v3.25.3
Long-duration Contracts
 9 Months Ended
Sep. 30, 2025
Insurance [Abstract]  
Long-duration Contracts
9. Long-duration Contracts

Interest sensitive contract liabilities – Interest sensitive contract liabilities primarily include:
▪traditional deferred annuities;
▪indexed annuities consisting of fixed indexed, index-linked variable annuities, and assumed indexed universal life without significant mortality risk;
▪funding agreements; and
▪other investment-type contracts comprising of immediate annuities without significant mortality risk (which includes pension group annuities without life contingencies), guaranteed investment contracts, and assumed endowments without significant mortality risks.

The following represents a rollforward of the policyholder account balance by product within interest sensitive contract liabilities. Where explicit policyholder account balances do not exist, the disaggregated rollforward represents the recorded reserve.

Nine months ended September 30, 2025
(In millions, except percentages)Traditional Deferred AnnuitiesIndexed AnnuitiesFunding AgreementsOther Investment-typeTotal
Balance at December 31, 2024
$86,661 $97,861 $54,768 $8,030 $247,320 
Deposits23,596 13,957 31,400 964 69,917 
Policy charges(1)(583)— — (584)
Surrenders and withdrawals(6,537)(8,507)— (127)(15,171)
Benefit payments(1,044)(1,170)(6,026)(211)(8,451)
Interest credited3,272 2,091 2,340 169 7,872 
Foreign exchange226 6 892 301 1,425 
Other— — 233 (57)176 
Balance at September 30, 2025$106,173 $103,655 $83,607 $9,069 $302,504 
Weighted average crediting rate4.7 %2.7 %4.7 %2.8 %
Net amount at risk$423 $17,195 $— $31 
Cash surrender value100,279 96,273 — 7,089 

Nine months ended September 30, 2024
(In millions, except percentages)Traditional Deferred AnnuitiesIndexed AnnuitiesFunding AgreementsOther Investment-typeTotal
Balance at December 31, 2023
$64,763 $93,147 $32,350 $7,629 $197,889 
Deposits19,786 12,761 24,083 933 57,563 
Policy charges(2)(522)— — (524)
Surrenders and withdrawals(3,691)(9,724)— (63)(13,478)
Benefit payments(830)(1,204)(7,746)(173)(9,953)
Interest credited2,323 2,313 1,173 152 5,961 
Foreign exchange(1)1 116 (56)60 
Other— — 421 (74)347 
Balance at September 30, 2024$82,348 $96,772 $50,397 $8,348 $237,865 
Weighted average crediting rate4.3 %2.6 %4.5 %2.6 %
Net amount at risk$427 $15,221 $— $65 
Cash surrender value78,049 89,378 — 7,112 
The following is a reconciliation of interest sensitive contract liabilities to the condensed consolidated statements of financial condition:

September 30,
(In millions)20252024
Traditional deferred annuities$106,173 $82,348 
Indexed annuities103,655 96,772 
Funding agreements83,607 50,397 
Other investment-type9,069 8,348 
Reconciling items1
7,233 7,571 
Interest sensitive contract liabilities$309,737 $245,436 
1 Reconciling items primarily include embedded derivatives in indexed annuities, unaccreted host contract adjustments on indexed annuities, negative VOBA, sales inducement liabilities, and wholly ceded universal life insurance contracts.

The following represents policyholder account balances by range of guaranteed minimum crediting rates (“GMCR”), as well as the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums. Athene’s funding agreements and other investment-type products provide Athene little to no discretionary ability to change the rates of interest payable to the respective policyholder or institution and, as a result, those policyholder account balances are excluded from the following tables.

