Apollo Global Management : Q1 2024 Financial Supplement
May 02, 2024 at 11:43 am
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Apollo Global Management, Inc.
First Quarter 2024 Earnings
Supplemental Financial Data
May 2, 2024
Summary
Total Segment Earnings Highlights (Unaudited)
(in millions, except per share data)
1Q'22
2Q'22
3Q'22
4Q'22
1Q'23
2Q'23
3Q'23
4Q'23
1Q'24
LTM 1Q'23
LTM 1Q'24
Fee Related Earnings
$ 310
$ 341
$ 365
$ 394
$ 397
$ 442
$ 472
$ 457
$ 462
$ 1,497
$ 1,833
Spread Related Earnings
$ 674
$ 455
$ 642
$ 698
$ 688
$ 799
$ 873
$ 748
$ 817
$ 2,483
$ 3,237
Notable items1
-
(16)
(42)
35
(25)
-
(90)
-
-
(41)
(90)
Spread Related Earnings, Excluding Notable Items
$ 674
$ 439
$ 600
$ 733
$ 663
$ 799
$ 783
$ 748
$ 817
$ 2,442
$ 3,147
Fee and Spread Related Earnings
$ 984
$ 796
$ 1,007
$ 1,092
$ 1,085
$ 1,241
$ 1,345
$ 1,205
$ 1,279
$ 3,980
$ 5,070
Fee and Spread Related Earnings, Excluding Notable Items
$ 984
$ 780
$ 965
$ 1,127
$ 1,060
$ 1,241
$ 1,255
$ 1,205
$ 1,279
$ 3,939
$ 4,980
Principal Investing Income
$ 187
$ 20
$ 50
$ 27
$ 8
$ 20
$ 4
$ 51
$ 21
$ 105
$ 96
Segment Income
$ 1,171
$ 816
$ 1,057
$ 1,119
$ 1,093
$ 1,261
$ 1,349
$ 1,256
$ 1,300
$ 4,085
$ 5,166
Segment Income, Excluding Notable Items
$ 1,171
$ 800
$ 1,015
$ 1,154
$ 1,068
$ 1,261
$ 1,259
$ 1,256
$ 1,300
$ 4,044
$ 5,076
HoldCo interest and other financing costs2
(39)
(35)
(29)
(19)
(21)
(20)
(36)
(11)
(15)
(104)
(82)
Taxes and related payables
(215)
(205)
(178)
(197)
(227)
(231)
(268)
(63)
(221)
(807)
(783)
Adjusted Net Income
$ 917
$ 576
$ 850
$ 903
$ 845
$ 1,010
$ 1,045
$ 1,182
$ 1,064
$ 3,174
$ 4,301
Tax impact of notable items
-
3
9
(7)
5
-
19
-
-
8
19
Adjusted Net Income, Excluding Notable Items
$ 917
$ 563
$ 817
$ 931
$ 825
$ 1,010
$ 974
$ 1,182
$ 1,064
$ 3,141
$ 4,230
Alternative net investment income delta to long-term expectation3
$ (151)
$ 135
$ 82
$ 14
$ 148
$ 75
$ 96
$ 132
$ 56
$ 379
$ 359
Adjusted Net Income Shares Outstanding
600
601
600
599
596
595
612
618
617
FRE per Share
$ 0.52
$ 0.57
$ 0.61
$ 0.66
$ 0.67
$ 0.74
$ 0.77
$ 0.74
$ 0.75
$ 2.51
$ 3.00
SRE per Share
$ 1.12
$ 0.76
$ 1.07
$ 1.17
$ 1.15
$ 1.34
$ 1.43
$ 1.21
$ 1.32
$ 4.15
$ 5.30
Fee and Spread Related Earnings per Share
$ 1.64
$ 1.33
$ 1.68
$ 1.82
$ 1.82
$ 2.08
$ 2.20
$ 1.95
$ 2.07
$ 6.65
$ 8.30
PII per Share
$ 0.31
$ 0.03
$ 0.08
$ 0.05
$ 0.01
$ 0.03
$ 0.01
$ 0.08
$ 0.03
$ 0.17
$ 0.15
ANI per Share
$ 1.53
$ 0.96
$ 1.42
$ 1.51
$ 1.42
$ 1.70
$ 1.71
$ 1.91
$ 1.72
$ 5.31
$ 7.04
SRE per Share, Excluding Notable Items
$ 1.12
$ 0.73
$ 1.00
$ 1.22
$ 1.11
$ 1.34
$ 1.28
$ 1.21
$ 1.32
$ 4.07
$ 5.15
ANI per Share, Excluding Notable Items
$ 1.53
$ 0.94
$ 1.36
$ 1.55
$ 1.38
$ 1.70
$ 1.59
$ 1.91
$ 1.72
$ 5.24
$ 6.92
Note: Per share calculations are based on end of period Adjusted Net Income Shares Outstanding. As a supplemental item, the Company provides the difference between management's long-term expectation of generating an 11% average annual return and reported alternative net investment income.
