Apollo Global Management Investor Day Presentation Deck
Impact of Draconian Assumptions are Extremely Manageable
51% OF PORTFOLIO
WITH SURRENDER
ATTACHED
19% OF PORTFOLIO
WITH NO
SURRENDER CHARGE
Baseline
Annualized
Lapse Rate¹
2%
10%
Draconian
Shock Lapse
Scenario
20%
(10X SHOCK)
30%
(3X SHOCK)
Lifetime Adverse
Economic
Impact
~$200M
~$300M
●
●
Considerations
Cash inflows from surrender charges
provides offset
MVA offset on two-thirds of policies
also provides offset
Many polices are dormant and
insensitive to rate changes
Some policy lapses will be a net
benefit to Athene
Amounts to only ~$500 million and, if incurred, would be
recognized over a long-term timeframe during which freed up
capital from surrendered policies could be deployed profitably
Information presented for illustrative purposes only. Actual lapse rates and economic impact thereof may differ materially. 1. Lapses are a single component of total decrements and represent about half of total outflows. Mortality and partial withdrawals, which are less sensitive to the interest rate environment make up the remainder.
APOLLO RETIREMENT SERVICES BUSINESS UPDATE 2022
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