concentration in institutional channel |
| Growth trend | Fastest-growing channel in absolute dollar terms. Funding agreement deposits of $29.2B in 2024 were 4x the 2023 level ($7.2B). FHLB advances more than doubled. This is now the largest single inflow channel, surpassing retail for the first time. Total outstanding grew from $27.4B (2022) to $54.8B (2024). |
| Attribute | Detail |
|---|---|
| Product type | Quota share reinsurance of new business issued by third-party cedants; products include FIAs, MYGAs, traditional fixed deferred annuities, immediate annuities, whole life, universal life, indexed universal life, and institutional products |
| GAAP classification | Allocated across ISCL (for deferred annuity and UL products) and FPB (for life and immediate annuity products) based on underlying product type |
| Counterparties | 20 third-party cedants with ongoing flow reinsurance and retrocession agreements as of Dec 31, 2024 |
| Distribution channel | Reinsurance -- B2B relationships with insurance company cedants |
| Estimated in-force reserves | Not separately disclosed; flow reinsurance contributes to all PAB and FPB categories. Cumulative flow inflows 2022-2024: $22.3B. |
| 2024 inflows | $5,573M (down 47% from $10,547M in 2023) |
| 2023 inflows | $10,547M |
| 2022 inflows | $6,186M |
| Geographic expansion | Expanding in Asia with increased partnerships and growing product offerings |
| Reinsurance treatment | Assumed liabilities are reinsured internally to ALRe/AARe (Bermuda) and retroceded to ACRA (ACRA 2A participates in certain flow reinsurance transactions) |
| Hedging approach | Depends on underlying product: equity options for FIA-type products, duration matching for fixed-rate products, mortality reinsurance for life products |
| Key risks | Counterparty credit risk (mitigated by trust collateral -- $26.1B required minimum); competitive dynamics (2024 decline driven by increased competition); adverse selection (cedants may retain better risks); operational complexity of managing 20 cedant relationships |
| Growth trend | Declining. Flow reinsurance inflows dropped nearly 50% in 2024 due to increased competitive dynamics in the third-party reinsurance market. Athene noted this as a market-driven factor rather than a strategic pullback. |
| Attribute | Detail |
|---|---|
| Product type | Large in-force block acquisitions via coinsurance, modco, or assumption reinsurance; typically seasoned annuity, life, or variable annuity books |
| GAAP classification | Various -- depends on underlying block composition |
| Distribution channel | Inorganic -- negotiated transactions with insurance company counterparties |
| Date | Counterparty | Structure | Amount / Reserves | Status |
|---|---|---|---|---|
| Jun 2018 | Venerable (f/k/a Voya) / VIAC | Coinsurance + Modco (FA and Separate Account FA) | FW receivable: $5,050M (2024); partial recapture of $2.7B (Jul 2023) | Ongoing; run-off with partial recapture |
| Jun 2020 | Jackson National Life Insurance Co. | Coinsurance (funds withheld) | FW receivable: portion of $18.9B third-party total | Ongoing; run-off |
| Oct 2023 | Japanese counterparty (unidentified) | Coinsurance -- whole life block | Liabilities: $1,975M; Assets: $2,158M; Deferred profit: $(183)M | Completed; mortality risk retroceded |
| 2024 | None | -- | -- | No block deals in 2024 |