Athene Accelerates Annuity Sales Amid Market Volatility with Tech-Driven Efficiency
During a volatile first quarter, Athene Life & Annuity strategically accelerated new business volumes, generating $26 billion in gross inflows. The company, a subsidiary of Apollo Global Management, is expected to lead annuity sales in the quarter, continuing its strong performance reaching nearly $36 billion in total annuity sales in 2024. Apollo Global Management reported a 17% increase in assets under management to $785 billion and a 21% rise in fee-related earnings to $559 million for Q1 2025.
Athene's competitive advantage in the tightening annuity market is attributed to lower overhead and distribution costs, combined with asset management by Apollo. The company focuses on efficient cost structures and an advanced product suite to maintain strong returns amid increased market competition and tight spreads. Athene is also investing in technology to simplify and speed up annuity sales, processing over 90% of applications electronically with same-day issuance for applications in good order.
Athene actively participates in industry digital initiatives, such as the Digital First effort by the Insured Retirement Institute (IRI). This collaboration with industry organizations supports real-time processing of transfers and paperless carrier-to-carrier replacement annuity transactions, streamlining operations and enhancing customer and producer experiences. Transfers comprise about 40% of Athene's annuity volume, highlighting the importance of these digital innovations.
Financially, Athene reported $804 million in spread-related earnings for Q1 2025 and maintained $69 billion in available liquidity. In April, the company saw $10 billion in organic inflows. The business model relies on three main pillars: asset returns, cost of funds, and efficient cost structure. Despite scrutiny over private equity connections and offshore reinsurance, Athene retains an A+ financial strength rating and benefits from an operational model free of legacy liabilities or costly overhead layers.
Athene's approach reflects a broader industry challenge to balance competitive pricing, operational efficiency, and technological advancement to meet growing demand for guaranteed income products. The insurer's focus on digital transformation aims to unlock wider consumer access to annuities, which typically offer favorable returns and tax advantages compared to other fixed-income products.