Athene's Parent Shrugs at MYGA Sales

But Athene has been doing well and getting what Apollo thinks of as the highest-quality business, such as reinsurance deals and sales of the kinds of big group annuities employers use to transfer pension risk to insurers, Rowan said.

Apollo expects to see Athene gain about $60 billion in organic cash inflows this year, and it has felt comfortable about the idea of “leaving between $10 billion and $20 billion on the table.”

Much of the business left on the table is MYGA business, Rowan indicated.

Outflows

In its new quarterly earnings supplement and earnings call slide deck, Apollo gives details about the flow of assets into and out of the company.

Athene has $214 billion in net invested assets. It recorded $15 billion in asset inflows in the second quarter and $7.9 billion in outflows.

A table in Apollo’s financial supplement shows the reasons for Athene’s outflows.

About $4 billion of the outflows were due to annuity contracts or other arrangements maturing, up from $1.3 billion a year earlier.

Planned income withdrawals increased to $1.75 billion, from $1.4 billion, and planned product surrenders, which took place outside the surrender charge period, increased to $1.4 billion, from $1.1 billion.

Unplanned surrenders, which occurred during the surrender charge period, increased to $783 million, from $269 million.

Marc Rowan. Credit: Jonathan Alcorn/Bloomberg