Company: APO
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001858681-25-000139
Chunk: 412

Company: Apollo Global Management, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 412
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 preferred stock dividends decreased due to the redemption of Athene’s Series C preferred stock in the second quarter of 2025. 

Net Investment Spread

Three months ended September 30,20252024ChangeFixed income and other net investment earned rate5.12 %4.96 %16 bpsAlternative net investment earned rate9.88 %8.19 %169 bpsNet investment earned rate5.34 %5.12 %22 bpsStrategic capital management fees0.05 %0.05 %0 bpsCost of funds(3.79)%(3.34)%45 bpsNet investment spread1.60 %1.83 %(23) bps

Net investment spread was 1.60% in 2025, a decrease of 23 basis points compared to 1.83% in 2024, driven by higher cost of funds, partially offset by a higher net investment earned rate.

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Cost of funds was 3.79% in 2025, an increase of 45 basis points compared to 3.34% in 2024, primarily driven by higher rates on new business and runoff of lower rate business compared to existing blocks, a shift in business mix to more institutional business at higher crediting rates and an unfavorable change in unlocking, partially offset by lower rates on floating rate funding agreements.

Net investment earned rate was 5.34% in 2025, an increase of 22 basis points compared to 5.12% 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 5.12% in 2025, an increase from 4.96% in 2024, primarily driven by higher rates on new deployment compared to Athene’s existing portfolio related to the higher interest rate environment and higher call income, partially offset by lower floating rate income and prepayment of higher yielding assets. Alternative net investment earned rate was 9.88% in 2025, an increase from 8.19% in 2024, primarily driven by more favorable performance within retirement services platforms and equity funds, partially offset by less favorable performance within origination platforms. The more favorable returns from retirement services platforms were primarily related to a valuation increase on Venerable in 2025 related to the announcement of a reinsurance transaction with Corebridge and realized losses from the sale of Challenger’s common equity shares in