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 June 30, 2026, we had total AUM of $1.05 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 September 30, 2026, we had total AUM of $1.07 trillion.

Previous 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.

Current wording

Credit is our largest asset management strategy with $870 billion of AUM as of September 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 $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.

Current wording

Our equity strategy managed $204 billion of AUM as of September 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 September 30, 2026.

Previous wording

On September 2, 2025, we completed the previously announced acquisition of Bridge in an all-stock transaction. As a result, Bridge became a consolidated subsidiary of AAM, and its results are included in the condensed consolidated financial statements commencing from the Acquisition Date.

Current wording

On September 2, 2025, we completed the previously announced acquisition of Bridge in an all-stock transaction. As a result, Bridge became a consolidated subsidiary of AAM, and its results are included in the condensed consolidated financial statements commencing from the Bridge Acquisition Date.

Previous 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.

Current wording

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

Previous wording

Uncertainty surrounding U.S. trade policy, the conflict with Iran and persistent inflation remain downside risks. However, U.S. economic activity remains resilient, supported by consumer spending, investment in artificial intelligence infrastructure, increased domestic manufacturing and fiscal stimulus. These drivers continue to support solid growth and a modest risk of recession. Tariffs remain inflationary and may weigh on growth and corporate earnings, with the ultimate impact dependent on their scope, duration and the outcome of trade negotiations.

Current wording

U.S. economic activity remains resilient, supported by investment in artificial intelligence and data centers, increased spending across semiconductors, pharmaceuticals and defense, and fiscal stimulus. These drivers continue to support solid growth, but also contribute to persistent inflation and a higher interest rate environment. Uncertainty surrounding U.S. trade policy, the conflict with Iran, and inflation remain downside risks to the economy.

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 3.5% 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.

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. Inflation remains elevated, limiting the scope of monetary easing and contributing to upward pressure on yields, increasing the likelihood that interest rates will remain elevated. The U.S. Bureau of Labor Statistics reported the annual U.S. inflation rate increased to 3.7% as of September 30, 2026, compared to 3.5% as of June 30, 2026. Due to persistent inflationary pressure, the U.S. Federal Reserve raised its benchmark interest rate target range by 25 basis points to 3.75% to 4.00% at its September meeting.

Previous 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.

Current wording

Equity market performance moderated during the third quarter of 2026. In the U.S., the S&P 500 Index increased by 2.0%, following an increase of 14.9% in the second quarter of 2026. Global equity markets also increased during the quarter, with the MSCI All Country World ex USA Index increasing by 1.0%, following an increase of 10.5% in the second quarter of 2026.

Previous 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%.

Current wording

Conditions in the credit markets may have a significant impact on our business. Credit fundamentals remain generally constructive and continue to improve, with speculative-grade default rates declining, distressed exchanges moderating, and liability management exercises decreasing. Risks remain concentrated in certain sectors, particularly software, where elevated leverage, weaker interest coverage and an approaching maturity wall increase sensitivity to a higher-for-longer rate environment. AI-related debt issuance also warrants monitoring as hyperscaler bond coverage ratios have declined and investment-grade spreads and credit default swap spreads have widened. Credit markets experienced mixed results in the third quarter of 2026, with the BofAML HY Master II Index decreasing by 1.8% and the Morningstar/LSTA Leveraged Loan Index increasing by 2.7%.

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 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.

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 3.4% in the third quarter of 2026, following an increase of 2.2% in the second quarter of 2026. As of October 2026, the International Monetary Fund estimated the U.S. economy will expand by 2.3% in each of 2026 and 2027. The U.S. Bureau of Labor Statistics reported the U.S. unemployment rate remained at 4.2% as of September 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 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.

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. The U.S. dollar strengthened compared to the euro, but weakened against the Japanese yen and remained broadly unchanged compared to the British pound in the third quarter of 2026. Relative to the U.S. dollar, the euro depreciated 0.8% in the third quarter of 2026, after depreciating 1.1% in the second quarter of 2026, while the Japanese yen appreciated 3.3% in the third quarter of 2026, after depreciating 2.4% in the second quarter of 2026, and the British pound remained broadly unchanged during the third quarter of 2026, after appreciating 0.3% in the second quarter of 2026. We generally undertake hedging activities to eliminate or mitigate foreign currency risk. Oil prices ended the third quarter of 2026 up 30.1% from the second quarter of 2026, primarily reflecting renewed tensions in the Middle East. Further escalation could create additional inflationary pressure through higher energy prices.

