Athene : Third Quarter 2020 Statutory Financial Statement for Athene Annuity & Life Assurance Company (Unaudited)

QUARTERLY STATEMENT

OF THE

Athene Annuity & Life Assurance Company

TO THE

Insurance Department

OF THE

STATE OF

FOR THE QUARTER ENDED

SEPTEMBER 30, 2020

[ X ] LIFE AND ACCIDENT AND HEALTH

[ ] FRATERNAL BENEFIT SOCIETIES

2020

STATEMENT AS OF SEPTEMBER 30, 2020 OF THE Athene Annuity & Life Assurance Company

ASSETS

			Current Statement Date		4
		1	2		3	December 31
					Net Admitted Assets	Prior Year Net
		Assets	Nonadmitted Assets		(Cols. 1 - 2)	Admitted Assets
1.	Bonds	17,007,977,928			17,007,977,928	15,921,950,276
2.	Stocks:
	2.1 Preferred stocks	116,754,819			116,754,819	91,252,487
	2.2 Common stocks	1,322,535,132	37,703		1,322,497,429	1,223,976,498

3. Mortgage loans on real estate:

3.1	First liens	2,798,187,168	2,798,187,168	2,674,741,630
3.2	Other than first liens	504,092,379	504,092,379	556,677,590

4. Real estate:

1. Properties occupied by the company (less $ encumbrances)
2. Properties held for the production of income (less

	$		encumbrances)
	4.3 Properties held for sale (less $
	encumbrances)
5.	Cash ($	3,269,597,754 ), cash equivalents
	($		) and short-term
	investments ($		152,027,605 )		3,421,625,359		3,421,625,359	1,145,026,637
6.	Contract loans (including $	premium notes)		2,422,385		2,422,385	2,776,790
7.	Derivatives				146,365,921		146,365,921	152,131,771
8.	Other invested assets			2,031,359,083	1,891,555	2,029,467,529	1,657,004,628
9.	Receivables for securities			20,673,697		20,673,697	9,399,357
10.	Securities lending reinvested collateral assets
11.	Aggregate write-ins for invested assets		5,670,000		5,670,000	7,750,000
12.	Subtotals, cash and invested assets (Lines 1 to 11)		27,377,663,872	1,929,258	27,375,734,614	23,442,687,665
13.	Title plants less $		charged off (for Title insurers
	only)
14.	Investment income due and accrued		143,596,599	1,217,746	142,378,854	157,613,982
15.	Premiums and considerations:

1. Uncollected premiums and agents' balances in the course of collection
2. Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $

	earned but unbilled premiums)
15.3	Accrued retrospective premiums ($	) and
	contracts subject to redetermination ($	)
16. Reinsurance:
16.1	Amounts recoverable from reinsurers		66,575,367		66,575,367	57,520,042
16.2	Funds held by or deposited with reinsured companies		2,535,135,589		2,535,135,589	2,533,460,136
16.3	Other amounts receivable under reinsurance contracts		2,540,172,932		2,540,172,932	2,200,750,378

17. Amounts receivable relating to uninsured plans

18.1	Current federal and foreign income tax recoverable and interest thereon	41,757,724		41,757,724
18.2	Net deferred tax asset	79,148,282	35,583,072	43,565,210	48,222,795
19.	Guaranty funds receivable or on deposit	484,146		484,146	579,098
20.	Electronic data processing equipment and software

21. Furniture and equipment, including health care delivery assets

($)

22. Net adjustment in assets and liabilities due to foreign exchange rates

23.	Receivables from parent, subsidiaries and affiliates				184,190
24.	Health care ($	) and other amounts receivable	11,566,058		11,566,058	11,070,294
25.	Aggregate write-ins for other than invested assets	2,092,591	705,438	1,387,154	4,232,721

26. Total assets excluding Separate Accounts, Segregated Accounts and

Protected Cell Accounts (Lines 12 to 25)

32,798,193,160

39,435,513

32,758,757,647

28,456,321,303

27. From Separate Accounts, Segregated Accounts and Protected Cell

	Accounts	14,677,732		14,677,732	14,426,214
28.	Total (Lines 26 and 27)	32,812,870,892	39,435,513	32,773,435,379	28,470,747,517
	DETAILS OF WRITE-INS
1101.	DERIVATIVE COLLATERAL ASSET			5,670,000		7,750,000
5,670,000
1102.
1103.
1198.	Summary of remaining write-ins for Line 11 from overflow page
1199.	Totals (Lines 1101 through 1103 plus 1198)(Line 11 above)	5,670,000		5,670,000		7,750,000
2501.	MISCELLANEOUS ASSETS	2,092,591	705,438	1,387,154		4,232,721
2502.
2503.
2598.	Summary of remaining write-ins for Line 25 from overflow page
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)	2,092,591	705,438	1,387,154		4,232,721

