8-K: Athene Projects Strong Q4 Alternative Investment Income

Athene Holding Ltd. announced preliminary estimates for its fourth quarter 2025 alternative net investment income, projecting approximately $325 million pre-tax with an estimated 10% annualized return.

Summary

• Athene Holding Ltd. (Athene) reported preliminary estimates for its alternative net investment income for the fourth quarter ended December 31, 2025.
• The estimated alternative net investment income is approximately $325 million (pre-tax).
• This equates to an estimated 10% annualized return on alternative net investments.
• Within these alternative net investments, the pooled investment vehicle, which holds the majority of the alternative investments portfolio, is estimated to have an annualized return of 10%.
• Other alternative investments, including investments in retirement services platforms, are estimated to have an annualized return of 7%.
• These figures exclude alternative investment income attributable to non-controlling interests.
• Alternative net investment income is a component of Spread Related Earnings, a pre-tax, non-GAAP measure.
• The preliminary results are subject to change and have not been audited or reviewed by an independent registered public accounting firm.

Sentiment

Score: 7

Explanation: The sentiment is positive due to strong preliminary alternative net investment income and annualized returns. However, the preliminary nature of the results and the explicit cautionary language temper the overall score, preventing a higher rating.

Positives

• The estimated alternative net investment income of approximately $325 million (pre-tax) for Q4 2025 indicates strong performance.
• An estimated 10% annualized return on alternative net investments is a robust return for the quarter.
• The pooled investment vehicle, representing the majority of alternative investments, also achieved an estimated 10% annualized return.

Negatives

• The reported financial results are preliminary estimates and have not completed financial closing procedures, meaning actual results may differ materially.
• The preliminary results have not been audited, reviewed, compiled, or had any procedures performed by an independent registered public accounting firm, and no opinion or assurance is expressed.
• Investors are cautioned against relying solely on this information and should not draw inferences regarding unprovided financial or operating data.

Risks

• The preliminary financial results are subject to material adjustments during the completion of financial closing procedures for the period ended December 31, 2025.
• The independent registered public accounting firm has not audited, reviewed, compiled, or performed any procedures on these preliminary results, and therefore does not express an opinion or provide assurance.
• These preliminary financial results should not be viewed as a substitute for full financial statements prepared in accordance with U.S. GAAP.
• The preliminary financial results should not be interpreted as indicative of future performance.

Future Outlook

The filing provides preliminary estimates for the past quarter and explicitly states that these preliminary financial results should not be interpreted as indicative of future performance. No specific forward-looking guidance beyond these estimates is provided.

Management Comments

• Louis-Jacques Tanguy, Executive Vice President and Chief Financial Officer, signed the report on behalf of Athene Holding Ltd.

Industry Context

Athene, as a leading provider of retirement savings products, relies heavily on its investment portfolio to generate 'spread related earnings.' Strong alternative net investment income is crucial for its business model, especially in the current interest rate environment. The reported preliminary returns suggest effective asset management within its alternative investment strategy, which is a key differentiator for many annuity and life insurance companies.

Related Party Transactions

• Apollo Global Management, Inc. is identified as the parent company of Athene Holding Ltd., and is reporting these preliminary estimates prior to its own earnings release.

Stakeholder Impact

• Shareholders may view the strong preliminary alternative net investment income positively, potentially influencing investor confidence and stock valuation.
• The performance of alternative investments directly impacts the company's profitability and ability to generate returns for its policyholders and investors.

Next Steps

• Apollo Global Management, Inc., Athene's parent company, is scheduled to release its full quarterly earnings and financial supplement for the fourth quarter on February 9, 2026.

Key Dates

Keywords

Athene, Apollo Global Management, Alternative Investments, Net Investment Income, Q4 2025, Preliminary Financial Results, Annuities, Retirement Services, Spread Related Earnings