Athene Holding Ltd. (NYSE:ATH) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 10:00 am ET


Athene Holding Ltd. (NYSE:ATH) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning. My name is Lori, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Athene Second Quarter 2020 Earnings Conference Call and Webcast. [Operator Instructions] Thank you.

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

Noah Gunn

Thanks, Lori and welcome, everyone to our second quarter 2020 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 reports 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

I will now turn the call over to Jim Belardi.

James R. Belardi

Yeah. Thanks, Noah and good morning, everyone. Thank you for joining us today, and I hope you and your families are safe and healthy during these unprecedented times. Despite the ongoing extraordinary circumstances we are faced with in the current environment, I am pleased to report that Athene's investment spread business remains a bastion of consistent and growing strength. We are extremely well capitalized with over $14 billion of regulatory capital and an underlevered clean balance sheet. Our financial strength ratings were all recently affirmed at an A level by our three rating agencies, and we have experienced almost no impairments in our investment portfolio year-to-date.

We are not only built to weather the current storm, we are also built to capitalize on it. Since our inception, we have extolled the virtues of holding excess capital with a view that profitable growth is most available when capital is most scarce. Our second quarter performance is a testament to that fact. During the quarter, others in the industry without our strategic asset management advantage and significant deployable capital were forced to pull back from new business origination. Preliminary estimates from LIMRA report that industry fixed annuity volumes fell 4% quarter-over-quarter, while our retail sales increased 44% by comparison.

We are incentivized by profitability at Athene, not volume. By simply executing our business strategy, which includes maintaining our pricing discipline, pivoting opportunistically across our funding channels and supplying capital to support new business, we were able to generate record quarterly organic volumes of nearly $7 billion at a 27% return, a record combination for Athene. This is confirmation of the resilience of our business and our team, demonstrating our ability to serve as a source of strength for our policyholders and business partners amid volatility.