v3.26.1
Long-duration Contracts
 3 Months Ended
Mar. 31, 2026
Insurance [Abstract]  
Long-duration Contracts
9. Long-duration Contracts

Interest sensitive contract liabilities – Interest sensitive contract liabilities primarily include:
▪traditional deferred annuities (including individual and group 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 and structured settlements 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.

Three months ended March 31, 2026
(In millions, except percentages)Traditional Deferred AnnuitiesIndexed AnnuitiesFunding AgreementsOther Investment-typeTotal
Balance at December 31, 2025
$109,201 $105,317 $85,555 $8,821 $308,894 
Deposits7,122 3,430 8,531 728 19,811 
Policy charges— (210)— — (210)
Surrenders and withdrawals(2,407)(2,818)(47)(26)(5,298)
Benefit payments(362)(415)(3,892)(64)(4,733)
Interest credited1,264 1,031 899 60 3,254 
Foreign exchange(55)1 (187)(56)(297)
Other— — (122)(38)(160)
Balance at March 31, 2026$114,763 $106,336 $90,737 $9,425 $321,261 
Weighted average crediting rate4.7 %2.8 %4.5 %3.0 %
Net amount at risk$423 $17,214 $— $17 
Cash surrender value107,870 97,474 — 6,627 

Three months ended March 31, 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 
Deposits10,515 4,127 10,744 118 25,504 
Policy charges— (186)— — (186)
Surrenders and withdrawals(1,305)(2,824)— (19)(4,148)
Benefit payments(342)(391)(2,768)(86)(3,587)
Interest credited993 840 644 54 2,531 
Foreign exchange175 2 287 230 694 
Other— — 144 (9)135 
Balance at March 31, 2025$96,697 $99,429 $63,819 $8,318 $268,263 
Weighted average crediting rate4.6 %2.6 %4.6 %2.7 %
Net amount at risk$421 $15,599 $— $45 
Cash surrender value90,843 90,820 — 6,907 
The following is a reconciliation of interest sensitive contract liabilities to the condensed consolidated statements of financial condition:

March 31,
(In millions)20262025
Traditional deferred annuities$114,763 $96,697 
Indexed annuities106,336 99,429 
Funding agreements90,737 63,819 
Other investment-type9,425 8,318 
Reconciling items1
5,241 5,176 
Interest sensitive contract liabilities$326,502 $273,439 
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 with 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.

March 31, 2026
(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%
$4,979 $1,750 $92,399 $99,128 
2.0% – < 4.0%
5,464 532 5,017 11,013 
4.0% – < 6.0%
4,617 1 1 4,619 
6.0% and greater
3 — — 3 
Total traditional deferred annuities$15,063 $2,283 $97,417 $114,763 
Indexed annuities
< 2.0%
$1,405 $1,039 $3,570 $6,014 
2.0% – < 4.0%
3,532 153 — 3,685 
Total indexed annuities with GMCR4,937 1,192 3,570 9,699 
Other1
96,637 
Total indexed annuities$106,336 
1 Includes account value allocated to an indexed strategy or other amounts without a GMCR.
March 31, 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%
$4,759 $1,620 $77,515 $83,894 
2.0% – < 4.0%
6,194 634 1,997 8,825 
4.0% – < 6.0%
3,972 2 1 3,975 
6.0% and greater
3 — — 3 
Total traditional deferred annuities$14,928 $2,256 $79,513 $96,697 
Indexed annuities
< 2.0%
$1,658 $1,211 $3,129 $5,998 
2.0% – < 4.0%
4,276 44 186 4,506 
Total indexed annuities with GMCR5,934 1,255 3,315 10,504 
Other1
88,925 
Total indexed annuities$99,429 
1 Includes 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 and structured settlements with life contingencies), and whole life insurance contracts.