Previous wording

Private credit, which represents an estimated $40 trillion primarily investment-grade market, has experienced heightened focus, generating industry inquiries around liquidity, valuation methodologies, global wealth access and technology-related portfolio allocations. We believe such inquiries are natural to an evolving asset class that is experiencing strong overall growth. However, the magnified focus has corresponded to increased redemption requests within perpetual non-traded business development company structures across the industry, resulting in lower growth for these products.

Current wording

Private credit, which we estimate represents a $40 trillion primarily investment-grade addressable market, has experienced heightened focus, generating industry inquiries around liquidity, valuation methodologies, global wealth access and technology-related portfolio allocations. We believe such inquiries are natural to an evolving asset class that is experiencing strong overall growth. However, the magnified focus has corresponded to increased redemption requests within perpetual non-traded business development company structures across the industry, resulting in lower growth for these products.

Previous 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.

Current wording

Medium and long-term rates increased significantly during the third quarter of 2026, with the U.S. 10-year Treasury yield at 5.29% as of September 30, 2026, compared to 4.44% as of June 30, 2026. Short-term rates also increased during the third quarter of 2026, with the 3-month secured overnight financing rate at 4.08% as of September 30, 2026, compared to 3.73% as of June 30, 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 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.

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 September 30, 2026, Athene’s net invested asset portfolio included $66.9 billion of floating rate assets, or 21% of its net invested assets, and its net reserve liabilities included $64.1 billion of floating rate liabilities at notional, or 20% of its net invested assets, resulting in $2.8 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

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.

Current wording

As of September 30, 2026, approximately 28% 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 72% 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

Policy and other operating expenses include normal operating expenses, policy acquisition expenses, interest expense, dividends to policyholders, integration, restructuring and other non-operating expenses and stock compensation expenses.

Current wording

Policy and other operating expenses include normal operating expenses, policy acquisition expenses, interest expense, dividends to policyholders, integration, restructuring and other non-operating expenses and equity-based compensation expenses.

Previous wording

Adjusted Net Income (“ANI”) represents Segment Income less HoldCo interest and other financing costs and estimated income taxes. For purposes of calculating the Adjusted Net Income tax rate, Segment Income is reduced by HoldCo interest and financing costs. Income taxes on FRE and PII represents the total current corporate, local, and non-U.S. taxes as well as the current amounts payable under Apollo’s tax receivable agreement. Income taxes on FRE and PII excludes the impacts of deferred taxes and the remeasurement of the tax receivable agreement, which arise from changes in estimated future tax rates. Certain assumptions and methodologies that impact the implied FRE and PII income tax provision are similar to those used under U.S. GAAP. Specifically, certain deductions considered in the income tax provision under U.S. GAAP relating to transaction-related costs, equity-based compensation, charitable contributions and tax deductible interest expense are taken into account for the implied tax provision. Income Taxes on SRE represent the total current and deferred tax expense or benefit on income before taxes adjusted to eliminate the impact of the tax expense or benefit associated with the non-operating adjustments. Management believes the methodologies used to compute income taxes on FRE, SRE, and PII are meaningful to each segment and increases comparability of income taxes between periods.

Current wording

Adjusted Net Income (“ANI”) represents Segment Income less HoldCo interest and other financing costs and estimated income taxes. For purposes of calculating the Adjusted Net Income tax rate, Segment Income is reduced by HoldCo interest and financing costs. Income taxes on FRE and PII represent the total current corporate, local, and non-U.S. taxes as well as the current amounts payable under Apollo’s tax receivable agreement. Income taxes on FRE and PII exclude the impacts of deferred taxes and the remeasurement of the tax receivable agreement, which arise from changes in estimated future tax rates. Certain assumptions and methodologies that impact the implied FRE and PII income tax provision are similar to those used under U.S. GAAP. Specifically, certain deductions considered in the income tax provision under U.S. GAAP relating to transaction-related costs, equity-based compensation, charitable contributions and tax deductible interest expense are taken into account for the implied tax provision. Income taxes on SRE represent the total current and deferred tax expense or benefit on income before taxes adjusted to eliminate the impact of the tax expense or benefit associated with the non-operating adjustments. Management believes the methodologies used to compute income taxes on FRE, SRE, and PII are meaningful to each segment and increase comparability of income taxes between periods.

