Adoption of Accounting Pronouncement (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Future Policy Benefits and Changes to the Liability

The following table summarizes future policy benefits and changes to the liability:


(In millions)	Traditional deferred annuities		Indexed annuities		Payout annuities		Reconciling items1		Total
Balance as of January 1, 2022	$	221	$	5,389	$	32,872	$	8,632	$	47,114
Change in discount rate assumptions	—		—		2,406		—		2,406
Adjustment for removal of balances related to market risk benefits	(221)		(5,389)		—		—		(5,610)
Adjustment for offsetting balance in negative VOBA2	—		—		—		(2,428)		(2,428)
Adjusted balance as of January 1, 2022	$	—	$	—	$	35,278	$	6,204	$	41,482

1 Reconciling items primarily include negative VOBA associated with our liability for future policy benefits, as well as reserves for our immaterial lines of business including term and whole life, accident and health and disability, as well as other insurance benefit reserves for our no-lapse guarantees with universal life contracts, all of which are fully ceded.
2 Uneliminated adjustments were recorded to positive VOBA within deferred acquisition costs, deferred sales inducements and value of business acquired on the consolidated statements of financial condition.

The following is a rollforward by product within future policy benefits:


	Year ended December 31, 2023
(In millions, except percentages and years)	Payout annuities with life contingencies			Whole life			Total
Present value of expected net premiums
Beginning balance	$	—		$	—		$	—






Issuances	—			3,091			3,091
Interest accrual	—			6			6
Net premium collected	—			(2,027)			(2,027)
Foreign exchange	—			65			65
Ending balance at original discount rate	—			1,135			1,135
Effect of changes in discount rate assumptions	—			45			45
Effect of foreign exchange on the change in discount rate assumptions	—			2			2
Ending balance	$	—		$	1,182		$	1,182
Present value of expected future policy benefits
Beginning balance	$	36,422		$	—		$	36,422
Effect of changes in discount rate assumptions	8,425			—			8,425
Effect of foreign exchange on the change in discount rate assumptions	(13)			—			(13)
Beginning balance at original discount rate	44,834			—			44,834
Effect of changes in cash flow assumptions	(297)			—			(297)
Effect of actual experience to expected experience	(67)			—			(67)
Adjusted balance	44,470			—			44,470
Issuances	10,427			3,091			13,518
Interest accrual	1,646			18			1,664
Benefit payments	(3,834)			(18)			(3,852)
Foreign exchange	35			185			220
Other1	(1,509)			—			(1,509)
Ending balance at original discount rate	51,235			3,276			54,511
Effect of changes in discount rate assumptions	(6,233)			89			(6,144)
Effect of foreign exchange on the change in discount rate assumptions	(1)			6			5
Ending balance	$	45,001		$	3,371		$	48,372

Net future policy benefits	$	45,001		$	2,189		$	47,190




Weighted-average liability duration (in years)	9.5			33.5
Weighted-average interest accretion rate	3.6		%	4.8		%
Weighted-average current discount rate	5.1		%	4.1		%
Expected future gross premiums, undiscounted	$	—		$	1,497
Expected future gross premiums, discounted2	—			1,239
Expected future benefit payments, undiscounted	75,261			11,344

1 Other represents a $1,509 million reduction of reserves related to the VIAC recapture agreement. See note 19 for further information.
2 Discounted at the original discount rate.


	Year ended December 31, 2022
(In millions, except percentages and years)	Payout annuities with life contingencies			Whole life			Total
















Present value of expected future policy benefits
Beginning balance	$	35,278		$	—		$	35,278
Effect of changes in discount rate assumptions	—			—			—

Beginning balance at original discount rate	35,278			—			35,278

Effect of actual experience to expected experience	(120)			—			(120)
Adjusted balance	35,158			—			35,158
Issuances	11,528			—			11,528
Interest accrual	1,146			—			1,146
Benefit payments	(2,921)			—			(2,921)
Foreign exchange	(77)			—			(77)

Ending balance at original discount rate	44,834			—			44,834
Effect of changes in discount rate assumptions	(8,425)			—			(8,425)
Effect of foreign exchange on the change in discount rate assumptions	13			—			13
Ending balance	$	36,422		$	—		$	36,422

