Athene reports massive Q1 income surge

11-05-2017

Athene Holding has reported a big surge in its operating income for the first three months of the year.

The company, which provides retirement savings products, said that first quarter net income in 2017 came to $373 million, a 329 percent rise on the $87 million it reported for the same period of 2016.

“Our first quarter results reflect a very strong start to the year,” said Jim Belardi, CEO of Athene. “Significant liability growth combined with investment margin expansion drove a large increase in operating income, net income and shareholders' equity. With respect to our financial strength, we continue to have high risk-based capital ratios, more than $1.5 billion of excess equity capital and no financial leverage.

“We achieved strong organic growth in the first quarter and this year we have already issued $1.7 billion of funding agreements, which we believe will be a consistent source of attractively priced liabilities and further demonstrates the flexibility of Athene's distribution platform to achieve growth and profitability.”

According to Athene, investment income increased primarily due to the growth in invested assets, proceeds from a bond previously written down, higher interest rates and strength in our alternatives portfolio. In 2016 fixed income and other investment income benefited from bond call income from a large redemption partially offset by lower alternative investment income driven by lower credit fund income due to credit spreads widening and a decline in market value of public equity positions in one of its funds.

The company added that in the first quarter of 2017 it generated retail sales, new flow reinsurance and funding agreement deposits of $1.9 billion, an increase of 22 percent compared to the same period of 2016.

Athene Holding, First quarter results 2017, Bermuda

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