Company: APO
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001858681-25-000049
Chunk: 207

Company: Apollo Global Management, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 8
Chunk 207
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 presents Spread Related Earnings, the performance measure of our Retirement Services segment:

Three months ended March 31,Total ChangePercentageChange(In millions, except percentages)20252024Retirement Services:Fixed income and other net investment income$2,914 $2,454 $460 18.7%Alternative net investment income315 266 49 18.4Net investment earnings3,229 2,720 509 18.7Strategic capital management fees29 25 4 16.0Cost of funds(2,210)(1,723)487 28.3Net investment spread1,048 1,022 26 2.5Other operating expenses(114)(114)— —Interest and other financing costs(130)(91)39 42.9Spread Related Earnings$804 $817 $(13)(1.6)%

Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024

In this section, references to 2025 refer to the three months ended March 31, 2025 and references to 2024 refer to the three months ended March 31, 2024.

116

Spread Related Earnings

SRE was $804 million in 2025, a decrease of $13 million, or 2%, compared to $817 million in 2024. The decrease in SRE was primarily driven by higher cost of funds and interest and other financing costs, partially offset by higher net investment earnings.

Cost of funds was $2.2 billion in 2025, an increase of $487 million from $1.7 billion in 2024, primarily driven by significant growth in deferred annuity and institutional business, 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.

Interest and other financing costs were $130 million in 2025, an increase of $39 million from $91 million in 2024, primarily related to higher interest expense resulting from a full quarter of expense on the debt issued in March 2024, expense related to the debt issued in October 2024 and a higher average short-term repurchase agreement balance outstanding in 2025 compared to 2024.

Net investment earnings were $3.2 billion in 2025, an increase of $509 million from $2.7 billion in 2024, primarily driven