Company: APO
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001858681-25-000049
Chunk: 37

Company: Apollo Global Management, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 2
Chunk 37
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 share price of Challenger Limited (“Challenger”) in 2024 not recurring in 2025 due to the sale of Athene’s common interests in Challenger in the third quarter of 2024.

Net Investment Spread

Three months ended March 31,20252024ChangeFixed income and other net investment earned rate4.80 %4.66 %14bpsAlternative net investment earned rate10.08 %9.10 %98bpsNet investment earned rate5.06 %4.89 %17bpsStrategic capital management fees0.05 %0.04 %1bpCost of funds(3.46)%(3.10)%36bpsNet investment spread1.65 %1.83 %(18)bps

Net investment spread was 1.65% in 2025, a decrease of 18 basis points compared to 1.83% in 2024, primarily driven by higher cost of funds, partially offset by a higher net investment earned rate.

Cost of funds was 3.46% in 2025, an increase of 36 basis points compared to 3.10% in 2024, primarily driven by higher rates on new business compared to the existing blocks and an increase in business mix to institutional business at higher crediting rates, partially offset by lower rates on floating rate funding agreements.

Net investment earned rate was 5.06% in 2025, an increase of 17 basis points compared to 4.89% in 2024, primarily due to higher returns in both Athene’s fixed income and alternative investment portfolios. Fixed income and other net investment earned rate was 4.80% in 2025, an increase from 4.66% in 2024, primarily driven by higher rates on new deployment compared to Athene’s existing portfolio related to the higher interest rate environment, partially offset by lower floating rate income. Alternative net investment earned rate was 10.08% in 2025, an increase from 9.10% in 2024, primarily driven by more favorable performance within strategic origination platforms and equity investments, partially offset by less favorable performance within retirement services platforms and credit investments. The higher returns from strategic origination platforms was mainly attributable to strong performance within other strategic origination platforms, including an initial mark 

117

from cost to fair value on Atlas, unfavorable performance from Aqua Finance in 2024 related to macroeconomic headwinds for consumer loan origination, outs