Athene Holding Ltd, the Bermudian-based financial services company specialising in retirement solutions, has reported net income available to its common shareholders of $3.718 billion in fiscal year 2021.

That compares with net income of $1.446 billion in 2020.

The company said the increase from the prior year was driven by higher adjusted operating income as well as a favourable change in the net fair value of FIA derivatives due to a favourable change in the discount rate resulting from rising interest rates, partially offset by an unfavourable change in fair value of reinsurance assets due to an increase in US Treasury rates.

Net income available to AHL common shareholders for the fourth quarter 2021 was $1.06 billion, compared with $1.065 billion for the fourth quarter 2020.

Athene said the slight decrease from the prior year quarter was driven primarily by an unfavourable change in the fair value of reinsurance assets due to widening credit spreads, largely offset by realised gains on the sale of AFS securities and a favourable change in the net fair value of fixed indexed annuity derivatives, due to a favourable change in the discount rate resulting primarily from rising interest rates.

Athene generated record levels of annual inflows across each of the retail, funding agreement, and pension group annuity channels.

Organic inflows for both the fourth-quarter and full-year 2021 were underwritten to attractive returns above targets despite the low interest rate environment, reflecting Athene's ability to originate new business with low funding costs and generate alpha within its investment portfolio, the company said.

Book value per common share at the end of 2021 was $92.53, which compares with $85.51 at the end of the prior year, and $11.62 as at December 31, 2009.

Adjusted book value per common share at those three dates, was $73.84, $56.95, and $11.49.

Jim Belardi, CEO of Athene, said: “In the fourth quarter, Athene generated more than $9 billion of inflows, completing a record year of organic growth which totalled $37 billion of inflows, increasing 34 per cent versus the prior year.

“This is a remarkable achievement that demonstrates our leadership position within the retirement services marketplace.

“2021 also marked a record level of profitability for Athene, with $2.3 billion of full year adjusted operating earnings, excluding notable items and appreciation in our AOG investment, an increase of 124 per cent year over year.

“As we have consistently done since our founding, we achieved this result through our ability to drive attractive spread earnings, which benefits from the upside offered by our portfolio of differentiated alternative investments.”

Mr Belardi added: “Our stellar performance drove adjusted book value to $73.84 per share, which represents a 30 per cent increase year-over-year, and an impressive compound growth rate of 17 per cent per year since inception.

“On January 1, 2022, Athene completed its strategic merger with Apollo. We’re incredibly excited about our next stage of growth as a fully-aligned business and are energised by the tremendous opportunity to continuing building upon our legacy of success.”

Athene, through its subsidiaries, is a financial services company specialising in retirement services with total assets of $235.1 billion as of December 31, 2021 and operations in Bermuda, the United States, and Canada.

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