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Athene (ATH) Q1 Earnings & Revenues Top Estimates, Rise Y/Y
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Athene Holding’s first-quarter 2021 adjusted operating income of $3.80 per share outpaced the Zacks Consensus Estimate by 76.7%. Moreover, the bottom line rebounded from loss of 60 cents incurred in the year-ago quarter.
The company’s results benefited from increased gross organic inflows, higher premiums and higher net investment income.
Athene Holding Ltd. Price, Consensus and EPS Surprise
Operating revenues were nearly $2 billion, which increased nearly threefold year over year due to higher premiums, net investment income and product charges. The top line beat the Zacks Consensus Estimate by 23.6%.
Premiums were $4.3 billion, more than double year over year. Net investment income was $1.7 billion in the quarter under review, more than double year over year.
Net invested assets of $155.7 billion as on Mar 31, 2021 improved 28.5% year over year.
Athene generated $8.2 billion of gross organic inflows, marking the second-highest quarterly total. It reflects an increase of 107% year over year. Strong organic inflows reflected the advantage of Athene's diversified funding channels, with particular strength in funding agreements and pension risk transfer.
Total expenses were $4.3 billion in the quarter against benefit if $0.2 million in the year-ago quarter.
Quarterly Segmental Update
Retirement Services reported adjusted operating income of $776 million, up more than three fold year over year, primarily driven by strong growth in average net invested assets of $32 billion or 27%, as well as elevated net investment income from alternatives.
Corporate and Other generated adjusted operating loss of $36 million, narrower than the prior-year quarter’s operating loss of $312 million, attributable to an increase in the fair value of Athene's AOG investment and higher alternative investment income, partially offset by higher preferred dividends and interest expense.
Financial Update
The company exited the first quarter with cash and cash equivalents of $7.7 billion, which declined 16.6% from 2020 end level. Total debt of nearly $2 billion at the end of the quarter remained almost flat with 2020-end. Adjusted debt to capital ratio of 11.8 improved 90 basis points (bps) from 2020 end.
Adjusted book value per share was $62.88 as of Mar 31, 2021, up 23.1% year over year.
Athene exited the first quarter with excess equity capital of $3.6 billion and total deployable capital of $8.1 billion. Adjusted operating ROE of 26% expanded 1900 bps year over year.
First-quarter earnings of Lincoln Financial (LNC - Free Report) and Primerica (PRI - Free Report) beat the Zacks Consensus Estimate while that of American Equity Investment (AEL - Free Report) missed estimates.
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Athene (ATH) Q1 Earnings & Revenues Top Estimates, Rise Y/Y
Athene Holding’s first-quarter 2021 adjusted operating income of $3.80 per share outpaced the Zacks Consensus Estimate by 76.7%. Moreover, the bottom line rebounded from loss of 60 cents incurred in the year-ago quarter.
The company’s results benefited from increased gross organic inflows, higher premiums and higher net investment income.
Athene Holding Ltd. Price, Consensus and EPS Surprise
Athene Holding Ltd. price-consensus-eps-surprise-chart | Athene Holding Ltd. Quote
Behind the Headlines
Operating revenues were nearly $2 billion, which increased nearly threefold year over year due to higher premiums, net investment income and product charges. The top line beat the Zacks Consensus Estimate by 23.6%.
Premiums were $4.3 billion, more than double year over year. Net investment income was $1.7 billion in the quarter under review, more than double year over year.
Net invested assets of $155.7 billion as on Mar 31, 2021 improved 28.5% year over year.
Athene generated $8.2 billion of gross organic inflows, marking the second-highest quarterly total. It reflects an increase of 107% year over year. Strong organic inflows reflected the advantage of Athene's diversified funding channels, with particular strength in funding agreements and pension risk transfer.
Total expenses were $4.3 billion in the quarter against benefit if $0.2 million in the year-ago quarter.
Quarterly Segmental Update
Retirement Services reported adjusted operating income of $776 million, up more than three fold year over year, primarily driven by strong growth in average net invested assets of $32 billion or 27%, as well as elevated net investment income from alternatives.
Corporate and Other generated adjusted operating loss of $36 million, narrower than the prior-year quarter’s operating loss of $312 million, attributable to an increase in the fair value of Athene's AOG investment and higher alternative investment income, partially offset by higher preferred dividends and interest expense.
Financial Update
The company exited the first quarter with cash and cash equivalents of $7.7 billion, which declined 16.6% from 2020 end level. Total debt of nearly $2 billion at the end of the quarter remained almost flat with 2020-end. Adjusted debt to capital ratio of 11.8 improved 90 basis points (bps) from 2020 end.
Adjusted book value per share was $62.88 as of Mar 31, 2021, up 23.1% year over year.
Athene exited the first quarter with excess equity capital of $3.6 billion and total deployable capital of $8.1 billion. Adjusted operating ROE of 26% expanded 1900 bps year over year.
Zacks Rank & Performance of Other Life Insurers
Athene currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
First-quarter earnings of Lincoln Financial (LNC - Free Report) and Primerica (PRI - Free Report) beat the Zacks Consensus Estimate while that of American Equity Investment (AEL - Free Report) missed estimates.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>