8-K: Athene Holding Ltd. Anticipates Strong Alternative Net Investment Income for Q1 2025

Athene Holding Ltd. projects approximately $290 million in pre-tax alternative net investment income for the first quarter of 2025, representing an estimated 9% annualized return.

Summary

• Athene Holding Ltd. estimates its alternative net investment income will be approximately $290 million (pre-tax) for the first quarter ended March 31, 2025.
• This equates to an estimated 9% annualized return on alternative net investments.
• The annualized return on its investment in a pooled investment vehicle is estimated at 10% for the same period.
• The annualized return on investments in other alternative investments, including retirement services platforms, is estimated at 6% for the first quarter ended March 31, 2025.
• These figures exclude alternative investment income attributable to non-controlling interests.
• The company's parent, Apollo Global Management, Inc., will release its quarterly earnings on May 2, 2025.
• These are preliminary estimates and actual results may differ materially.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the strong preliminary estimates for alternative net investment income. However, the cautionary language regarding the preliminary nature of the results and the lack of an audit temper the overall positive outlook.

Positives

• The company anticipates a strong alternative net investment income of $290 million (pre-tax) for Q1 2025.
• The estimated annualized return of 9% on alternative net investments indicates healthy performance.
• The pooled investment vehicle shows a strong annualized return of 10%.

Negatives

• The reported figures are preliminary estimates and may differ materially from actual results.
• The independent auditor has not audited, reviewed, or compiled these preliminary results.

Risks

• Actual financial results may differ materially from the preliminary estimates due to various factors.
• Material adjustments to the preliminary financial results may be required during the preparation of consolidated financial statements.
• The preliminary financial results should not be interpreted as indicative of future performance.

Future Outlook

The preliminary financial results should not be interpreted as indicative of future performance.

Industry Context

This announcement provides insight into the performance of Athene's alternative investment portfolio, which is relevant to understanding the company's overall financial health and its contribution to Apollo Global Management's earnings. It is common for financial companies to report preliminary results ahead of full earnings releases to provide investors with timely information.

Comparison to Industry Standards

• Without specific industry benchmarks for alternative net investment income, it's difficult to directly compare Athene's performance to peers.
• However, a 9% annualized return on alternative net investments could be considered competitive depending on the specific asset classes and risk profile of the portfolio.
• Companies like Blackstone, Brookfield, and KKR also have significant alternative investment portfolios, but their reporting methodologies and asset mixes may differ, making direct comparisons challenging.

Stakeholder Impact

• Shareholders will be interested in the preliminary estimates of alternative net investment income as an indicator of the company's financial performance.
• The results may influence investor confidence and stock price.

Next Steps

• The company will complete its financial closing procedures for the period ended March 31, 2025.
• Apollo Global Management, Inc. will release its quarterly earnings release and quarterly financial supplement on May 2, 2025.

Key Dates

Keywords

alternative net investment income, Athene Holding Ltd., Apollo Global Management, Q1 2025, financial results, investment income, earnings, investments