Apollo Global Management, Inc.

Previous wording

Our Asset Management segment focuses on credit and equity investing strategies. We have a flexible mandate in many of the funds we manage which enables the funds to invest opportunistically across a company’s capital structure. We raise, invest and manage funds, accounts and other vehicles on behalf of some of the world’s most prominent pension, endowment and sovereign wealth funds and insurance companies, as well as other institutional and individual investors. As of March 31, 2026, we had total AUM of $1.03 trillion.

Current wording

Our Asset Management segment focuses on credit and equity investing strategies. We have a flexible mandate in many of the funds we manage which enables the funds to invest opportunistically across a company’s capital structure. We raise, invest and manage funds, accounts and other vehicles on behalf of some of the world’s most prominent pension, endowment and sovereign wealth funds and insurance companies, as well as other institutional and individual investors. As of June 30, 2026, we had total AUM of $1.05 trillion.

Previous wording

Credit is our largest asset management strategy with $834 billion of AUM as of March 31, 2026. Our credit strategy spans third-party strategies and Apollo’s retirement services business across four main investment pillars: direct origination, asset-backed, multi credit and opportunistic credit. Our credit strategy provides flexible, scaled and diverse capital solutions across the entire credit risk-return spectrum, with a focus on generating excess returns through high-quality credit underwriting and origination. Beyond participation in the traditional issuance and secondary credit markets, through our origination platforms and corporate solutions capabilities we seek to originate attractive and safe-yielding assets for the investors in the funds we manage.

Current wording

Credit is our largest asset management strategy with $849 billion of AUM as of June 30, 2026. Our credit strategy spans third-party strategies and Apollo’s retirement services business across four main investment pillars: direct origination, asset-backed, multi credit and opportunistic credit. Our credit strategy provides flexible, scaled and diverse capital solutions across the entire credit risk-return spectrum, with a focus on generating excess returns through high-quality credit underwriting and origination. Beyond participation in the traditional issuance and secondary credit markets, through our origination platforms and corporate solutions capabilities we seek to originate attractive and safe-yielding assets for the investors in the funds we manage.

Previous wording

Our equity strategy managed $192 billion of AUM as of March 31, 2026. Across our equity strategy, we maintain our focus on creative structuring and sourcing while working with the management teams of the portfolio companies of the Apollo-managed funds to help transform and grow their businesses. Our flexible mandate and purchase price discipline allow us to embrace complexity and seek attractive outcomes for our stakeholders. Apollo’s equity team has experience across sectors, industries, and geographies spanning its private equity, hybrid value, secondaries equity, AAA, real estate equity, infrastructure and clean transition equity strategies. We have consistently produced attractive long-term investment returns in the traditional private equity funds we manage, generating a 39% gross IRR and a 24% net IRR on a compound annual basis from inception through March 31, 2026.

Current wording

Our equity strategy managed $198 billion of AUM as of June 30, 2026. Across our equity strategy, we maintain our focus on creative structuring and sourcing while working with the management teams of the portfolio companies of the Apollo-managed funds to help transform and grow their businesses. Our flexible mandate and purchase price discipline allow us to embrace complexity and seek attractive outcomes for our stakeholders. Apollo’s equity team has experience across sectors, industries, and geographies spanning its private equity, hybrid value, secondaries equity, AAA, real estate equity, infrastructure and clean transition equity strategies. We have consistently produced attractive long-term investment returns in the traditional private equity funds we manage, generating a 39% gross IRR and a 24% net IRR on a compound annual basis from inception through June 30, 2026.

Previous wording

Our retirement services business is conducted by Athene, a leading financial services company that specializes in issuing, reinsuring and acquiring retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs. Athene’s primary product line is annuities, which include fixed rate, indexed, payout and group annuities issued in connection with pension group annuity transactions and benefit plans. Athene also offers funding agreements and guaranteed investment contracts issued in connection with defined contribution plans. Funding agreements are comprised of funding agreements issued under its FABN program, secured and other funding agreements, which include Athene’s FABR program and direct funding agreements, funding agreements issued to the FHLB and repurchase agreements with an original maturity exceeding one year. Guaranteed investment contracts support stable value investment options within defined contribution plans and allow the contract holder to earn a guaranteed return of principal plus interest. Our asset management business provides a full suite of services for Athene’s investment portfolio, including direct investment management, asset allocation, mergers and acquisitions asset diligence, and certain operational support services including investment compliance, tax, legal and risk management support.

