Company: APO
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001858681-25-000139
Chunk: 385

Company: Apollo Global Management, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 385
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 (losses) from investment activities of $63 million, partially offset by a decrease in other income (loss), net of $37 million, respectively.

The increase in net gains (losses) from investment activities of $63 million was primarily driven by the appreciation in the Company’s balance sheet investments. The decrease in other income (loss), net of $37 million was primarily attributable to foreign exchange losses due to the significant fluctuations in foreign exchange rates in 2025 and losses from changes in the tax receivable agreement liability, which were partially offset by derivative gains primarily on forward contracts.

Retirement Services

Retirement Services revenues were $8.3 billion in 2025, an increase of $1.5 billion from $6.9 billion in 2024. The increase was primarily driven by an increase in net investment income, an increase in investment related gains (losses) and an increase in revenues of consolidated VIEs, partially offset by a decrease in premiums.

Net investment income was $5.0 billion in 2025, an increase of $912 million from $4.1 billion in 2024, primarily driven by significant growth in Athene’s investment portfolio attributable to strong net flows during the previous twelve months and higher rates on new deployment in comparison to Athene’s existing portfolio related to the higher interest rate environment. These impacts were partially offset by lower floating rate income.

Investment related gains (losses) were $2.3 billion in 2025, an increase of $715 million from $1.5 billion in 2024, primarily driven by a favorable change in fair value of FIA hedging derivatives, favorable net foreign exchange impacts and a decrease in realized losses on the sale of mortgage loans and AFS securities, partially offset by an unfavorable change in fair value of mortgage loans and reinsurance assets. The change in fair value of FIA hedging derivatives increased $1.1 billion, primarily driven by more favorable performance of the equity indices upon which Athene’s call options are based. The largest percentage of Athene’s call options are based on the S&P 500 Index, which increased 7.8% in 2025, compared to an increase of 5.5% in 2024. The favorable net foreign exchange impacts were primarily related to the strengthening of the U.S. dollar against foreign currencies in 2025 compared to 2024, including the impact from derivatives not designated as a hedge where the foreign exchange impact on the related asset is reported through A