ATH-PE · Athene Holding Ltd. 7.250% Fixe

Athene Holding Ltd. disclosed its Q1 2026 financial supplement, revealing a stark GAAP net loss of $1,973 million available to common stockholders, a sharp reversal from the $420 million profit in Q1 2025. This downturn was primarily attributed to a one-time $1.7 billion tax expense stemming from the revocation of ACRA’s election to be subject to Bermuda CIT, triggered by updated guidance, which necessitated a full valuation allowance against remaining Bermuda deferred tax assets. Income tax expense surged to $1,673 million from $175 million year-over-year, while income before taxes fell to $191 million. Non-GAAP spread related earnings of $719 million declined 11% year-over-year, reflecting pressure on profitability metrics, with net spread contracting 29 basis points to 0.97% and net investment spread dropping 31 basis points to 1.34%. Alternative net investment income fell 33% to $210 million, though it showed a positive delta of $188 million above long-term expectations, contributing 25 basis points to net spread. Balance sheet expansion continued, with total assets reaching $447,804 million (up 17% Y/Y) and net invested assets at $300,290 million (up 14% Y/Y), supported by gross invested assets growth to $396,834 million. Net reserve liabilities rose 16% to $279,189 million, while adjusted common stockholder’s equity declined 5% to $20,955 million, pushing the adjusted leverage ratio up 300 basis points to 25.9%. Inflows moderated, with gross organic inflows at $19,747 million, down 23% Y/Y. Investors should note the one-time tax impact distorts GAAP comparability, with management’s non-GAAP spread related earnings providing a view into core operations amid asset growth and spread compression.