Current wording

Our retirement services business is conducted by Athene, a leading financial services company that specializes in issuing, reinsuring and acquiring retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs. Athene’s primary product line is annuities, which include fixed rate, indexed, payout and group annuities issued in connection with pension group annuity transactions and benefit plans. Athene also offers funding agreements and guaranteed investment contracts issued in connection with defined contribution plans. Funding agreements are composed of funding agreements issued under its FABN program, secured and other funding agreements, which include Athene’s FABR program and direct funding agreements, funding agreements issued to the FHLB and repurchase agreements with an original maturity exceeding one year. Guaranteed investment contracts support stable value investment options within defined contribution plans and allow the contract holder to earn a guaranteed return of principal plus interest. Our asset management business provides a full suite of services for Athene’s investment portfolio, including direct investment management, asset allocation, mergers and acquisitions asset diligence, and certain operational support services including investment compliance, tax, legal and risk management support.

Previous wording

Our Principal Investing segment is comprised of our realized performance fee income, realized investment income earned from our balance sheet investments, and certain allocable expenses related to corporate functions supporting the entire company. The Principal Investing segment also includes our growth capital and liquidity resources at AGM. Over time, we may deploy capital into strategic investments that will help accelerate the growth of our Asset Management segment, by broadening our investment management and/or product distribution capabilities or increasing the scalability and/or efficiency of our existing operations. We believe these investments may translate into greater compounded annual growth of Fee Related Earnings.

Current wording

Our Principal Investing segment is composed of our realized performance fee income, realized investment income earned from our balance sheet investments, and certain allocable expenses related to corporate functions supporting the entire company. The Principal Investing segment also includes our growth capital and liquidity resources at AGM. Over time, we may deploy capital into strategic investments that will help accelerate the growth of our Asset Management segment, by broadening our investment management and/or product distribution capabilities or increasing the scalability and/or efficiency of our existing operations. We believe these investments may translate into greater compounded annual growth of Fee Related Earnings.

Previous wording

Adverse economic conditions may result from domestic and global economic and political developments, including plateauing or decreasing economic growth and business activity, changes to U.S. and foreign tariff policies, civil unrest, geopolitical tensions or military action, such as the armed conflicts in the Middle East, including with Iran, and between Ukraine and Russia, and corresponding sanctions, new or evolving legal and regulatory requirements on business investment, hiring, migration, labor supply and global supply chains, and disruptions to the global energy market and supply chains.

Current wording

Adverse economic conditions may result from domestic and global economic and political developments, including slower economic growth and business activity, changes in U.S. and foreign tariff policies, civil unrest, geopolitical tensions or military action, such as the armed conflicts in the Middle East, including with Iran, and between Ukraine and Russia, and related sanctions. Additional risks include new or evolving legal and regulatory requirements affecting business investment, hiring, migration, labor supply and global supply chains, as well as disruptions to energy markets and critical shipping routes.

Previous wording

We carefully monitor economic and market conditions, including global inflation, that could potentially give rise to global market volatility and affect our business operations, investment portfolios and derivatives. U.S. inflation remains elevated, with the U.S. Bureau of Labor Statistics reporting the annual U.S. inflation rate increased to 3.3% as of March 31, 2026, compared to 2.7% as of December 31, 2025. The U.S. Federal Reserve has a current benchmark interest rate target range of 3.50% to 3.75%, unchanged from its December 2025 meeting.

Current wording

We carefully monitor economic and market conditions, including global inflation, that could potentially give rise to global market volatility and affect our business operations, investment portfolios and derivatives. U.S. inflation remains elevated, with the U.S. Bureau of Labor Statistics reporting the annual U.S. inflation rate increased to 3.5% as of June 30, 2026, compared to 3.3% as of March 31, 2026. The U.S. Federal Reserve has a current benchmark interest rate target range of 3.50% to 3.75%, unchanged from its December 2025 meeting.

Previous wording

Equity market performance declined during the first quarter of 2026. In the U.S., the S&P 500 Index decreased by 4.6% during the first quarter of 2026, following an increase of 2.3% in the fourth quarter of 2025. Global equity markets decreased during the quarter, with the MSCI All Country World ex USA Index decreasing by 0.8%, following an increase of 5.3% in the fourth quarter of 2025.

Current wording

Equity market performance was strong during the second quarter of 2026. In the U.S., the S&P 500 Index increased by 14.9% during the second quarter of 2026, following a decrease of 4.6% in the first quarter of 2026. Global equity markets increased during the quarter, with the MSCI All Country World ex USA Index increasing by 10.5%, following a decrease of 0.8% in the first quarter of 2026.