Net future policy benefits	$	36,422		$	—		$	36,422




Weighted-average liability duration (in years)	10.2			0.0
Weighted-average interest accretion rate	3.2		%	—		%
Weighted-average current discount rate	5.5		%	—		%


Expected future benefit payments, undiscounted	$	64,754		$	—

The following is a reconciliation of future policy benefits to the consolidated statements of financial condition:


	December 31,
(In millions)	2023		2022
Payout annuities with life contingencies	$	45,001	$	36,422
Whole life	2,189		—
Reconciling items1	6,097		5,688
Future policy benefits	$	53,287	$	42,110

1 Reconciling items primarily include the deferred profit liability and negative VOBA associated with the liability for future policy benefits. Additionally, it includes term life reserves, fully ceded whole life reserves, and reserves for immaterial lines of business including accident and health and disability, as well as other insurance benefit reserves for no-lapse guarantees with universal life contracts, all of which are fully ceded.

The following is a reconciliation of premiums and interest expense relating to future policy benefits to the consolidated statements of operations:


	Premiums				Interest expense
	Years ended December 31,				Years ended December 31,
(In millions)	2023		2022		2023		2022
Payout annuities with life contingencies	$	10,504	$	11,606	$	1,646	$	1,146
Whole life	2,214		—		12		—
Reconciling items1	31		32		—		—
Total	$	12,749	$	11,638	$	1,658	$	1,146

1 Reconciling items primarily relate to immaterial lines of business including term life, fully ceded whole life, and accident and health and disability.

The following is a summary of remeasurement gains (losses) included within future policy and other policy benefits on the consolidated statements of operations:


	Years ended December 31,
(In millions)	2023		2022
Reserves	$	364	$	120
Deferred profit liability	(246)		(126)
Negative VOBA	(65)		21
Total remeasurement gains (losses)	$	53	$	15

Schedule of Net Liability Position of Market Risk Benefits

The following table presents the net liability position of market risk benefits:


(In millions)	Traditional deferred annuities		Indexed annuities		Total
Balance as of January 1, 2022	$	—	$	—	$	—
Adjustment for addition of existing balances1	221		5,389		5,610
Adjustment to positive VOBA due to fair value adjustment for market risk benefits2	32		(1,165)		(1,133)
Adjustment to negative VOBA due to fair value adjustment for market risk benefits3	—		(30)		(30)
Adjusted balance as of January 1, 2022	$	253	$	4,194	$	4,447

1 Previously recorded within future policy benefits on the consolidated statements of financial condition.
2 Previously recorded within deferred acquisition costs, deferred sales inducements and value of business acquired on the consolidated statements of financial condition.
3 Previously recorded within interest sensitive contract liabilities on the consolidated statements of financial condition.

The following table represents market risk benefits by asset and liability positions:


(In millions)	Asset1		Liability		Net liability
Traditional deferred annuities	$	—	$	253	$	253
Indexed annuities	366		4,560		4,194
Adjusted balance as of January 1, 2022	$	366	$	4,813	$	4,447

1 Included within other assets on the consolidated statements of financial condition.

The following is a rollfoward of net market risk benefit liabilities by product:


	Year ended December 31, 2023
(In millions)	Traditional deferred annuities		Indexed annuities		Total
Balance at December 31, 2022	$	170	$	2,319	$	2,489
Effect of changes in instrument-specific credit risk	13		353		366
Balance, beginning of period, before changes in instrument-specific credit risk	183		2,672		2,855
Issuances	—		106		106
Interest accrual	10		147		157
Attributed fees collected	2		336		338
Benefit payments	(2)		(32)		(34)
Effect of changes in interest rates	(1)		(90)		(91)
Effect of changes in equity	—		(119)		(119)
Effect of actual policyholder behavior compared to expected behavior	5		67		72
Effect of changes in future expected policyholder behavior	(3)		78		75
Effect of changes in other future expected assumptions	—		6		6
Balance, end of period, before changes in instrument-specific credit risk	194		3,171		3,365
Effect of changes in instrument-specific credit risk	(2)		10		8
Balance at December 31, 2023	$	192	$	3,181	$	3,373




Net amount at risk	$	425	$	14,716
Weighted-average attained age of contract holders (in years)	75		69


	Year ended December 31, 2022
(In millions)	Traditional deferred annuities		Indexed annuities		Total
Balance at January 1, 2022	$	253	$	4,194	$	4,447