September 30, 2025
(In millions)At Guaranteed Minimum
1 Basis Point – 100 Basis Points Above Guaranteed Minimum
Greater than 100 Basis Points Above Guaranteed Minimum
Total
Traditional deferred annuities
< 2.0%
$5,154 $1,936 $84,880 $91,970 
2.0% – < 4.0%
5,769 588 3,291 9,648 
4.0% – < 6.0%
4,551 1 — 4,552 
6.0% and greater
3 — — 3 
Total traditional deferred annuities$15,477 $2,525 $88,171 $106,173 
Indexed annuities
< 2.0%
$1,519 $1,104 $3,522 $6,145 
2.0% – < 4.0%
3,883 93 — 3,976 
Total indexed annuities with GMCR5,402 1,197 3,522 10,121 
Other1
93,534 
Total indexed annuities$103,655 
1 Includes account value allocated to an indexed strategy or other amounts without a GMCR.
September 30, 2024
(In millions)At Guaranteed Minimum
1 Basis Point – 100 Basis Points Above Guaranteed Minimum
Greater than 100 Basis Points Above Guaranteed Minimum
Total
Traditional deferred annuities
< 2.0%
$4,607 $2,712 $62,734 $70,053 
2.0% – < 4.0%
6,873 424 1,690 8,987 
4.0% – < 6.0%
3,296 8 1 3,305 
6.0% and greater
3 — — 3 
Total traditional deferred annuities$14,779 $3,144 $64,425 $82,348 
Indexed annuities
< 2.0%
$1,899 $1,355 $3,078 $6,332 
2.0% – < 4.0%
4,658 35 68 4,761 
Total indexed annuities with GMCR6,557 1,390 3,146 11,093 
Other1
85,679 
Total indexed annuities$96,772 
1 Includes account value allocated to an indexed strategy or other amounts without a GMCR.
Note: The amounts presented in this table have been revised to conform with the current year presentation to provide certain product-level detail and account value allocated to an indexed strategy or other amounts without a GMCR.
Future policy benefits – Future policy benefits consist primarily of payout annuities, including single premium immediate annuities with life contingencies (which include pension group annuities with life contingencies), and whole life insurance contracts.