Previous wording

Conditions in the credit markets may have a significant impact on our business. Credit fundamentals are improving: default rates in both high yield and leveraged loans are declining, distressed exchanges are easing, and at this time a broad credit cycle deterioration does not appear likely. Credit markets experienced slight decreases in the first quarter of 2026, with the BofAML HY Master II Index decreasing by 0.5%, while the Morningstar/LSTA Leveraged Loan Index decreased by 0.8%.

Current wording

Conditions in the credit markets may have a significant impact on our business. Credit fundamentals remain generally constructive, with default rates in high yield bonds and leveraged loans declining and distressed exchanges moderating. Current stresses in software and artificial intelligence related credit appear concentrated rather than indicative of a broader macroeconomic downturn. Credit markets experienced increases in the second quarter of 2026, with the BofAML HY Master II Index increasing by 2.5% and the Morningstar/LSTA Leveraged Loan Index increasing by 1.2%.

Previous wording

In terms of economic conditions in the U.S., the Bureau of Economic Analysis reported real GDP increased at an annual rate of 2.0% in the first quarter of 2026, following an increase of 0.5% in the fourth quarter of 2025. As of April 2026, the International Monetary Fund estimated the U.S. economy will expand by 2.3% in 2026 and 2.1% in 2027. The U.S. Bureau of Labor Statistics reported the U.S. unemployment rate decreased to 4.3% as of March 31, 2026.

Current wording

In terms of economic conditions in the U.S., the Bureau of Economic Analysis reported real GDP increased at an annual rate of 1.5% in the second quarter of 2026, following an increase of 2.1% in the first quarter of 2026. As of July 2026, the International Monetary Fund estimated the U.S. economy will expand by 2.3% in 2026 and 2.2% in 2027. The U.S. Bureau of Labor Statistics reported the U.S. unemployment rate decreased to 4.2% as of June 30, 2026.

Previous wording

Foreign exchange rates can materially impact the valuations of our investments and those of the funds we manage that are denominated in currencies other than the U.S. dollar. Strong foreign demand for U.S. assets remains an important support for the U.S. dollar. The U.S. dollar strengthened in the first quarter of 2026 compared to the euro and the British pound. Relative to the U.S. dollar, the euro depreciated 1.6% during the first quarter of 2026, after appreciating 0.1% in the fourth quarter of 2025, while the British pound depreciated 1.8% during the first quarter of 2026, after appreciating 0.2% in the fourth quarter of 2025. Oil finished the first quarter of 2026 up 76.6% from the fourth quarter of 2025, primarily related to the ongoing conflict with Iran.

Current wording

Foreign exchange rates can materially impact the valuations of our investments and those of the funds we manage that are denominated in currencies other than the U.S. dollar. Strong foreign demand for U.S. assets remains an important support for the U.S. dollar. The U.S. dollar strengthened in the second quarter of 2026 compared to the euro and Japanese yen, however, the U.S. dollar weakened compared to the British pound. Relative to the U.S. dollar, the euro depreciated 1.1% during the second quarter of 2026, after depreciating 1.6% in the first quarter of 2026 and the Japanese yen depreciated 2.4% in the second quarter of 2026, after depreciating 1.3% in the first quarter of 2026, while the British pound appreciated 0.3% during the second quarter of 2026, after depreciating 1.8% in the first quarter of 2026. We generally undertake hedging activities to eliminate or mitigate foreign exchange currency risk. Oil prices ended the second quarter of 2026 down 31.4% from the first quarter of 2026, primarily related to the temporary easing of tensions in the ongoing conflict in the Middle East.

Previous wording

While investor demand for perpetual non-traded business development company structures may experience variability, we believe that the long-term investor opportunity to provide investors with access to private credit, both investment-grade and sub investment-grade, will remain compelling across cycles.

Current wording

While investor demand for perpetual non-traded business development company structures may experience variability, we believe that the long-term opportunity to provide investors with access to private credit, both investment-grade and sub investment-grade, will remain compelling across cycles.

Previous wording

Medium and long-term rates increased during the first quarter of 2026, with the U.S. 10-year Treasury yield at 4.30% as of March 31, 2026, compared to 4.18% as of December 31, 2025. Short-term rates increased during the first quarter of 2026, with the 3-month secured overnight financing rate at 3.68% as of March 31, 2026, compared to 3.65% as of December 31, 2025.

