KKR(US:KKR)2025-11-07 21:45Financial Performance - Total revenues for Q3 2025 reached $5,525,975, an increase from $4,791,696 in Q3 2024, representing a growth of 15.3%[36] - Net income attributable to KKR & Co. Inc. for Q3 2025 was $859,927, compared to $600,550 in Q3 2024, reflecting a year-over-year increase of 43%[38] - Total investment income for Q3 2025 was $1,697,857, up from $1,598,873 in Q3 2024, marking a growth of 6.2%[37] - KKR reported a net income of $3,878,784 for the nine months ended September 30, 2025, compared to $3,521,754 for the same period in 2024, reflecting an increase of approximately 10.2%[46] - The company reported a total capital allocation-based income of $2,708,601 for the nine months ended September 30, 2025, down from $3,164,491 in 2024, a decrease of 14.4%[78] - The company reported a total asset loss of $489.77 million for the nine months ended September 30, 2025, compared to a loss of $104.72 million for the same period in 2024, indicating a significant decline in asset performance[195] Assets and Liabilities - Total assets increased to $398,480,928 as of September 30, 2025, up from $360,099,411 on December 31, 2024, representing a growth of approximately 10.5%[27] - Total liabilities grew to $323,078,973, compared to $298,114,719 at the end of 2024, marking an increase of about 8.4%[28] - Stockholders' equity increased to $73,041,559 as of September 30, 2025, up from $60,399,515, indicating a growth of approximately 21%[28] - Total assets for Asset Management and Strategic Holdings increased to $64,358,457, up from $62,997,409, reflecting a growth of approximately 2.16%[170] - Total assets across all segments reached $100,835,381, reflecting a significant increase from $94,734,983[170] - Total liabilities for Asset Management and Strategic Holdings increased from $98,327 million to $103,926 million, reflecting a change of $5,599 million[179] Investments - Investments rose to $118,617,813, an increase of 11.5% from $106,453,051 as of December 31, 2024[27] - The total investments in insurance increased to $186,499,370, up from $170,144,744, representing a growth of approximately 9.6%[27] - Total investments increased to $305.12 billion as of September 30, 2025, up from $276.60 billion on December 31, 2024, representing a growth of 10.3%[90] - KKR's investments purchased in insurance totaled $69,675,125 for the nine months ended September 30, 2025, compared to $60,261,313 in 2024, reflecting an increase of about 15.5%[49] Cash and Cash Equivalents - Cash and cash equivalents in asset management and strategic holdings increased to $13,561,041, up from $8,535,048, reflecting a growth of 58.5%[27] - Cash, cash equivalents, and restricted cash increased to $22,886,489 at the end of the period, up from $14,962,439 in the prior year, representing a growth of approximately 52.9%[47] Earnings Per Share - Basic earnings per share for Q3 2025 were $0.97, up from $0.68 in Q3 2024, representing a growth of 42.6%[38] Expenses - Total expenses for Q3 2025 were $5,024,271, compared to $4,746,005 in Q3 2024, which is an increase of 5.9%[36] - The company reported net investment-related gains of $351,800 in Q3 2025, a recovery from a loss of $(235,971) in Q3 2024[36] Insurance Segment - Net premiums in the insurance segment for Q3 2025 were $1,059,610, significantly higher than $621,218 in Q3 2024, indicating a growth of 70.6%[36] - The company reported net policy benefits and claims amounted to $7.58 billion, a decrease from $11.88 billion in the same period of 2024[209] Goodwill and Intangible Assets - The carrying value of Goodwill increased to $544,871 million as of September 30, 2025, from $509,561 million as of December 31, 2024, reflecting a growth of approximately 6.9%[218] - The company reported a total insurance intangible asset balance of $5.59 billion as of September 30, 2025, compared to $5.20 billion at the end of 2024, indicating an increase in intangible assets[196] Reinsurance and Collateral - As of September 30, 2025, Global Atlantic held $47.4 billion in collateral for its reinsurers, compared to $46.6 billion as of December 31, 2024[209] - The total credit exposure associated with reinsurance recoverable and funds withheld as of September 30, 2025, was $4.26 billion, slightly down from $4.35 billion as of December 31, 2024[205] Accounting Standards and Compliance - The adoption of ASU 2024–01 regarding stock compensation did not have a material impact on KKR's consolidated financial statements[72] - KKR is evaluating the impact of ASU 2023–09 on its consolidated financial statements, which aims to enhance income tax disclosures[73] Market Conditions and Valuation - The average price per barrel of oil equivalent (BOE) in the Energy sector is $42.40, with a range of $41.05 to $45.25, suggesting an increase in valuation[183] - The corporate fixed securities have a fair value of $14,838,670, with a discount spread of 2.3%, suggesting a decrease in valuation[184]