Investor Presentaiton
Even with 'Capital Efficient' Assets, Many Life Insurers Are Reliant on 'Soft' Capital
Industry Capital Models Often Give Capital Benefits for Diversification
Illustrative Liability Capital Diversification Benefits
Insurer 1 Insurer 2 Insurer 3 Insurer 4 Insurer 5 Insurer 6 Insurer 7 Insurer 8 Insurer 9 Insurer 10 Insurer 11 Insurer 12 Insurer 13 Insurer 14 Insurer 15 Insurer 16
ATH
(22)%
(24)%
(5)%
(5)%
(4)%
(6)%
(7)%
(8)%
(8)%
(9)%
12% average
(13)%
(15)%
(15)%
(14)%
(14)%
(15)%
(17)%
Hard Capital
Soft Capital
Can be used to pay for actual losses, including
asset impairments
Required capital benefits from assumed
'diversification' into riskier liabilities
Equity raised from third parties
(☑
Some types of 'redundant' reserve financing
Note: Liability mix calculated using US regulatory fillings as of December 31, 2022. The information provided herein is based on the views and opinions of Apollo Analysts.
ATHENE
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