Stock Monitor: Altisource Asset Management Post Earnings Reporting
LONDON, UK / ACCESSWIRE / June 6, 2018 / If you want access to our free earnings report on Athene Holding Ltd (NYSE: ATH) ("Athene"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ATH. The Company reported its first quarter fiscal 2018 operating and financial results on May 03, 2018. The retirement services Company beat revenue estimates. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the three months ended March 31, 2018, Athene's total revenues were $1.01 billion compared to $1.62 billion in Q1 2017. The Company's revenue numbers surpassed analysts' estimates by $109.26 million.
During Q1 2018, Athene's adjusted operating income was $237 million, or $1.21 per adjusted operating share, compared to $266 million, or $1.36 per adjusted operating share, in Q1 2017, and short of Wall Street's estimates of $1.24 per share. The Company's adjusted operating income, excluding notable items, was $249 million, reflecting an increase of 15% from $216 million in the prior year's same quarter, driven by a growth in investment income due to invested asset growth and increased floating rate investment income.
Athene's net income was $268 million, or $1.36 per diluted Class A share, in Q1 2018 compared to a net income of $384 million, or $1.92 per diluted share, in Q1 2017. The decrease in net income was attributed to a drop in adjusted operating income, as well as unfavorable impacts from assumed reinsurance embedded derivatives, primarily related to increases in the US Treasury rates.
Athene's book value per share increased 13% to $44.09 on a y-o-y basis at the end of Q1 2018. The Company's adjusted book value per share increased 18% to $40.66.
For Q1 2018, Athene's total investments, including related parties, increased 7% to $80.3 billion on a y-o-y basis. The Company's total invested assets, excluding Germany, rose 15% to $78.7 billion on a y-o-y basis.
During Q1 2018, Athene generated deposits of $2.1 billion, reflecting an increase of 7% on a y-o-y basis. For Q1 2018, Athene generated $1.3 billion of new deposits in Retail, up 17% on a y-o-y basis. For the reported quarter, the Company expanded its distribution with the addition of new partners, in both the bank and broker-dealer channels.
For Q1 2018, the Company generated $204 million of new deposits from Flow Reinsurance, up 23% from the prior year's same quarter, driven by new reinsurance partners, the launch of new products, and a shift in product mix. From the Institutional channel, the Company generated $566 million of new deposits, from a pension risk transfer transaction and the issuance of a funding agreement.
During Q1 2018, Athene's Retirement Services segment's adjusted operating income was $235 million, down 15% from $275 million in Q1 2017. The segment's adjusted operating income, excluding notable items, was $247 million, representing an increase of 10% on a y-o-y basis, resulting in an adjusted operating return on equity (ROE) of 18.2%. This growth was driven by an increase in investment income of $100 million.
During Q1 2018, investment margin on deferred annuities was 2.76%, a decrease of 9 basis points (bps) on a y-o-y basis. Athene's net investment earned rate was 4.63%, down 4 bps from the prior year's comparable quarter, driven by a 6 bps drag on its net investment earned rate. Athene stated that strong alternative returns of 12.34% and a higher floating rate investment income in the reported quarter were offset by an elevated level of cash from sizable deposits in Q4 2017. Cost of crediting was 1.87%, which was a favorable drop of 4 bps compared to the year earlier corresponding quarter, as a result of rate actions on business that renewed in 2017.
For Q1 2018, Athene's Corporate and Other segment's adjusted operating income was $2 million compared to an adjusted operating loss of $11 million in Q1 2017. The increase in Corporate and Other, excluding Germany, was $8 million, driven by higher fixed and other investment income, primarily related to the increase in excess capital and favorable alternative performance.
Stock Performance Snapshot
June 05, 2018 - At Tuesday's closing bell, Athene's stock marginally fell 0.96%, ending the trading session at $45.28.
Volume traded for the day: 2.11 million shares, which was above the 3-month average volume of 1.55 million shares.
After yesterday's close, Athene's market cap was at $8.45 billion.
Price to Earnings (P/E) ratio was at 6.67.
The stock is part of the Financial sector, categorized under the Asset Management industry.
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