Previous 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:

Current wording

Below is a discussion of our condensed consolidated statements of operations for the three and nine months ended September 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 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.

Current wording

Investment income (loss) decreased by $632 million in 2026 to $(188) million compared to $444 million in 2025. The decrease in investment income (loss) was primarily driven by a decrease in performance allocations.

Previous 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.

Current wording

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

Previous 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.

Current 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 and (ii) financial and business services sectors.

Previous wording

The performance allocations earned from HVF III in 2026 were primarily driven by the appreciation of the fund’s investments in the (i) climate and sustainability, (ii) consumer and retail and (iii) business services sectors.

Current wording

The performance allocations earned from HVF III in 2026 were primarily driven by the appreciation of the fund’s investments in the (i) climate and sustainability, (ii) business services, (iii) consumer and retail and (iv) manufacturing and industrial 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 and retail and (ii) manufacturing and industrial 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 manufacturing and industrial sectors.

Previous 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.

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) financial services sectors.

Previous wording

Advisory and transaction fees, net increased by $252 million to $724 million in 2026 from $472 million in 2025. Advisory and transaction fees earned during 2026 were primarily attributable to advisory and transaction fees earned from our direct origination, opportunistic credit, multi-credit, traditional private equity and hybrid value strategies.

Current wording

Advisory and transaction fees, net increased by $255 million to $633 million in 2026 from $378 million in 2025. Advisory and transaction fees earned during 2026 were primarily attributable to our direct origination, infrastructure and clean transition equity, opportunistic credit, hybrid value and traditional private equity strategies.

Previous wording

Management fees increased by $166 million to $749 million in 2026 from $583 million in 2025. The increase in management fees was primarily attributable to $165 million of aggregate management fees earned from Bridge funds, Atlas, Athora, Apollo Asset-Backed Finance Fund, L.P. (“ABF”), Apollo Credit Strategies Absolute Return Fund (Delaware), L.P. (“Credit Strategies Absolute Return Fund”) and ADS, partially offset by a decrease in management fees earned from S3 Equity and Hybrid Solutions of $17 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 ABF, Apollo Credit Strategies Absolute Return Fund and ADS was primarily driven by an increase in subscriptions. 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 $152 million to $758 million in 2026 from $606 million in 2025. The increase was primarily attributable to an aggregate $108 million increase in management fees earned from Bridge funds, Atlas, Athora, Apollo Asset-Backed Finance Fund, L.P. (“ABF”), Chestnut Ridge, L.P. and Apollo Credit Strategies Absolute Return Fund (Delaware), L.P. (“Credit Strategies Absolute Return Fund”). The increase in management fees earned from Bridge funds was due to the Bridge acquisition in September 2025, which resulted in a full quarter of fees in 2026 compared to a partial quarter in 2025. The increase in management fees earned from Atlas was driven by higher fee-generating AUM due to the upsizing of Atlas’s warehousing financing facilities, and the increase in management fees earned from Athora was driven by Athora’s acquisition of PIC. The increases in management fees earned from ABF and Credit Strategies Absolute Return Fund were primarily driven by increased subscriptions. The increase in management fees earned from Chestnut Ridge was due to the fund’s commencement of fee-generating activities in 2026. These increases were partially offset by a $6 million decrease in management fees earned from ARI due to ARI’s sale of its commercial mortgage loan portfolio to Athene.

Previous 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.

Current wording

Expenses were $1,454 million in 2026, an increase of $220 million from $1,234 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 $927 million in 2026, an increase of $325 million from $602 million in 2025, primarily due to an increase in profit sharing expense, salary, bonus and benefits and equity-based compensation of $141 million, $105 million and $79 million, respectively. The increase in profit sharing expense of $141 million corresponds to higher 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 $105 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 $79 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.