1. Notable items include unusual variability such as actuarial experience, assumption updates and other insurance adjustments.
2. Represents interest and other financing costs related to Apollo Global Management, Inc. not attributable to any specific segment. HoldCo interest and other financing costs for 3Q'23 includes $21 million related to the redemption of Apollo Asset Management's Series A and Series B Preferred Stock, representing the difference between the book value and the redemption value.
3. Refers to the amount that as-reported alternative net investment income is below (above) management's long-term expectation of an 11% average annual return. Our long-term expectation is based on historical experience and provides investors with supplemental information for period-to-period comparability as well as a basis for developing expectations of future performance. There is no assurance that management's expected long-term average annual return will be achieved. Actual results may differ materially.
Total Segment Earnings
Total Segment Earnings (Unaudited)
($ in millions)
1Q'22
2Q'22
3Q'22
4Q'22
1Q'23
2Q'23
3Q'23
4Q'23
1Q'24
LTM 1Q'23
LTM 1Q'24
Management Fees
Yield
$ 333
$ 342
$ 367
$ 374
$ 379
$ 392
$ 408
$ 422
$ 440
$ 1,462
$ 1,662
Hybrid
48
53
53
57
57
62
62
63
61
220
248
Equity
124
127
126
130
141
166
178
150
151
524
645
Total management fees
505
522
546
561
577
620
648
635
652
2,206
2,555
Capital solutions fees and other, net
64
103
105
142
138
138
146
116
141
488
541
Fee related performance fees
14
12
20
26
27
35
40
44
46
85
165
Fee Related Revenues
583
637
671
729
742
793
834
795
839
2,779
3,261
Fee related compensation
(175)
(187)
(194)
(198)
(211)
(212)
(212)
(200)
(220)
(790)
(844)
Non-compensation expenses
(98)
(109)
(112)
(137)
(134)
(139)
(150)
(138)
(157)
(492)
(584)
Fee Related Earnings
$ 310
$ 341
$ 365
$ 394
$ 397
$ 442
$ 472
$ 457
$ 462
$ 1,497
$ 1,833
Fixed income and other net investment income
1,207
1,302
1,470
1,727
1,957
2,207
2,235
2,340
2,454
6,456
9,236
Alternative net investment income
448
186
250
322
185
259
230
190
266
943
945
Strategic capital management fees
12
13
14
14
14
16
19
23
25
55
83
Cost of funds
(822)
(873)
(902)
(1,158)
(1,235)
(1,437)
(1,384)
(1,594)
(1,723)
(4,168)
(6,138)
Net investment spread
845
628
832
905
921
1,045
1,100
959
1,022
3,286
4,126
Other operating expenses
(109)
(109)
(117)
(127)
(124)
(117)
(121)
(119)
(114)
(477)
(471)
Interest and other financing costs
(62)
(64)
(73)
(80)
(109)
(129)
(106)
(92)
(91)
(326)
(418)
Spread Related Earnings
$ 674
$ 455
$ 642
$ 698
$ 688
$ 799
$ 873
$ 748
$ 817
$ 2,483
$ 3,237
Realized performance fees
127
151
93
224
164
177
132
269
94
632
672
Realized investment income
226
37
62
5
28
2
5
(37)
14
132
(16)
Realized principal investing compensation
(156)
(155)
(90)
(184)
(170)
(145)
(119)
(167)
(73)
(599)
(504)
Other operating expenses
(10)
(13)
(15)
(18)
(14)
(14)
(14)
(14)
(14)
(60)
(56)
Principal Investing Income
$ 187
$ 20
$ 50
$ 27
$ 8
$ 20
$ 4
$ 51
$ 21
$ 105
$ 96
GAAP Income Statement
GAAP Condensed Consolidated Statements of Operations (Unaudited)
($ in millions, except share data)
1Q'22
2Q'22
3Q'22
4Q'22
1Q'23
2Q'23