Current wording

Medium and long-term rates increased during the second quarter of 2026, with the U.S. 10-year Treasury yield at 4.44% as of June 30, 2026, compared to 4.30% as of March 31, 2026. Short-term rates increased during the second quarter of 2026, with the 3-month secured overnight financing rate at 3.73% as of June 30, 2026, compared to 3.68% as of March 31, 2026.

Previous wording

Athene addresses interest rate risk through managing the duration of the liabilities it sources with assets it acquires through asset liability management (“ALM”) modeling. As part of its investment strategy, Athene purchases floating rate investments, which are expected to perform well in a rising interest rate environment and are expected to underperform in a declining rate environment. Athene manages its interest rate risk in a declining rate environment through hedging activity or the issuance of additional floating rate liabilities to lower its overall net floating rate position. As of March 31, 2026, Athene’s net invested asset portfolio included $53.1 billion of floating rate investments, or 18% of its net invested assets, and its net reserve liabilities included $49.8 billion of floating rate liabilities at notional, or 17% of its net invested assets, resulting in $3.3 billion of net floating rate assets, or 1% of its net invested assets.

Current wording

Athene addresses interest rate risk through managing the duration of the liabilities it sources with assets it acquires through asset liability management (“ALM”) modeling. As part of its investment strategy, Athene purchases floating rate investments, which are expected to perform well in a rising interest rate environment and are expected to underperform in a declining rate environment. Athene manages its interest rate risk in a declining rate environment through hedging activity or the issuance of additional floating rate liabilities to lower its overall net floating rate position. As of June 30, 2026, Athene’s net invested asset portfolio included $71.2 billion of floating rate assets, or 23% of its net invested assets, and its net reserve liabilities included $68.9 billion of floating rate liabilities at notional, or 22% of its net invested assets, resulting in $2.3 billion of net floating rate assets, or 1% of its net invested assets. Athene’s floating rate asset position includes floating rate investments and cash and cash equivalents on a net invested asset basis, adjusted for net investment payables/receivables and cash posted as collateral for derivative transactions.

Previous wording

If prevailing interest rates were to rise, we believe Athene’s products would be more attractive to consumers and its sales would likely increase. If prevailing interest rates were to decline, it is likely that Athene’s products would be less attractive to consumers and its sales would likely decrease. In periods of prolonged low interest rates, the net investment spread may be negatively impacted by reduced investment income to the extent Athene is unable to adequately reduce policyholder crediting rates due to policyholder guarantees in the form of minimum crediting rates or otherwise due to market conditions. A significant majority of Athene’s deferred annuity products have crediting rates that it may reset annually upon renewal, following the expiration of the current guaranteed period. While Athene has the contractual ability to lower these crediting rates to the guaranteed minimum levels at renewal, its willingness to do so may be limited by competitive pressures. Athene’s funding agreements and other investment-type products provide little to no discretionary ability to change the rates of interest that determine the amounts payable to the respective policyholder or institution. Other investment-type products include immediate annuities without significant mortality risk (which include pension group annuities and structured settlements without life contingencies), guaranteed investment contracts, and assumed endowments without significant mortality risks.

Current wording

If prevailing interest rates were to rise, we believe Athene’s products would be more attractive to consumers and its sales would likely increase. If prevailing interest rates were to decline, it is likely that Athene’s products would be less attractive to consumers and its sales would likely decrease. In periods of prolonged low interest rates, the net investment spread may be negatively impacted by reduced investment income to the extent Athene is unable to adequately reduce policyholder crediting rates due to policyholder guarantees in the form of minimum crediting rates or otherwise due to market conditions. A significant majority of Athene’s deferred annuity products have crediting rates that it may reset annually upon renewal, following the expiration of the current guaranteed period. While Athene has the contractual ability to lower these crediting rates to the guaranteed minimum levels at renewal, its willingness to do so may be limited by competitive pressures. Athene’s funding agreements and other investment-type contracts provide little to no discretionary ability to change the rates of interest that determine the amounts payable to the respective policyholder or institution. Other investment-type contracts include immediate annuities without significant mortality risk (which include pension group annuities and structured settlements without life contingencies), guaranteed investment contracts, and assumed endowments without significant mortality risks.

Previous wording

The general partners of the funds we manage are entitled to an incentive return of normally up to 20% of the total returns of a fund’s capital, depending upon performance of the underlying funds and subject to preferred returns and high water marks, as applicable. Performance fees, categorized as performance allocations, are accounted for as an equity method investment, and effectively, the performance fees for any period are based upon an assumed liquidation of the funds’ assets at the reporting date, and distribution of the net proceeds in accordance with the funds’ allocation provisions. Performance fees categorized as incentive fees, which are not accounted for as an equity method investment, are deferred until fees are probable to not be significantly reversed. The majority of performance fees are comprised of performance allocations.

