| Investments |
5. Investments
The following table outlines the Company’s investments:
| | | | | | | | | | | | | | | (In millions) | December 31, 2023 | | December 31, 2022 | | | | Asset Management | | | | | | | Investments, at fair value | $ | 1,489 | | | $ | 1,320 | | | | | Equity method investments | 1,072 | | | 979 | | | | | Performance allocations | 2,941 | | | 2,574 | | | | | U.S. Treasury securities, at fair value | — | | | 709 | | | | Total Investments – Asset Management | 5,502 | | | 5,582 | | | | Retirement Services | | | | | | | AFS securities, at fair value | $ | 148,347 | | | $ | 112,225 | | | | | Trading securities, at fair value | 2,544 | | | 2,473 | | | | | Equity securities | 1,611 | | | 1,766 | | | | | Mortgage loans, at fair value | 45,396 | | | 28,756 | | | | | Investment funds | 1,741 | | | 1,648 | | | | | Policy loans | 334 | | | 347 | | | | | Funds withheld at interest | 30,833 | | | 42,688 | | | | | Derivative assets | 5,298 | | | 3,309 | | | | | Short-term investments | 1,288 | | | 2,160 | | | | | Other investments | 1,549 | | | 1,076 | | | | Total Investments, including related parties – Retirement Services | 238,941 | | | 196,448 | | | | | Total Investments | $ | 244,443 | | | $ | 202,030 | | | |
Equity Method Investments — Overall
The tables below present summarized financial information of the Company’s equity method investments in the aggregate.
| | | | | | | | | | | | Statement of Financial Condition (In millions) | December 31, | 2023 1 | | 2022 1 | | Investments | $ | 212,892 | | | $ | 195,262 | | | Assets | 238,550 | | | 216,030 | | | Liabilities | 122,659 | | | 115,914 | | | Equity | 115,891 | | | 100,116 | |
| | | | | | | | | | | | | | | | | | Statement of Operations (In millions) | Years ended December 31, | 2023 1 | | 2022 1 | | 2021 1 | | Revenues/Investment Income | $ | 9,709 | | | $ | 7,681 | | | $ | 5,249 | | | Expenses | 9,242 | | | 7,644 | | | 4,935 | | | Net Investment Income (Loss) | 467 | | | 37 | | | 314 | | | Net Realized and Unrealized Gain (Loss) | 7,349 | | | 3,012 | | | 15,882 | | | Net Income (Loss) | $ | 7,816 | | | $ | 3,049 | | | $ | 16,196 | | | | | | | | 1 Certain fund amounts are as of and for the twelve months ended September 30, 2023, 2022 and 2021. |
Asset Management
Net Gains (Losses) from Investment Activities
The following outlines realized and net change in unrealized gains (losses) reported in net gains (losses) from investment activities:
| | | | | | | | | | | | | | | | | | | | | | | | | Years ended December 31, | | (In millions) | | | | | 2023 | | 2022 | | 2021 | | Realized gains (losses) on sales of investments, net | | | | | $ | (9) | | | $ | (14) | | | $ | — | | | Net change in unrealized gains (losses) due to changes in fair value | | | | | 16 | | | 179 | | | 2,611 | | | Net gains (losses) from investment activities | | | | | $ | 7 | | | $ | 165 | | | $ | 2,611 | |
Performance Allocations
Performance allocations receivable is recorded within investments in the consolidated statements of financial condition. The table below provides a roll forward of the performance allocations balance:
| | | | | | | (In millions) | Total | Performance allocations, January 1, 2022 | $ | 2,732 | | | Change in fair value of funds | 615 | | | Fund distributions to the Company | (773) | | Performance allocations, December 31, 2022 | $ | 2,574 | | | Change in fair value of funds | 1,048 | | | Fund distributions to the Company | (681) | | Performance allocations, December 31, 2023 | $ | 2,941 | |
The change in fair value of funds excludes the general partner obligation to return previously distributed performance allocations, which is recorded in due to related parties in the consolidated statements of financial condition.