3Q'23
4Q'23
1Q'24
Revenues:
Asset Management
Management fees
$336
$375
$389
$403
$414
$452
$462
$444
$438
Advisory and transaction fees, net
66
110
110
157
155
170
157
141
169
Investment income (loss)
701
(195)
(31)
321
452
138
292
150
402
Incentive fees
6
2
9
10
15
26
18
21
26
Retirement Services
Premiums
2,110
5,614
3,045
869
96
9,041
26
3,586
101
Product charges
166
175
184
193
198
207
217
226
238
Net investment income
1,731
1,903
2,033
2,481
2,612
2,948
3,166
3,354
3,576
Investment related gains (losses)
(4,230)
(5,745)
(2,847)
105
1,065
366
(2,624)
2,621
1,677
Revenues of consolidated variable interest entities
(21)
55
114
292
281
347
318
495
411
Other revenues
(3)
(8)
(27)
10
13
7
563
8
2
Total Revenues
862
2,286
2,979
4,841
5,301
13,702
2,595
11,046
7,040
Expenses:
Asset Management
Compensation and benefits:
734
309
386
514
670
516
557
979
667
Interest expense
32
31
31
30
31
31
36
47
51
General, administrative and other
148
157
167
210
197
226
220
229
240
Retirement Services
Interest sensitive contract benefits
(99)
(653)
171
1,119
1,289
2,012
333
2,595
2,884
Future policy and other policy benefits
2,184
5,776
3,270
1,235
466
9,512
368
4,088
543
Market risk benefits remeasurement (gains) losses
(622)
(609)
(458)
32
346
(71)
(441)
570
(154)
Amortization of deferred acquisition costs, deferred sales inducements and value of business acquired
98
108
112
126
138
153
211
186
207
Policy and other operating expenses
309
334
342
387
437
452
467
481
453
Total Expenses
2,784
5,453
4,021
3,653
3,574
12,831
1,751
9,175
4,891
Other Income (Loss) - Asset Management
Net gains (losses) from investment activities
34
146
(16)
1
(2)
20
(32)
21
39
Net gains (losses) from investment activities of consolidated variable interest entities
367
13
85
29
34
12
49
35
25
Other income (loss), net
(23)
21
28
12
32
48
22
34
(26)
Total Other Income (Loss)
378
180
97
42
64
80
39
90
38
Income (loss) before income tax (provision) benefit
(1,544)
(2,987)
(945)
1,230
1,791
951
883
1,961
2,187
Income tax (provision) benefit1
485
381
96
(223)
(253)
(201)
(243)
1,620
(422)
Net income (loss)
(1,059)
(2,606)
(849)
1,007
1,538
750
640
3,581
1,765
Net (income) loss attributable to non-controlling interests
658
969
286
(367)
(528)
(151)
42
(825)
(338)
Net income (loss) attributable to Apollo Global Management, Inc.
(401)
(1,637)
(563)
640
1,010
599
682
2,756
1,427
Preferred stock dividends
-
-
-
-
-
-
(22)
(24)
(24)
Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders
$(401)
$(1,637)
$(563)
$640
$1,010
$599
$660
$2,732
$1,403
Earnings (Loss) per share
Net income (loss) attributable to Common Stockholders - Basic
$(0.70)
$(2.82)
$(0.98)
$1.06
$1.67
$1.00
$1.10
$4.53
$2.31
Net income (loss) attributable to Common Stockholders - Diluted
$(0.70)
$(2.82)
$(0.98)
$1.06
$1.66
$1.00
$1.10
$4.44
$2.28
Weighted average shares outstanding - Basic
586
585
584
583
584
579
579
584
588
Weighted average shares outstanding - Diluted
586
585
584
583
584
579
579
601
605
1. 4Q'23 includes a one-time tax benefit of $1.8 billion resulting from the establishment of deferred tax assets related to the Government of Bermuda's enactment of the Corporate Income Tax Act of 2023.