Current wording

The general partners of the funds we manage are entitled to an incentive return of normally up to 20% of the total returns of a fund’s capital, depending upon performance of the underlying funds and subject to preferred returns and high water marks, as applicable. Performance fees, categorized as performance allocations, are accounted for as an equity method investment, and effectively, the performance fees for any period are based upon an assumed liquidation of the funds’ assets at the reporting date, and distribution of the net proceeds in accordance with the funds’ allocation provisions. Performance fees categorized as incentive fees, which are not accounted for as an equity method investment, are deferred until fees are probable to not be significantly reversed. The majority of performance fees consist of performance allocations.

Previous wording

As of March 31, 2026, approximately 32% of the value of the investments of the funds we manage, on a gross basis, was determined using market-based valuation methods (i.e., reliance on broker or listed exchange quotes) and the remaining 68% was determined primarily by comparable company and industry multiples or discounted cash flow models. See “Item 1A. Risk Factors—Risks Relating to Our Asset Management Business—The performance of the funds we manage, and our performance, may be adversely affected by the financial performance of portfolio companies of the funds we manage and the industries in which the funds we manage invest” in our 2025 Annual Report for discussion regarding certain industry-specific risks that could affect the fair value of certain of the portfolio company investments of the funds we manage.

Current wording

As of June 30, 2026, approximately 31% of the value of the investments of the funds we manage, on a gross basis, was determined using market-based valuation methods (i.e., reliance on broker or listed exchange quotes) and the remaining 69% was determined primarily by comparable company and industry multiples or discounted cash flow models. See “Item 1A. Risk Factors—Risks Relating to Our Asset Management Business—The performance of the funds we manage, and our performance, may be adversely affected by the financial performance of portfolio companies of the funds we manage and the industries in which the funds we manage invest” in our 2025 Annual Report for discussion regarding certain industry-specific risks that could affect the fair value of certain of the portfolio company investments of the funds we manage.

Previous wording

Below is a discussion of our condensed consolidated statements of operations for the three months ended March 31, 2026 and 2025. For additional analysis of the factors that affected our results at the segment level, see “—Segment Analysis” below:

Current wording

Below is a discussion of our condensed consolidated statements of operations for the three and six months ended June 30, 2026 and 2025. For additional analysis of the factors that affected our results at the segment level, see “—Segment Analysis” below:

Previous wording

Investment income (loss) decreased by $380 million in 2026 to $(77) million compared to $303 million in 2025. The decrease in investment income (loss) was primarily driven by a decrease in performance allocations of $345 million.

Current wording

Investment income increased by $190 million in 2026 to $379 million compared to $189 million in 2025. The increase in investment income was primarily driven by an increase in performance allocations of $258 million, partially offset by a decrease in principal investment income of $68 million.

Previous wording

Significant drivers for performance allocations in 2026 were performance allocation losses primarily from Fund VIII, Fund IX and AIOF II of $107 million, $61 million and $32 million, respectively, partially offset by performance allocations earned from Credit Strategies, HVF II, Fund X, Redding Ridge Holdings and Freedom Parent Holdings of $41 million, $33 million, $31 million, $21 million and $11 million, respectively.

Current wording

Significant drivers for performance allocations in 2026 were performance allocations earned from Fund VIII, Fund X, Redding Ridge Holdings, HVF III, HVF II and Credit Strategies of $309 million, $100 million, $30 million, $29 million, $27 million and $13 million, respectively, partially offset by performance allocation losses from Fund IX of $91 million.

Previous wording

The performance allocation losses from Fund VIII in 2026 were primarily driven by the depreciation of the fund’s investments in the (i) media, cable and leisure, (ii) financial and business services and (iii) manufacturing and industrial sectors.

Current wording

The performance allocations earned from Fund VIII in 2026 were primarily driven by the appreciation and realization of the fund's investments in the (i) media, cable and leisure and (ii) financial and business services sectors.

Previous wording

The performance allocations earned from Fund X in 2026 were primarily driven by the appreciation and realization of the fund’s investments in the (i) consumer services, (ii) manufacturing and industrial and (iii) consumer and retail sectors.

Current wording

The performance allocations earned from Fund X in 2026 were primarily driven by the appreciation and realization of the fund's investments in the (i) manufacturing and industrial and (ii) consumer and retail sectors.

Previous wording

The performance allocation losses from AIOF II in 2026 were primarily driven by the depreciation of the fund’s investments in the transportation and logistics sectors.

