[VIDEO] Athene: In Context Video Series from Athene
Several of you have reached out with questions regarding recent commentary and media coverage surrounding private credit exposure. Athene has always been highly transparent about our investment philosophy and portfolio construction, and I encourage you to review our three-part video series, Athene: In Context, available on our website at www.athene.com under the Investors section or click the button below.
Please feel free to share this resource with advisors and clients, as it provides valuable perspective on Athene’s investment approach, balance sheet strength, and risk management framework.
Key Talking Points
- Fortress Balance Sheet
Athene maintains a strong and resilient balance sheet supported by robust capitalization and strong credit ratings. - Industry-Leading Capitalization
Athene is among the best-capitalized companies in the industry, with approximately $35 billion of capital supporting our business. - Strong Regulatory Oversight
As a regulated insurance company, we are required to closely align our assets with our liabilities, helping ensure long-term financial stability. - High-Quality Investment Portfolio
Approximately 95% of Athene’s portfolio is invested in fixed income assets, and roughly 96% of those holdings are investment grade. Only about 5% of assets are allocated to alternatives. - Transparency of Holdings
Athene publicly discloses credit quality information for investments held across both Athene USA and our Bermuda reinsurance operations. - Investment-Grade Private Credit Exposure
Approximately 94% of Athene’s private credit exposure is investment grade and broadly diversified across sectors and issuers. - Minimal Software Debt Exposure
Exposure to investment-grade software debt represents only about 0.5% of invested assets. - Liquidity
Athene has $97B of available liquidity
Addressing Common Misconceptions About Private Credit
There continues to be significant media attention focused on “private credit,” often treating the asset class as a single, uniform category. In reality, private credit encompasses a wide range of investments with varying risk profiles.
Much of the concern being discussed publicly centers around direct lending and below-investment-grade credit. Athene’s portfolio is fundamentally different. Under insurance industry classifications, approximately 20% of Athene’s invested assets are categorized as private credit, and roughly 94% of that exposure is investment grade. Leveraged lending represents only about 0.4% of invested assets.
Another common misconception is that Athene assumes additional risk because of its relationship with Apollo. In fact, Athene benefits from Apollo’s ability to originate investment-grade assets directly, creating opportunities for enhanced yield through sourcing, structuring, and underwriting expertise—not necessarily by taking greater credit risk. This differentiated sourcing model has historically enabled Athene to target approximately 30–40 basis points of incremental return while maintaining a predominantly investment-grade portfolio.
It is also important to recognize that the insurer-plus-asset-manager model is common throughout the industry. Similar structures exist across leading organizations, including:
- Allianz / PIMCO
- Prudential / PGIM
- MetLife / MetLife Investment Management
- Equitable / AllianceBernstein
The key consideration is not whether an insurer works with an affiliated asset manager, but rather the quality of assets, diversification, governance framework, capital position, and regulatory oversight supporting the business.
Key Metrics for Policyholders
When evaluating the strength of an insurance company, I focus on the following metrics:
- Approximately $387 billion of gross invested assets (approximately $292 billion net)
- Approximately 95% invested in fixed income and cash
- Approximately 97–98% investment-grade fixed income exposure
- Approximately $36 billion of regulatory capital
- Approximately $97 billion of available liquidity
- A liability profile designed to be matched with long-duration, cash-flowing assets
The Bottom Line
Ultimately, the conversation should be less about whether an asset is “public” or “private” and more about whether it is high quality, appropriately structured, diversified, and aligned with the long-term obligations of an insurance company.
Athene: In Context
In each episode of Athene: In Context (video series). Mike Downing sits down with experts from across Athene and Apollo for candid conversations about the insurance industry and Athene’s business model. The series addresses common misconceptions surrounding private equity ownership, affiliated asset management, portfolio construction, transparency, and the fortress balance sheet that supports Athene’s long-term commitments.
I encourage everyone to review and share the series as a helpful resource when discussing Athene with advisors and clients.
At Athene, transparency is a core principle. The facts surrounding our balance sheet, portfolio composition, capitalization, liquidity, and private credit exposure are matters of public record and available for anyone to review. We believe informed discussions should be grounded in those facts rather than broad generalizations or headlines.