RS Flows and IA
Retirement Services Flows & Invested Assets
($ in millions)
1Q'22
2Q'22
3Q'22
4Q'22
1Q'23
2Q'23
3Q'23
4Q'23
1Q'24
Retail
$ 2,865
$ 3,748
$ 6,132
$ 7,662
$ 8,578
$ 6,782
$ 6,523
$ 13,410
$ 9,663
Flow reinsurance
1,001
1,038
2,291
1,856
1,793
2,782
3,174
2,798
2,390
Funding agreements1
5,696
1,755
1,588
1,000
1,500
148
3,245
2,300
8,041
Pension group annuities
1,994
5,508
2,944
772
56
9,002
-
1,316
-
Gross organic inflows
$ 11,556
$ 12,049
$ 12,955
$ 11,290
$ 11,927
$ 18,714
$ 12,942
$ 19,824
$ 20,094
Gross inorganic inflows2
-
-
-
-
-
-
-
2,214
-
Total gross inflows
$ 11,556
$ 12,049
$ 12,955
$ 11,290
$ 11,927
$ 18,714
$ 12,942
$ 22,038
$ 20,094
Gross outflows3
(4,883)
(4,925)
(7,000)
(11,064)
(6,879)
(9,135)
(10,738)
(7,116)
(8,035)
Net flows
$ 6,673
$ 7,124
$ 5,955
$ 226
$ 5,048
$ 9,579
$ 2,204
$ 14,922
$ 12,059
($ in millions)
1Q'22
2Q'22
3Q'22
4Q'22
1Q'23
2Q'23
3Q'23
4Q'23
1Q'24
Inflows attributable to Athene4
$ 9,333
$ 8,889
$ 11,000
$ 10,022
$ 11,896
$ 14,977
$ 3,101
$ 13,026
$ 14,591
Inflows attributable to ADIP4,5
2,223
3,160
1,955
1,268
31
3,737
9,841
9,012
4,437
Inflows ceded to third-party reinsurers6
-
-
-
-
-
-
-
-
1,066
Total gross inflows
$ 11,556
$ 12,049
$ 12,955
$ 11,290
$ 11,927
$ 18,714
$ 12,942
$ 22,038
$ 20,094
Outflows attributable to Athene
$ (4,072)
$ (4,062)
$ (5,803)
$ (9,787)
$ (5,531)
$ (7,891)
$ (9,550)
$ (5,791)
$ (6,748)
Outflows attributable to ADIP5
(811)
(863)
(1,197)
(1,277)
(1,348)
(1,244)
(1,188)
(1,325)
(1,287)
Total gross outflows3
$ (4,883)
$ (4,925)
$ (7,000)
$ (11,064)
$ (6,879)
$ (9,135)
$ (10,738)
$ (7,116)
$ (8,035)
Outflows attributable to Athene by type
($ in millions)
1Q'22
2Q'22
3Q'22
4Q'22
1Q'23
2Q'23
3Q'23
4Q'23
1Q'24
Maturity-driven, contractual-based outflows7
$ (1,384)
$ (1,305)
$ (2,834)
$ (1,472)
$ (1,717)
$ (3,981)
$ (3,243)
$ (1,952)
$ (2,818)
Policyholder-driven outflows8
(2,688)
(2,757)
(2,969)
(3,453)
(3,814)
(3,910)
(3,584)
(3,839)
(3,930)
Income oriented withdrawals (planned)9
(1,529)
(1,413)
(1,516)
(1,813)
(1,766)
(1,750)
(1,617)
(1,831)
(1,691)
From policies out-of-surrender-charge (planned)10
(865)
(1,075)
(1,131)
(1,188)
(1,480)
(1,377)
(1,326)
(1,365)
(1,512)
From policies in-surrender-charge (unplanned)11
(294)
(269)
(322)
(452)
(568)
(783)
(641)
(643)
(727)
Core outflows
$ (4,072)
$ (4,062)
$ (5,803)
$ (4,925)
$ (5,531)
$ (7,891)
$ (6,827)
$ (5,791)
$ (6,748)
Strategic reinsurance transactions12
-
-
-
(4,862)
-
-
(2,723)
-
-
Outflows attributable to Athene
$ (4,072)
$ (4,062)
$ (5,803)
$ (9,787)
$ (5,531)
$ (7,891)
$ (9,550)
$ (5,791)
$ (6,748)
Annualized rate13
Maturity-driven, contractual-based outflows7
(3.1)%
(2.8)%
(5.9)%
(3.0)%
(3.4)%
(7.6)%
(6.3)%
(3.7)%
(5.1)%
Policyholder-driven outflows8
(5.9)%
(5.9)%
(6.2)%
(7.1)%
(7.6)%
(7.4)%
(6.9)%
(7.2)%
(7.0)%
Income oriented withdrawals (planned)9
(3.4)%
(3.0)%
(3.2)%
(3.7)%
(3.5)%
(3.3)%
(3.1)%
(3.4)%
(3.0)%
