Company: APO
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001858681-25-000049
Chunk: 208

Company: Apollo Global Management, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 8
Chunk 208
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 by $33.1 billion of growth in Athene’s average net invested assets, higher rates on new deployment compared to Athene’s existing portfolio related to the higher interest rate environment and an increase in alternative net investment income, partially offset by lower floating rate income. The increase in alternative net investment income compared to 2024 was 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 increase in income from strategic origination platforms was mainly attributable to strong performance within other strategic origination platforms, including an initial mark from cost to fair value on Atlas, unfavorable performance from Aqua Finance, Inc. (“Aqua Finance”) in 2024 related to macroeconomic headwinds for consumer loan origination, outsized performance from MidCap Financial in 2025 and a valuation increase on Wheels in 2025. The decrease in income from retirement services platforms was primarily related to continued headwinds impacting dividend projections for Athora in 2025 and an increase in the 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