Active Stock Evaluation: Athene Holding Ltd. (NYSE: ATH)

On Friday, Shares of Athene Holding Ltd. (NYSE: ATH) showed the bullish trend with a higher momentum of 0.62% to $43.78. The company traded total volume of 1,160,374 shares as contrast to its average volume of 1.44M shares. The company has a market value of $8.13B and about 185.66M shares outstanding.

Athene Holding Ltd. (ATH), a leading provider of retirement savings products, today announced financial results for the fourth quarter and full year 2018.

Net loss for the fourth quarter 2018 was $104.0M, or $(0.53) per diluted Class A share (“diluted share”), contrast to net income for the fourth quarter 2017 of $439.0M, or $2.22 per diluted share. The loss was driven by unfavorable changes in reinsurance embedded derivatives because of credit spread widening, as well as unfavorable changes in fixed indexed annuity derivatives because of equity market depreciation. Net income for the full year 2018 was $1.05B, or $5.32 per diluted share, contrast to net income for the full year 2017 of $1.36B, or $6.91 per diluted share.

Adjusted operating income for the fourth quarter 2018 was $240.0M, or $1.23 per adjusted operating share, contrast to adjusted operating income for the fourth quarter 2017 of $313.0M, or $1.60 per adjusted operating share. The decrease from the prior year quarter was mainly driven by higher other liability costs resulting from equity market depreciation. Adjusted operating income for the full year 2018 was $1.14B, or $5.82 per adjusted operating share, contrast to adjusted operating income for the full year 2017 of $1.06B, or $5.39 per adjusted operating share.

Full Year 2018 Results:

Net income for the full year 2018 was $1.050B, a decrease of $305.0M, or 22%, from the full year 2017. The decrease was driven mainly by unfavorable reinsurance embedded derivatives because of credit spread widening.

Adjusted operating income for the full year 2018 was $1.14B, a boost of $85.0M, or 8%, over the prior year. Adjusted operating income, excluding notable items, was $1.17B, a boost of $254.0M, or 28%, from the prior year, driven by higher spread income and lower expense ratios as a result of growth in the business. The increase in spread income was mainly because of invested asset growth, increased floating rate investment income, and higher alternative investment income. Partially offsetting this increase was higher other liability costs because of growth in the block and equity market depreciation mainly in the fourth quarter of 2018.

Deposit Highlights:

For the fourth quarter 2018, Athene generated organic deposits of $5.20B, a boost of 47% contrast to the fourth quarter 2017. For the full year 2018, organic deposits were $13.20B, a boost of 15% contrast to the full year 2017. The liabilities supporting these deposits were underwritten to the same return standards as formerly generated business.

Retail: Athene generated $2.00B of new deposits in the fourth quarter 2018, up 57% from the prior year quarter, driven by the introduction of new products and expansion in the Financial Institutions channel. For the full year 2018, new deposits were $7.50B, a boost of $2.20B from the prior year.

Flow Reinsurance: In the fourth quarter 2018, Athene generated $1.10B of new deposits, up 272% from the prior year quarter, driven by the addition of new counterparties. For the full year 2018, deposits were $2.40B, a boost of $1.50B from the prior year.

Institutional: In the fourth quarter 2018, Athene generated $2.00B of new deposits from three pension risk transfer transactions totaling $1.80B and two funding agreements totaling $225.0M. For the full year 2018, institutional deposits were $3.20B, comprised of $2.60B of pension risk transfer and $650.0M of funding agreements.

Corporate and Other:

Fourth Quarter 2018 Results:

In the fourth quarter 2018, Corporate and Other had an adjusted operating loss of $56.0M mainly driven by lower alternative investment income related to the unrealized mark-to-market decline of two public equity investments. In the fourth quarter 2017, adjusted operating income was $26.0M driven by $30.0M of adjusted operating income in our formerly consolidated German partner.

Full Year 2018 Results:

For the full year 2018, Corporate and Other had an adjusted operating loss of $61.0M, as contrast to adjusted operating income of $17.0M for the full year 2017. The decrease was driven by lower alternative investment income related to public equity market depreciation and debt costs.

Share Repurchase Activity:

From December 10, 2018 through February 22, 2019, Athene repurchased 3.70M shares of its common stock for $147.0M under a formerly declared share repurchase program. During this period, shares were purchased at an average cost of $40.20 per share. This activity includes 2.50M shares repurchased during the fourth quarter of 2018 for $100.0M.

The Company offered net profit margin of 15.70%. ROE was recorded as 12.20%. The stock, as of recent close, has shown the weekly upbeat performance of 2.08% which was maintained at 9.92% in this year.



Jerry Simmons

Jerry Simmons

I am Jerry Simmons and I focus on breaking news stories and ensuring we (“Digital Wall”) offer timely reporting on some of the most recent stories released through market wires about “Financial” sector. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for Digital Wall specializing in quicker moving active shares with a short term view on investment opportunities and trends. Address: 4042 Braxton Street, Sterling, IL 61081, USA Phone: (+1) 815-535-4324 Email: jerry.simmons@yourdigitalwall.com