The timing of the payment of performance allocations due to the general partner or investment manager varies depending on the terms of the applicable fund agreements. Generally, performance allocations with respect to the private equity funds and certain credit and real assets funds are payable and are distributed to the fund’s general partner upon realization of an investment if the fund’s cumulative returns are in excess of the preferred return. Retirement Services
AFS Securities
The following table represents the amortized cost, allowance for credit losses, gross unrealized gains and losses and fair value of Athene’s AFS investments by asset type:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2023 | | (In millions) | Amortized Cost | | Allowance for Credit Losses | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | AFS securities | | | | | | | | | | | U.S. government and agencies | $ | 6,161 | | | $ | — | | | $ | 67 | | | $ | (829) | | | $ | 5,399 | | | U.S. state, municipal and political subdivisions | 1,296 | | | — | | | — | | | (250) | | | 1,046 | | | Foreign governments | 2,083 | | | — | | | 71 | | | (255) | | | 1,899 | | | Corporate | 88,343 | | | (129) | | | 830 | | | (10,798) | | | 78,246 | | | CLO | 20,506 | | | (2) | | | 261 | | | (558) | | | 20,207 | | | ABS | 13,942 | | | (49) | | | 120 | | | (630) | | | 13,383 | | | CMBS | 7,070 | | | (29) | | | 52 | | | (502) | | | 6,591 | | | RMBS | 8,160 | | | (381) | | | 252 | | | (464) | | | 7,567 | | | Total AFS securities | 147,561 | | | (590) | | | 1,653 | | | (14,286) | | | 134,338 | | | AFS securities – related parties | | | | | | | | | | | Corporate | 1,423 | | | — | | | 1 | | | (72) | | | 1,352 | | | CLO | 4,367 | | | — | | | 21 | | | (120) | | | 4,268 | | | ABS | 8,665 | | | (1) | | | 34 | | | (309) | | | 8,389 | | | | | | | | | | | | | Total AFS securities – related parties | 14,455 | | | (1) | | | 56 | | | (501) | | | 14,009 | | | Total AFS securities, including related parties | $ | 162,016 | | | $ | (591) | | | $ | 1,709 | | | $ | (14,787) | | | $ | 148,347 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | (In millions) | Amortized Cost | | Allowance for Credit Losses | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | AFS securities | | | | | | | | | | | U.S. government and agencies | $ | 3,333 | | | $ | — | | | $ | — | | | $ | (756) | | | $ | 2,577 | | | U.S. state, municipal and political subdivisions | 1,218 | | | — | | | — | | | (291) | | | 927 | | | Foreign governments | 1,207 | | | (27) | | | 3 | | | (276) | | | 907 | | | Corporate | 74,644 | | | (61) | | | 92 | | | (13,774) | | | 60,901 | | | CLO | 17,722 | | | (7) | | | 115 | | | (1,337) | | | 16,493 | | | ABS | 11,447 | | | (29) | | | 15 | | | (906) | | | 10,527 | | | CMBS | 4,636 | | | (5) | | | 6 | | | (479) | | | 4,158 | | | RMBS | 6,775 | | | (329) | | | 64 | | | (596) | | | 5,914 | | | Total AFS securities | 120,982 | | | (458) | | | 295 | | | (18,415) | | | 102,404 | | | AFS securities – related parties | | | | | | | | | | | Corporate | 1,028 | | | — | | | 1 | | | (47) | | | 982 | | | CLO | 3,346 | | | (1) | | | 10 | | | (276) | | | 3,079 | | | ABS | 6,066 | | | — | | | 3 | | | (309) | | | 5,760 | | | Total AFS securities – related parties | 10,440 | | | (1) | | | 14 | | | (632) | | | 9,821 | | | Total AFS securities, including related parties | $ | 131,422 | | | $ | (459) | | | $ | 309 | | | $ | (19,047) | | | $ | 112,225 | |
The amortized cost and fair value of AFS securities, including related parties, are shown by contractual maturity below:
| | | | | | | | | | | | | December 31, 2023 | | (In millions) | Amortized Cost | | Fair Value | | AFS securities | | | | | Due in one year or less | $ | 2,279 | | | $ | 2,231 | | | Due after one year through five years | 17,715 | | | 16,944 | | | Due after five years through ten years | 23,824 | | | 21,631 | | | Due after ten years | 54,065 | | | 45,784 | | | CLO, ABS, CMBS and RMBS | 49,678 | | | 47,748 | | | Total AFS securities | 147,561 | | | 134,338 | | | AFS securities – related parties | | | | | | | | | Due after one year through five years | 913 | | | 898 | | | Due after five years through ten years | 122 | | | 115 | | | Due after ten years | 388 | | | 339 | | | CLO and ABS | 13,032 | | | 12,657 | | | Total AFS securities – related parties | 14,455 | | | 14,009 | | | Total AFS securities, including related parties | $ | 162,016 | | | $ | 148,347 | |
