Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 04, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-34820 | |
Entity Registrant Name | KKR & CO. INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-0426107 | |
Entity Address, Address Line One | 30 Hudson Yards | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10001 | |
City Area Code | 212 | |
Local Phone Number | 750-8300 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 585,009,228 | |
Entity Central Index Key | 0001404912 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | KKR | |
Security Exchange Name | NYSE | |
Series C Mandatory Convertible Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 6.00% Series C Mandatory Convertible Preferred Stock | |
Trading Symbol | KKR PR C | |
Security Exchange Name | NYSE | |
KKR Issued 4.625% Notes Due 2061 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 4.625% Subordinated Notes due 2061 of KKR Group Finance Co. IX LLC | |
Trading Symbol | KKRS | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Insurance Intangible Assets | $ 302,416 | $ 0 |
Due from Affiliates | 1,102,874 | 872,994 |
Other Assets | 9,102,701 | 2,665,336 |
Total Assets | 265,799,650 | 79,806,502 |
Liabilities and Equity | ||
Due to Affiliates | 299,703 | 325,177 |
Accrued Expenses and Other Liabilities | 13,357,701 | 5,257,813 |
Total Liabilities | 208,742,097 | 39,006,586 |
Commitments and Contingencies (See Note 23) | ||
Redeemable Noncontrolling Interests | 93,339 | 0 |
Stockholders' Equity | ||
Common Stock | 5,830 | 5,729 |
Additional Paid-In Capital | 8,735,677 | 8,687,817 |
Retained Earnings | 7,247,400 | 3,440,782 |
Accumulated Other Comprehensive Income (Loss) | (174,439) | (18,612) |
Total KKR & Co. Inc. Stockholders' Equity | 16,932,970 | 13,716,818 |
Noncontrolling Interests | 40,031,244 | 27,083,098 |
Total Equity | 56,964,214 | 40,799,916 |
Total Liabilities and Equity | 265,799,650 | 79,806,502 |
Asset Management | ||
Assets | ||
Cash and Cash Equivalents | 7,256,382 | 6,507,874 |
Restricted Cash and Cash Equivalents | 140,618 | 485,583 |
Investments | 89,908,570 | 69,274,715 |
Due from Affiliates | 1,102,874 | 872,994 |
Other Assets | 2,954,330 | 2,665,336 |
Total Assets | 101,362,774 | 79,806,502 |
Liabilities and Equity | ||
Debt Obligations | 38,988,544 | 33,423,596 |
Due to Affiliates | 299,703 | 325,177 |
Accrued Expenses and Other Liabilities | 8,914,739 | 5,257,813 |
Total Liabilities | 48,202,986 | 39,006,586 |
Insurance | ||
Assets | ||
Cash and Cash Equivalents | 4,717,240 | 0 |
Restricted Cash and Cash Equivalents | 398,572 | 0 |
Investments | 121,214,570 | 0 |
Accrued Investment Income | 825,124 | 0 |
Reinsurance Recoverable | 25,233,883 | 0 |
Insurance Intangible Assets | 1,279,070 | 0 |
Other Assets | 6,148,371 | 0 |
Separate Account Assets | 5,445,170 | 0 |
Total Assets | 164,436,876 | 0 |
Liabilities and Equity | ||
Debt Obligations | 2,162,591 | 0 |
Policy Liabilities | 124,611,909 | 0 |
Funds Withheld Payable at Interest | 23,614,810 | 0 |
Accrued Expenses and Other Liabilities | 4,442,962 | 0 |
Reinsurance Liabilities | 261,669 | 0 |
Separate Account Liabilities | 5,445,170 | 0 |
Total Liabilities | 160,539,111 | 0 |
Consolidated VIEs | ||
Assets | ||
Cash and Cash Equivalents | 1,012,419 | |
Restricted Cash and Cash Equivalents | 59,490 | |
Investments | 50,406,538 | |
Other Assets | 312,317 | |
Total Assets | 88,242,476 | 51,790,764 |
Liabilities and Equity | ||
Debt Obligations | 21,626,385 | |
Accrued Expenses and Other Liabilities | 1,194,466 | |
Total Liabilities | 29,213,371 | 22,820,851 |
Consolidated VIEs | Asset Management | ||
Assets | ||
Cash and Cash Equivalents | 2,558,727 | |
Restricted Cash and Cash Equivalents | 94,455 | |
Investments | 65,672,300 | |
Other Assets | 932,344 | |
Total Assets | 69,257,826 | |
Liabilities and Equity | ||
Debt Obligations | 25,947,530 | |
Accrued Expenses and Other Liabilities | 2,283,136 | |
Total Liabilities | 28,230,666 | |
Consolidated VIEs | Insurance | ||
Assets | ||
Cash and Cash Equivalents | 961,174 | |
Investments | 17,194,546 | |
Accrued Investment Income | 56,261 | |
Other Assets | 772,669 | |
Total Assets | 18,984,650 | |
Liabilities and Equity | ||
Accrued Expenses and Other Liabilities | 982,705 | |
Consolidated VIEs | Consolidated CLOs | ||
Assets | ||
Cash and Cash Equivalents | 749,395 | |
Restricted Cash and Cash Equivalents | 0 | |
Investments | 17,706,976 | |
Other Assets | 161,621 | |
Total Assets | 22,060,323 | 18,617,992 |
Liabilities and Equity | ||
Debt Obligations | 17,372,740 | |
Accrued Expenses and Other Liabilities | 782,056 | |
Total Liabilities | 21,296,047 | 18,154,796 |
Consolidated VIEs | Consolidated CLOs | Asset Management | ||
Assets | ||
Cash and Cash Equivalents | 941,660 | |
Restricted Cash and Cash Equivalents | 0 | |
Investments | 20,696,676 | |
Other Assets | 421,987 | |
Total Assets | 22,060,323 | |
Liabilities and Equity | ||
Debt Obligations | 19,969,156 | |
Accrued Expenses and Other Liabilities | 1,326,891 | |
Total Liabilities | 21,296,047 | |
Consolidated VIEs | Consolidated CLOs | Insurance | ||
Assets | ||
Cash and Cash Equivalents | 0 | |
Investments | 0 | |
Accrued Investment Income | 0 | |
Other Assets | 0 | |
Total Assets | 0 | |
Liabilities and Equity | ||
Accrued Expenses and Other Liabilities | 0 | |
Consolidated VIEs | Consolidated Funds | ||
Assets | ||
Cash and Cash Equivalents | 263,024 | |
Restricted Cash and Cash Equivalents | 59,490 | |
Investments | 32,699,562 | |
Other Assets | 150,696 | |
Total Assets | 47,197,503 | 33,172,772 |
Liabilities and Equity | ||
Debt Obligations | 4,253,645 | |
Accrued Expenses and Other Liabilities | 412,410 | |
Total Liabilities | 6,934,619 | 4,666,055 |
Consolidated VIEs | Consolidated Funds | Asset Management | ||
Assets | ||
Cash and Cash Equivalents | 1,617,067 | |
Restricted Cash and Cash Equivalents | 94,455 | |
Investments | 44,975,624 | |
Other Assets | 510,357 | |
Total Assets | 47,197,503 | |
Liabilities and Equity | ||
Debt Obligations | 5,978,374 | |
Accrued Expenses and Other Liabilities | 956,245 | |
Total Liabilities | 6,934,619 | |
Consolidated VIEs | Consolidated Funds | Insurance | ||
Assets | ||
Cash and Cash Equivalents | 0 | |
Investments | 0 | |
Accrued Investment Income | 0 | |
Other Assets | 0 | |
