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

QUARTERLY STATEMENT

OF THE

Athene Annuity and Life 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 and Life 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	38,723,164,492			38,723,164,492	36,240,868,412
2.	Stocks:
	2.1 Preferred stocks	195,969,631			195,969,631	138,427,963
	2.2 Common stocks	624,224,361			624,224,361	553,757,140

3. Mortgage loans on real estate:

3.1	First liens	7,477,523,067	7,477,523,067	8,686,183,107
3.2	Other than first liens	1,278,106,136	1,278,106,136	1,585,847,605

4. Real estate:

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

	$		encumbrances)	9,388,542		9,388,542	9,388,542
	4.3 Properties held for sale (less $
	encumbrances)						57,000
5.	Cash ($	1,265,772,958 ), cash equivalents
	($		) and short-term
	investments ($		2,194,114,715 )		3,459,887,673		3,459,887,673	2,824,240,288
6.	Contract loans (including $	premium notes)		152,556,066		152,556,066	167,732,270
7.	Derivatives				761,489,768		761,489,768	703,224,810
8.	Other invested assets			2,705,034,912	799,425	2,704,235,488	2,490,483,018
9.	Receivables for securities			29,694,668		29,694,668	37,507,207
10.	Securities lending reinvested collateral assets
11.	Aggregate write-ins for invested assets		7,560,000		7,560,000	18,044,029
12.	Subtotals, cash and invested assets (Lines 1 to 11)		55,424,599,316	799,425	55,423,799,892	53,455,761,388
13.	Title plants less $		charged off (for Title insurers
	only)
14.	Investment income due and accrued		442,320,093	6,669,235	435,650,858	436,969,615
15.	Premiums and considerations:
	15.1 Uncollected premiums and agents' balances in the course of collection	8,933		8,933	3,505

15.2 Deferred premiums, agents' balances and installments booked but deferred and not yet due (including $

	earned but unbilled premiums)		6,843,551		6,843,551	7,201,100
15.3	Accrued retrospective premiums ($	) and
	contracts subject to redetermination ($	)
16. Reinsurance:
16.1	Amounts recoverable from reinsurers		208,543,522		208,543,522	194,170,174
16.2	Funds held by or deposited with reinsured companies
16.3	Other amounts receivable under reinsurance contracts		1,398,007,722	435,967	1,397,571,755	957,005,643

17. Amounts receivable relating to uninsured plans

18.1	Current federal and foreign income tax recoverable and interest thereon	66,984,745	66,984,745
18.2	Net deferred tax asset
19.	Guaranty funds receivable or on deposit	609,371		609,371	609,371
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	5,251,032		5,251,032	6,988,270
24.	Health care ($	) and other amounts receivable	38,806,925	2,048,730	36,758,194	49,801,196
25.	Aggregate write-ins for other than invested assets	415,325,316	13,288,033	402,037,283	387,364,625

26. Total assets excluding Separate Accounts, Segregated Accounts and

Protected Cell Accounts (Lines 12 to 25)

58,007,300,524

23,241,389

57,984,059,135

55,495,874,888

27. From Separate Accounts, Segregated Accounts and Protected Cell

	Accounts	11,194,812,393		11,194,812,393	10,008,987,370
28.	Total (Lines 26 and 27)	69,202,112,918	23,241,389	69,178,871,528	65,504,862,258
	DETAILS OF WRITE-INS
1101.	Derivative Collateral Asset			7,560,000		18,044,029
7,560,000
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)	7,560,000		7,560,000		18,044,029
2501.	Corporate Owned Life Insurance (COLI)	400,988,250		400,988,250		386,568,895
2502.	Miscellaneous Assets	14,337,065	13,288,033	1,049,032		795,730
2503.
2598.	Summary of remaining write-ins for Line 25 from overflow page
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)	415,325,316	13,288,033	402,037,283		387,364,625

2

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

LIABILITIES, SURPLUS AND OTHER FUNDS

						1	2
						Current	December 31
						Statement Date	Prior Year
1.	Aggregate reserve for life contracts $	45,649,170,417 less $		included in Line 6.3
	(including $	36,529,974,558 Modco Reserve)			45,649,170,417	45,144,173,871
2.	Aggregate reserve for accident and health contracts (including $	1,394,804	Modco Reserve)	3,017,042	3,041,637
3.	Liability for deposit-type contracts (including $	775,213,720	Modco Reserve)		843,621,427	376,755,187

4. Contract claims:

4.1	Life		195,914,407	197,115,576
4.2	Accident and health			13,363	8,577
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)
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 $