2

STATEMENT AS OF SEPTEMBER 30, 2020 OF THE Athene Annuity & Life Assurance Company

LIABILITIES, SURPLUS AND OTHER FUNDS

					1	2
					Current	December 31
					Statement Date	Prior Year
1.	Aggregate reserve for life contracts $	20,202,590,662 less $	included in Line 6.3
	(including $	13,968,336,211 Modco Reserve)		20,202,590,662	20,102,934,270
2.	Aggregate reserve for accident and health contracts (including $	Modco Reserve)
3.	Liability for deposit-type contracts (including $	132,597,321 Modco Reserve)	350,475,285	4,070,026,522

4. Contract claims:

4.1	Life		54,239,869	46,101,014
4.2	Accident and health
5. Policyholders' dividends/refunds to members $	and coupons $	due
and unpaid

6. Provision for policyholders' dividends, refunds to members and coupons payable in following calendar year - estimated amounts:

6.1 Policyholders' dividends and refunds to members apportioned for payment (including $

	Modco)			35,706	35,706
6.2	Policyholders' dividends and refunds to members not yet apportioned (including $	Modco)
6.3	Coupons and similar benefits (including $	Modco)

1. Amount provisionally held for deferred dividend policies not included in Line 6
2. Premiums and annuity considerations for life and accident and health contracts received in advance less

$

discount; including $

accident and health premiums

9. Contract liabilities not included elsewhere:

	9.1	Surrender values on canceled contracts
	9.2	Provision for experience rating refunds, including the liability of $	accident and health
		experience rating refunds of which $	is for medical loss ratio rebate per the Public Health
		Service Act
	9.3 Other amounts payable on reinsurance, including $	82,772,268	assumed and $	2,070,016,369
		ceded				2,152,788,637	1,859,385,884
	9.4 Interest Maintenance Reserve				40,148,728	41,999,785
10.	Commissions to agents due or accrued-life and annuity contracts $		208,577 , accident and health
	$	405,853 and deposit-type contract funds $				614,430	600,350
11.	Commissions and expense allowances payable on reinsurance assumed			27,633,247	8,379,728
12.	General expenses due or accrued				1,875,680	984,856
13.	Transfers to Separate Accounts due or accrued (net) (including $		(125,864) accrued for expense
	allowances recognized in reserves, net of reinsured allowances)				(125,864)	16,927
14.	Taxes, licenses and fees due or accrued, excluding federal income taxes			197,126	231,277
15.1 Current federal and foreign income taxes, including $		on realized capital gains (losses)		13,807,916
15.2	Net deferred tax liability
16.	Unearned investment income			44,604	40,898
17.	Amounts withheld or retained by reporting entity as agent or trustee			123,522	188,265
18.	Amounts held for agents' account, including $	agents' credit balances
19.	Remittances and items not allocated			20,419,651	20,294,261

20. Net adjustment in assets and liabilities due to foreign exchange rates

21. Liability for benefits for employees and agents if not included above

22. Borrowed money $and interest thereon $

23. Dividends to stockholders declared and unpaid

24. Miscellaneous liabilities:

24.01	Asset valuation reserve			385,969,045	365,552,729
24.02	Reinsurance in unauthorized and certified ($	) companies
24.03	Funds held under reinsurance treaties with unauthorized and certified ($	) reinsurers	7,031,132,479
24.04	Payable to parent, subsidiaries and affiliates			7,261,207	6,356,679
24.05	Drafts outstanding

1. Liability for amounts held under uninsured plans
2. Funds held under coinsurance

	24.08	Derivatives		41,369,114	33,353,686
	24.09	Payable for securities		357,099,330	65,783,857
	24.10	Payable for securities lending
	24.11 Capital notes $	and interest thereon $
25.	Aggregate write-ins for liabilities		429,169,120	294,579,313
26.	Total liabilities excluding Separate Accounts business (Lines 1 to 25)	31,103,061,579	26,930,653,925
27.	From Separate Accounts Statement		14,677,732	14,426,214
28.	Total liabilities (Lines 26 and 27)		31,117,739,312	26,945,080,139
29.	Common capital stock		2,500,000	2,500,000