Actual maturities can differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Unrealized Losses on AFS Securities
The following summarizes the fair value and gross unrealized losses for AFS securities, including related parties, for which an allowance for credit losses has not been recorded, aggregated by asset type and length of time the fair value has remained below amortized cost:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2023 | | Less than 12 months | | 12 months or more | | Total | | (In millions) | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | | AFS securities | | | | | | | | | | | | | U.S. government and agencies | $ | 2,013 | | | $ | (94) | | | $ | 2,389 | | | $ | (735) | | | $ | 4,402 | | | $ | (829) | | | U.S. state, municipal and political subdivisions | 123 | | | (5) | | | 888 | | | (245) | | | 1,011 | | | (250) | | | Foreign governments | 690 | | | (13) | | | 760 | | | (242) | | | 1,450 | | | (255) | | | Corporate | 7,752 | | | (474) | | | 50,028 | | | (10,311) | | | 57,780 | | | (10,785) | | | CLO | 689 | | | (2) | | | 11,579 | | | (543) | | | 12,268 | | | (545) | | | ABS | 2,129 | | | (75) | | | 4,378 | | | (458) | | | 6,507 | | | (533) | | | CMBS | 859 | | | (12) | | | 1,967 | | | (406) | | | 2,826 | | | (418) | | | RMBS | 467 | | | (9) | | | 2,057 | | | (263) | | | 2,524 | | | (272) | | | Total AFS securities | 14,722 | | | (684) | | | 74,046 | | | (13,203) | | | 88,768 | | | (13,887) | | | AFS securities – related parties | | | | | | | | | | | | | Corporate | 548 | | | (35) | | | 382 | | | (37) | | | 930 | | | (72) | | | CLO | 397 | | | (16) | | | 2,592 | | | (102) | | | 2,989 | | | (118) | | | ABS | 2,008 | | | (66) | | | 2,793 | | | (225) | | | 4,801 | | | (291) | | | | | | | | | | | | | | | Total AFS securities – related parties | 2,953 | | | (117) | | | 5,767 | | | (364) | | | 8,720 | | | (481) | | | Total AFS securities, including related parties | $ | 17,675 | | | $ | (801) | | | $ | 79,813 | | | $ | (13,567) | | | $ | 97,488 | | | $ | (14,368) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | Less than 12 months | | 12 months or more | | Total | | (In millions) | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | | AFS securities | | | | | | | | | | | | | U.S. government and agencies | $ | 2,539 | | | $ | (756) | | | $ | — | | | $ | — | | | $ | 2,539 | | | $ | (756) | | | U.S. state, municipal and political subdivisions | 911 | | | (291) | | | — | | | — | | | 911 | | | (291) | | | Foreign governments | 891 | | | (275) | | | — | | | — | | | 891 | | | (275) | | | Corporate | 58,256 | | | (13,773) | | | — | | | — | | | 58,256 | | | (13,773) | | | CLO | 13,486 | | | (1,277) | | | — | | | — | | | 13,486 | | | (1,277) | | | ABS | 8,119 | | | (801) | | | — | | | — | | | 8,119 | | | (801) | | | CMBS | 2,650 | | | (427) | | | — | | | — | | | 2,650 | | | (427) | | | RMBS | 2,621 | | | (365) | | | — | | | — | | | 2,621 | | | (365) | | | Total AFS securities | 89,473 | | | (17,965) | | | — | | | — | | | 89,473 | | | (17,965) | | | AFS securities – related parties | | | | | | | | | | | | | Corporate | 619 | | | (47) | | | — | | | — | | | 619 | | | (47) | | | CLO | 2,752 | | | (273) | | | — | | | — | | | 2,752 | | | (273) | | | ABS | 5,487 | | | (308) | | | — | | | — | | | 5,487 | | | (308) | | | Total AFS securities – related parties | 8,858 | | | (628) | | | — | | | — | | | 8,858 | | | (628) | | | Total AFS securities, including related parties | $ | 98,331 | | | $ | (18,593) | | | $ | — | | | $ | — | | | $ | 98,331 | | | $ | (18,593) | |
The following summarizes the number of AFS securities that were in an unrealized loss position, including related parties, for which an allowance for credit losses has not been recorded:
| | | | | | | | | | | | | December 31, 2023 | | Unrealized Loss Position | | Unrealized Loss Position 12 Months or More | | AFS securities | 8,650 | | | 7,714 | | | AFS securities – related parties | 182 | | | 146 | |
The unrealized losses on AFS securities can primarily be attributed to changes in market interest rates since acquisition. Athene did not recognize the unrealized losses in income, unless as required for hedge accounting, as it intends to hold these securities and it is not more likely than not it will be required to sell a security before the recovery of its amortized cost. Allowance for Credit Losses
The following table summarizes the activity in the allowance for credit losses for AFS securities by asset type: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2023 | | | | | Additions | | Reductions | | | | | | (In millions) | Beginning balance | | Initial credit losses | | Initial credit losses on PCD securities | | Securities sold during the period | | Securities intended to be sold prior to recovery of amortized cost basis | | Additions (reductions) to previously impaired securities | | Ending Balance | | | AFS Securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign governments | $ | 27 | | | $ | — | | | $ | — | | | $ | (27) | | | $ | — | | | $ | — | | | $ | — | | | | Corporate | 61 | | | 88 | | | — | | | (8) | | | (15) | | | 3 | | | 129 | | | | CLO | 7 | | | 1 | | | — | | | — | | | — | | | (6) | | | 2 | | | | ABS | 29 | | | 23 | | | — | | | (4) | | | — | | | 1 | | | 49 | | | | CMBS | 5 | | | 26 | | | — | | | — | | | — | | | (2) | | | 29 | | | | RMBS | 329 | | | 16 | | | 53 | | | (16) | | | — | | | (1) | | | 381 | | | | Total AFS securities | 458 | | | 154 | | | 53 | | | (55) | | | (15) | | | (5) | | | 590 | | | | AFS securities – related parties | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | CLO | 1 | | | — | | | — | | | — | | | — | | | (1) | | | — | | | | ABS | — | | | 1 | | | — | | | — | | | — | | | — | | | 1 | | | | | | | | | | | | | | | | | | | Total AFS securities – related parties | 1 | | | 1 | | | — | | | — | | | — | | | (1) | | | 1 | | | | Total AFS securities including related parties | $ | 459 | | | $ | 155 | | | $ | 53 | | | $ | (55) | | | $ | (15) | | | $ | (6) | | | $ | 591 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2022 | | | | Additions | | Reductions | | | | | | (In millions) | Beginning balance1 | | Initial credit losses | | Initial credit losses on PCD securities | | Securities sold during the period | | Securities intended to be sold prior to recovery of amortized cost basis | | Additions (reductions) to previously impaired securities | | Ending Balance | | AFS securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign governments | $ | — | | | $ | 66 | | | $ | — | | | $ | (28) | | | $ | — | | | $ | (11) | | | $ | 27 | | | Corporate | — | | | 70 | | | — | | | — | | | (6) | | | (3) | | | 61 | | | CLO | — | | | 29 | | | — | | | — | | | — | | | (22) | | | 7 | | | ABS | 5 | | | 28 | | | — | | | (3) | | | — | | | (1) | | | 29 | | | CMBS | — | | | 15 | | | — | | | — | | | — | | | (10) | | | 5 | | | RMBS | 306 | | | 41 | | | 7 | | | (29) | | | — | | | 4 | | | 329 | | | Total AFS securities | 311 | | | 249 | | | 7 | | | (60) | | | (6) | | | (43) | | | 458 | | | AFS securities – related parties | | | | | | | | | | | | | | | | | | | | | | | | | | | | | CLO | — | | | 3 | | | — | | | — | | | — | | | (2) | | | 1 | | | ABS | — | | | 18 | | | — | | | — | | | — | | | (18) | | | — | | | Total AFS securities – related parties | — | | | 21 | | | — | | | — | | | — | | | (20) | | | 1 | | | Total AFS securities, including related parties | $ | 311 | | | $ | 270 | | | $ | 7 | | | $ | (60) | | | $ | (6) | | | $ | (63) | | | $ | 459 | | | | | | | | | | | | | | | | 1 Beginning balance reflects allowances established at the time of the Mergers under purchase accounting for PCD investments. |
Net Investment Income
Net investment income by asset class consists of the following:
| | | | | | | | | | | | | | | | | | | | | Years ended December 31, | | | | (In millions) | | | | | 2023 | | 2022 | | | | AFS securities | | | | | $ | 6,901 | | | $ | 4,165 | | | | | Trading securities | | | | | 177 | | | 174 | | | | | Equity securities | | | | | 76 | | | 64 | | | | | Mortgage loans | | | | | 2,360 | | | 1,261 | | | | | Investment funds | | | | | 90 | | | 408 | | | | | Funds withheld at interest | | | | | 1,752 | | | 1,844 | | | | | Other | | | | | 815 | | | 270 | | | | | Investment revenue | | | | | 12,171 | | | 8,186 | | | | | Investment expenses | | | | | (91) | | | (38) | | | | | Net investment income | | | | | $ | 12,080 | | | $ | 8,148 | | | |
Investment Related Gains (Losses)
Investment related gains (losses) by asset class consists of the following:
| | | | | | | | | | | | | | | | | | | | | Years ended December 31, | | | | (In millions) | | | | | 2023 | | 2022 | | | AFS securities1 | | | | | | | | | | | Gross realized gains on investment activity | | | | | $ | 926 | | | $ | 1,337 | | | | | Gross realized losses on investment activity | | | | | (779) | | | (2,151) | | | | | Net realized investment gains (losses) on AFS securities | | | | | 147 | | | (814) | | | | | Net recognized investment gains (losses) on trading securities | | | | | 66 | | | (432) | | | | | Net recognized investment gains (losses) on equity securities | | | | | 13 | | | (153) | | | | | Net recognized investment gains (losses) on mortgage loans | | | | | 207 | | | (2,974) | | | | | Derivative gains (losses) | | | | | 2,135 | | | (9,173) | | | | | Provision for credit losses | | | | | (335) | | | (227) | | | | | Other gains (losses) | | | | | (805) | | | 1,056 | | | | | Investment related gains (losses) | | | | | $ | 1,428 | | | $ | (12,717) | | | | | | | | | | | | | | 1 Includes the effects of recognized gains or losses on AFS securities associated with designated hedges. | | |
Proceeds from sales of AFS securities were $6,464 million and $9,421 million for the years ended December 31, 2023 and 2022, respectively.
The following table summarizes the change in unrealized gains (losses) on trading and equity securities held as of the respective period end:
| | | | | | | | | | | | | | | | | | | | | Years ended December 31, | | | | (In millions) | | | | | 2023 | | 2022 | | | | Trading securities | | | | | $ | 85 | | | $ | (415) | | | | | Trading securities – related parties | | | | | 8 | | | 1 | | | | | Equity securities | | | | | 51 | | | (146) | | | | | Equity securities – related parties | | | | | (2) | | | — | | | |
Repurchase Agreements
The following table summarizes the remaining contractual maturities of repurchase agreements, which are included in payables for collateral on derivatives and securities to repurchase on the consolidated statements of financial condition:
| | | | | | | | | | | | | | | | | | | | | (In millions) | December 31, 2023 | | December 31, 2022 | | | | | | | | | | | | | | | | | | | | | | Less than 30 days | $ | 686 | | | $ | 608 | | | | | | | | | | | 30-90 days | — | | | 1,268 | | | | | | | | | | | | | | | | | | | | | | | 1 year and greater | 3,167 | | | 2,867 | | | | | | | | | | Payables for repurchase agreements | $ | 3,853 | | | $ | 4,743 | | | | | | | | | |
The following table summarizes the securities pledged as collateral for repurchase agreements:
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2023 | | December 31, 2022 | | (In millions) | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | | AFS securities | | | | | | | | | U.S. government and agencies | $ | — | | | $ | — | | | $ | 2,559 | | | $ | 1,941 | | | | | | | | | | | Foreign governments | 137 | | | 99 | | | 146 | | | 107 | | | Corporate | 2,735 | | | 2,307 | | | 1,940 | | | 1,605 | | | CLO | 580 | | | 579 | | | 273 | | | 261 | | | ABS | 1,207 | | | 1,086 | | | 1,243 | | | 1,082 | | | | | | | | | | | | | | | | | | | | | | | | | | | Total securities pledged under repurchase agreements | $ | 4,659 | | | $ | 4,071 | | | $ | 6,161 | | | $ | 4,996 | |
Reverse Repurchase Agreements
As of December 31, 2023 and 2022, amounts loaned under reverse repurchase agreements were $947 million and $1,640 million, respectively, and the fair value of the collateral, comprised primarily of commercial and residential mortgage loans, was $1,504 million and $1,753 million, respectively.