Total Assets | 0 | |
Liabilities and Equity | ||
Accrued Expenses and Other Liabilities | 0 | |
Consolidated VIEs | Other VIEs | ||
Assets | ||
Total Assets | 18,984,650 | |
Liabilities and Equity | ||
Total Liabilities | 982,705 | |
Consolidated VIEs | Other VIEs | Asset Management | ||
Assets | ||
Cash and Cash Equivalents | 0 | |
Restricted Cash and Cash Equivalents | 0 | |
Investments | 0 | |
Other Assets | 0 | |
Total Assets | 0 | |
Liabilities and Equity | ||
Debt Obligations | 0 | |
Accrued Expenses and Other Liabilities | 0 | |
Total Liabilities | 0 | |
Consolidated VIEs | Other VIEs | Insurance | ||
Assets | ||
Cash and Cash Equivalents | 961,174 | |
Investments | 17,194,546 | |
Accrued Investment Income | 56,261 | |
Other Assets | 772,669 | |
Total Assets | 18,984,650 | |
Liabilities and Equity | ||
Accrued Expenses and Other Liabilities | 982,705 | |
Series A And Series B Preferred Stock | ||
Stockholders' Equity | ||
Preferred Stock | 0 | 482,554 |
Series C Mandatory Convertible Preferred Stock | ||
Stockholders' Equity | ||
Preferred Stock | 1,115,792 | 1,115,792 |
Series I Preferred Stock | ||
Stockholders' Equity | ||
Preferred Stock | 0 | 0 |
Series II Preferred Stock | ||
Stockholders' Equity | ||
Preferred Stock | $ 2,710 | $ 2,756 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 3,500,000,000 | 3,500,000,000 |
Common stock, shares issued (in shares) | 583,026,679 | 572,893,738 |
Common stock, shares outstanding (in shares) | 583,026,679 | 572,893,738 |
Series A Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 13,800,000 | |
Preferred stock, shares issued (in shares) | 0 | 13,800,000 |
Preferred stock, shares outstanding (in shares) | 0 | 13,800,000 |
Series B Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 6,200,000 | |
Preferred stock, shares issued (in shares) | 0 | 6,200,000 |
Preferred stock, shares outstanding (in shares) | 0 | 6,200,000 |
Series C Mandatory Convertible Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 23,000,000 | 23,000,000 |
Preferred stock, shares outstanding (in shares) | 23,000,000 | 23,000,000 |
Series I Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1 | 1 |
Preferred stock, shares issued (in shares) | 1 | 1 |
Preferred stock, shares outstanding (in shares) | 1 | 1 |
Series II Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 499,999,999 | 499,999,999 |
Preferred stock, shares issued (in shares) | 271,027,751 | 275,626,493 |
Preferred stock, shares outstanding (in shares) | 271,027,751 | 275,626,493 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | ||||
Net Premiums | $ 974,903 | $ 1,698,912 | ||
Net Investment Income | 758,381 | 1,919,659 | ||
Net Investment Gains (Losses) | 2,116,647 | $ 2,284,602 | 8,032,900 | $ (179,033) |
Total Revenues | 4,483,365 | 1,895,238 | 12,182,552 | 2,225,727 |
Expenses | ||||
Amortization of Policy Acquisition Costs | 13,016 | |||
Total Expenses | 3,185,242 | 1,093,699 | 8,273,499 | 1,754,075 |
Investment Income (Loss) - Asset Management | ||||
Net Gains (Losses) from Investment Activities | 2,116,647 | 2,284,602 | 8,032,900 | (179,033) |
Dividend Income | 121,484 | 116,379 | 323,051 | 295,047 |
Interest Income | 402,839 | 354,865 | 1,151,548 | 1,040,052 |
Interest Expense | (278,166) | (223,709) | (794,978) | (725,245) |
Total Investment Income (Loss) | 2,362,804 | 2,532,137 | 8,712,521 | 430,821 |
Income (Loss) Before Taxes | 3,660,927 | 3,333,676 | 12,621,574 | 902,473 |
Income Tax Expense (Benefit) | 379,282 | 359,375 | 1,161,688 | 204,960 |
Net Income (Loss) | 3,281,645 | 2,974,301 | 11,459,886 | 697,513 |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests | 1,519 | 0 | 2,856 | 0 |
Net Income (Loss) Attributable to Noncontrolling Interests | 2,123,569 | 1,909,458 | 7,315,362 | 206,225 |
Net Income (Loss) Attributable to KKR & Co. Inc. | 1,156,557 | 1,064,843 | 4,141,668 | 491,288 |
Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders | 1,131,354 | 1,056,502 | 4,053,271 | 466,265 |
Asset Management | ||||
Revenues | ||||
Fees and Other | 718,968 | 563,340 | 1,887,805 | 1,337,385 |
Capital Allocation-Based Income (Loss) | 1,526,667 | 1,331,898 | 5,736,707 | 888,342 |
Total Revenues | 2,245,635 | 1,895,238 | 7,624,512 | 2,225,727 |
Expenses | ||||
Compensation and Benefits | 1,012,837 | 882,339 | 3,419,057 | 1,211,526 |
Occupancy and Related Charges | 17,438 | 17,321 | 51,289 | 51,222 |
General, Administrative and Other | 203,977 | 194,039 | 608,270 | 491,327 |
Total Expenses | 1,234,252 | 1,093,699 | 4,078,616 | 1,754,075 |
Insurance | ||||
Revenues | ||||
Net Premiums | 974,903 | 0 | 1,698,912 | 0 |
Policy Fees | 310,381 | 0 | 824,326 | 0 |
Net Investment Income | 758,381 | 0 | 1,919,659 | 0 |
Net Investment Gains (Losses) | 162,127 | 0 | 32,983 | 0 |
Other Income | 31,938 | 0 | 82,160 | 0 |
Total Revenues | 2,237,730 | 0 | 4,558,040 | 0 |
Expenses | ||||
General, Administrative and Other | 158,873 | 0 | 371,656 | 0 |
Policy Benefits and Claims | 1,697,046 | 0 | 3,593,563 | 0 |
Amortization of Policy Acquisition Costs | (16,900) | 0 | (57,409) | 0 |
Interest Expense | 22,437 | 0 | 44,482 | 0 |
Insurance Expenses | 89,534 | 0 | 242,591 | 0 |
Total Expenses | 1,950,990 | 0 | 4,194,883 | 0 |
Investment Income (Loss) - Asset Management | ||||
Income Tax Expense (Benefit) | 9,046 | 0 | 63,148 | 0 |
Series A Preferred Stock Dividends | ||||
Investment Income (Loss) - Asset Management | ||||
Preferred Stock Dividends | 0 | 5,822 | 23,656 | 17,466 |
Series B Preferred Stock Dividends | ||||
Investment Income (Loss) - Asset Management | ||||
Preferred Stock Dividends | 7,953 | 2,519 | 12,991 | 7,557 |
Series C Mandatory Convertible Preferred Stock | ||||
Investment Income (Loss) - Asset Management | ||||
Preferred Stock Dividends | 17,250 | 0 | 51,750 | 0 |
Common Stock | ||||
Investment Income (Loss) - Asset Management | ||||
Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders | $ 1,131,354 | $ 1,047,685 | $ 4,053,271 | $ 457,448 |
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock | ||||
Basic (in dollars per share) | $ 1.94 | $ 1.86 | $ 6.98 | $ 0.82 |
Diluted (in dollars per share) | $ 1.80 | $ 1.79 | $ 6.52 | $ 0.80 |
Weighted Average Shares of Common Stock Outstanding | ||||
Basic (in shares) | 583,030,506 | 562,425,576 | 580,742,033 | 560,124,947 |