From policies out-of-surrender-charge (planned)10
(1.9)%
(2.3)%
(2.3)%
(2.5)%
(3.0)%
(2.6)%
(2.6)%
(2.6)%
(2.7)%
From policies in-surrender-charge (unplanned)11
(0.6)%
(0.6)%
(0.7)%
(0.9)%
(1.1)%
(1.5)%
(1.2)%
(1.2)%
(1.3)%
Core outflows
(9.0)%
(8.7)%
(12.1)%
(10.1)%
(11.0)%
(15.0)%
(13.2)%
(10.9)%
(12.1)%
Strategic reinsurance transactions12
- %
- %
- %
(9.9)%
- %
- %
(5.2)%
- %
- %
Outflows attributable to Athene
(9.0)%
(8.7)%
(12.1)%
(20.0)%
(11.0)%
(15.0)%
(18.4)%
(10.9)%
(12.1)%
Invested Assets
($ in millions)
1Q'22
2Q'22
3Q'22
4Q'22
1Q'23
2Q'23
3Q'23
4Q'23
1Q'24
Gross Invested Assets
$ 221,720
$ 229,545
$ 236,720
$ 238,310
$ 247,673
$ 257,235
$ 261,209
$ 278,617
$ 292,837
Invested assets attributable to ADIP4,5
(37,449)
(40,240)
(41,563)
(41,859)
(40,924)
(43,565)
(53,114)
(61,190)
(65,482)
Net Invested Assets4,14
$ 184,271
$ 189,305
$ 195,157
$ 196,451
$ 206,749
$ 213,670
$ 208,095
$ 217,427
$ 227,355
Fixed income and other investments
172,765
177,464
182,822
184,372
194,646
201,480
196,302
205,768
215,608
Alternative investments
11,506
11,841
12,335
12,079
12,103
12,190
11,793
11,659
11,747
1. Funding agreements are comprised of funding agreements issued under Athene's funding agreement backed notes ("FABN") program, secured and other funding agreements, funding agreements issued to the Federal Home Loan Bank ("FHLB") and long-term repurchase agreements.
2. Gross inorganic inflows represent acquisitions and block reinsurance transactions. On November 6, 2023, Athene entered into an agreement with a Japanese counterparty, effective October 1, 2023, pursuant to which it agreed to reinsure a block of whole life insurance policies on a coinsurance basis. In conjunction with the transaction, Athene entered into an agreement with a leading mortality reinsurer to retrocede the mortality risk related to this block of business.
3. Gross outflows include full and partial policyholder withdrawals on deferred annuities, death benefits, pension group annuity benefit payments, payments on payout annuities, funding agreement repurchases and maturities and block reinsurance outflows.
4. Effective July 1, 2023, Athene Life Re Ltd. ("ALRe") sold 50% of Athene Co-Invest Reinsurance Affiliate Holding 2 Ltd.'s (together with its subsidiaries, "ACRA 2") economic interests to Apollo/Athene Dedicated Investment Program II ("ADIP II"), resulting in approximately $6.8 billion of inflows attributable to Athene for the first six months of 2023 being retroactively attributed to ADIP II. Effective December 31, 2023, ADIP II's ownership of economic interests in ACRA 2 increased to 60%, with ALRe owning the remaining 40% of economic interests. This resulted in approximately $3.0 billion of inflows attributable to Athene for the year ended December 31, 2023 being retroactively attributed to ADIP II. These were reflected as an inflow for ADIP and a reduction of Athene inflows in 3Q'23 and 4Q'23, respectively.