Current wording

Total compensation and benefits were $909 million in 2026, an increase of $148 million from $761 million in 2025, primarily due to an increase in salary, bonus and benefits, equity-based compensation and profit sharing expense of $89 million, $37 million and $22 million, respectively. The increase in salary, bonus and benefits of $89 million was primarily driven by increased headcount in 2026 relative to 2025. The increase in equity-based compensation of $37 million was primarily due to additional RSUs and equity granted and the related amortization. The increase in profit sharing expense of $22 million corresponds to the allocation of certain performance-based revenue, partially offset by lower profit sharing expense driven by investment losses during the quarter. In any period, the blended profit sharing percentage is impacted by the respective profit sharing ratios of the funds and other performance-based revenue generating performance allocations in the period. 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.

Previous wording

General, administrative and other expenses were $479 million in 2026, an increase of $109 million from $370 million in 2025. The increase in 2026 was primarily driven by increases in professional fees, transaction related expenses, depreciation and amortization, and travel and entertainment expenses.

Current wording

General, administrative and other expenses were $461 million in 2026, an increase of $52 million from $409 million in 2025. The increase in 2026 was primarily driven by increases in transaction related expenses, depreciation and amortization, technology expenses and travel and entertainment expenses, partially offset by a decrease in professional fees.

Previous 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.

Current wording

Retirement Services revenues were $3.5 billion in 2026, a decrease of $4.9 billion from $8.3 billion in 2025. The decrease was primarily driven by a decrease in investment related gains (losses), partially offset by an increase in net investment income, an increase in premiums and an increase in revenues of consolidated VIEs.

Previous wording

Investment related gains (losses) were $3.0 billion in 2026, an increase of $3.0 billion from $(5) million in 2025, primarily driven bya favorable change in the fair value of indexed annuity hedging derivatives, net foreign exchange gains and a $673 million gain resulting from the early call of Athene’s investment in AP Grange, partially offset by an unfavorable change in the fair value of mortgage loans and reinsurance assets. The change in fair value of indexed annuity hedging derivatives increased $2.1 billion, primarily driven by the favorable performance of the equity indices upon which Athene’s call options are based. The largest percentage of Athene’s call options are based on the S&P 500 Index, which increased 14.9% in 2026, compared to an increase of 10.6% in 2025. The net foreign exchange gains were primarily related to the strengthening of the U.S. dollar against foreign currencies in 2026 compared to 2025, including the impact from derivatives not designated as a hedge where the foreign exchange impact on the related asset is reported through AOCI. The change in fair value of mortgage loans decreased $568 million and the change in fair value of reinsurance assets decreased $73 million, primarily driven by an increase in U.S. Treasury rates in 2026 compared to a decrease in 2025.

Current wording

Investment related gains (losses) were $(3.4) billion in 2026, a decrease of $5.7 billion from $2.3 billion in 2025, primarily driven byan unfavorable change in the fair value of mortgage loans, reinsurance assets and trading securities, an unfavorable change in the fair value of indexed annuity hedging derivatives and losses on interest rate derivatives. The change in fair value of mortgage loans decreased $2.2 billion, the change in fair value of reinsurance assets decreased $615 million and the change in fair value of trading securities decreased $415 million, primarily driven by an increase in U.S. Treasury rates in 2026 compared to a decrease in 2025. The change in fair value of indexed annuity hedging derivatives decreased $1.7 billion, primarily driven by less favorable performance of the equity indices upon which Athene’s call options are based. The largest percentage of Athene’s call options are based on the S&P 500 Index, which increased 2.0% in 2026, compared to an increase of 7.8% in 2025. The derivative losses were primarily driven by an increase in U.S. Treasury rates in 2026 resulting in losses on interest rate derivatives that do not qualify for hedge accounting.

Previous 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.

Current wording

Net investment income was $5.7 billion in 2026, an increase of $688 million from $5.0 billion in 2025, primarily driven by significant growth in Athene’s investment portfolio attributable to strong net flows of $31.1 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 $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.

Current wording

Premiums were $190 million in 2026, an increase of $73 million from $117 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 beginning in the second quarter of 2026.

Previous wording

Revenues of consolidated VIEs were $714 million in 2026, an increase of $164 million from $550 million in 2025, primarily driven by the consolidation of AAA Lux in the fourth quarter of 2025 andadditional contributions into AAA and AAA Lux in 2026.