Diluted (in shares) | 637,416,100 | 589,116,387 | 629,620,055 | 569,910,981 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 3,281,645 | $ 2,974,301 | $ 11,459,886 | $ 697,513 |
Other Comprehensive Income (Loss), Net of Tax: | ||||
Unrealized Gains (Losses) on Available-For-Sale Securities and Other | (141,762) | 0 | (338,067) | 0 |
Foreign Currency Translation Adjustments | (12,873) | 21,923 | (24,365) | (2,954) |
Comprehensive Income (Loss) | 3,127,010 | 2,996,224 | 11,097,454 | 694,559 |
Comprehensive Income (Loss) Attributable to Redeemable Noncontrolling Interests | 1,519 | 0 | 2,856 | 0 |
Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 2,037,025 | 1,918,700 | 7,105,634 | 201,421 |
Comprehensive Income (Loss) Attributable to KKR & Co. Inc. | $ 1,088,466 | $ 1,077,524 | $ 3,988,964 | $ 493,138 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Parent | Preferred StockSeries A And Series B Preferred Stock | Preferred StockSeries A Preferred Stock | Preferred StockSeries B Preferred Stock | Preferred StockSeries C Mandatory Convertible Preferred Stock | Preferred StockSeries I Preferred Stock | Preferred StockSeries II Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsSeries A Preferred Stock | Retained EarningsSeries B Preferred Stock | Retained EarningsSeries C Mandatory Convertible Preferred Stock | Accumulated Other Comprehensive Income (Loss) (net of tax) | Noncontrolling Interests |
Stockholders' equity, beginning balance at Dec. 31, 2019 | $ 482,554 | $ 0 | $ 0 | $ 2,904 | $ 5,600 | $ 8,565,919 | $ 1,792,152 | $ (41,639) | ||||||||
Shares outstanding, beginning balance (in shares) at Dec. 31, 2019 | 20,000,000 | 0 | 1 | 290,381,345 | 560,007,579 | |||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||
Cancellation of Series II Preferred Stock | $ (116) | |||||||||||||||
Cancellation of Series II Preferred Stock (in shares) | (11,599,867) | |||||||||||||||
Share Issuance | $ 1,115,792 | |||||||||||||||
Share issuance (in shares) | 23,000,000 | |||||||||||||||
Exchange of KKR Holdings Units | $ 116 | 222,840 | (1,292) | |||||||||||||
Exchange of KKR Holding Units (in shares) | 11,599,867 | |||||||||||||||
Net Delivery of Common Stock | $ 49 | (40,639) | ||||||||||||||
Net Delivery of Common Stock (in shares) | 4,940,113 | |||||||||||||||
Clawback of Transfer Restricted Shares (in shares) | (3,140) | |||||||||||||||
Repurchases of Common Stock | $ (102) | (246,058) | ||||||||||||||
Repurchases of Common Stock (in shares) | (10,209,673) | |||||||||||||||
Tax Effects - Exchange of KKR Holdings Units and Other | $ (10,197) | (10,197) | ||||||||||||||
Equity-Based Compensation | 133,424 | |||||||||||||||
Transfer of Interests Under Common Control | 14,385 | |||||||||||||||
Transfer of Oil and Gas Interests (See Note 2) | 45,669 | |||||||||||||||
Net Income (Loss) Attributable to KKR & Co. Inc. | 491,288 | 491,288 | ||||||||||||||
Preferred Stock Dividends | $ (17,466) | $ (7,557) | ||||||||||||||
Common Stock Dividends | (220,482) | |||||||||||||||
Other Comprehensive Income (Loss) | (2,954) | 1,850 | ||||||||||||||
Shares outstanding, ending balance (in shares) at Sep. 30, 2020 | 20,000,000 | 23,000,000 | 1 | 278,781,478 | 566,334,746 | |||||||||||
Stockholders' equity, ending balance at Sep. 30, 2020 | 34,043,630 | $ 12,197,656 | $ 482,554 | $ 1,115,792 | $ 0 | $ 2,788 | $ 5,663 | 8,594,005 | 2,037,935 | (41,081) | $ 21,845,974 | |||||
Stockholders' equity, beginning balance at Jun. 30, 2020 | $ 482,554 | $ 0 | $ 0 | $ 2,860 | $ 5,591 | 8,459,914 | 1,056,918 | (52,969) | ||||||||
Shares outstanding, beginning balance (in shares) at Jun. 30, 2020 | 20,000,000 | 0 | 1 | 285,978,495 | 559,140,869 | |||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||
Cancellation of Series II Preferred Stock | $ (72) | |||||||||||||||
Cancellation of Series II Preferred Stock (in shares) | (7,197,017) | |||||||||||||||
Share Issuance | $ 1,115,792 | |||||||||||||||
Share issuance (in shares) | 23,000,000 | |||||||||||||||
Exchange of KKR Holdings Units | $ 72 | 141,587 | (793) | |||||||||||||
Exchange of KKR Holding Units (in shares) | 7,197,017 | |||||||||||||||
Net Delivery of Common Stock | $ 0 | 0 | ||||||||||||||
Net Delivery of Common Stock (in shares) | 0 | |||||||||||||||
Clawback of Transfer Restricted Shares (in shares) | (3,140) | |||||||||||||||
Repurchases of Common Stock | $ 0 | 0 | ||||||||||||||
Repurchases of Common Stock (in shares) | 0 | |||||||||||||||
Tax Effects - Exchange of KKR Holdings Units and Other | (4,315) | |||||||||||||||
Equity-Based Compensation | 42,488 | |||||||||||||||
Transfer of Interests Under Common Control | 0 | |||||||||||||||
Transfer of Oil and Gas Interests (See Note 2) | 45,669 | |||||||||||||||
Net Income (Loss) Attributable to KKR & Co. Inc. | 1,064,843 | 1,064,843 | ||||||||||||||
Preferred Stock Dividends | (5,822) | (2,519) | ||||||||||||||
Common Stock Dividends | (75,485) | |||||||||||||||
Other Comprehensive Income (Loss) | 21,923 | 12,681 | ||||||||||||||
Shares outstanding, ending balance (in shares) at Sep. 30, 2020 | 20,000,000 | 23,000,000 | 1 | 278,781,478 | 566,334,746 | |||||||||||
Stockholders' equity, ending balance at Sep. 30, 2020 | 34,043,630 | 12,197,656 | $ 482,554 | $ 1,115,792 | $ 0 | $ 2,788 | $ 5,663 | 8,594,005 | 2,037,935 | (41,081) | 21,845,974 | |||||
Stockholders' equity, beginning balance at Dec. 31, 2020 | 40,799,916 | $ 482,554 | $ 1,115,792 | $ 0 | $ 2,756 | $ 5,729 | 8,687,817 | 3,440,782 | (18,612) | |||||||
Shares outstanding, beginning balance (in shares) at Dec. 31, 2020 | 20,000,000 | 23,000,000 | 1 | 275,626,493 | 572,893,738 | |||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||
Redemption of Preferred Stock | $ (332,988) | $ (149,566) | (12,012) | (5,434) | ||||||||||||
Redemption of Preferred Stock (in shares) | (13,800,000) | (6,200,000) | ||||||||||||||
Cancellation of Series II Preferred Stock | $ (46) | |||||||||||||||
Cancellation of Series II Preferred Stock (in shares) | (4,598,742) | |||||||||||||||
Share Issuance | $ 9 | 38,454 | ||||||||||||||
Share issuance (in shares) | 964,871 | |||||||||||||||
Exchange of KKR Holdings Units | $ 46 | 125,188 | (3,123) | |||||||||||||
Exchange of KKR Holding Units (in shares) | 4,598,742 | |||||||||||||||
Net Delivery of Common Stock | $ 73 | (106,987) | ||||||||||||||
