Athene Holding (ATHS) risk factors, FY2025 10-K

Other

1. 01We operate in a highly competitive industry that includes a number of competitors, which could limit our ability to achieve our growth strategies and could materially and adversely affect our business, financial condition, results of operations, cash flows and prospects20% rewritten
2. 02If we are unable to attract and retain IMOs, banks and broker-dealers, sales of certain of our products may be adversely affected
3. 03We rely significantly on third parties for various services, and we may be held responsible for obligations that arise from the acts or omissions of third parties under their respective agreements with us
4. 04Artificial intelligence could increase competitive, operational, legal and regulatory risks to our businesses in ways that we cannot predict68% rewritten
5. 05From time to time we may pursue acquisitions and block reinsurance transactions, and our ability to consummate these transactions on economically advantageous terms acceptable to us in the future is unknown
6. 06We are subject to significant operating and financial restrictions imposed by our credit agreements and certain letters of credit, and we are also subject to certain operating restrictions imposed by the indentures to which we are a party30% rewritten

Risks Relating to Liquidity and Regulatory Capital

1. 07As a financial services company, we are exposed to liquidity risk, which is the risk that we are unable to meet near-term obligations as they come due38% rewritten
2. 08The amount of statutory capital that our insurance and reinsurance subsidiaries have, or that they are required to hold, can vary significantly from time to time and is sensitive to a number of factors outside of our control42% rewritten
3. 09Repurchase agreement programs subject us to potential liquidity and other risks

Risks Relating to Market and Credit Risk

1. 10Our investments are subject to market and credit risks that could diminish their value and these risks could be greater during periods of extreme volatility or disruption in the financial and credit markets, which could adversely impact our business, financial condition, results of operations, liquidity and cash flows
2. 11Interest rate fluctuations could adversely affect our business, financial condition, results of operations, liquidity and cash flows
3. 12We are subject to the credit risk of our counterparties, including ceding companies, reinsurers, plan sponsors and derivative counterparties
4. 13Our investment portfolio may be subject to concentration risk, particularly with respect to single issuers, including Athora, among others; industries, including financial services; and asset classes, including real estate
5. 14Many of our invested assets are relatively illiquid and we may fail to realize profits from these assets for a considerable period of time, or lose some or all of the principal amount we invest in these assets if we are required to sell our invested assets at a loss at inopportune times
6. 15Our investments linked to real estate are subject to credit risk, market risk, servicing risk, loss from catastrophic events and other risks, which could diminish the value that we obtain from such investments
7. 16Our investments in assets linked to real estate are also subject to loss in the event of catastrophic events, such as earthquakes, hurricanes, floods, tornadoes and fires
8. 17Our investment portfolio may include investments in securities of issuers based outside the US, including emerging markets, which may be riskier than securities of US issuers29% rewritten
9. 18While we seek to hedge foreign currency risks, foreign currency fluctuations may reduce our net income and our capital levels, adversely affecting our financial condition
10. 19Climate change-related risks and regulatory and other efforts to address climate change could adversely affect our businessNew
11. 20Financial markets have been subject to inflationary pressures, and continued heightened inflation may adversely impact our business and results of operations

Risks Relating to Our Relationship with Apollo

1. 21There are potential conflicts of interests between Apollo, our corporate parent, and the holders of our preferred stock
2. 22ACRA System IMA Termination Rights
3. 23The historical investment portfolio performance of Apollo should not be considered as indicative of the future results of our investment portfolio, or our future results or our ability to declare and pay dividends on our preferred stock
4. 24The returns that we expect to achieve on our investment portfolio may not be realized

Risks Relating to Insurance and Other Regulatory Matters

1. 25Our industry is highly regulated and we are subject to significant legal restrictions and obligations, and these restrictions and obligations may have a material adverse effect on our business, financial condition, results of operations, liquidity, cash flows and prospects
2. 26Our failure to obtain or maintain licenses and/or other regulatory approvals as required for the operations of our insurance subsidiaries may have a material adverse effect on our business, financial condition, results of operations, liquidity, cash flows and prospects55% rewritten
3. 27Changes in legal and regulatory requirements, including through the adoption of executive orders, governing the insurance industry or otherwise applicable to our business, may have a material adverse effect on our business, financial condition, results of operations, liquidity, cash flows and prospects52% rewritten

Risks Relating to Taxation

1. 28The tax treatment of our structure is complex and may be subject to change as a result of new laws or regulations or differing interpretations of existing laws and regulations, under audit or otherwise, potentially on a retroactive basis26% rewritten
2. 29Our ownership of certain non-US entities could cause us to be subject to US federal income tax in amounts greater than expected, which could adversely affect the value of your investment
3. 30AHL may be subject to UK taxation by reason of its historic UK tax residency or as a result of ceasing to be a UK tax resident
4. 31The Base Erosion and Anti-Abuse Tax (BEAT) may significantly increase our tax liability
5. 32Changes in tax law could adversely impact our earnings
6. 33There is US income tax risk associated with reinsurance between US insurance companies and their Bermuda affiliates
7. 34The Bermuda Corporate Income Tax Act 2023, or other changes in Bermuda tax laws, may negatively affect our earnings and results from operations47% rewritten

Risks Relating to Investment in Our Securities

1. 35AHL is a holding company with limited operations of its own. As a consequence, AHL’s ability to pay dividends on its securities and to make timely payments on its debt obligations will depend on the ability of its subsidiaries to make distributions or other payments to it, which may be restricted by law
2. 36Our business may be the target or subject of, and we may be required to defend against or respond to, litigation, regulatory investigations, enforcement actions or reputational harm