Company: APO
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001858681-25-000139
Chunk: 261

Company: Apollo Global Management, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 261
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 FINANCIAL STATEMENTS (UNAUDITED)

FuturesAthene purchases futures contracts to hedge the growth in interest credited to the customer as a direct result of increases in the related indices. Athene enters into exchange-traded futures with regulated futures commission clearing brokers who are members of a trading exchange. Under exchange-traded futures contracts, Athene agrees to purchase a specified number of contracts with other parties and to post variation margin on a daily basis in an amount equal to the difference in the daily fair values of those contracts.Interest rate swaps and forwardsAthene uses interest rate swaps and forwards to reduce market risks from interest rate changes and to alter interest rate exposure arising from duration mismatches between assets and liabilities. With an interest rate swap, Athene agrees with another party to exchange the difference between fixed-rate and floating-rate interest amounts tied to an agreed-upon notional principal amount at specified intervals.Other swapsOther swaps include total return swaps, credit default swaps and swaptions. Athene purchases total rate of return swaps to gain exposure and benefit from a reference asset or index without ownership. Credit default swaps provide a measure of protection against the default of an issuer or allow Athene to gain credit exposure to an issuer or traded index. Athene uses credit default swaps coupled with a bond to synthetically create the characteristics of a reference bond. Swaptions provide an option to enter into an interest rate swap and are used by Athene to hedge against interest rate exposure.Embedded derivativesAthene has embedded derivatives which are required to be separated from their host contracts and reported as derivatives. Host contracts include reinsurance agreements structured on a modco or funds withheld basis and indexed annuity products.The following is a summary of the gains (losses) related to derivatives not designated as hedges:Three months ended September 30,Nine months ended September 30,(In millions)2025202420252024Equity options$1,627 $596 $1,562 $2,298 Futures123 26 107 152 Interest rate swaps and forwards and other swaps91 (126)(1,334)(156)Foreign currency forwards(361)209 (972)(657)Embedded derivatives on funds withheld149 747 348 560 Amounts recognized in investment related gains (losses)1,629 1,452 (289)2,197 Embedded derivatives in indexed annuity products1(1,260)(275)(1,144)(1,270)Total gains (losses) on