Athene Holding (ATH) Misses Q1 EPS by 22c, Revenues Miss

Athene Holding (NYSE: ATH) reported Q1 EPS of $1.50, $0.22 worse than the analyst estimate of $1.72. Revenue for the quarter came in at $1.01 billion versus the consensus estimate of $1.26 billion.

Highlights

• Athene announces formation of strategic capital solution, Athene Co-Invest Reinsurance Affiliate ("ACRA"), which is expected to provide Athene with up to $4 billion of on-demand, third-party equity capital, enabling Athene to support a variety of business objectives
• With enhanced strategic flexibility resulting from ACRA, Athene\'s Board of Directors has increased the share repurchase authorization to $350 million, effective immediately
• On April 30, 2019, Fitch Ratings ("Fitch") upgraded the financial strength ratings of Athene\'s operating companies to \'A\' from \'A-\'
• Book value per share of $52.12, an increase of 23% and 18% for the quarter-over-quarter and year-over-year periods ended March 31, 2019, respectively
• Adjusted book value per share of $47.30, an increase of 4% and 17% for the quarter-over-quarter and year-over-year periods ended March 31, 2019, respectively
• ROE of 30.8%, Consolidated adjusted operating ROE of 12.8%, and Retirement Services adjusted operating ROE of 14.4% for the quarter ended March 31, 2019
• ROA of 2.19% and adjusted operating ROA of 1.02% for the quarter ended March 31, 2019
• Total deposits of $4.8 billion underwritten to target returns for the quarter ended March 31, 2019
• Estimated ALRe RBC of 405%3 and U.S. RBC of 412% as of March 31, 2019

“Our business continues to drive 17% compound annual growth in adjusted book value per share," said Jim Belardi, CEO of Athene. "We are extraordinarily well positioned with a multi-channel distribution platform that provides sustainable and opportunistic growth with very attractive profitability. Given the growing number of opportunities we see to drive long term value creation, we are excited to announce the formation of a strategic, on-demand capital vehicle that will allow us to achieve a variety of business objectives simultaneously, and in a shareholder friendly manner.”

Mr. Belardi continued, “In recognition of our superior financial performance, market leadership, and improved business diversification, Fitch upgraded the financial strength ratings of Athene’s operating companies to 'A' on April 30, 2019. We are now positioned with ‘A’ ratings from all agencies who cover us, and we look forward to additional ratings upgrades over time. Our increasing presence in the marketplace as an A-rated company will enable us to establish new partnerships and further our position as a financial solutions provider to a broader market.”

For earnings history and earnings-related data on Athene Holding (ATH) click here.

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