The following is a rollforward by product within future policy benefits:
Nine months ended September 30, 2025
(In millions, except percentages and years)Payout Annuities with Life ContingenciesWhole LifeTotal
Present value of expected net premiums
Beginning balance$— $880 $880 
Effect of changes in discount rate assumptions— (30)(30)
Effect of foreign exchange on the change in discount rate assumptions— 2 2 
Beginning balance at original discount rate— 852 852 
Effect of changes in cash flow assumptions— 54 54 
Effect of actual to expected experience— (14)(14)
Adjusted balance— 892 892 
Issuances— 15 15 
Interest accrual— 15 15 
Net premium collected— (139)(139)
Foreign exchange— 54 54 
Other— 10 10 
Ending balance at original discount rate— 847 847 
Effect of changes in discount rate assumptions— 13 13 
Effect of foreign exchange on the change in discount rate assumptions— (1)(1)
Ending balance, present value of expected net premiums$— $859 $859 
Present value of expected future policy benefits
Beginning balance$42,261 $2,711 $44,972 
Effect of changes in discount rate assumptions7,378 206 7,584 
Effect of foreign exchange on the change in discount rate assumptions(5)(1)(6)
Beginning balance at original discount rate49,634 2,916 52,550 
Effect of changes in cash flow assumptions(53)184 131 
Effect of actual to expected experience(48)(51)(99)
Adjusted balance49,533 3,049 52,582 
Issuances205 15 220 
Interest accrual1,311 55 1,366 
Benefit payments(3,329)(77)(3,406)
Foreign exchange58 186 244 
Other— 11 11 
Ending balance at original discount rate47,778 3,239 51,017 
Effect of changes in discount rate assumptions(5,849)(944)(6,793)
Effect of foreign exchange on the change in discount rate assumptions(20)(7)(27)
Ending balance, present value of expected future policy benefits41,909 2,288 44,197 
Less: Present value of expected net premiums— 859 859 
Net future policy benefits$41,909 $1,429 $43,338 
Weighted-average liability duration (in years)
9.323.0
Weighted-average interest accretion rate3.7 %5.0 %
Weighted-average current discount rate5.2 %6.6 %
Expected future gross premiums, undiscounted$— $1,102 
Expected future gross premiums, discounted1
— 920 
Expected future benefit payments, undiscounted69,682 8,136 
1 Discounted at the original discount rate.
Nine months ended September 30, 2024
(In millions, except percentages and years)Payout Annuities with Life ContingenciesWhole LifeTotal
Present value of expected net premiums
Beginning balance$— $1,182 $1,182 
Effect of changes in discount rate assumptions— (45)(45)
Effect of foreign exchange on the change in discount rate assumptions— (2)(2)
Beginning balance at original discount rate— 1,135 1,135 
Effect of actual to expected experience— (4)(4)
Adjusted balance— 1,131 1,131 
Interest accrual— 17 17 
Net premium collected— (144)(144)
Foreign exchange— (28)(28)
Ending balance at original discount rate— 976 976 
Effect of changes in discount rate assumptions— 41 41 
Effect of foreign exchange on the change in discount rate assumptions— 1 1 
Ending balance, present value of expected net premiums$— $1,018 $1,018 
Present value of expected future policy benefits
Beginning balance$45,001 $3,371 $48,372 
Effect of changes in discount rate assumptions6,233 (89)6,144 
Effect of foreign exchange on the change in discount rate assumptions1 (6)(5)
Beginning balance at original discount rate51,235 3,276 54,511 
Effect of changes in cash flow assumptions(104)— (104)
Effect of actual to expected experience(89)(4)(93)
Adjusted balance51,042 3,272 54,314 
Issuances1,010 — 1,010 
Interest accrual1,353 52 1,405 
Benefit payments(3,355)(66)(3,421)
Foreign exchange33 (64)(31)
Ending balance at original discount rate50,083 3,194 53,277 
Effect of changes in discount rate assumptions(5,362)46 (5,316)
Effect of foreign exchange on the change in discount rate assumptions(16)(3)(19)
Ending balance, present value of expected future policy benefits44,705 3,237 47,942 
Less: Present value of expected net premiums— 1,018 1,018 
Net future policy benefits$44,705 $2,219 $46,924 
Weighted-average liability duration (in years)
9.431.3
Weighted-average interest accretion rate3.7 %4.8 %
Weighted-average current discount rate5.0 %4.0 %
Expected future gross premiums, undiscounted$— $1,255 
Expected future gross premiums, discounted1
— 1,064 
Expected future benefit payments, undiscounted73,523 10,235 
1 Discounted at the original discount rate.
The following is a reconciliation of future policy benefits to the condensed consolidated statements of financial condition:

September 30,
(In millions)20252024
Payout annuities with life contingencies$41,909 $44,705 
Whole life1,429 2,219 
Reconciling items1
5,668 6,038 
Future policy benefits$49,006 $52,962 
1 Reconciling items primarily include the deferred profit liability and negative VOBA associated with the liability for future policy benefits. Additionally, it includes term life reserves, fully ceded whole life reserves, and reserves for immaterial lines of business including accident and health and disability, as well as other insurance benefit reserves for no-lapse guarantees with universal life contracts, all of which are fully ceded.

The following is a reconciliation of premiums and interest expense relating to future policy benefits to the condensed consolidated statements of operations:

Premiums
Nine months ended September 30,
(In millions)20252024
Payout annuities with life contingencies$190 $985 
Whole life145 154 
Reconciling items1
16 24 
Total premiums$351 $1,163 
Interest expense
Nine months ended September 30,
(In millions)20252024
Payout annuities with life contingencies$1,312 $1,353 
Whole life40 35 
Reconciling items1
— — 
Total interest expense
$1,352 $1,388 
1 Reconciling items primarily relate to immaterial lines of business including term life, fully ceded whole life, and accident and health and disability.

Significant assumptions and inputs to the calculation of future policy benefits for payout annuities with life contingencies include policyholder demographic data, assumptions for policyholder longevity and policyholder utilization for contracts with deferred lives, and discount rates. For whole life products, significant assumptions and inputs include policyholder demographic data, assumptions for mortality, morbidity, and lapse and discount rates.

