Douglas Niemann, executive vice president and chief risk officer of Athene, the US retirement services group that focuses on delivering guaranteed income to institutions and individuals, shares his market outlook and why risk management is crucial
What are the most significant risk trends shaping the US retirement and annuity market over the next 3–5 years, and how is Athene positioning itself?
One of the most significant structural risks facing the retirement ecosystem is an aging demographic. Retirees are living longer than prior generations, and with approximately 12,000 Americans reaching retirement age each day, the industry is confronting a growing longevity challenge. As traditional defined benefit pension plans have declined, shifting the responsibility of saving to individuals, there is an imminent need to ensure retirement assets can generate reliable income over a retirement horizon that may span 20 or 30 years.
As the retiree population grows, the ~$40T in retirement savings assets that exist today fall far short of what's needed to guarantee retirement security. With annuity reserves at $2.5T, we see plenty of room for guaranteed income solutions to fill the gap and Athene is focused on meeting that need by delivering it in new forms.
Our ability to serve more retirees is grounded in disciplined risk management. Athene's strategy has always been to provide retirement solutions backed by a fortress balance sheet, disciplined asset-liability management and differentiated investment capabilities. Maintaining strong capital, rigorous underwriting and a high-quality, diversified investment portfolio enables us to pursue long-term growth while remaining resilient across market cycles. That risk-first approach is one of the factors that allows us to continue expanding access to guaranteed income.
As more insurers, reinsurers and asset managers enter the life reinsurance space, what do you see as the key differentiators for successful scale players in this market?
A strong reinsurance platform is built on confidence. That starts with balance sheet strength that protects policyholders, supports clients, and enables long-term growth. In today's market, having capital is table stakes. The real differentiator is how risk is managed across the platform. The firms that will succeed over the long term are those that combine rigorous underwriting with financial strength to perform consistently across market cycles.
Athene's reinsurance platform is supported by a strong capital and liquidity profile, which are reflected in financial strength ratings of A+ from AM Best, S&P and Fitch, and A1 from Moody's. These strengths combined with established risk frameworks position Athene as a trusted and well-capitalized counterparty for insurers seeking reinsurance solutions.
What do you see as the biggest misconception about risk in the annuity and retirement market today?
The biggest misconceptions I see in the market are the ones about private assets.
In general, private credit is often incorrectly conflated with levered lending, which represents just 5% of the broader $40 trillion addressable market. The vast majority of private credit is investment grade, and this is the segment Athene is focused on. Private credit helps us source 30-40bps of incremental yield across our portfolio via Apollo's ability to directly originate investment grade assets that generate excess spread without incremental credit risk. The result is a portfolio that is approximately 97% investment grade, with asset impairments that historically have been lower than industry averages.
As a CRO, the most relevant asset risk questions I ask myself are how the asset is structured and how it fits against our liability profile, not whether it is public or private. For insurers, private credit can be highly risk appropriate when risk is involved in the underwriting from day 1 to ensure those factors are well considered.
How do you balance the pursuit of growth opportunities with the need to maintain a resilient balance sheet across different economic and market environments?
A fortress balance sheet is the key to balancing growth and resilience, and that means being well capitalized comes first. This philosophy is fundamental to how Athene operates.
A strong balance sheet gives us the flexibility to pursue attractive opportunities across different market environments while remaining selective in how we deploy capital. That approach is embedded throughout the business, from portfolio management to product design to asset-liability management.
That means we do not grow for growth's sake. We write business only when it meets our return objectives and risk appetite. Maintaining this consistently is what allows us to continue growing the business alongside a strong balance sheet.
This is how Athene is able to create value and support strong long-term outcomes for policyholders.