The following is a rollforward by product within future policy benefits:
Three months ended March 31, 2026
(In millions, except percentages and years)Payout Annuities with Life ContingenciesWhole LifeTotal
Present value of expected net premiums
Beginning balance, present value of expected net premiums$— $1,402 $1,402 
Effect of changes in discount rate assumptions— (25)(25)
Effect of foreign exchange on the change in discount rate assumptions— 1 1 
Beginning balance at original discount rate— 1,378 1,378 
Effect of actual to expected experience— (4)(4)
Adjusted balance— 1,374 1,374 
Issuances— 4 4 
Interest accrual— 13 13 
Net premium collected— (82)(82)
Foreign exchange— (9)(9)
Ending balance at original discount rate— 1,300 1,300 
Effect of changes in discount rate assumptions— 7 7 
Effect of foreign exchange on the change in discount rate assumptions— (1)(1)
Ending balance, present value of expected net premiums$— $1,306 $1,306 
Present value of expected future policy benefits
Beginning balance, present value of expected future policy benefits$42,058 $3,795 $45,853 
Effect of changes in discount rate assumptions5,941 1,036 6,977 
Effect of foreign exchange on the change in discount rate assumptions21 (47)(26)
Beginning balance at original discount rate48,020 4,784 52,804 
Effect of actual to expected experience(2)13 11 
Adjusted balance48,018 4,797 52,815 
Issuances127 4 131 
Interest accrual433 43 476 
Benefit payments(1,082)(88)(1,170)
Foreign exchange(14)(38)(52)
Ending balance at original discount rate47,482 4,718 52,200 
Effect of changes in discount rate assumptions(6,753)(1,151)(7,904)
Effect of foreign exchange on the change in discount rate assumptions(14)61 47 
Ending balance, present value of expected future policy benefits40,715 3,628 44,343 
Less: Present value of expected net premiums— 1,306 1,306 
Net future policy benefits$40,715 $2,322 $43,037 
Weighted-average liability duration (in years)
9.220.1
Weighted-average interest accretion rate3.7 %5.2 %
Weighted-average current discount rate5.5 %6.5 %
Expected future gross premiums, undiscounted$— $1,844 
Expected future gross premiums, discounted1
— 1,484 
Expected future benefit payments, undiscounted69,188 11,477 
1 Discounted at the original discount rate.
Three months ended March 31, 2025
(In millions, except percentages and years)Payout Annuities with Life ContingenciesWhole LifeTotal
Present value of expected net premiums
Beginning balance, present value of expected net premiums$— $880 $880 
Effect of changes in discount rate assumptions— (30)(30)
Effect of foreign exchange on the change in discount rate assumptions— 2 2 
Beginning balance at original discount rate— 852 852 
Interest accrual— 4 4 
Net premium collected— (47)(47)
Foreign exchange— 40 40 
Ending balance at original discount rate— 849 849 
Effect of changes in discount rate assumptions— 20 20 
Effect of foreign exchange on the change in discount rate assumptions— (1)(1)
Ending balance, present value of expected net premiums$— $868 $868 
Present value of expected future policy benefits
Beginning balance, present value of expected future policy benefits$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 actual to expected experience(42)2 (40)
Adjusted balance49,592 2,918 52,510 
Issuances75 — 75 
Interest accrual442 17 459 
Benefit payments(1,132)(22)(1,154)
Foreign exchange25 143 168 
Ending balance at original discount rate49,002 3,056 52,058 
Effect of changes in discount rate assumptions(6,778)(288)(7,066)
Effect of foreign exchange on the change in discount rate assumptions(6)(10)(16)
Ending balance, present value of expected future policy benefits42,218 2,758 44,976 
Less: Present value of expected net premiums— 868 868 
Net future policy benefits$42,218 $1,890 $44,108 
Weighted-average liability duration (in years)
9.430.0
Weighted-average interest accretion rate3.7 %4.8 %
Weighted-average current discount rate5.4 %4.7 %
Expected future gross premiums, undiscounted$— $1,073 
Expected future gross premiums, discounted1
— 927 
Expected future benefit payments, undiscounted71,699 10,126 
1 Discounted at the original discount rate.
The following is a reconciliation of future policy benefits to the condensed consolidated statements of financial condition:

March 31,
(In millions)20262025
Payout annuities with life contingencies$40,715 $42,218 
Whole life2,322 1,890 
Reconciling items1
5,620 5,789 
Future policy benefits$48,657 $49,897 
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
Three months ended March 31,
(In millions)20262025
Payout annuities with life contingencies$119 $70 
Whole life91 51 
Reconciling items1
7 6 
Total premiums$217 $127 
Interest Expense
Three months ended March 31,
(In millions)20262025
Payout annuities with life contingencies$433 $442 
Whole life29 12 
Total interest expense
$462 $454 
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 three months ended March 31, 2026, the present value of expected future policy benefits decreased by $1,510 million, which was driven by $1,170 million of benefit payments and a $909 million change in discount rate assumptions related to an increase in market observable rates, partially offset by $476 million of interest accruals and $131 million of issuances.