Current wording

The performance allocations earned from HVF II in 2026 were primarily driven by the appreciation and realization of the fund’s investments in the (i) transportation and logistics, (ii) consumer and retail and (iii) manufacturing and industrial sectors.

Previous wording

The performance allocation losses from Fund IX in 2026 were primarily driven by the depreciation of the fund’s investments in the (i) consumer services, (ii) consumer and retail and (iii) media, telecom and technology sectors.

Current wording

The performance allocation losses from Fund IX in 2026 were primarily driven by the depreciation of the fund’s investments in (i) media, telecom and technology, (ii) consumer services, and (iii) consumer and retail sectors.

Previous wording

Advisory and transaction fees, net increased by $111 million to $306 million in 2026 from $195 million in 2025. Advisory and transaction fees earned during 2026 were primarily attributable to advisory and transaction fees earned from our opportunistic credit, direct origination, multi-credit, infrastructure and clean transition equity and private equity strategies.

Current wording

Advisory and transaction fees, net increased by $141 million to $418 million in 2026 from $277 million in 2025. Advisory and transaction fees earned during 2026 were primarily attributable to advisory and transaction fees earned from our opportunistic credit, direct origination, multi-credit, traditional private equity and hybrid value strategies.

Previous wording

Retirement Services revenues were $4.0 billion in 2026, a decrease of $454 million from $4.5 billion in 2025. The decrease was primarily driven by a decrease in investment related gains (losses) and a decrease in revenues of consolidated VIEs, partially offset by an increase in net investment income and an increase in premiums.

Current wording

Retirement Services revenues were $9.5 billion in 2026, an increase of $3.8 billion from $5.7 billion in 2025. The increase was primarily driven by an increase in investment related gains (losses), an increase in net investment income, an increase in revenues of consolidated VIEs and an increase in premiums.

Previous wording

Net investment income was $5.1 billion in 2026, an increase of $798 million from $4.3 billion in 2025, primarily driven by significant growth in Athene’s investment portfolio attributable to strong net flows of $39.7 billion during the previous twelve months, higher rates on new deployment in comparison to Athene’s existing portfolio related to the higher interest rate environment in 2026 and favorable redemption income. These impacts were partially offset by lower floating rate income and prepayment of higher-yielding assets.

Current wording

Net investment income was $5.4 billion in 2026, an increase of $574 million from $4.8 billion in 2025, primarily driven by significant growth in Athene’s investment portfolio attributable to strong net flows of $37.6 billion 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. These impacts were partially offset by lower floating rate income, later deployment into assets during the quarter compared to 2025 and run-off of higher-yielding assets.

Previous wording

Premiums were $217 million in 2026, an increase of $90 million from $127 million in 2025, primarily driven by an increase in payout annuity premiums related to the issuance of structured settlements and life renewal premiums from the Sony Life Insurance Co., Ltd. (“Sony”) block reinsurance transaction executed in the fourth quarter of 2025.

Current wording

Premiums were $170 million in 2026, an increase of $63 million from $107 million in 2025, primarily driven by an increase in payout annuity premiums related to the issuance of structured settlements and life renewal premiums from the Sony Life Insurance Co., Ltd. (“Sony”) block reinsurance transaction executed in the fourth quarter of 2025, partially offset by an increase in ceded premium related to the retrocession of mortality risk on a pension group annuity transaction.

Previous wording

Market risk benefits remeasurement (gains) losses were $259 million in 2026, a decrease of $126 million from $385 million in 2025. The decrease in losses in 2026 compared to 2025 was primarily driven by a favorable change in the fair value of market risk benefits. The change in fair value of market risk benefits was$213 million favorable due to an increase in the risk-free discount rates across the long end of the curve compared to 2025, which are used in the fair value measurement of the liability for market risk benefits, partially offset by an unfavorable $66 million impact related to unfavorable equity market performance.

Current wording

Market risk benefits remeasurement (gains) losses were $(24) million in 2026, an increase of $87 million from $(111) million in 2025. The decrease in gains in 2026 compared to 2025 was primarily driven by an unfavorable change in the fair value of market risk benefits. The change in fair value of market risk benefits was primarily driven by an unfavorable$213 million impact due to a smaller increase in the risk-free discount rates across the long end of the curve compared to 2025, which are used in the fair value measurement of the liability for market risk benefits, partially offset by a favorable $128 million impact related to more favorable equity market performance compared to 2025.