Mortgage Loans, including related parties and consolidated VIEs
Mortgage loans includes both commercial and residential loans. Athene has elected the fair value option on its mortgage loan portfolio. See note 8 for further fair value option information. The following represents the mortgage loan portfolio, with fair value option loans presented at unpaid principal balance:
| | | | | | | | | | | | | (In millions) | December 31, 2023 | | December 31, 2022 | | Commercial mortgage loans | $ | 27,630 | | | $ | 21,061 | | | Commercial mortgage loans under development | 1,228 | | | 790 | | | Total commercial mortgage loans | 28,858 | | | 21,851 | | | Mark to fair value | (2,246) | | | (1,743) | | | Commercial mortgage loans | 26,612 | | | 20,108 | | | Residential mortgage loans | 21,894 | | | 11,802 | | | Mark to fair value | (937) | | | (1,099) | | | Residential mortgage loans | 20,957 | | | 10,703 | | | Mortgage loans | $ | 47,569 | | | $ | 30,811 | |
Athene primarily invests in commercial mortgage loans on income producing properties, including office and retail buildings, apartments, hotels, and industrial properties. Athene diversifies the commercial mortgage loan portfolio by geographic region and property type to reduce concentration risk. Athene evaluates mortgage loans based on relevant current information to confirm if properties are performing at a consistent and acceptable level to secure the related debt. The distribution of commercial mortgage loans, including those under development, by property type and geographic region is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2023 | | December 31, 2022 | | (In millions, except percentages) | Fair Value | | Percentage of Total | | Fair Value | | Percentage of Total | | Property type | | | | | | | | | Apartment | $ | 9,591 | | | 36.0 | % | | $ | 6,692 | | | 33.3 | % | | Office building | 4,455 | | | 16.7 | % | | 4,651 | | | 23.1 | % | | Industrial | 4,143 | | | 15.6 | % | | 2,047 | | | 10.2 | % | | Hotels | 2,913 | | | 11.0 | % | | 1,855 | | | 9.2 | % | | Retail | 2,158 | | | 8.1 | % | | 1,454 | | | 7.2 | % | | Other commercial | 3,352 | | | 12.6 | % | | 3,409 | | | 17.0 | % | | Total commercial mortgage loans | $ | 26,612 | | | 100.0 | % | | $ | 20,108 | | | 100.0 | % | | | | | | | | | | U.S. Region | | | | | | | | | East North Central | $ | 1,517 | | | 5.7 | % | | $ | 1,437 | | | 7.1 | % | | East South Central | 523 | | | 2.0 | % | | 413 | | | 2.1 | % | | Middle Atlantic | 7,147 | | | 26.9 | % | | 5,183 | | | 25.8 | % | | Mountain | 1,196 | | | 4.5 | % | | 898 | | | 4.5 | % | | New England | 1,295 | | | 4.9 | % | | 1,076 | | | 5.4 | % | | Pacific | 4,860 | | | 18.3 | % | | 3,781 | | | 18.8 | % | | South Atlantic | 4,583 | | | 17.2 | % | | 2,756 | | | 13.7 | % | | West North Central | 249 | | | 0.9 | % | | 231 | | | 1.1 | % | | West South Central | 1,228 | | | 4.6 | % | | 1,085 | | | 5.4 | % | | Total U.S. Region | 22,598 | | | 85.0 | % | | 16,860 | | | 83.9 | % | | International Region | | | | | | | | | United Kingdom | 2,343 | | | 8.7 | % | | 1,898 | | | 9.4 | % | Other international1 | 1,671 | | | 6.3 | % | | 1,350 | | | 6.7 | % | | Total International Region | 4,014 | | | 15.0 | % | | 3,248 | | | 16.1 | % | | Total commercial mortgage loans | $ | 26,612 | | | 100.0 | % | | $ | 20,108 | | | 100.0 | % | | | | | | | | | 1 Represents all other countries, with each individual country comprising less than 5% of the portfolio. |
Athene’s residential mortgage loan portfolio includes first lien residential mortgage loans collateralized by properties in various geographic locations and is summarized by proportion of the portfolio in the following table:
| | | | | | | | | | | | | December 31, 2023 | | December 31, 2022 | | U.S. States | | | | | California | 27.6 | % | | 28.9 | % | | Florida | 12.0 | % | | 9.7 | % | | Texas | 6.1 | % | | 4.3 | % | | New York | 5.9 | % | | 5.6 | % | | New Jersey | 4.9 | % | | 5.3 | % | | Arizona | 4.1 | % | | 5.1 | % | Other1 | 30.4 | % | | 27.4 | % | | Total U.S. residential mortgage loan percentage | 91.0 | % | | 86.3 | % | | International | | | | | United Kingdom | 4.0 | % | | 5.4 | % | | | | | Other2 | 5.0 | % | | 8.3 | % | | Total international residential mortgage loan percentage | 9.0 | % | | 13.7 | % | | Total residential mortgage loan percentage | 100.0 | % | | 100.0 | % | | | | | 1 Represents all other states, with each individual state comprising less than 5% of the portfolio. | 2 Represents all other countries, with each individual country comprising less than 5% of the portfolio. |
Investment Funds
Athene’s investment fund portfolio consists of funds that employ various strategies and include investments in origination platforms, insurance platforms, and equity, hybrid, yield and other funds. Investment funds can meet the definition of VIEs. The investment funds do not specify timing of distributions on the funds’ underlying assets.