During the three months ended March 31, 2025, the present value of expected future policy benefits increased by $4 million, which was driven by a $528 million change in discount rate assumptions related to a decrease in market observable rates, $459 million of interest accrual, a $168 million change in foreign exchange and $75 million of issuances, primarily pension group annuities, offset by $1,154 million of benefit payments.
The following is a summary of remeasurement gains (losses) included within future policy and other policy benefits on the condensed consolidated statements of operations:

Three months ended March 31,
(In millions)20262025
Reserves$(15)$40 
Deferred profit liability23 1 
Negative VOBA(2)— 
Total remeasurement gains (losses)$6 $41 

During the three months ended March 31, 2026 and 2025, Athene recorded reserve increases of $6 million and $8 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:

Three months ended March 31, 2026
(In millions, except years)Traditional Deferred AnnuitiesIndexed AnnuitiesTotal
Balance at December 31, 2025
$205 $4,511 $4,716 
Effect of changes in instrument-specific credit risk(5)(255)(260)
Balance, beginning of period, before changes in instrument-specific credit risk200 4,256 4,456 
Issuances— 64 64 
Interest accrual2 46 48 
Attributed fees collected— 106 106 
Benefit payments(1)(22)(23)
Effect of changes in interest rates(1)(23)(24)
Effect of changes in equity— 116 116 
Effect of actual policyholder behavior compared to expected behavior2 38 40 
Balance, end of period, before changes in instrument-specific credit risk202 4,581 4,783 
Effect of changes in instrument-specific credit risk1 43 44 
Balance at March 31, 2026
203 4,624 4,827 
Less: Reinsurance recoverable— 78 78 
Balance at March 31, 2026, net of reinsurance
$203 $4,546 $4,749 
Net amount at risk$423 $17,214 
Weighted-average attained age of contract holders (in years)
7770
Three months ended March 31, 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— 87 87 
Interest accrual2 42 44 
Attributed fees collected— 93 93 
Benefit payments(1)(14)(15)
Effect of changes in interest rates6 183 189 
Effect of changes in equity— 50 50 
Effect of actual policyholder behavior compared to expected behavior— 30 30 
Balance, end of period, before changes in instrument-specific credit risk194 3,842 4,036 
Effect of changes in instrument-specific credit risk— 41 41 
Balance at March 31, 2025
194 3,883 4,077 
Less: Reinsurance recoverable— 47 47 
Balance at March 31, 2025, net of reinsurance
$194 $3,836 $4,030 
Net amount at risk$421 $15,599 
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.

March 31, 2026
(In millions)AssetLiabilityNet Liability
Traditional deferred annuities$— $203 $203 
Indexed annuities183 4,807 4,624 
Total$183 $5,010 $4,827 
March 31, 2025
(In millions)AssetLiabilityNet Liability
Traditional deferred annuities$— $194 $194 
Indexed annuities285 4,168 3,883 
Total$285 $4,362 $4,077 

During the three months ended March 31, 2026, net market risk benefit liabilities increased by $111 million, which was primarily driven by $116 million of changes in equity, $106 million in fees collected from policyholders, $64 million of issuances and $48 million of interest accruals, partially offset by $216 million of changes in instrument-specific credit risk.

During the three months ended March 31, 2025, net market risk benefit liabilities increased by $362 million, which was primarily driven by an increase of $189 million related to changes in the risk-free discount rate across the curve, $93 million in fees collected from policyholders, and $87 million of issuances.

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:

March 31, 2026
(In millions, except percentages)Fair ValueValuation TechniqueUnobservable InputsMinimumMaximumWeighted AverageImpact of an Increase in the Input on Fair Value
Market risk benefits, net$4,827 Discounted cash flowNonperformance risk0.5 %1.3 %1.1 %
1
Decrease
Option budget0.5 %5.9 %2.7 %
2
Decrease
Surrender rate3.9 %7.9 %5.2 %
2
Decrease
Utilization rate28.6 %95.0 %86.5 %
3
Increase
March 31, 2025
(In millions, except percentages)Fair ValueValuation TechniqueUnobservable InputsMinimumMaximumWeighted AverageImpact of an Increase in the Input on Fair Value
Market risk benefits, net$4,077 Discounted cash flowNonperformance risk0.5 %1.3 %1.1 %
1
Decrease
Option budget0.5 %6.0 %2.4 %
2
Decrease
Surrender rate3.1 %6.8 %4.5 %
2
Decrease
Utilization rate28.6 %95.0 %85.1 %
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.