Athene Leads U.S. Annuity Market Amid Pension Deal Decline and Strategic Shift
Athene Holding maintains its leadership position in the U.S. annuity market despite a 19% decline in sales year-over-year to $7.26 billion in Q2 2025. The company experienced a significant drop in pension risk transfer deals, from $577 million in Q2 2024 to just $1 million in the latest quarter, attributed primarily to ongoing litigation affecting large-company contracts. Athene's CEO transition is underway with Grant Kvalheim stepping up from president to CEO, emphasizing Athene's streamlined operations, absence of legacy liabilities, and competitive advantages in the annuity market.
Athene's product strategy is shifting towards fixed-indexed annuities (FIAs) and registered indexed-linked annuities (RILAs), which offer longer average durations and higher profit spreads compared to multi-year guaranteed annuities (MYGAs). MYGA sales were intentionally moderated amid competitive market dynamics, dropping from approximately 60% to 40% of total sales. Athene expanded its distribution through partnerships with major financial firms such as Stifel, Nicholas, Morgan Stanley, and JP Morgan, with RILA sales increasing by about 13% in Q2 2025.
The company's pension segment remains challenged due to litigation, but Athene is compensating with growth in stable value products, structured settlements, and entering the defined contribution (DC) retirement market. The DC market presents opportunities for annuity solutions that offer guaranteed lifetime income while preserving participant flexibility, aligning with strategic initiatives highlighted by Apollo Global Management’s CEO. Athene aims to leverage its expertise and Apollo's resources to innovate within this expanding retirement income space.
Despite external pressures and market shifts, Athene's approach highlights operational efficiency and product adaptability as core strengths. The firm’s leadership structure and focus on scalable, competitive product lines position it well to navigate evolving regulatory and market conditions. The Q2 results reflect the broader trends in the annuity sector, including competitive pressures, litigation impact on pension risk transfers, and the increasing importance of retirement income solutions tailored to DC plans.