Company: APO
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001858681-25-000034
Chunk: 43

Company: Apollo Global Management, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 43
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 Services:Fixed income and other net investment income$10,805 $8,739 $2,066 23.6%$8,739 $5,706 $3,033 53.2%Alternative net investment income939 864 75 8.7864 1,206 (342)(28.4)Net investment earnings11,744 9,603 2,141 22.39,603 6,912 2,691 38.9Strategic capital management fees105 72 33 45.872 53 19 35.8Cost of funds(7,702)(5,650)2,052 36.3(5,650)(3,755)1,895 50.5Net investment spread4,147 4,025 122 3.04,025 3,210 815 25.4Other operating expenses(458)(481)(23)(4.8)(481)(462)19 4.1Interest and other financing costs(465)(436)29 6.7(436)(279)157 56.3Spread Related Earnings (SRE)$3,224 $3,108 $116 3.7%$3,108 $2,469 $639 25.9%

A discussion of our Retirement Services segment analysis for the year ended December 31, 2023 as compared to the year ended December 31, 2022 is included in the Company’s 2023 Annual Report.

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

In this section, references to 2024 refer to the year ended December 31, 2024 and references to 2023 refer to the year ended December 31, 2023.

Spread Related Earnings

SRE was $3.2 billion in 2024, an increase of $116 million, or 4%, compared to $3.1 billion in 2023. The increase in SRE was primarily driven by higher net investment earnings and strategic capital management fees, partially offset by higher cost of funds and interest and other financing costs. 

Net investment earnings increased $2.1 billion, primarily driven by $25.3 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