5. ADIP refers to Apollo/Athene Dedicated Investment Program ("ADIP I") and ADIP II and represents the non-controlling interests in business ceded to ACRA.
6. During the first quarter of 2024, Athene entered into a modco reinsurance agreement with Catalina Re Archdale Life Insurance Company Ltd., a subsidiary of Catalina Holdings (Bermuda) Ltd. (together with its subsidiaries, "Catalina"), to cede a quota share of its retail deferred annuity business issued on or after January 1, 2024.
7. Represents outflows from funding agreements, pension group annuities and multi-year guarantee fixed annuities ("MYGA"), all of which occur based on defined maturities or substantially lapse upon reaching their contractual term. Amounts may vary on a quarterly basis, based on the timing of original issuance.
8. Represents outflows from fixed indexed annuities and other applicable products, which have varying degrees of predictability due to policyholder actions.
9. Represents partial annuity withdrawals to meet retirement income needs within contractual annual limits.
10. Represents outflows from policies that no longer have an active surrender charge in force.
11. Represents outflows from policies with an active surrender charge in force.
12. Strategic reinsurance transaction outflows include the cession of certain inforce funding agreements to Catalina in 4Q'22 and the portion of the reinsurance business recaptured by Venerable Insurance and Annuity Company in 3Q'23.
13. The outflow rate is calculated as outflows attributable to Athene divided by Athene average net invested assets for the respective period, on an annualized basis.
14. Net Invested Assets represent the investments that directly back Athene's net reserve liabilities as well as surplus assets. Net invested assets are a component of Apollo's total AUM reported under the Asset Management segment and should not be viewed as additive to total AUM.
Reconciliation_ANI
Reconciliation of GAAP to Non-GAAP Financial Measures
($ in millions)
1Q'22
2Q'22
3Q'22
4Q'22
1Q'23
2Q'23
3Q'23
4Q'23
1Q'24
LTM 1Q'23
LTM 1Q'24
GAAP Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders
$ (401)
$ (1,637)
$ (563)
$ 640
$ 1,010
$ 599
$ 660
$ 2,732
$ 1,403
$ (550)
$ 5,394
Preferred dividends
-
-
-
-
-
-
22
24
24
-
70
Net income (loss) attributable to non-controlling interests
(658)
(969)
(286)
367
528
151
(42)
825
338
(360)
1,272
GAAP Net income (loss)
$ (1,059)
$ (2,606)
$ (849)
$ 1,007
$ 1,538
$ 750
$ 640
$ 3,581
$ 1,765
$ (910)
$ 6,736
Income tax provision (benefit)
(485)
(381)
(96)
223
253
201
243
(1,620)
422
(1)
(754)
GAAP Income (loss) before Income tax provision (benefit)
$ (1,544)
$ (2,987)
$ (945)
$ 1,230
$ 1,791
$ 951
$ 883
$ 1,961
$ 2,187
$ (911)
$ 5,982
Asset Management Adjustments:
Equity-based profit sharing expense and other1
97
67
55
57
67
57
62
53
94
246
266
Equity-based compensation
56
37
46
46
52
58
57
69
74
181
258
Special equity-based compensation and other charges2
-
-
-
-
-
-
-
438
-
-
438
Transaction related charges3
(1)
-
(5)
(36)
(3)
(4)
25
14
55
(44)
90
Merger-related transaction and integration costs4
18
18
14
20
7
5
5
10
8
59
28
(Gains) losses from changes in tax receivable agreement liability
14
-
-
12
-
-
-
13
-
12
13
Net (income) loss attributable to non-controlling interests in consolidated entities
649
960
277
(387)
(523)
(192)
28
(869)
(377)
327
(1,410)
Unrealized performance fees
(445)
488
66
(111)
(239)
86
(91)
117
(268)
204
(156)
Unrealized profit sharing expense
191
(188)
(19)
36
135
1
55
(12)
159
(36)
203
HoldCo interest and other financing costs
39
35
29
19
21
20
36
11
15
104
82
Unrealized principal investment (income) loss