Current wording

Revenues of consolidated VIEs were $681 million in 2026, an increase of $27 million from $654 million in 2025, primarily driven by the consolidation of AAA Lux in the fourth quarter of 2025 andadditional contributions into AAA in 2026, partially offset by the deconsolidation of several VIEs and an unfavorable change in the fair value of trading securities held in VIEs driven by an increase in U.S. Treasury rates in 2026 compared to a decrease in 2025.

Previous 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.

Current wording

Market risk benefits remeasurement (gains) losses were $(626) million in 2026, a decrease of $757 million from $131 million in 2025. The gains in 2026 compared to losses in 2025 were primarily driven by a favorable change in the fair value of market risk benefits, partially offset by an unfavorable change in unlocking. The change in fair value of market risk benefits was primarily driven by a favorable$956 million impact due to an increase in the risk-free discount rates across the long end of the curve compared to a decrease in 2025, which are used in the fair value measurement of the liability for market risk benefits, partially offset by an unfavorable $123 million impact related to less favorable equity market performance in 2026 compared to 2025. The market risk benefits unlocking in 2026 was $7 million favorable primarily due to changes in projected interest crediting, partially offset by changes in policyholder behavior. The market risk benefits unlocking in 2025 was $59 million favorable primarily due to changes in policyholder behavior and updated mortality assumptions, partially offset by changes in projected interest crediting.

Previous wording

Interest sensitive contract benefits were $7.3 billionin 2026, an increase of $2.4 billion from $4.9 billion in 2025, primarily driven by significant growth in Athene’s deferred annuity and funding agreement blocks of business over the previous twelve months, higher rates on new deferred annuity and funding agreement issuances and run-off of lower rate business, in comparison to Athene’s existing blocks of business, and an increase in the change in Athene’s indexed annuity reserves, partially offset by lower rates on floating rate funding agreements and later origination of new business within the year compared to 2025. The change in Athene’s indexed annuity reserves includes the impact from changes in the fair value of indexed annuity embedded derivatives. The increase in the change in fair value of indexed annuity embedded derivatives of $720 million was primarily due to the performance of the equity indices to which Athene’s indexed annuity policies are linked. The largest percentage of Athene’s indexed annuity policies are linked to the S&P 500 Index, which increased 9.6% in 2026, compared to an increase of 5.5% in 2025. The change in fair value of indexed annuity embedded derivatives was also driven by the unfavorable impact of rate movements on policyholder projected benefits. These impacts were partially offset by a favorable change in discount rates used in Athene’s embedded derivative calculations as discount rates increased in 2026 compared to a decrease in 2025.

Current wording

Interest sensitive contract benefits were $3.7 billion in 2026, a decrease of $495 million from $4.2 billion in 2025, primarily driven by a decrease in the change in Athene’s indexed annuity reserves, lower rates on floating rate funding agreements and later origination of new business within the quarter compared to 2025. These impacts were partially offset by an unfavorable change in unlocking, significant growth in Athene’s deferred annuity and funding agreement blocks of business over the previous twelve months, higher rates on new deferred annuity and funding agreement issuances, as well as run-off of lower rate business, in comparison to its existing blocks of business and an increase in reserve accretion on floating rate funding agreements due to the increase in short-term rates impacting future cash flows and the associated reserve. The change in Athene’s indexed annuity reserves includes the impact from changes in the fair value of indexed annuity embedded derivatives. The decrease in the change in fair value of indexed annuity embedded derivatives of $2.0 billion was primarily due to the performance of the equity indices to which Athene’s indexed annuity policies are linked. The largest percentage of Athene’s indexed annuity policies are linked to the S&P 500 Index, which increased 2.0% in 2026, compared to an increase of 7.8% in 2025. The decrease in the change in fair value of indexed annuity embedded derivatives was also driven by the favorable change in discount rates used in Athene’s embedded derivative calculations as discount rates increased in 2026 compared to a decrease in 2025, partially offset by the unfavorable impact of rate movements on policyholder projected benefits. Unlocking in 2026 was $439 million unfavorable, consisting of $438 million of unfavorable fair value of indexed annuity embedded derivative unlocking and $1 million of unfavorable negative VOBA unlocking. The unfavorable unlocking was primarily driven by changes to projected interest crediting and policyholder behavior, partially offset by updated economic assumptions. Unlocking in 2025 was $90 million favorable, consisting of $79 million of favorable fair value of indexed annuity embedded derivative and investment contract provision unlocking and $11 million of favorable negative VOBA unlocking. The favorable unlocking was primarily driven by changes to projected interest crediting, partially offset by changes in policyholder behavior and mortality assumptions, as well as updated economic assumptions.