The following summarizes Athene’s investment funds, including related parties and consolidated VIEs:
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2023 | | December 31, 2022 | | (In millions, except percentages) | Carrying Value | | Percentage of Total | | Carrying Value | | Percentage of Total | | Investment funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Equity funds | $ | 82 | | | 75.3 | % | | $ | 46 | | | 58.2 | % | | Hybrid funds | 20 | | | 18.3 | % | | 32 | | | 40.5 | % | | | | | | | | | | Other | 7 | | | 6.4 | % | | 1 | | | 1.3 | % | | Total investment funds | 109 | | | 100.0 | % | | 79 | | | 100.0 | % | | Investment funds – related parties | | | | | | | | | Strategic origination platforms | 47 | | | 2.9 | % | | 34 | | | 2.2 | % | | Strategic insurance platforms | 1,300 | | | 79.7 | % | | 1,259 | | | 80.2 | % | | Apollo and other fund investments | | | | | | | | | Equity funds | 254 | | | 15.6 | % | | 246 | | | 15.7 | % | | | | | | | | | | Yield funds | 8 | | | 0.5 | % | | 5 | | | 0.3 | % | | Other | 23 | | | 1.3 | % | | 25 | | | 1.6 | % | | Total investment funds – related parties | 1,632 | | | 100.0 | % | | 1,569 | | | 100.0 | % | | Investment funds – consolidated VIEs | | | | | | | | | Strategic origination platforms | 5,594 | | | 35.4 | % | | 4,829 | | | 38.7 | % | | Strategic insurance platforms | 483 | | | 3.1 | % | | 529 | | | 4.2 | % | | Apollo and other fund investments | | | | | | | | | Equity funds | 3,302 | | | 20.9 | % | | 2,640 | | | 21.2 | % | | Hybrid funds | 4,242 | | | 26.7 | % | | 3,112 | | | 24.9 | % | | Yield funds | 1,356 | | | 8.6 | % | | 1,044 | | | 8.4 | % | | Other | 843 | | | 5.3 | % | | 326 | | | 2.6 | % | | Total investment funds – consolidated VIEs | 15,820 | | | 100.0 | % | | 12,480 | | | 100.0 | % | | Total investment funds, including related parties and consolidated VIEs | $ | 17,561 | | | | | $ | 14,128 | | | |
Concentrations—The following table represents Athene’s investment concentrations in excess of 10% of stockholders’ equity:
| | | | | | | (In millions) | December 31, 2023 | Wheels Donlen1 | $ | 1,591 | | | AT&T Inc. | 1,526 | | | | | | | | | | | | | | | | | | | December 31, 2022 | Wheels Donlen1 | $ | 1,288 | | Athora1 | 1,232 | | PK AirFinance1 | 999 | | | AP Tundra | 896 | | | MFI Investments | 878 | | | SoftBank Vision Fund II | 789 | | MidCap Financial1 | 788 | | | Cayman Universe | 756 | | | Concord Music CL A2 | 684 | | | Redding Ridge | 683 | | | AOP Finance | 671 | | | | 1 Related party amounts are representative of single issuer risk and may only include a portion of the total investments associated with a related party. See further discussion of these related parties in note 19. | |
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