Net Delivery of Common Stock (in shares) | 7,249,400 | |||||||||||||||
Clawback of Transfer Restricted Shares (in shares) | (12,077) | |||||||||||||||
Repurchases of Common Stock | $ (27) | (135,903) | ||||||||||||||
Repurchases of Common Stock (in shares) | (2,667,995) | |||||||||||||||
Tax Effects - Exchange of KKR Holdings Units and Other | (1,623) | (1,623) | ||||||||||||||
Equity-Based Compensation | 128,731 | |||||||||||||||
Net Income (Loss) Attributable to KKR & Co. Inc. | 4,141,668 | 4,141,668 | ||||||||||||||
Preferred Stock Dividends | (11,644) | (7,557) | $ (51,750) | |||||||||||||
Common Stock Dividends | (246,653) | |||||||||||||||
Other Comprehensive Income (Loss) | (24,365) | (152,704) | ||||||||||||||
Shares outstanding, ending balance (in shares) at Sep. 30, 2021 | 0 | 23,000,000 | 1 | 271,027,751 | 583,026,679 | |||||||||||
Stockholders' equity, ending balance at Sep. 30, 2021 | 56,964,214 | 16,932,970 | $ 0 | $ 1,115,792 | $ 0 | $ 2,710 | $ 5,830 | 8,735,677 | 7,247,400 | (174,439) | 40,031,244 | |||||
Stockholders' equity, beginning balance at Jun. 30, 2021 | $ 149,566 | $ 1,115,792 | $ 0 | $ 2,710 | $ 5,830 | 8,700,224 | 6,200,585 | (106,348) | ||||||||
Shares outstanding, beginning balance (in shares) at Jun. 30, 2021 | 6,200,000 | 23,000,000 | 1 | 271,027,751 | 583,030,973 | |||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||
Redemption of Preferred Stock | $ 0 | $ (149,566) | 0 | (5,434) | ||||||||||||
Redemption of Preferred Stock (in shares) | 0 | (6,200,000) | ||||||||||||||
Cancellation of Series II Preferred Stock | $ 0 | |||||||||||||||
Cancellation of Series II Preferred Stock (in shares) | 0 | |||||||||||||||
Share Issuance | $ 0 | 0 | ||||||||||||||
Share issuance (in shares) | 0 | |||||||||||||||
Exchange of KKR Holdings Units | $ 0 | 0 | 0 | |||||||||||||
Exchange of KKR Holding Units (in shares) | 0 | |||||||||||||||
Net Delivery of Common Stock | $ 0 | 0 | ||||||||||||||
Net Delivery of Common Stock (in shares) | 0 | |||||||||||||||
Clawback of Transfer Restricted Shares (in shares) | (4,294) | |||||||||||||||
Repurchases of Common Stock | $ 0 | 0 | ||||||||||||||
Repurchases of Common Stock (in shares) | 0 | |||||||||||||||
Tax Effects - Exchange of KKR Holdings Units and Other | (6,038) | |||||||||||||||
Equity-Based Compensation | 41,491 | |||||||||||||||
Net Income (Loss) Attributable to KKR & Co. Inc. | 1,156,557 | 1,156,557 | ||||||||||||||
Preferred Stock Dividends | $ 0 | $ (2,519) | $ (17,250) | |||||||||||||
Common Stock Dividends | (84,539) | |||||||||||||||
Other Comprehensive Income (Loss) | (12,873) | (68,091) | ||||||||||||||
Shares outstanding, ending balance (in shares) at Sep. 30, 2021 | 0 | 23,000,000 | 1 | 271,027,751 | 583,026,679 | |||||||||||
Stockholders' equity, ending balance at Sep. 30, 2021 | 56,964,214 | $ 16,932,970 | $ 0 | $ 1,115,792 | $ 0 | $ 2,710 | $ 5,830 | $ 8,735,677 | $ 7,247,400 | $ (174,439) | $ 40,031,244 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||
Redeemable non-controlling interests | $ 93,339 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Common stock, dividends declared (in dollars per share) | $ 0.145 | $ 0.135 | $ 0.425 | $ 0.395 |
Series A Preferred Stock | ||||
Preferred stock, dividends declared (in dollars per share) | 0 | 0.421875 | 0.843750 | 1.265625 |
Series B Preferred Stock | ||||
Preferred stock, dividends declared (in dollars per share) | 0.406250 | $ 0.406250 | 1.218750 | $ 1.218750 |
Series C Mandatory Convertible Preferred Stock | ||||
Preferred stock, dividends declared (in dollars per share) | $ 0.75 | $ 2.25 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Activities | ||
Net Income (Loss) | $ 11,459,886 | $ 697,513 |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities: | ||
Equity-Based and Other Non-Cash Compensation | 296,323 | 196,644 |
Net Realized (Gains) Losses - Asset Management | (1,532,956) | (281,378) |
Change in Unrealized (Gains) Losses - Asset Management | (6,499,944) | 460,411 |
Capital Allocation-Based (Income) Loss - Asset Management | (5,736,707) | (888,342) |
Net Realized (Gains) Losses - Insurance | 642,557 | 0 |
Net Accretion and Amortization | 324,692 | (41,308) |
Interest Credited to Policyholder Account Balances (net of Policy Fees) - Insurance | 938,415 | 0 |
Other Non-Cash Amounts | 101,904 | 28,652 |
Cash Flows Due to Changes in Operating Assets and Liabilities: | ||
Reinsurance Transactions and Acquisitions, Net of Cash Provided - Insurance | 1,041,130 | 0 |
Change in Premiums, Notes Receivable and Reinsurance Recoverable, Net of Reinsurance Premiums Payable - Insurance | 435,715 | 0 |
Change in Deferred Policy Acquisition Costs - Insurance | (307,031) | 0 |
Change in Policy Liabilities and Accruals, Net - Insurance | (583,875) | 0 |
Change in Consolidation | (24,183) | 8,624 |
Change in Due from / to Affiliates | (243,120) | (115,895) |
Change in Other Assets | 669,361 | (300,660) |
Change in Accrued Expenses and Other Liabilities | 2,608,487 | 521,877 |
Investments Purchased - Asset Management | (55,435,501) | (27,838,469) |
Proceeds from Investments - Asset Management | 48,286,348 | 23,404,986 |
Net Cash Provided (Used) by Operating Activities | (3,558,499) | (4,147,345) |
Investing Activities | ||
Acquisition of Global Atlantic, Net of Cash Acquired | (473,779) | 0 |
Purchases of Fixed Assets | (82,515) | (100,341) |
Investments Purchased - Insurance | (38,215,238) | 0 |
Proceeds from Investments - Insurance | 32,463,286 | 0 |
Other Investing Activities, Net - Insurance | (708,992) | 0 |
Development of Oil and Natural Gas Properties | 0 | (11,128) |
Net Cash Provided (Used) by Investing Activities | (7,017,238) | (111,469) |
Financing Activities | ||
Common Stock Dividends | (246,653) | (220,482) |
Payments To Noncontrolling Interest Holdings | (1,362) | 0 |
Distributions to Noncontrolling Interests | (3,975,764) | (3,412,058) |
Contributions from Noncontrolling Interests | 8,875,106 | 5,586,977 |
Issuance of Series C Mandatory Convertible Preferred Stock (net of issuance costs) | 0 | 1,115,792 |
Redemption of Series A and B Preferred Stock | (500,000) | 0 |
Net Delivery of Common Stock (Equity Incentive Plans) | (106,914) | (40,590) |
Repurchases of Common Stock | (135,930) | (246,160) |
Private Placement Share Issuance | 38,463 | 0 |