Athene bases certain key assumptions related to policyholder behavior on industry standard data adjusted to align with actual company experience, if necessary. At least annually, Athene reviews all significant cash flow assumptions and updates as necessary, unless emerging experience indicates a more frequent review is necessary. The discount rate reflects market observable inputs from upper-medium grade fixed income instrument yields and is interpolated, where necessary, to conform to the duration of Athene’s liabilities.

During the nine months ended September 30, 2025, the present value of expected future policy benefits decreased by $775 million, which was driven by $3,406 million of benefit payments and $99 million related to the effect of actual to expected experience, offset by $1,366 million of interest accruals, an $808 million change in discount rate assumptions related to a decrease in market observable rates, a $244 million change in foreign exchange, $220 million of issuances and $131 million related to the effect of changes in cash flow assumptions.

During the nine months ended September 30, 2024, the present value of expected future policy benefits decreased by $430 million, which was driven by $3,421 million of benefit payments and $104 million related to the effect of changes in cash flow assumptions, offset by $1,405 million of interest accruals, $1,010 million of issuances, primarily pension group annuities, and an $832 million change in discount rate assumptions related to a decrease in market observable rates.
The following is a summary of remeasurement gains (losses) included within future policy and other policy benefits on the condensed consolidated statements of operations:

Nine months ended September 30,
(In millions)20252024
Reserves$8 $193 
Deferred profit liability(38)(37)
Negative VOBA38 (52)
Total remeasurement gains (losses)$8 $104 

During the nine months ended September 30, 2025 and 2024, Athene recorded reserve increases of $45 million and $15 million, respectively, on the condensed consolidated statements of operations as a result of the present value of benefits and expenses exceeding the present value of gross premiums.

Market risk benefits – Athene issues and reinsures traditional deferred and indexed annuity products that contain GLWB and GMDB riders that meet the criteria to be classified as market risk benefits.

The following is a rollforward of net market risk benefit liabilities by product:

Nine months ended September 30, 2025
(In millions, except years)Traditional Deferred AnnuitiesIndexed AnnuitiesTotal
Balance at December 31, 2024
$190 $3,525 $3,715 
Effect of changes in instrument-specific credit risk(3)(154)(157)
Balance, beginning of period, before changes in instrument-specific credit risk187 3,371 3,558 
Issuances— 346 346 
Interest accrual7 136 143 
Attributed fees collected1 288 289 
Benefit payments(3)(48)(51)
Effect of changes in interest rates7 109 116 
Effect of changes in equity— (106)(106)
Effect of actual policyholder behavior compared to expected behavior2 81 83 
Effect of changes in future expected policyholder behavior(5)(38)(43)
Effect of changes in other future expected assumptions3 (15)(12)
Balance, end of period, before changes in instrument-specific credit risk199 4,124 4,323 
Effect of changes in instrument-specific credit risk5 284 289 
Balance at September 30, 2025
204 4,408 4,612 
Less: Reinsurance recoverable— 69 69 
Balance at September 30, 2025, net of reinsurance
$204 $4,339 $4,543 
Net amount at risk$423 $17,195 
Weighted-average attained age of contract holders (in years)
7669
Nine months ended September 30, 2024
(In millions, except years)Traditional Deferred AnnuitiesIndexed AnnuitiesTotal
Balance at December 31, 2023
$192 $3,181 $3,373 
Effect of changes in instrument-specific credit risk2 (10)(8)
Balance, beginning of period, before changes in instrument-specific credit risk194 3,171 3,365 
Issuances— 270 270 
Interest accrual8 143 151 
Attributed fees collected1 265 266 
Benefit payments(3)(39)(42)
Effect of changes in interest rates(2)(34)(36)
Effect of changes in equity— (115)(115)
Effect of actual policyholder behavior compared to expected behavior5 64 69 
Effect of changes in future expected policyholder behavior(3)88 85 
Effect of changes in other future expected assumptions— (19)(19)
Balance, end of period, before changes in instrument-specific credit risk200 3,794 3,994 
Effect of changes in instrument-specific credit risk1 94 95 
Balance at September 30, 2024
201 3,888 4,089 
Less: Reinsurance recoverable— 40 40 
Balance at September 30, 2024, net of reinsurance
$201 $3,848 $4,049 
Net amount at risk$427 $15,221 
Weighted-average attained age of contract holders (in years)
7669

The following is a reconciliation of market risk benefits to the condensed consolidated statements of financial condition. Market risk benefit assets are included in other assets on the condensed consolidated statements of financial condition.