82
(72)
128
38
(10)
(29)
(27)
(22)
(11)
84
(89)
Unrealized net (gains) losses from investment activities and other
(18)
(139)
24
(11)
12
8
30
(24)
(28)
(114)
(14)
Retirement Services Adjustments:
Investment (gains) losses, net of offsets
2,636
2,841
1,853
137
(397)
563
663
(999)
22
4,434
249
Non-operating change in insurance liabilities and related derivatives5
(649)
(290)
(518)
24
135
(304)
(431)
418
(673)
(649)
(990)
Integration, restructuring and other non-operating expenses
34
33
37
29
29
28
41
32
30
128
131
Equity-based compensation expense
12
13
15
16
16
13
13
46
13
60
85
Segment Income
$ 1,171
$ 816
$ 1,057
$ 1,119
$ 1,093
$ 1,261
$ 1,349
$ 1,256
$ 1,300
$ 4,085
$ 5,166
HoldCo interest and other financing costs
(39)
(35)
(29)
(19)
(21)
(20)
(36)
(11)
(15)
(104)
(82)
Taxes and related payables
(215)
(205)
(178)
(197)
(227)
(231)
(268)
(63)
(221)
(807)
(783)
Adjusted Net Income
$ 917
$ 576
$ 850
$ 903
$ 845
$ 1,010
$ 1,045
$ 1,182
$ 1,064
$ 3,174
$ 4,301
Notable items
-
(16)
(42)
35
(25)
-
(90)
-
-
(41)
(90)
Tax impact of notable items
-
3
9
(7)
5
-
19
-
-
8
19
Adjusted Net Income, Excluding Notable Items
$ 917
$ 563
$ 817
$ 931
$ 825
$ 1,010
$ 974
$ 1,182
$ 1,064
$ 3,141
$ 4,230
1. Equity-based profit sharing expense and other includes certain profit sharing arrangements in which a portion of performance fees distributed to the general partner are required to be used by employees of Apollo to purchase restricted shares of common stock or is delivered in the form of RSUs, which are granted under the Equity Plan. Equity-based profit sharing expense and other also includes performance grants which are tied to the Company's receipt of performance fees, within prescribed periods, sufficient to cover the associated equity-based compensation expense.
2. Special equity-based compensation and other charges includes equity-based compensation expense and associated taxes related to the previously announced special fully vested equity grants to certain senior leaders.
3. Transaction-related charges include contingent consideration, equity-based compensation charges and the amortization of intangible assets and certain other charges associated with acquisitions, and restructuring charges.
4. Merger-related transaction and integration costs includes advisory services, technology integration, equity-based compensation charges and other costs associated with the Company's merger with Athene.
5. Includes change in fair values of derivatives and embedded derivatives, non-operating change in funding agreements, change in fair value of market risk benefits, and non-operating change in liability for future policy benefits.
Reconciliation_Sharecount
Reconciliation of GAAP to Non-GAAP Financial Measures - cont'd
Share Reconciliation
1Q'22
2Q'22
3Q'22
4Q'22
1Q'23
2Q'23
3Q'23
4Q'23
1Q'24
Total GAAP Common Stock Outstanding
570,353,554
571,028,097
572,670,634
570,276,188
567,394,604
566,809,153
567,565,120
567,762,932
569,003,922
Non-GAAP Adjustments:
Mandatory Convertible Preferred Stock1
-
-
-
-
-
-
15,999,683
15,564,983
14,524,381
Vested RSUs
15,624,235
15,393,631
13,492,457
15,656,775
12,781,851
12,771,092
12,502,457
22,072,379
18,438,577
Unvested RSUs Eligible for Dividend Equivalents
14,386,357
14,097,587
14,181,682
12,827,921
16,301,241
15,790,288
15,681,753
12,603,041
15,075,269
Adjusted Net Income Shares Outstanding
600,364,146
600,519,315
600,344,773
598,760,884
596,477,696
595,370,533
611,749,013
618,003,335
617,042,149
1. Reflects the number of shares of underlying common stock assumed to be issuable upon conversion of the Mandatory Convertible Preferred Stock during each period.
