Athene Holding Ltd. (NYSE:ATH) Q1 2019 Earnings Conference Call - Final Transcript

May 07, 2019 • 10:00 am ET

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Athene Holding Ltd. (NYSE:ATH) Q1 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Samanta, and I will be your conference operator today. At this time, I would like to welcome everyone to Athene's First Quarter 2019 Earnings Conference Call and Webcast. All participant lines have been placed in a listen-only mode to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

I will now turn the call over to Noah Gunn, Head of Investor Relations. Please go ahead.

Executive
Noah Gunn

Thanks, Samanta, and welcome to our first quarter 2019 earnings call. Joining me this morning are Jim Belardi, Chairman and CEO; Bill Wheeler, President; and Marty Klein, our Chief Financial Officer.

As a reminder, this call may include forward-looking statements and projections, which do not guarantee future events or performance. We do not revise or update such statements to reflect new information, subsequent events or changes in strategy. Please refer to our most recent quarterly and annual report and other SEC filings for a discussion of the factors that could cause actual results to differ materially from those expressed or implied.

We'll be discussing certain non-GAAP measures on this call, which, we believe, are relevant in assessing the financial performance of the business. Reconciliations of these non-GAAP measures can be found in our earnings presentation and financial supplement, which are available at ir.athene.com.

I will now turn the call over to Jim Belardi.

Executive
James R. Belardi

Thanks, Noah, and good morning, everyone. Earlier this morning, we released our first quarter results, and made an important strategic announcement regarding capital. As part of the announcement, we posted a presentation on our website. And I'll begin our prepared remarks this morning, speaking to this presentation.

If we step back for a moment, and think about how we're creating value at Athene, we believe the primary driver of long-term shareholder value is the efficiency of capital allocation. Of course, we can drive some level of return from each dollar of capital we allocate, but our challenge is doing it as efficiently as possible, so that we maximize return and are able to execute repeatedly.

We've been very successful to-date compounding book value by 17% annually over the past decade, and we believe our strategy can maintain that strong track record over the long-term. Today, we are fortunate to be provided with an abundance of opportunity to deploy capital at attractive returns.

We sum up this opportunity set in four primary categories; organic growth, acquisitions, share buybacks and ratings upgrades. As you know, we originated more than $13 billion of liabilities last year across our channels at attractive ROEs. We allocated more than $1 billion of capital to support that activity. On the acquisition front, we underwrote $27 billion of liabilities across two inorganic transactions, which were also done at attractive ROEs. We allocated approximately $1.7 billion of capital to support those deals.

Next, given the compelling value we've seen in our stock, our Board doubled our share repurchase capacity, authorizing a total of $500 million over the past