Previous 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.

Current wording

Future policy and other policy benefits were $595 million in 2026, a decrease of $18 million from $613 million in 2025, primarily driven by a decrease in the AmerUs Closed Block fair value liability, an increase in ceded benefit payments related to the retrocession of mortality risk on a pension group annuity transaction beginning in the second quarter of 2026 and a favorable change in unlocking. These impacts were partially offset 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. The change in the AmerUs Closed Block fair value liability was primarily due to unrealized losses on the underlying assets reflecting an increase in U.S. Treasury rates in 2026 compared to a decrease in 2025. Unlocking in 2026 was $22 million unfavorable, consisting of $51 million of unfavorable future policy benefit reserve unlocking, partially offset by $29 million of favorable negative VOBA and deferred profit liability unlocking. The unfavorable unlocking was primarily driven by updated mortality assumptions. Unlocking in 2025 was $41 million unfavorable, consisting of$77 million of unfavorable future policy benefit reserve unlocking, partially offset by $36 million of favorable negative VOBA and deferred profit liability unlocking. The unfavorable unlocking was primarily driven by updated mortality assumptions and changes in policyholder behavior, partially offset by updated economic assumptions.

Previous wording

Amortization of DAC, DSI and VOBA was $687 million in 2026, an increase of $128 million from $559 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.

Current wording

Amortization of DAC, DSI and VOBA was $476 million in 2026, an increase of$121 million from $355 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, an increase in VOBA amortizationand an unfavorable change in unlocking. Unlocking in 2026 was $61 million unfavorable primarily due to changes in policyholder behavior and projected interest crediting, partially offset by updated economic assumptions. Unlocking in 2025 was$53 million unfavorable primarily due to changes in policyholder behavior and projected interest crediting, as well as updated economic and mortality assumptions.

Previous 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.

Current wording

Policy and other operating expenses were $641 million in 2026, an increase of $68 million from $573 million in 2025, primarily driven by an increase in interest expense and an increase in policy acquisition expenses related to significant growth, partially offset by a decrease in VIE operating expenses due to the deconsolidation of several VIEs. The increase in interest expense was primarily related to an increase in host accretion on business ceded to Catalina, as well as interest on long-term debt issued in the third quarter of 2026.

Previous wording

The Company’s income tax provision was $396 million and $3 million in 2026 and 2025, respectively. The change to the provision was primarily related to the increase in pretax income subject to tax in 2026 and the Bermuda CIT benefit included in 2025. The provision for income taxes includes federal, state, local and foreign income taxes resulting in an effective income tax rate of 15.9% and 0.4% for 2026 and 2025, respectively. The most significant reconciling items between the U.S. federal statutory income tax rate and the effective income tax rate were due to the following: (i) foreign, state and local income taxes, including NYC UBT, (ii) income attributable to non-controlling interests, (iii) equity-based compensation net of the limiting provisions for executive compensation under IRC Section 162(m). See note 11 to the condensed consolidated financial statements for further details regarding the Company’s income tax provision.

Current wording

The Company’s income tax (provision) benefit was $344 million and $(438) million in 2026 and 2025, respectively. The change to the provision was primarily related to the decrease in pretax income subject to tax in 2026. The provision for income taxes includes federal, state, local and foreign income taxes resulting in an effective income tax rate of 23.5% and 15.1% for 2026 and 2025, respectively. The most significant reconciling items between the U.S. federal statutory income tax rate and the effective income tax rate were due to the following: (i) foreign, state and local income taxes, including NYC UBT, (ii) income attributable to non-controlling interests, (iii) equity-based compensation net of the limiting provisions for executive compensation under IRC Section 162(m). See note 11 to the condensed consolidated financial statements for further details regarding the Company’s income tax provision.