Issuances	—		60		60
Interest accrual	4		52		56
Attributed fees collected	3		330		333
Benefit payments	(4)		(49)		(53)
Effect of changes in interest rates	(77)		(2,092)		(2,169)
Effect of changes in equity	—		176		176
Effect of actual policyholder behavior compared to expected behavior	6		42		48

Effect of changes in other future expected assumptions	(2)		(41)		(43)
Balance, end of period, before changes in instrument-specific credit risk	183		2,672		2,855
Effect of changes in instrument-specific credit risk	(13)		(353)		(366)
Balance at December 31, 2022	$	170	$	2,319	$	2,489




Net amount at risk	$	422	$	13,581
Weighted-average attained age of contract holders (in years)	74		68

Schedule of Change in Deferred Acquisition Costs and Value of Business Acquired

The following table summarizes the change in deferred acquisition costs, deferred sales inducements and value of business acquired:


(In millions)	VOBA
Balance as of January 1, 2022	$	4,527
Change in discount rate assumptions for future policy benefits	(22)
Fair value adjustment of market risk benefits	(1,133)
Adjusted balance as of January 1, 2022	$	3,372

The following represents a rollforward of DAC and DSI by product, and a rollforward of VOBA. See note 12 for more information on Athene’s products.


	DAC								DSI		VOBA		Total DAC, DSI and VOBA
(In millions)	Traditional deferred annuities		Indexed annuities		Funding agreements		Other investment-type		Indexed annuities
Balance at January 1, 2022	$	—	$	—	$	—	$	—	$	—	$	3,372	$	3,372
Additions	320		784		14		9		411		—		1,538

Amortization	(16)		(29)		(3)		—		(12)		(384)		(444)
Balance at December 31, 2022	304		755		11		9		399		2,988		4,466
Additions	701		863		3		3		634		—		2,204

Amortization	(115)		(101)		(4)		(1)		(63)		(404)		(688)
Other	—		—		—		—		—		(3)		(3)
Balance at December 31, 2023	$	890	$	1,517	$	10	$	11	$	970	$	2,581	$	5,979

Schedule of Deferred Sales Inducements

The following table summarizes the change in deferred acquisition costs, deferred sales inducements and value of business acquired:


(In millions)	VOBA
Balance as of January 1, 2022	$	4,527
Change in discount rate assumptions for future policy benefits	(22)
Fair value adjustment of market risk benefits	(1,133)
Adjusted balance as of January 1, 2022	$	3,372

The following represents a rollforward of DAC and DSI by product, and a rollforward of VOBA. See note 12 for more information on Athene’s products.


	DAC								DSI		VOBA		Total DAC, DSI and VOBA
(In millions)	Traditional deferred annuities		Indexed annuities		Funding agreements		Other investment-type		Indexed annuities
Balance at January 1, 2022	$	—	$	—	$	—	$	—	$	—	$	3,372	$	3,372
Additions	320		784		14		9		411		—		1,538

Amortization	(16)		(29)		(3)		—		(12)		(384)		(444)
Balance at December 31, 2022	304		755		11		9		399		2,988		4,466
Additions	701		863		3		3		634		—		2,204

Amortization	(115)		(101)		(4)		(1)		(63)		(404)		(688)
Other	—		—		—		—		—		(3)		(3)
Balance at December 31, 2023	$	890	$	1,517	$	10	$	11	$	970	$	2,581	$	5,979

Schedule of Statement of Financial Condition, Statements of Income (Loss), Statements of Comprehensive Income (Loss), Statements of Cash Flows

The following represents the effects of LDTI adoption on the applicable financial statement lines of the Company’s consolidated statement of financial condition:


	As of December 31, 2022
(In millions)	Reported		Adoption		Adjusted
Assets
Retirement Services
Reinsurance recoverable	$	4,367	$	(9)	$	4,358
Deferred acquisition costs, deferred sales inducements and value of business acquired	5,576		(1,110)		4,466
Other assets	10,902		(997)		9,905

Total Assets	$	259,333	$	(2,116)	$	257,217

Liabilities and Equity
Liabilities
Retirement Services
Interest sensitive contract liabilities	$	173,653	$	(37)	$	173,616
Future policy benefits	55,328		(13,218)		42,110
Market risk benefits	—		2,970		2,970