4,417 accident and health premiums

4,417

5,403

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 $		assumed and $	2,375,654,886
		ceded				2,375,654,886	1,859,438,315
	9.4 Interest Maintenance Reserve				105,812,437	119,691,633
10.	Commissions to agents due or accrued-life and annuity contracts $	10,754,387 , accident and health
	$	and deposit-type contract funds $			10,754,387	10,612,690
11.	Commissions and expense allowances payable on reinsurance assumed
12.	General expenses due or accrued				23,458,376	16,234,198
13.	Transfers to Separate Accounts due or accrued (net) (including $	(482) accrued for expense
	allowances recognized in reserves, net of reinsured allowances)			2,138,908,518	1,758,070,283
14.	Taxes, licenses and fees due or accrued, excluding federal income taxes			631,600	631,600
15.1 Current federal and foreign income taxes, including $		on realized capital gains (losses)		4,859,895
15.2	Net deferred tax liability				18,576,082	63,803,851
16.	Unearned investment income			2,347,639	3,714,756
17.	Amounts withheld or retained by reporting entity as agent or trustee		2,364,382	1,388,334
18.	Amounts held for agents' account, including $	2,112,238 agents' credit balances	2,112,238	1,077,550
19.	Remittances and items not allocated			155,495,167	68,745,042

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

21.	Liability for benefits for employees and agents if not included above	77,395
22.	Borrowed money $	and interest thereon $		50,144,194
23.	Dividends to stockholders declared and unpaid

24. Miscellaneous liabilities:

24.01	Asset valuation reserve			815,780,435	797,698,439
24.02	Reinsurance in unauthorized and certified ($	) companies
24.03	Funds held under reinsurance treaties with unauthorized and certified ($	) reinsurers	1,334,210,382	1,369,159,277
24.04	Payable to parent, subsidiaries and affiliates			13,718,086	12,960,550
24.05	Drafts outstanding

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

	24.08	Derivatives		76,035,419	41,536,552
	24.09	Payable for securities		140,397,484	15,439,662
	24.10	Payable for securities lending
	24.11 Capital notes $	and interest thereon $
25.	Aggregate write-ins for liabilities		3,230,011,443	2,744,276,394
26.	Total liabilities excluding Separate Accounts business (Lines 1 to 25)	57,138,087,430	54,660,583,465
27.	From Separate Accounts Statement		10,736,496,057	9,635,631,049
28.	Total liabilities (Lines 26 and 27)		67,874,583,487	64,296,214,514
29.	Common capital stock		10,000,000	10,000,000

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

33. Gross paid in and contributed surplus

968,675,253

961,950,467

34. Aggregate write-ins for special surplus funds

35. Unassigned funds (surplus)

325,612,789

236,697,277

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 $	458,316,336	in Separate Accounts Statement)	1,294,288,042	1,198,647,744
38.	Totals of Lines 29, 30 and 37					1,304,288,042	1,208,647,744
39.	Totals of Lines 28 and 38 (Page 2, Line 28, Col. 3)				69,178,871,528	65,504,862,258
	DETAILS OF WRITE-INS
2501.	Derivative and Other Collateral Liability				2,148,096,668	2,361,611,119
2502.	Repurchase Agreement Liability				911,431,554	210,878,335
2503.	Amount Due Reinsurer					74,312,755	60,703,555
2598.	Summary of remaining write-ins for Line 25 from overflow page				96,170,467	111,083,386
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)				3,230,011,443	2,744,276,394
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 and Life 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	813,555,891	1,580,038,289	1,696,380,582
2.	Considerations for supplementary contracts with life contingencies	5,823,307	1,926,663	3,426,266
3.	Net investment income	1,840,422,105	1,901,788,404	2,591,326,621
4.	Amortization of Interest Maintenance Reserve (IMR)	4,166,286	8,676,159	12,514,845
5.	Separate Accounts net gain from operations excluding unrealized gains or losses	369,476	28,332,055	32,768,190
6.	Commissions and expense allowances on reinsurance ceded	547,758,592	636,876,980	837,341,226
7.	Reserve adjustments on reinsurance ceded	(988,424,642)	(1,256,709,258)	(1,862,540,764)

8. Miscellaneous Income:

	8.1	Income from fees associated with investment management, administration and contract
		guarantees from Separate Accounts	5,627,659	4,242,771	6,000,486
	8.2	Charges and fees for deposit-type contracts
	8.3	Aggregate write-ins for miscellaneous income	17,692,621	22,075,394	30,367,195
9.	Totals (Lines 1 to 8.3)	2,246,991,295	2,927,247,456	3,347,584,647
10.	Death benefits	1,507,322	754,762	986,802
11.	Matured endowments (excluding guaranteed annual pure endowments)	14,642
12.	Annuity benefits	260,687,698	214,075,590	287,631,322
13.	Disability benefits and benefits under accident and health contracts	296,319	347,545	442,263