1. Preferred capital stock
2. Aggregate write-ins for other than special surplus funds
3. Surplus notes

33. Gross paid in and contributed surplus

1,195,529,123

1,186,812,580

34. Aggregate write-ins for special surplus funds

35. Unassigned funds (surplus)

457,666,944

336,354,799

36. Less treasury stock, at cost:

	36.1	shares common (value included in Line 29	$	)
	36.2	shares preferred (value included in Line 30	$	)
37.	Surplus (Total Lines 31+32+33+34+35-36) (including $		in Separate Accounts Statement)	1,653,196,067	1,523,167,378
38.	Totals of Lines 29, 30 and 37				1,655,696,067	1,525,667,378
39.	Totals of Lines 28 and 38 (Page 2, Line 28, Col. 3)			32,773,435,379	28,470,747,517
	DETAILS OF WRITE-INS
2501.	Repurchase agreement liability			187,286,000	99,849,323
2502.	Derivative and other collateral liability			186,456,611	162,071,888
2503.	Unclaimed funds				27,215,895	22,869,919
2598.	Summary of remaining write-ins for Line 25 from overflow page			28,210,614	9,788,184
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)			429,169,120	294,579,313
3101.
3102.
3103.
3198.	Summary of remaining write-ins for Line 31 from overflow page
3199.	Totals (Lines 3101 through 3103 plus 3198)(Line 31 above)
3401.
3402.
3403.
3498.	Summary of remaining write-ins for Line 34 from overflow page
3499.	Totals (Lines 3401 through 3403 plus 3498)(Line 34 above)

3

STATEMENT AS OF SEPTEMBER 30, 2020 OF THE Athene Annuity & Life Assurance Company

SUMMARY OF OPERATIONS

		1	2	3
		Current Year	Prior Year	Prior Year Ended
		To Date	To Date	December 31
1.	Premiums and annuity considerations for life and accident and health contracts	191,557,978	906,745,617	1,213,947,510
2.	Considerations for supplementary contracts with life contingencies	50,643,132	32,520,579	47,358,635
3.	Net investment income	701,395,999	583,234,544	810,285,053
4.	Amortization of Interest Maintenance Reserve (IMR)	4,442,555	2,940,254	13,937,057

5. Separate Accounts net gain from operations excluding unrealized gains or losses

6.	Commissions and expense allowances on reinsurance ceded	290,158,089	303,548,504	385,457,215
7.	Reserve adjustments on reinsurance ceded	(234,380,835)	2,924,297,422	3,837,891,710

8. Miscellaneous Income:

	8.1	Income from fees associated with investment management, administration and contract
		guarantees from Separate Accounts	346,665	349,780	450,689
	8.2	Charges and fees for deposit-type contracts
	8.3	Aggregate write-ins for miscellaneous income	71,787,494	89,109,621	116,521,781
9.	Totals (Lines 1 to 8.3)	1,075,951,078	4,842,746,321	6,425,849,651
10.	Death benefits	505,646	826,447	423,790
11.	Matured endowments (excluding guaranteed annual pure endowments)			232
12.	Annuity benefits	99,788,747	99,870,116	127,246,153

1. Disability benefits and benefits under accident and health contracts
2. Coupons, guaranteed annual pure endowments and similar benefits

15.	Surrender benefits and withdrawals for life contracts	327,484,999	392,381,323	515,505,288
16.	Group conversions
17.	Interest and adjustments on contract or deposit-type contract funds	16,874,127	64,017,859	73,020,339
18.	Payments on supplementary contracts with life contingencies	11,215,820	8,408,460	11,725,394
19.	Increase in aggregate reserves for life and accident and health contracts	110,419,319	3,970,301,916	5,283,562,037
20.	Totals (Lines 10 to 19)	566,288,658	4,535,806,121	6,011,483,232
21.	Commissions on premiums, annuity considerations, and deposit-type contract funds (direct
	business only)	2,124,686	2,694,992	3,648,763
22.	Commissions and expense allowances on reinsurance assumed	330,554,043	362,244,023	455,976,384
23.	General insurance expenses and fraternal expenses	34,689,841	20,871,219	29,196,135
24.	Insurance taxes, licenses and fees, excluding federal income taxes	3,505,107	1,151,669	1,258,078