Previous wording

Future policy and other policy benefits were $639 million in 2026, an increase of $98 million from $541 million in 2025, primarily driven by an increase in payout annuity reserves, as well as life reserves related to renewal premiums from the Sony block reinsurance transaction executed in the fourth quarter of 2025.

Current wording

Future policy and other policy benefits were $594 million in 2026, an increase of $67 million from $527 million in 2025, primarily driven by an increase in payout annuity reserves related to the issuance of structured settlements, as well as life reserves related to renewal premiums from the Sony block reinsurance transaction executed in the fourth quarter of 2025, partially offset by an increase in ceded benefit payments related to the retrocession of mortality risk on a pension group annuity transaction.

Previous wording

Policy and other operating expenses were $626 million in 2026, an increase of $84 million from $542 million in 2025, primarily driven by an increase in interest expense and policy acquisition expenses related to significant growth. The increase in interest expense was primarily related to additional issuances of long-term debt in the second quarter of 2025 and interest on repurchase agreements, as well as an increase in host accretion on business ceded to Catalina.

Current wording

Policy and other operating expenses were $613 million in 2026, an increase of $63 million from $550 million in 2025, primarily driven by an increase in interest expense, as well as increases in policy acquisition and other operating expenses related to significant growth. The increase in interest expense was primarily related to an increase in host accretion on business ceded to Catalina, as well as a full quarter of interest on long-term debt issued in the second quarter of 2025.

Previous wording

Amortization of DAC, DSI and VOBA was $337 million in 2026, an increase of$70 million from $267 million in 2025, primarily driven by an increase in acquisition and sales incentive costs that are deferred and amortized due to strong growth in Athene’s deferred annuity business.

Current wording

Amortization of DAC, DSI and VOBA was $350 million in 2026, an increase of$58 million from $292 million in 2025, primarily driven by an increase in acquisition and sales incentive costs that are deferred and amortized due to strong growth in Athene’s deferred annuity business, partially offset by a decrease in VOBA amortization.

Previous wording

Revenues were $1,011 million in 2026, a decrease of $35 million from $1,046 million in 2025, primarily driven by lower investment income (loss), partially offset by higher management fees, advisory and transaction fees, net, and incentive fees.

Current wording

Revenues were $2,638 million in 2026, an increase of $485 million from $2,153 million in 2025, primarily driven by higher management fees, advisory and transaction fees, net, property management, development and other fees, and incentive fees, partially offset by lower investment income.

Previous wording

Management fees increased by $188 million to $696 million in 2026 from $508 million in 2025. The increase in management fees was primarily attributable to $129 million of aggregate management fees earned from Bridge funds, Atlas, ADS, Redding Ridge Holdings and Apollo Asset-Backed Finance Fund, L.P. (“ABF”), partially offset by a decrease in management fees earned from S3 Equity and Hybrid Solutions of $9 million. Management fees in 2026 also benefited from increased management fees earned from certain strategic separately managed accounts. The increase in management fees earned from Bridge funds was due to the Bridge acquisition, while the increase from Atlas was driven by higher fee-generating AUM due to an upsize in Atlas warehousing financing facilities. The increase in management fees earned from ADS and ABF was primarily driven by an increase in subscriptions. Further, the increase in management fees earned from Redding Ridge Holdings was primarily driven by a fee basis adjustment, resulting from a change to the fee calculation in 2026. The decrease in management fees earned from S3 Equity and Hybrid Solutions was primarily related to the catch-up management fees for additional closes in 2025.

Current wording

Management fees increased by $354 million to $1,445 million in 2026 from $1,091 million in 2025. The increase in management fees was primarily attributable to $269 million of aggregate management fees earned from Bridge funds, Atlas, Athora, ADS, Redding Ridge Holdings, ABF and Credit Strategies Absolute Return Fund, partially offset by a decrease in management fees earned from S3 Equity and Hybrid Solutions of $26 million. The increase in management fees earned from Bridge funds was due to the Bridge acquisition, while the increase from Atlas was driven by higher fee-generating AUM due to an upsize in Atlas warehousing financing facilities. The increase in management fees earned from Athora was primarily driven by its acquisition of PIC. The increase in management fees earned from ADS, ABF and Credit Strategies Absolute Return Fund was primarily driven by an increase in subscriptions. Further, the increase in management fees earned from Redding Ridge Holdings was primarily driven by a fee basis adjustment, resulting from a change to the fee calculation in 2026. The decrease in management fees earned from S3 Equity and Hybrid Solutions was primarily related to the catch-up management fees for additional closes in 2025.