Total Liabilities	252,104		(10,285)		241,819
Equity
Retained earnings (accumulated deficit)	(2,259)		1,252		(1,007)
Accumulated other comprehensive income (loss)	(12,326)		4,991		(7,335)
Total Apollo Global Management, Inc. Stockholders’ Equity	397		6,243		6,640
Non-controlling interests	5,800		1,926		7,726
Total Equity	6,197		8,169		14,366
Total Liabilities, Redeemable non-controlling interests and Equity	$	259,333	$	(2,116)	$	257,217

The following represents the effects of LDTI adoption on the applicable financial statement lines of the Company’s consolidated statements of operations:


	Year ended December 31, 2022
(In millions, except per share data)	Reported		Adoption		Adjusted




Total Revenues	$	10,968	$	—	$	10,968
Expenses
Retirement Services
Interest sensitive contract benefits	541		(3)		538
Future policy and other policy benefits	12,310		155		12,465
Market risk benefits remeasurement (gains) losses	—		(1,657)		(1,657)
Amortization of deferred acquisition costs, deferred sales inducements and value of business acquired	509		(65)		444
Policy and other operating expenses	1,371		1		1,372

Total Expenses	17,480		(1,569)		15,911
Income (loss) before income tax (provision) benefit	(5,815)		1,569		(4,246)
Income tax (provision) benefit	1,069		(330)		739
Net income (loss)	(4,746)		1,239		(3,507)
Net (income) loss attributable to non-controlling interests	1,533		13		1,546
Net income (loss) attributable to Apollo Global Management, Inc. common stockholders	$	(3,213)	$	1,252	$	(1,961)

Earnings (loss) per share
Net income (loss) attributable to common stockholders - Basic and Diluted	$	(5.57)	$	2.14	$	(3.43)

The following represents the effects of LDTI adoption on the applicable financial statement lines of the Company’s consolidated statements of comprehensive income (loss):


	Year ended December 31, 2022
(In millions)	Reported		Adoption		Adjusted
Net income (loss)	$	(4,746)	$	1,239	$	(3,507)
Other comprehensive income (loss), before tax
Unrealized investment gains (losses) on available-for-sale securities	(17,459)		(699)		(18,158)

Remeasurement gains (losses) on future policy benefits related to discount rate	—		8,425		8,425
Remeasurement gains (losses) on market risk benefits related to credit risk	—		366		366
Foreign currency translation and other adjustments	(46)		(12)		(58)
Other comprehensive income (loss), before tax	(17,501)		8,080		(9,421)
Income tax expense (benefit) related to other comprehensive income (loss)	(3,083)		1,150		(1,933)
Other comprehensive income (loss)	(14,418)		6,930		(7,488)
Comprehensive income (loss)	(19,164)		8,169		(10,995)
Comprehensive (income) loss attributable to non-controlling interests	3,630		(1,926)		1,704
Comprehensive income (loss) attributable to Apollo Global Management, Inc.	$	(15,534)	$	6,243	$	(9,291)

The Company made corresponding adjustments to the consolidated statements of equity to reflect the changes to net income (loss) and comprehensive income (loss), as presented above.

The following represents the effects of LDTI adoption on the applicable financial statement lines of the Company’s consolidated statements of cash flows:


	Year ended December 31, 2022
(In millions)	Reported		Adoption		Adjusted
Net income (loss)	$	(4,746)	$	1,239	$	(3,507)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	594		(65)		529
Changes in operating assets and liabilities:
Interest sensitive contract liabilities	(1,269)		(68)		(1,337)
Future policy benefits, market risk benefits and reinsurance recoverable	5,339		(1,438)		3,901
Other assets and liabilities	3,049		332		3,381
Net cash provided by operating activities	3,789		—		3,789
Net cash used in investing activities	(23,444)		—		(23,444)
Net cash provided by financing activities	28,710		—		28,710
Effect of exchange rate changes on cash and cash equivalents	(15)		—		(15)
Net increase in cash and cash equivalents, restricted cash and cash equivalents, and cash and cash equivalents held at consolidated variable interest entities	9,040		—		9,040
Cash and cash equivalents, restricted cash and cash equivalents, and cash and cash equivalents held at consolidated variable interest entities, Beginning of Period	2,088		—		2,088
Cash and cash equivalents, restricted cash and cash equivalents, and cash and cash equivalents held at consolidated variable interest entities, End of Period	$	11,128	$	—	$	11,128