25. Increase in loading on deferred and uncollected premiums

26.	Net transfers to or (from) Separate Accounts net of reinsurance	(78,827)	(297,794)	(530,921)
27.	Aggregate write-ins for deductions	78,041,805	(88,742,853)	(88,540,306)
28.	Totals (Lines 20 to 27)	1,015,125,314	4,833,727,377	6,412,491,364

29. Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus

Line 28)	60,825,764	9,018,944	13,358,287
30. Dividends to policyholders and refunds to members	17,855	22,326	33,031

31. Net gain from operations after dividends to policyholders, refunds to members and before federal

income taxes (Line 29 minus Line 30)	60,807,909	8,996,618	13,325,256
32. Federal and foreign income taxes incurred (excluding tax on capital gains)	(42,023,103)	62,171,153	87,906,048

33. Net gain from operations after dividends to policyholders, refunds to members and federal income

	taxes and before realized capital gains or (losses) (Line 31 minus Line 32)		102,831,012	(53,174,535)	(74,580,792)
34.	Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital
	gains tax of $	20,053,032 (excluding taxes of $	4,066,393
	transferred to the IMR)			(48,961,791)	(782,170)	(11,174,926)
35.	Net income (Line 33 plus Line 34)		53,869,221	(53,956,704)	(85,755,718)
		CAPITAL AND SURPLUS ACCOUNT
36.	Capital and surplus, December 31, prior year		1,525,667,378	1,544,060,989	1,544,060,989
37.	Net income (Line 35)			53,869,221	(53,956,704)	(85,755,718)
38.	Change in net unrealized capital gains (losses) less capital gains tax of $	9,270,842	35,941,512	135,352,489	90,098,194
39.	Change in net unrealized foreign exchange capital gain (loss)		21,800,733	84,598	26,283,181
40.	Change in net deferred income tax		(13,976,089)	56,490,847	100,219,269
41.	Change in nonadmitted assets		21,256,564	(34,316,610)	(59,037,852)
42.	Change in liability for reinsurance in unauthorized and certified companies
43.	Change in reserve on account of change in valuation basis, (increase) or decrease
44.	Change in asset valuation reserve		(20,416,316)	(118,708,194)	(176,832,676)
45.	Change in treasury stock

1. Surplus (contributed to) withdrawn from Separate Accounts during period
2. Other changes in surplus in Separate Accounts Statement
3. Change in surplus notes

49. Cumulative effect of changes in accounting principles

50. Capital changes:

1. Paid in
2. Transferred from surplus (Stock Dividend)
3. Transferred to surplus

51. Surplus adjustment:
51.1 Paid in	8,716,544	10,642,099	13,495,360

1. Transferred to capital (Stock Dividend)
2. Transferred from capital

	51.4 Change in surplus as a result of reinsurance	21,124,364	35,140,008	74,093,494
52.	Dividends to stockholders		(409,420)	(409,420)
53.	Aggregate write-ins for gains and losses in surplus	1,712,157		(547,444)
54.	Net change in capital and surplus for the year (Lines 37 through 53)	130,028,689	30,319,112	(18,393,611)
55.	Capital and surplus, as of statement date (Lines 36 + 54)	1,655,696,067	1,574,380,101	1,525,667,378
	DETAILS OF WRITE-INS
08.301. Funds withheld adjustment - assumed	71,745,540
89,064,706	116,439,156
08.302. Miscellaneous income	41,955	44,915	82,626
08.303.
08.398. Summary of remaining write-ins for Line 8.3 from overflow page
08.399. Totals (Lines 08.301 through 08.303 plus 08.398) (Line 8.3 above)	71,787,494	89,109,621	116,521,781
2701.	Funds withheld adjustment - ceded	96,328,640
2702.	Transfer to IMR - assumed	(31,853,476)	(1,777,150)	(1,260,527)
2703.	Transfer to IMR - ceded	26,148,241	(1,166,801)	1,191,647
2798.	Summary of remaining write-ins for Line 27 from overflow page	(12,581,600)	(85,798,902)	(88,471,426)
2799.	Totals (Lines 2701 through 2703 plus 2798)(Line 27 above)	78,041,805	(88,742,853)	(88,540,306)
5301.	Correction of prior period error	1,700,543
5302.	Tax sharing agreement	11,614		(547,444)
5303.
5398.	Summary of remaining write-ins for Line 53 from overflow page
5399.	Totals (Lines 5301 through 5303 plus 5398)(Line 53 above)	1,712,157		(547,444)

4