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

Company: Apollo Global Management, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 2
Chunk 25
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, which decreased 4.6% in 2025, compared to an increase of 10.2% in 2024. The 

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unfavorable net foreign exchange impacts were primarily related to the weakening of the U.S. dollar against foreign currencies in 2025 compared to 2024. The change in fair value of mortgage loans increased $952 million and the change in fair value of reinsurance assets increased $233 million, primarily driven by a decrease in U.S. Treasury rates in 2025 compared to an increase in 2024.

Net investment income was $4.3 billion in 2025, an increase of $765 million from $3.6 billion in 2024, primarily driven by significant growth in Athene’s investment portfolio attributable to strong net flows during the previous twelve months and higher rates on new deployment in comparison to Athene’s existing portfolio related to the higher interest rate environment, partially offset by lower floating rate income.

Revenues of consolidated VIEs were $592 million in 2025, an increase of $181 million from $411 million in 2024, primarily driven by gains within AAA related to favorable returns on the underlying assets, a favorable change in the fair value of mortgage loans held in VIEs related to a decrease in U.S. Treasury rates in 2025 compared to an increase in 2024, and favorable returns from A-A Onshore Fund, LLC.

Expenses

Retirement Services expenses were $3.2 billion in 2025, a decrease of $704 million from $3.9 billion in 2024. The decrease was primarily driven by a decrease in interest sensitive contract benefits, partially offset by an increase in market risk benefits remeasurement (gains) losses, an increase in policy and other operating expenses, and an increase in DAC, DSI and VOBA amortization. 

Interest sensitive contract benefits were $1.5 billion in 2025, a decrease of $1.4 billion from $2.9 billion in 2024, primarily driven by a decrease in the change in FIA reserves and lower rates on floating rate funding agreements, partially offset by significant growth in Athene’s deferred annuity and funding agreement blocks of business and higher rates on new deferred annuity and funding agreement issuances in comparison to its existing blocks of business. The change in Athene’s FIA reserves includes the impact from changes in the fair value of FIA embedded derivatives. The decrease in the change in fair value of