Financial Data and Key Metrics Changes - The company reported fourth quarter total revenue of $4.1 billion, a slight increase from $4 billion in the fourth quarter of 2024 [18] - Adjusted net earnings for the fourth quarter were $382 million, or $1.41 per diluted share, compared to $366 million, or $1.34 per share, for the same period in 2024 [20] - The Title segment generated adjusted pre-tax earnings of $401 million in the fourth quarter, with a margin of 17.5%, compared to 16.6% in the prior year quarter [22] Business Line Data and Key Metrics Changes - The Title segment generated $2.3 billion in total revenue in the fourth quarter, excluding net recognized losses, compared to $2.1 billion in the fourth quarter of 2024 [21] - Direct premiums in the Title segment increased by 21% year-over-year, while agency premiums increased by 7% [21] - F&G's assets under management grew to $73.1 billion at year-end, up 12% over the prior year [15] Market Data and Key Metrics Changes - The company reported a 21% increase in commercial refinance orders opened for the full year 2025 compared to the prior year [9] - National daily orders opened were up 9% over the fourth quarter of 2024, while local market daily orders opened increased by 8% [8] - The National Association of Realtors indicated that 2025 home sales were among the lowest levels since 1995, with expectations for a return to historical averages in the coming years [10] Company Strategy and Development Direction - The company aims to enhance its technology capabilities, with a focus on the inHere digital transaction platform, which engaged 80% of residential sale transactions [11] - The strategy includes maintaining a disciplined operating model to manage business trends and deliver industry-leading results [11] - F&G is transitioning to a more fee-based, higher-margin, and less capital-intensive model, which is expected to support long-term shareholder value [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, anticipating an increase in existing home sales and refinance opportunities as mortgage rates remain low [34] - The company is well-positioned to benefit from a potential turn in the housing market, should mortgage rates drop further [10][83] - Management highlighted the importance of technology investments in driving efficiency and maintaining competitive margins [12][14] Other Important Information - The company returned approximately $800 million of capital to shareholders during 2025, including common dividends and share repurchases [27] - F&G's quarterly common stock dividend was increased by 14% in the fourth quarter, reflecting strong cash generation [16] Q&A Session Summary Question: Margin outlook for 2026 - Management is optimistic about margins in 2026, expecting an uptick in purchase volumes and refinance opportunities due to lower mortgage rates [34] Question: Agent split changes - The slight increase in agent split was attributed to geographic mix rather than significant changes in business strategy [35] Question: Commercial revenue growth expectations for 2026 - Management indicated that commercial revenue should continue to grow, supported by increased order volume and strong pipeline activity [40] Question: Home price growth forecasts - Management believes that home prices have stabilized and will likely remain stable in the near future, with affordability driven primarily by interest rates [49] Question: Capital allocation and M&A outlook - The company plans to be active in acquisitions and stock buybacks, with expectations for more opportunities in the Title agent space [70]

Financial Data and Key Metrics Changes - First quarter reported adjusted net earnings were $91 million or $0.72 per share, compared to $108 million or $0.86 per share in the first quarter of 2024, reflecting a decrease of $17 million primarily driven by margin compression and higher interest expense [27][28] - First quarter adjusted return on assets (ROA) was 68 basis points, pressured from near-term headwinds, with a last twelve-month adjusted ROA of 100 basis points, down six basis points from the previous quarter [29] - Reported adjusted return on equity (ROE), excluding AOCI, was 9.7%, up 2.3% over the first quarter of 2024 [29] Business Line Data and Key Metrics Changes - F&G reported record assets under management (AUM) before flow reinsurance of $67.4 billion as of March 31, reflecting a 169% increase compared to the first quarter of 2024 [21] - Gross sales were $2.9 billion, a 17% decrease from the first quarter of 2024, primarily due to lower MYGA sales, while indexed annuity sales remained strong at $1.5 billion [21][22] - Pension risk transfer (PRT) sales were $311 million, down from $584 million in the first quarter of 2024, with funding agreements at $525 million compared to $105 million in the prior year [23] Market Data and Key Metrics Changes - The investment portfolio is well matched to the liability profile, with 96% of fixed maturities being investment grade, and credit-related impairments averaging six basis points over the last five years [12][29] - The fixed income yield was 4.53% in the first quarter, a decrease of three basis points from the first quarter of 2024, reflecting the runoff of higher-yielding in-force assets [13] Company Strategy and Development Direction - The company continues to diversify earnings between spread-based and fee-based sources, with a focus on optimizing return on capital and maintaining pricing discipline [19][20] - F&G is committed to achieving its 2023 Investor Day targets while navigating near-term headwinds and macro uncertainty [31] Management's Comments on Operating Environment