Company: APO
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001858681-25-000117
Chunk: 53

Company: Apollo Global Management, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 2
Chunk 53
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 the quarter compared to 2024 and a shift in business mix to more institutional business at higher crediting rates. These impacts were partially offset by lower rates on floating rate funding agreements.

Interest and other financing costs were $132 million in 2025, an increase of $13 million from $119 million in 2024, primarily driven by higher interest expense related to additional issuances of long-term debt in the fourth quarter of 2024 and second quarter of 2025. This was partially offset by a lower average short-term repurchase agreement balance outstanding in 2025 compared to 2024.

Net Investment Spread

Three months ended June 30,20252024ChangeFixed income and other net investment earned rate4.97 %4.82 %15bpsAlternative net investment earned rate9.86 %5.73 %NMNet investment earned rate5.21 %4.87 %34bpsStrategic capital management fees0.05 %0.04 %1bpCost of funds(3.68)%(3.27)%41bpsNet investment spread1.58 %1.64 %(6)bps

Net investment spread was 1.58% in 2025, a decrease of 6 basis points compared to 1.64% in 2024, primarily driven by higher cost of funds, partially offset by a higher net investment earned rate.

Cost of funds was 3.68% in 2025, an increase of 41 basis points compared to 3.27% in 2024, primarily driven by higher rates on new business and runoff of lower rate business compared to existing blocks, earlier origination of new business within the 

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quarter compared to 2024 and a shift in business mix to more institutional business at higher crediting rates, partially offset by lower rates on floating rate funding agreements.

Net investment earned rate was 5.21% in 2025, an increase of 34 basis points compared to 4.87% in 2024, primarily driven by higher returns in both Athene’s fixed income and alternative investment portfolios. Fixed income and other net investment earned rate was 4.97% in 2025, an increase from 4.82% in 2024, primarily driven by higher rates on new deployment compared to Athene’s existing portfolio related to the higher interest rate environment and earlier deployment into assets during the quarter compared to 2024, partially offset by lower floating rate income.