Financial Data and Key Metrics Changes - Adjusted operating income increased by 32% year over year, reaching $427 million or $2.36 per diluted share [25][4] - Net income available to common stockholders was $688 million or $3.80 per diluted share, reflecting positive market risk benefits [25][26] - The estimated RBC ratio remained above 420%, consistent with the company's strategy to maintain a capital buffer above the 400% target [40][22] Business Line Data and Key Metrics Changes - Group Protection business achieved record earnings of $173 million, up 33% year over year, with a margin increase to 12.5% [26][17] - Annuities generated operating income of $287 million, slightly down from $297 million in the prior year, primarily due to traditional variable annuity outflows [32] - Life Insurance reported operating earnings of $32 million, a significant improvement from an operating loss of $35 million in the prior year [37] Market Data and Key Metrics Changes - All four business segments delivered double-digit sales growth in the first half of the year, with notable contributions from previously non-key products [7] - Retirement Plan Services saw first-year sales increase by nearly 50% year over year, with total deposits up by 10% [20] - Annuities sales reached $4 billion, a 6% sequential increase, with fixed annuity sales growing by 41% [9][11] Company Strategy and Development Direction - The company is focused on increasing risk-adjusted returns, reducing volatility, and growing its franchise through disciplined execution [5][6] - Strategic investments are being made in higher-margin products and segments, enhancing digital capabilities, and optimizing the operating model [6][22] - The company aims to deepen its strategic moat and evolve into a more agile organization, aligning capital deployment with strategic priorities [22][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, emphasizing the importance of disciplined execution and strategic clarity [46][23] - The economic backdrop remains volatile, but the company is committed to delivering long-term value and sustainable growth [7][22] - Management noted that while results may not be linear, the momentum is building, and they are excited about the path forward [7][8] Other Important Information - The company launched a Bermuda-based reinsurance subsidiary to enhance capital efficiency and respond to market opportunities [6] - The alternative investment portfolio achieved a 10% annualized return, supporting the overall financial performance [25][45] - The company is actively exploring external reinsurance solutions to optimize its legacy life portfolio [88] Q&A Session Summary Question: On group and the shift into smaller local markets and supplemental health products - Management highlighted the successful execution of targeted segment strategies, particularly in local markets and supplemental health, which are expected to continue driving margin expansion [50][51] Question: On the restructuring of the Life Captives - Management indicated that while they are working on optimizing the life portfolio, concrete numbers regarding earnings impact will be provided later [61][62] Question: On RILA product sales and market competition - Management reported a 32% increase in RILA sales year over year, emphasizing a focus on profitable growth and capital efficiency [66][68] Question: On free cash flow conversion guidance for 2026 - Management expressed confidence that the long-term free cash flow conversion rate should be above previous targets, especially with the deployment of Bain Capital [74][76] Question: On distribution growth drivers in the group business - Management discussed the importance of strategic broker relationships and investments in digital capabilities to enhance competitive differentiation and drive growth [80][82] Question: On external reinsurance solutions - Management noted that while it is too early to discuss specifics, they are focused on optimizing the legacy life block through potential reinsurance deals [88]

Group 1 - Apollo Global Management is transforming its asset management model by merging with its insurance and retirement services company, Athene, positioning itself as a principal investor rather than a third-party asset manager [1][11][12] - The company emphasizes a principal-oriented approach, focusing on long-term capital investments to support significant capital expenditure transformations, such as infrastructure and defense in Europe [2][12] - Apollo's strategy includes a diverse capital pool with annual returns ranging from 5% to 20%, allowing for flexible financing solutions tailored to specific company needs [2][27] Group 2 - Apollo manages approximately $800 billion in assets, with a significant portion allocated to credit markets, and has seen annual growth of about $150 billion [10][43] - The company has a unique asset allocation, with around 65% of its balance sheet in investment-grade assets, while its credit business includes both its own assets and third-party investments [43][44] - The firm is actively involved in creating customized financing solutions for major corporations, providing flexibility and off-balance sheet transactions that do not impact their current debt levels [59][60] Group 3 - The current macroeconomic environment presents challenges and opportunities, particularly with rising interest rates affecting investment strategies and asset returns [4][70] - Apollo's innovative approach to asset generation includes acquiring platforms and building capabilities to create a robust asset origination system, which has become increasingly valuable in the current market [36][41] - The company is exploring the potential for increased liquidity in private assets through technological advancements and structural reforms in the European capital markets [81][84] Group 4 - The relationship between limited partners (LPs) and general partners (GPs) is evolving into more collaborative partnerships, reflecting a shift in how investment strategies are developed and executed [48][50] - Apollo's focus on understanding the unique needs of issuers has allowed it to establish itself as a viable alternative financing option for large corporations, diversifying their funding sources [56][58] - The firm anticipates that private assets will become more accessible to retail investors, with a focus on creating semi-liquid structures and risk profiling to meet diverse investor needs [86][88]