and Future Outlook - Management believes that the near-term headwinds are temporary and expects improvement in sales and profitability throughout 2025 [7][9] - The company remains confident in its business model's resilience and its ability to generate long-term shareholder value despite current market volatility [84] Other Important Information - The company has successfully completed recent capital markets activities, including issuing $375 million of junior subordinated notes and a public offering of 8 million shares of common stock [30][31] - The owned distribution portfolio is performing well, with double-digit annual growth of EBITDA expected over the medium term [19] Q&A Session Summary Question: Growth opportunity for the Ryla product - Management expressed excitement about the Ryla product, noting that it has taken time to get onto platforms but is now adding broker dealers consistently, with medium-term potential in the billions [35][38] Question: Impact of lower industry volume on own distribution - Management indicated that the slowdown in owned distribution was balanced between industry volume and investments supported by the company, with a rebound observed in April [39][40] Question: Thoughts on capital deployment after raising common equity - Management stated that the capital raised would be deployed thoughtfully into new business, maintaining a disciplined approach to pricing and capital allocation [43][44] Question: Cost of funds increase and market competition - Management acknowledged the increase in cost of funds and attributed it to lower surrender income and market volatility, but remains disciplined in pricing [47][48] Question: Performance of the alternatives portfolio - Management noted that the direct lending portfolio performed well, while the limited partnerships came in lower than expectations, impacting overall yield [75][76] Question: Surrender activity expectations - Management projected that surrender activity would remain similar in Q2 compared to Q1, with ongoing uncertainty regarding future surrenders [78][80]

Summary of Apollo Global Management (APO) 2025 Conference Call Company Overview - **Company**: Apollo Global Management (APO) - **Date**: May 07, 2025 - **Key Speaker**: Martin Kelly, CFO Industry Insights - **Current Environment**: The macroeconomic environment has stabilized since March, with credit markets showing signs of recovery. Spreads have returned to about halfway between their peak and previous levels, indicating a less stressed credit market [5][6][7]. - **Credit Performance**: Despite recent tariff announcements, credit markets are not showing significant stress. The company has seen a strong pipeline of opportunities across various sectors, including investment-grade credit and equity [6][7][8]. - **Tariff Impact**: Agencies have downgraded around 20 companies most exposed to tariffs, but the overall business remains strong and well-positioned [6][8]. Financial Performance - **Earnings Guidance**: The company maintains a long-term growth target of 10% over five years and aims for a 15% return on equity for investors. Recent tight spreads and interest rate transitions have created headwinds, but the long-term strategy remains unchanged [11][12][13]. - **Cash Reserves**: Athene, a subsidiary, currently holds approximately $20 billion in cash and liquid assets awaiting deployment [14]. Business Segments - **Retirement Services**: The company reported $25 billion in business written in Q1, with expectations to exceed last year's target of $70 billion. The growth is driven by retail annuities, funding agreements, and reinsurance channels [16][17][19]. - **Competitive Landscape**: There is increased competition in the retail market, leading to pricing pressures. However, the company believes its efficient cost structure and origination capabilities provide a competitive advantage [20][21]. - **Origination Demand**: The company originated $220 billion in total last year, with $55 billion in Q1, indicating strong demand across various credit platforms [22][23]. Strategic Initiatives - **High-Grade Corporate Solutions**: The pipeline for corporate solutions is robust, driven by the need for financing in sectors like infrastructure and energy transition. The company is well-positioned to meet this demand due to its access to long-duration capital [26][27][28]. - **Fixed Income Trading Capabilities**: Apollo is developing broader fixed income trading capabilities to enhance liquidity in private markets, having traded $2 billion of credit with around 60 counterparties [34][35][36]. - **Wealth Management**: The company is expanding its wealth management business, focusing on increasing product offerings and distribution channels. Initial reception of new products has been positive, but it may take time to gain traction [58][59]. Long-Term Outlook - **Growth Targets**: The company maintains a target of 20% FRE growth and 10% SRE growth over time, supported by four key tailwinds: industrial renaissance, public-private convergence, global wealth access, and lifetime income planning [67][68][69][70]. - **Market Evolution**: The company is focused on evolving its strategies to meet changing market demands, particularly in private investment-grade credit and potential future equity offerings [30][31][61]. Conclusion Apollo Global Management is navigating a complex macroeconomic environment with a strong focus on maintaining growth targets and capitalizing on emerging opportunities across various sectors. The company is well-positioned to leverage its strengths in origination, competitive pricing, and strategic partnerships to drive future growth.