KKR(KKR) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenues for Q3 2024 reached $4,791,696, a 44.5$3,315,481 in Q3 2023[25]. - Net income attributable to KKR & Co. Inc. common stockholders was $600,550 in Q3 2024, down 59.3$1,472,878 in Q3 2023[26]. - Comprehensive income attributable to KKR & Co. Inc. was $2,432,305 in Q3 2024, significantly higher than$559,909 in Q3 2023[28]. - The diluted earnings per share for Q3 2024 was $0.64, down from$1.64 in Q3 2023[26]. - Net income for the nine months ended September 30, 2024, was $3,521,754, a decrease of 6.5$3,767,726 in 2023[34]. Assets and Investments - Total assets increased to $360.66 billion as of September 30, 2024, up from$317.29 billion at December 31, 2023, representing a growth of approximately 13.6%[16]. - Total investments increased to $276.68 billion as of September 30, 2024, up from$240.01 billion on December 31, 2023, representing a growth of approximately 15.2%[88]. - Total investments in insurance increased to $172.38 billion from$141.37 billion, reflecting a growth of about 21.9%[16]. - Total cash, cash equivalents, and restricted cash at the end of the period was $14,962,439, up from$11,710,842 at the end of September 2023[35]. - The total balance of mortgage and other loan receivables was $621,244 as of September 30, 2024, slightly down from$602,443 at the end of the previous period[86]. Liabilities - Total liabilities grew to $298.86 billion as of September 30, 2024, compared to$258.92 billion at December 31, 2023, reflecting an increase of around 15.4%[17]. - The company reported accrued expenses and other liabilities in Asset Management and Strategic Holdings of $11.92 billion, up from$7.72 billion, representing a significant increase of about 54.5%[16]. - Total liabilities at fair value reached $33.76 billion as of September 30, 2024, compared to$30.15 billion on December 31, 2023, reflecting an increase of approximately 12.5%[165]. - Policy liabilities, including market risk benefits, were reported at $1.43 billion as of September 30, 2024, consistent with the previous reporting date[165]. Investment Income and Losses - The company reported net investment income of$1,701,826 for Q3 2024, compared to $1,412,130 in Q3 2023, an increase of 20.5$(235,971) in Q3 2024, compared to a loss of $(338,230) in Q3 2023[25]. - Total net gains from investment activities for the three months ended September 30, 2024, were$252,529, compared to $1,062,097 in 2023, showing a significant decrease[76]. - The company reported a net loss from private equity investments of$100,037 for the three months ended September 30, 2024, compared to a net gain of $75,764 in 2023[76]. Equity and Stockholder Information - Total stockholders' equity reached$60.48 billion, up from $57.76 billion, indicating an increase of approximately 3.0$155,306,000 for the three months ended September 30, 2024[30]. - The total equity of KKR & Co. Inc. stood at $60,476,302,000 as of September 30, 2024[30]. - The company’s retained earnings increased to$11,312,398,000 by the end of the reporting period[30]. Derivative Instruments and Hedging - The total notional value of derivatives was $84.5 billion, with derivative assets amounting to$86.1 million and derivative liabilities at $191.6 million[137]. - Total losses on derivatives designated as hedge instruments amounted to$91,222, with net policy benefits and claims at $55,641[149]. - The company reported total losses on derivatives not designated as hedge accounting instruments of$458,540, with embedded derivatives showing a loss of $1,305,338[149]. - The effectiveness of cash flow hedges is assessed using regression analysis, with expected earnings impact until 2054[141]. Accounting and Regulatory Compliance - KKR's financial statements are prepared in accordance with GAAP and include consolidated results from KKR Group Partnership and its entities, reflecting significant industry diversification due to the acquisition of Global Atlantic[48][49]. - The adoption of ASU 2022-03 regarding fair value measurement of equity securities did not have a material impact on KKR's consolidated financial statements[68]. - The company is currently evaluating the impact of new accounting standards on its consolidated financial statements and disclosures, including ASU 2023–07 and ASU 2023–09[71][73].