September 30, 2025
(In millions)AssetLiabilityNet Liability
Traditional deferred annuities$— $204 $204 
Indexed annuities223 4,631 4,408 
Total$223 $4,835 $4,612 
September 30, 2024
(In millions)AssetLiabilityNet Liability
Traditional deferred annuities$— $201 $201 
Indexed annuities313 4,201 3,888 
Total$313 $4,402 $4,089 

During the nine months ended September 30, 2025, net market risk benefit liabilities increased by $897 million, which was primarily driven by $346 million of issuances, $289 million in fees collected from policyholders, $143 million of interest accruals, $132 million of changes in instrument-specific credit risk and a $116 million change in interest rates, offset by $106 million of changes in equity.

During the nine months ended September 30, 2024, net market risk benefit liabilities increased by $716 million, which was primarily driven by $270 million of issuances, $266 million in fees collected from policyholders, and $151 million of interest accruals.

The determination of the fair value of market risk benefits requires the use of inputs related to fees and assessments and assumptions in determining the projected benefits in excess of the projected account balance. Judgment is required for both economic and actuarial assumptions, which can be either observable or unobservable, that impact future policyholder account growth.

Economic assumptions include interest rates and implied volatilities throughout the duration of the liability. For indexed annuities, assumptions also include projected equity returns which impact cash flows attributable to indexed strategies, implied
equity volatilities, expected index credits on the next policy anniversary date and future equity option costs. Assumptions related to the level of option budgets used for determining the future equity option costs and the impact on future policyholder account value growth are considered unobservable inputs.

Policyholder behavior assumptions are unobservable inputs and are established using accepted actuarial valuation methods to estimate withdrawals (surrender rate) and income rider utilization. Assumptions are generally based on industry data and pricing assumptions which are updated for actual experience, if necessary. Actual experience may be limited for recently issued products.

All inputs are used to project excess benefits and fees over a range of risk-neutral, stochastic interest rate scenarios. For indexed annuities, stochastic equity return scenarios are also included within the range. A risk margin is incorporated within the discount rate to reflect uncertainty in the projected cash flows such as variations in policyholder behavior, as well as a credit spread to reflect nonperformance risk, which is considered an unobservable input. Athene uses its public credit rating relative to the U.S. Treasury curve as of the valuation date to reflect its nonperformance risk in the fair value estimate of market risk benefits.

The following summarizes the unobservable inputs for market risk benefits:
September 30, 2025
(In millions, except percentages)Fair ValueValuation TechniqueUnobservable InputsMinimumMaximumWeighted AverageImpact of an Increase in the Input on Fair Value
Market risk benefits, net$4,612 Discounted cash flowNonperformance risk0.4 %1.0 %0.9 %
1
Decrease
Option budget0.5 %6.0 %2.6 %
2
Decrease
Surrender rate3.7 %7.9 %5.2 %
2
Decrease
Utilization rate28.6 %95.0 %86.1 %
3
Increase
September 30, 2024
(In millions, except percentages)Fair ValueValuation TechniqueUnobservable InputsMinimumMaximumWeighted AverageImpact of an Increase in the Input on Fair Value
Market risk benefits, net$4,089 Discounted cash flowNonperformance risk0.5 %1.2 %1.1 %
1
Decrease
Option budget0.5 %6.0 %2.2 %
2
Decrease
Surrender rate3.3 %7.0 %4.5 %
2
Decrease
Utilization rate28.6 %95.0 %84.7 %
3
Increase
1 The nonperformance risk weighted average is based on the cash flows underlying the market risk benefit reserve.
2 The option budget and surrender rate weighted averages are calculated based on projected account values.
3 The utilization of GLWB withdrawals represents the estimated percentage of policyholders that are expected to use their income rider over the duration of the contract, with the weighted average based on current account values.