Proceeds from Debt Obligations | 20,615,117 | 11,708,358 |
Repayment of Debt Obligations | (13,881,246) | (7,547,703) |
Financing Costs Paid | (93,914) | (31,754) |
Additions to Contractholder Deposit Funds | 11,331,510 | 0 |
Withdrawals from Contractholder Deposit Funds | (6,264,316) | 0 |
Reinsurance Transactions, Net of Cash Provided | 524,724 | 0 |
Other Financing Activity, Net | 18,244 | 0 |
Net Cash Provided (Used) by Financing Activities | 16,126,114 | 6,887,357 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (31,022) | 21,968 |
Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash | 5,519,355 | 2,650,511 |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 6,993,457 | 3,237,416 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 12,512,812 | 5,887,927 |
Reconciliation to the Consolidated Statements of Financial Condition | ||
Cash, Cash Equivalents and Restricted Cash, End of Period | 12,512,812 | 5,887,927 |
Supplemental Disclosures of Cash Flow Information | ||
Payments for Interest | 876,412 | 775,848 |
Payments for Income Taxes | 463,983 | 145,097 |
Payments for Operating Lease Liabilities | 35,124 | 40,467 |
Supplemental Disclosures of Non-Cash Investing and Financing Activities | ||
Equity-Based and Other Non-Cash Contributions | 235,381 | 197,020 |
Non-Cash Contribution from Noncontrolling Interests | 845,943 | 209,703 |
Debt Obligations - Net Gains (Losses), Translation and Other | 272,410 | (39,894) |
Transfer of Oil and Gas Interests (See Note 2) | 0 | (69,027) |
Tax Effects - Exchange of KKR Holdings L.P. Units and Other | (1,623) | (10,197) |
Right-of-Use Assets obtained in Exchange for new Operating Lease Liabilities | 44,754 | 68,700 |
Investments Acquired through Reinsurance Agreements | 16,133,534 | 0 |
Policyholder Liabilities and Accruals Acquired through Reinsurance Agreements | 3,455,904 | 0 |
Contractholder Deposit Funds Acquired through Reinsurance Agreements | 14,809,751 | 0 |
Change in Consolidation | ||
Investments | (64,957) | 3,480 |
Due From Affiliates | (3,735) | 0 |
Other Assets | (46,352) | 46,892 |
Debt Obligations | (26,165) | 259,822 |
Due to Affiliates | (238) | 0 |
Accrued Expenses and Other Liabilities | (11,626) | 32,494 |
Noncontrolling Interests | (78,840) | (239,258) |
Asset Management | ||
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities: | ||
Change in Unrealized (Gains) Losses - Asset Management | 2,890,326 | (18,049) |
Financing Activities | ||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 6,993,457 | 3,237,416 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 7,397,000 | 5,887,927 |
Reconciliation to the Consolidated Statements of Financial Condition | ||
Cash and Cash Equivalents | 7,256,382 | 5,744,081 |
Restricted Cash and Cash Equivalents | 140,618 | 143,846 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 7,397,000 | 5,887,927 |
Insurance | ||
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities: | ||
Equity-Based and Other Non-Cash Compensation | 64,061 | 0 |
Financing Activities | ||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 0 | 0 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 5,115,812 | 0 |
Reconciliation to the Consolidated Statements of Financial Condition | ||
Cash and Cash Equivalents | 4,717,240 | 0 |
Restricted Cash and Cash Equivalents | 398,572 | 0 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 5,115,812 | 0 |
Series A And Series B Preferred Stock | ||
Financing Activities | ||
Preferred Stock Dividends | (19,201) | (25,023) |
Series C Mandatory Convertible Preferred Stock | ||
Financing Activities | ||
Preferred Stock Dividends | $ (51,750) | $ 0 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION KKR & Co. Inc. (NYSE: KKR), through its subsidiaries (collectively, "KKR"), is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group LLC ("TGAFG" and, together with its subsidiaries, "Global Atlantic"). KKR & Co. Inc. is the parent company of KKR Group Holdings Corp., which is the general partner of KKR Group Partnership L.P. ("KKR Group Partnership"). KKR & Co. Inc. both indirectly controls KKR Group Partnership and indirectly holds Class A partner interests in KKR Group Partnership ("KKR Group Partnership Units") representing economic interests in KKR's business. The remaining KKR Group Partnership Units are held by KKR Holdings L.P. ("KKR Holdings"), which is not a subsidiary of KKR & Co. Inc., and holders of other exchangeable securities. As of September 30, 2021, KKR & Co. Inc. held indirectly approximately 68.2% of the KKR Group Partnership Units. The percentage ownership in KKR Group Partnership may continue to change as KKR Holdings and the holders of other exchangeable securities exchange their KKR Group Partnership Units for shares of common stock of KKR & Co. Inc. or when KKR & Co. Inc. otherwise issues or repurchases shares of common stock of KKR & Co. Inc. KKR Group Partnership also has outstanding limited partner interests that provide for a carry pool and preferred units with economic terms that mirror the Series C Mandatory Convertible Preferred Stock issued by KKR & Co. Inc. Acquisition of Global Atlantic Financial Group In July 2020, KKR and Global Atlantic Financial Group Limited announced a strategic transaction whereby KKR agreed to acquire Global Atlantic, a leading retirement and life insurance and reinsurance company. The transaction, which closed on February 1, 2021 (the "GA Acquisition Date"), was funded with a combination of: (i) cash on hand, (ii) proceeds from syndication of the equity interests in Global Atlantic to minority co-investors, (iii) proceeds from the offering of $1,150 million of 6.00% Series C Mandatory Convertible Preferred Stock by KKR & Co. Inc. and (iv) proceeds from the offering of $750 million aggregate principal amount of 3.500% Senior Notes due 2050 by KKR Group Finance Co. VIII LLC. Global Atlantic's results are included in KKR's consolidated financial statements commencing from the GA Acquisition Date. Refer to Note 3 "Acquisition of Global Atlantic" for additional information on the transaction. References herein to "KKR," refer to KKR & Co. Inc. and its subsidiaries, including Global Atlantic, unless the context requires otherwise such as in sections where it refers to the asset management business only. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited financial statements of KKR & Co. Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the instructions to this Quarterly Report on Form 10-Q. The condensed consolidated financial statements (referred to hereafter as the "financial statements"), including these notes, are unaudited and exclude some of the disclosures required in annual financial statements. Management believes it has made all necessary adjustments (consisting of only normal recurring items) such that the financial statements are presented fairly and that estimates made in preparing the financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The consolidated balance sheet data as of December 31, 2020 were derived from audited financial statements included in KKR's Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the "SEC") on February 19, 2021, and the financial statements should be read in conjunction with the audited financial statements included therein. Additionally, in the accompanying financial statements, the condensed consolidated statements of financial condition are referred to hereafter as the "consolidated statements of financial condition"; the condensed consolidated statements of operations are referred to hereafter as the "consolidated statements of operations"; the condensed consolidated statements of comprehensive income (loss) are referred to hereafter as the "consolidated statements of comprehensive income (loss)"; the condensed consolidated statements of changes in equity and redeemable non-controlling interests are referred to hereafter as the "consolidated statements of changes in equity"; and the condensed consolidated statements of cash flows are referred to hereafter as the "consolidated statements of cash flows." KKR consolidates the financial results of KKR Group Partnership and its consolidated entities, which include the accounts of KKR's investment management and capital markets companies, the general partners of certain unconsolidated investment funds, general partners of consolidated investment funds and their respective consolidated investment funds, certain other entities including CFEs and Global Atlantic. References in the accompanying financial statements to "principals" are to KKR's senior employees who hold interests in KKR's business through KKR Holdings. References to Global Atlantic hereafter includes the insurance companies of Global Atlantic, which are consolidated by KKR starting on the GA Acquisition Date (refer to Note 3 "Acquisition of Global Atlantic" for additional information on the transaction). The presentations in the consolidated statement of financial condition and consolidated statement of operations reflect the significant industry diversification of KKR by its acquisition of Global Atlantic. Global Atlantic operates an insurance business, and KKR operates an asset management business, each of which possess distinct characteristics. As a result, KKR developed a two-tiered approach for the financial statements presentation, where Global Atlantic's insurance operations are presented separately from KKR's asset management business. KKR believes that these separate presentations provide a more informative view of the consolidated financial position and results of operations than traditional aggregated presentations and that reporting Global Atlantic’s insurance operations separately is appropriate given, among other factors, the relative significance of Global Atlantic’s policy liabilities, which are not obligations of KKR (other than the insurance companies that issued them). If a traditional aggregate presentation were to be used, KKR would expect to eliminate or combine several identical or similar captions, which would condense the presentations, but would also reduce the level of information presented. KKR also believes that using a traditional aggregate presentation would result in no new line items compared to the two-tier presentation included in the financial statements in this report . In addition, in connection with the Global Atlantic acquisition, we organized our business into two segments: Asset Management and Insurance. Global Atlantic’s operations constitute the Insurance segment. See Note 20 "Segment Reporting". The summary of the significant accounting policies has been organized considering the two-tiered approach and includes a section for common accounting policies and an accounting policy section for each of the two tiers when a policy is specific to one of the tiers. All intercompany transactions and balances have been eliminated. SIGNIFICANT ACCOUNTING POLICIES - COMMON AMONG ASSET MANAGEMENT AND INSURANCE COVID-19 and Global Economic and Market Conditions The novel strain of coronavirus ("COVID-19") has caused, and continues to cause in certain cases, severe disruptions to the U.S. and global economies. The outbreak of COVID-19 and the actions taken in response have had far reaching impact on the U.S. and global economies, contributing to significant volatility in the financial markets, resulting in increased volatility in currencies, interest rates, and equity prices (including our common stock). Shutdowns in some locations are causing furloughs and layoffs. Furthermore, supply chain disruptions are causing wage, freight and material prices to rise, resulting in margin pressure in certain sectors. Although a number of vaccines for COVID-19 have been developed and are in the process of being deployed in certain countries, including the United States, the timing for widespread vaccination and immunity is uncertain, and these vaccines may be less effective against new mutated strains of the virus that have started to spread globally. Given the ongoing nature of the pandemic, at this time KKR cannot reasonably predict the ultimate impact that COVID-19 will have on KKR’s business, financial performance and operating results. The estimates and assumptions underlying the consolidated financial statements are based on the information available as of September 30, 2021 for the current period and as of September 30, 2020 or December 31, 2020, as applicable. Actual events could differ materially from those estimated or assumed for purposes of KKR's financial reporting. Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, and investment income (loss) during the reporting periods. Such estimates include but are not limited to (i) the valuation of investments and financial instruments, (ii) the determination of the income tax provision, (iii) the impairment of goodwill and intangible assets, (iv) the impairment of available-for-sale investments, (v) the valuation of insurance policy liabilities, (vi) the valuation of embedded derivatives, (vii) the determination of the allowance for loan losses, and (viii) amortization of deferred revenues and expenses associated with the insurance business. Actual results could differ from those estimates, and such differences could be material to the financial statements. Principles of Consolidation The types of entities KKR assesses for consolidation include (i) subsidiaries, including management companies, broker-dealers and general partners of investment funds that KKR manages, (ii) entities that have the attributes of an investment company, like investment funds, (iii) CFEs, (iv) Global Atlantic and its insurance companies beginning on February 1, 2021, and (v) other entities. Each of these entities is assessed for consolidation on a case by case basis depending on the specific facts and circumstances surrounding that entity. For further information on the acquisition accounting for Global Atlantic see Note 3 "Acquisition of Global Atlantic". Pursuant to its consolidation policy, KKR first considers whether an entity is considered a VIE and therefore whether to apply the consolidation guidance under the VIE model. Entities that do not qualify as VIEs are assessed for consolidation as voting interest entities ("VOEs") under the voting interest model. KKR's funds are, for GAAP purposes, investment companies and therefore are not required to consolidate their investments in portfolio companies even if majority-owned and controlled. Rather, the consolidated funds and vehicles reflect their investments at fair value as described below in "Fair Value Measurements." An entity in which KKR holds a variable interest is a VIE if any one of the following conditions exist: (a) the total equity investment at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support, (b) the holders of the equity investment at risk (as a group) lack either the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity's activities that have a significant effect on the success of the legal entity or the obligation to absorb the expected losses or right to receive the expected residual returns, or (c) the voting rights of some investors are disproportionate to their obligation to absorb the expected losses of the legal entity, their rights to receive the expected residual returns of the legal entity, or both and substantially all of the legal entity's activities either involve or are conducted on behalf of an investor with disproportionately few voting rights. Limited partnerships and other similar entities where unaffiliated limited partners have not been granted (i) substantive participatory rights or (ii) substantive rights to either dissolve the partnership or remove the general partner ("kick-out rights") are VIEs. KKR's investment funds that are not CFEs (i) are generally limited partnerships, (ii) generally provide KKR with operational discretion and control, and (iii) generally have fund investors with no substantive rights to impact ongoing governance and operating activities of the fund, including the ability to remove the general partner, and, as such, the limited partners do not have kick-out rights. Accordingly, most of KKR's investment funds are categorized as VIEs. KKR consolidates all VIEs in which it is the primary beneficiary. A reporting entity is determined to be the primary beneficiary if it holds a controlling financial interest in a VIE. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (i) whether an entity in which KKR holds a variable interest is a VIE and (ii) whether KKR's involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (for example, management and performance income), would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment. Fees earned by KKR that are customary and commensurate with the level of effort required to provide those services, and where KKR does not hold other economic interests in the entity that would absorb more than an insignificant amount of the expected losses or returns of the entity, would not be considered to be variable interests. KKR factors in all economic interests including interests held through related parties, to determine if it holds a variable interest. KKR determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion when facts and circumstances change. For entities that are determined not to be VIEs, these entities are generally considered VOEs and are evaluated under the voting interest model. KKR consolidates VOEs it controls through a majority voting interest or through other means. The consolidation assessment, including the determination as to whether an entity qualifies as a VIE or VOE, depends on the facts and circumstances for each entity, and therefore certain of KKR's investment funds may qualify as VIEs whereas others may qualify as VOEs. With respect to CLOs (which are generally VIEs), in KKR's role as collateral manager, KKR generally has the power to direct the activities of the CLO that most significantly impact the economic performance of the entity. In some, but not all cases, KKR, through its residual interest in the CLO may have variable interests that represent an obligation to absorb losses of, or a right to receive benefits from, the CLO that could potentially be significant to the CLO. In cases where KKR has both the power to direct the activities of the CLO that most significantly impact the CLO's economic performance and the obligation to absorb losses of the CLO or the right to receive benefits from the CLO that could potentially be significant to the CLO, KKR is deemed to be the primary beneficiary and consolidates the CLO. In March 2021, KKR invested approximately $20 million in the sponsor shareholder of KKR Acquisition Holdings I Corp., a special purpose acquisition company ("SPAC"). The sponsor shareholder is a limited liability company whose only assets are equity securities of the SPAC. The