14. Coupons, guaranteed annual pure endowments and similar benefits

15.	Surrender benefits and withdrawals for life contracts	521,932,631	584,150,333	766,344,853
16.	Group conversions
17.	Interest and adjustments on contract or deposit-type contract funds	4,791,790	11,185,657	16,093,107
18.	Payments on supplementary contracts with life contingencies	6,156,416	6,964,782	9,086,679
19.	Increase in aggregate reserves for life and accident and health contracts	504,971,951
296,860,991	190,160,379
20.	Totals (Lines 10 to 19)	1,300,358,770	1,114,339,659	1,270,745,405

21. Commissions on premiums, annuity considerations, and deposit-type contract funds (direct

	business only)	375,975,908	477,185,501	584,113,567
22.	Commissions and expense allowances on reinsurance assumed	906,319	341,684	556,982
23.	General insurance expenses and fraternal expenses	244,559,086	228,343,434	304,788,383
24.	Insurance taxes, licenses and fees, excluding federal income taxes	11,578,924	11,414,304	14,348,037
25.	Increase in loading on deferred and uncollected premiums	1	(3)	(4)
26.	Net transfers to or (from) Separate Accounts net of reinsurance	152,572,940	923,243,240	890,959,573
27.	Aggregate write-ins for deductions	75,342,680	91,938,246	119,001,844
28.	Totals (Lines 20 to 27)	2,161,294,628	2,846,806,065	3,184,513,786

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

Line 28)	85,696,667	80,441,391	163,070,860
30. Dividends to policyholders and refunds to members	25,169	38	38

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

income taxes (Line 29 minus Line 30)	85,671,498	80,441,353	163,070,823
32. Federal and foreign income taxes incurred (excluding tax on capital gains)	61,991,915	(85,630,486)	(108,031,238)

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)		23,679,583	166,071,839	271,102,061
34.	Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital
	gains tax of $	(11,601,792) (excluding taxes of $	(3,451,441)
	transferred to the IMR)			(14,827,972)	(4,118,290)	(30,120,346)
35.	Net income (Line 33 plus Line 34)		8,851,611	161,953,550	240,981,714
		CAPITAL AND SURPLUS ACCOUNT
36.	Capital and surplus, December 31, prior year		1,208,647,744	1,234,163,823	1,234,163,823
37.	Net income (Line 35)			8,851,611	161,953,550	240,981,714
38.	Change in net unrealized capital gains (losses) less capital gains tax of $	(14,865,233)	(34,782,022)	73,949,997	80,991,683
39.	Change in net unrealized foreign exchange capital gain (loss)		38,097,607	(1,857,561)	(11,982,342)
40.	Change in net deferred income tax		30,362,536	(74,533,920)	(70,731,557)
41.	Change in nonadmitted assets		(13,380,869)	943,827	(3,100,724)
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		(18,081,996)	(65,553,844)	(153,164,616)
45.	Change in treasury stock
46.	Surplus (contributed to) withdrawn from Separate Accounts during period		(90,000,000)	(20,000,000)	(20,000,000)
47.	Other changes in surplus in Separate Accounts Statement		84,590,539	18,491,419	21,092,413

48. 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	6,724,786	7,803,928	9,898,224

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

	51.4 Change in surplus as a result of reinsurance	78,497,911	(56,196,300)	(117,123,107)
52.	Dividends to stockholders		(409,420)	(409,420)
53.	Aggregate write-ins for gains and losses in surplus	4,760,193	(2,207,313)	(1,968,348)
54.	Net change in capital and surplus for the year (Lines 37 through 53)	95,640,297	42,384,364	(25,516,079)
55.	Capital and surplus, as of statement date (Lines 36 + 54)	1,304,288,042	1,276,548,187	1,208,647,744
	DETAILS OF WRITE-INS
08.301. COLI Income	18,003,335
22,062,403	30,339,559
08.302. Miscellaneous (Expense) Income	(310,714)	12,991	27,636
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)	17,692,621	22,075,394	30,367,195
2701.	Funds Withheld Adjustment - Ceded	71,755,443	82,538,695	115,152,450
2702.	Transfer to IMR - Ceded	17,626,472	(31,177,102)	(40,728,435)
2703.	Transfer to IMR - MVA Benefits	(14,355,391)	392,695	(685,304)
2798.	Summary of remaining write-ins for Line 27 from overflow page	316,155	40,183,959	45,263,133
2799.	Totals (Lines 2701 through 2703 plus 2798)(Line 27 above)	75,342,680	91,938,246	119,001,844
5301.	Correction of Prior Period Error	4,289,474	(3,161,394)	(3,161,394)
5302.	Athene Re IV Tax Sharing Agreement	470,719	954,081	1,193,046
5303.
5398.	Summary of remaining write-ins for Line 53 from overflow page
5399.	Totals (Lines 5301 through 5303 plus 5398)(Line 53 above)	4,760,193	(2,207,313)	(1,968,348)

4