Company: APO
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001858681-25-000034
Chunk: 45

Company: Apollo Global Management, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 45
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 ADIP II effective July 1, 2023 and the subsequent increases in the ADIP II ownership of ACRA 2 to 60% effective December 31, 2023 and 63% effective October 1, 2024, as well as a favorable change in unlocking and a favorable impact to pension group annuity balances related to a refinement in methodology. Unlocking, net of the non-controlling interests, was favorable $16 million primarily related to favorable projected mortality lowering future benefit payments, updated economics and favorable changes in lapse and enhanced income utilization assumptions. These impacts were largely offset by an increase in the income rider utilization assumption increasing projected claims, an increase in the lump sum payment utilization assumption and changes to projected interest crediting. Unlocking, net of the non-controlling interests, in 2023 was unfavorable $24 million primarily related to an increase in the income rider utilization assumption increasing projected claims. This impact was partially offset by favorable changes in lapse and income rider restart assumptions, as well as higher interest rates and favorable mortality experience lowering future benefit payments.

Interest and other financing costs increased $29 million related to higher interest expense resulting from Athene’s debt issuances in the fourth quarter of 2023 and the first and fourth quarters of 2024, partially offset by lower interest expense resulting from a decrease in the average outstanding balance of short-term repurchase agreements in 2024 compared to 2023.

Net Investment Spread

Years ended December 31,Years ended December 31,20242023Change20232022ChangeFixed income and other net investment earned rate4.86 %4.45 %41bps4.45 %3.22 %123bpsAlternative net investment earned rate8.03 %7.22 %81bps7.22 %10.42 %NMNet investment earned rate5.03 %4.61 %42bps4.61 %3.66 %95bpsStrategic capital management fees0.04 %0.03 %1bp0.03 %0.03 %0bpsCost of funds(3.29)%(2.71)%58bps(2.71)%(1.98)%73bpsNet investment spread1.78 %1.93 %(15)bps1.93 %1.71 %22bps

Net investment spread was 1.78% in 2024, a decrease of 15 basis points compared to 1.