Previous wording

Incentive fees increased by $24 million to $64 million in 2026 from $40 million in 2025, primarily attributable to sustained growth across a variety of perpetual capital vehicles.

Current wording

Incentive fees increased by $25 million to $123 million in 2026 from $98 million in 2025, primarily attributable to sustained growth across a variety of perpetual capital vehicles.

Previous wording

Expenses were $1.2 billion in 2026, an increase of $114 million from $1.1 billion in 2025, primarily due to increases in general, administrative and other and interest expense, partially offset by a decrease in total compensation and benefits.

Current wording

Expenses were $2,721 million in 2026, an increase of $576 million from $2,145 million in 2025, primarily due to increases in total compensation and benefits, general, administrative and other and interest expense.

Previous wording

Total compensation and benefits were $711 million in 2026, a decrease of $34 million from $745 million in 2025, primarily due to a decrease in profit sharing expense of $205 million, partially offset by increases in salary, bonus and benefits and equity-based compensation of $87 million and $84 million, respectively. The decrease in profit sharing expense of $205 million was correlated with the corresponding lower investment income in 2026. In any period, the blended profit sharing percentage is impacted by the respective profit sharing ratios of the funds generating performance allocations in the period. The increase in salary, bonus and benefits of $87 million was primarily driven by increased headcount in 2026 relative to 2025 due in part to the Bridge acquisition. The increase in equity-based compensation of $84 million was primarily due to additional RSUs granted and the related amortization. Equity-based compensation expense, in any given period, is generally comprised of: (i) performance grants which are tied to the Company’s receipt of performance fees, within prescribed periods and are typically recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable, and (ii) the impact of the 2021 one-time grants awarded to the then Co-Presidents of AAM, all of which vest on a cliff basis subject to continued employment over five years, and a portion of which also vest on the Company’s achievement of FRE and SRE per share metrics.

Current wording

Total compensation and benefits were $1,638 million in 2026, an increase of $291 million from $1,347 million in 2025, primarily due to increases in salary, bonus and benefits and equity-based compensation. The increase in salary, bonus and benefits of $192 million was primarily driven by increased headcount in 2026 relative to 2025 due in part to the Bridge acquisition. The increase in equity-based compensation of $163 million was primarily due to additional RSUs and equity granted and the related amortization. Equity-based compensation expense, in any given period, generally includes: (i) performance grants which are tied to the Company’s receipt of performance fees, within prescribed periods and are typically recognized on an accelerated recognition method over the requisite service period to the extent the performance revenue metrics are met or deemed probable, and (ii) the impact of the 2021 one-time grants awarded to the then Co-Presidents of AAM, all of which vest on a cliff basis subject to continued employment over five years, and a portion of which also vest on the Company’s achievement of FRE and SRE per share metrics. The decrease in profit sharing expense of $64 million correlates to lower investment income in 2026. In any period, the blended profit sharing percentage is impacted by the respective profit sharing ratios of the funds generating performance allocations in the period.

Previous wording

General, administrative and other expenses were $439 million in 2026, an increase of $131 million from $308 million in 2025. The increase in 2026 was primarily driven by increases in professional fees, depreciation and amortization expenses, technology expenses and travel and entertainment expenses.

Current wording

General, administrative and other expenses were $918 million in 2026, an increase of $240 million from $678 million in 2025. The increase in 2026 was primarily driven by increases in professional fees, depreciation and amortization, transaction related expenses, technology expenses and travel and entertainment expenses.

Previous wording

Interest expense was $77 million in 2026, an increase of $17 million from $60 million in 2025. The increase in 2026 was primarily driven by higher interest rates from additional debt issuances in the full year 2025, partially offset by debt repayments.

Current wording

Interest expense was $165 million in 2026, an increase of $45 million from $120 million in 2025. The increase in 2026 was primarily driven by higher interest rates from additional debt issuances in the full year 2025 and 2026.

Previous wording

The increase in other income (loss), net of$248 million, was primarily attributable to the prior-year impact of common stock issued to the Apollo DAF, which did not recur in the current period. Additionally, the increase was also driven by derivative gains primarily on forward contracts, partially offset by foreign exchange losses due to the significant fluctuations in foreign exchange rates in 2026.

Current wording

The increase in other income (loss), net of$252 million was primarily attributable to expense related to the issuance of common stock to the Apollo DAF in the prior year, which did not recur in the current year. Additionally, the increase was also driven by derivative gains primarily on forward contracts, partially offset by foreign exchange losses due to the significant fluctuations in foreign exchange rates in 2026.