Reconciliation_NIA and Alts
Reconciliation of GAAP to Non-GAAP Financial Measures - cont'd
($ in millions)
1Q'22
2Q'22
3Q'22
4Q'22
1Q'23
2Q'23
3Q'23
4Q'23
1Q'24
Total investments, including related parties
$ 196,234
$ 186,405
$ 185,222
$ 196,448
$ 203,230
$ 215,322
$ 214,953
$ 238,941
$ 254,239
Derivative assets
(3,668)
(2,932)
(4,065)
(3,309)
(3,956)
(5,114)
(4,571)
(5,298)
(7,159)
Cash and cash equivalents (including restricted cash)
9,357
11,925
10,847
8,407
14,992
12,804
11,214
14,781
16,825
Accrued investment income
885
1,086
1,226
1,328
1,458
1,646
1,792
1,933
2,332
Net receivable (payable) for collateral on derivatives
(2,941)
(1,599)
(1,940)
(1,486)
(1,909)
(2,940)
(2,485)
(2,835)
(4,293)
Reinsurance impacts
2,800
5,449
7,156
1,423
942
1,046
882
(572)
(1,358)
VIE assets, liabilities and non-controlling interests
10,485
11,663
13,259
12,747
12,799
13,693
14,340
14,818
14,979
Unrealized (gains) losses
7,985
17,371
25,098
22,284
19,782
20,676
25,078
16,445
17,809
Ceded policy loans
(158)
(182)
(180)
(179)
(175)
(174)
(174)
(174)
(171)
Net investment receivables (payables)
246
(279)
(349)
186
39
(217)
(375)
11
(950)
Allowance for credit losses
495
638
446
471
521
536
592
608
615
Other investments
-
-
-
(10)
(50)
(43)
(37)
(41)
(31)
Total adjustments to arrive at gross invested assets
25,486
43,140
51,498
41,862
44,443
41,913
46,256
39,676
38,598
Gross invested assets
$ 221,720
$ 229,545
$ 236,720
$ 238,310
$ 247,673
$ 257,235
$ 261,209
$ 278,617
$ 292,837
ACRA non-controlling interests
(37,449)
(40,240)
(41,563)
(41,859)
(40,924)
(43,565)
(53,114)
(61,190)
(65,482)
Net invested assets
$ 184,271
$ 189,305
$ 195,157
$ 196,451
$ 206,749
$ 213,670
$ 208,095
$ 217,427
$ 227,355
($ in millions)
1Q'22
2Q'22
3Q'22
4Q'22
1Q'23
2Q'23
3Q'23
4Q'23
1Q'24
Investment funds, including related parties and consolidated VIEs
$ 17,899
$ 11,165
$ 13,186
$ 14,128
$ 14,447
$ 15,765
$ 16,717
$ 17,561
$ 18,443
Equity securities
732
544
542
509
469
472
472
430
436
Certain equity securities included in AFS or trading securities
1,075
288
293
225
229
193
197
201
205
Investment funds within funds withheld at interest
1,982
1,294
1,161
1,126
1,142
864
802
827
852
Royalties
48
46
16
15
15
15
14
14
10
Net assets of the VIE, excluding investment funds
(8,632)
203
(1,371)
(2,041)
(2,293)
(3,203)
(3,905)
(4,401)
(5,069)
Unrealized (gains) losses
12
60
128
44
43
38
73
26
53
ACRA non-controlling interests
(1,610)
(1,759)
(1,921)
(1,836)
(1,860)
(1,768)
(2,391)
(2,829)
(3,011)
Other assets
-
-
301
(91)
(89)
(186)
(186)
(170)
(172)
Total adjustments to arrive at net alternative investments
(6,393)
676
(851)
(2,049)
(2,334)
(3,575)
(4,924)
(5,902)
(6,696)
Net alternative investments
$ 11,506
$ 11,841
$ 12,335
$ 12,079
$ 12,103
$ 12,190
$ 11,793
$ 11,659
$ 11,747
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Apollo Global Management Inc. published this content on
02 May 2024 and is solely responsible for the information contained therein. Distributed by
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Apollo Global Management, Inc. is a global alternative asset manager and a retirement services provider. It operates in three segments: Asset Management, Retirement Services and Principal Investing. The Asset Management segment focuses on three investing strategies: yield, hybrid, and equity. These strategies reflect the range of investment capabilities across its platform based on relative risk and return. The Retirement Services business is conducted by Athene Holding Ltd (Athene), a financial services company that specializes in issuing, reinsuring, and acquiring retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs. Athene product lines include annuities and funding agreements. The Principal Investing segment includes realized performance fee income, realized investment income from its balance sheet investments, and certain allocable expenses related to corporate functions supporting the entire company.