investors in the sponsor shareholder are KKR and an unaffiliated investor. KKR is not the managing member of the sponsor shareholder, and KKR does not have the sole power to direct the activities that most significantly impact the sponsor shareholder. As such, KKR treats its investment in the sponsor shareholder as an equity method investment. Global Atlantic has formed certain VIEs to hold investments, including investments in transportation, renewable energy, consumer and other loans and fixed maturity securities. These VIEs issue beneficial interests primarily to Global Atlantic’s insurance companies, and Global Atlantic maintains the power to direct the activities of the VIEs that most significantly impact their economic performance and bears the obligation to absorb losses or receive benefits from the VIEs that could potentially be significant. Accordingly, Global Atlantic is the primary beneficiary of these VIEs, which are consolidated in Global Atlantic’s results. Where these VIEs or entities consolidated by these VIEs issue beneficial interests to third-party investors, they are reported as non-controlling interests by Global Atlantic. For certain consolidated renewable energy partnerships consolidated by Global Atlantic's insurance companies, Global Atlantic uses a hypothetical liquidation at book value method ("HLBV") to allocate income and cash flows based on third-party investors’ claim to net assets, including those for the noncontrolling interests and redeemable noncontrolling interests. KKR classifies certain noncontrolling interests with redemption features that are not solely within the control of KKR outside of permanent equity on its consolidated statements of financial condition. These redeemable non-controlling interests are reported using the greater of the carrying value at each reporting date as determined by the HLBV method or the estimated redemption value in each reporting period. Cash and Cash Equivalents KKR considers all liquid short‑term investments with original maturities of 90 days or less when purchased to be cash equivalents. Cash and cash equivalents includes cash held at consolidated entities, which represents cash that, although not legally restricted, is not available generally to fund liquidity needs of KKR, as the use of such funds is generally limited to the investment activities of KKR's investment funds and CFEs. In prior periods, those amounts were classified in a separate line " Cash and Cash Equivalents Held at Consolidated Entities " on the statement of financial condition, and the comparable information have been recasted to current presentation. The carrying values of cash and cash equivalents are considered to be reasonable estimates of their fair values. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents primarily represent amounts that are held by third parties under certain of KKR's financing and derivative transactions. The duration of this restricted cash generally matches the duration of the related financing or derivative transaction. Global Atlantic’s restricted cash principally includes certain cash and cash equivalents held in trusts formed for the benefit of ceding companies or held in connection with open derivative transactions. The carrying values of restricted cash and cash equivalents are considered to be reasonable estimates of their fair values. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation techniques are applied. These valuation techniques involve varying levels of management estimation and judgment, the degree of which is dependent on a variety of factors. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Investments and financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: Level I - Pricing inputs are unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date. The types of financial instruments included in this category are publicly-listed equities, U.S. government and agencies securities, and securities sold short. Level II - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the measurement date, and fair value is determined through the use of models or other valuation methodologies. The types of financial instruments included in this category are credit investments, fixed-income securities held by consolidated insurance companies, investments and debt obligations of consolidated CLO entities, convertible debt securities indexed to publicly-listed securities, less liquid and restricted equity securities, certain funds withheld payable at interest, and certain over-the-counter derivatives such as foreign currency option and forward contracts. Level III - Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. The types of financial instruments generally included in this category are private portfolio companies, real assets investments, certain credit investments, equity method investments for which the fair value option was elected, certain fixed-income and structured securities held by the consolidated insurance subsidiaries, reinsurance recoverables carried at fair value, certain insurance policy liabilities carried at fair value, and certain embedded derivatives related to (i) certain funds withheld payable at interest, and (ii) annuities and indexed universal life products, which contain equity-indexed features. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. KKR's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the asset. A significant decrease in the volume and level of activity for the asset or liability is an indication that transactions or quoted prices may not be representative of fair value because in such market conditions there may be increased instances of transactions that are not orderly. In those circumstances, further analysis of transactions or quoted prices is needed, and a significant adjustment to the transactions or quoted prices may be necessary to estimate fair value. The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors, including, for example, the type of instrument, whether the instrument has recently been issued, whether the instrument is traded on an active exchange or in the secondary market, and current market conditions. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires additional judgment. Accordingly, the degree of judgment exercised by KKR in determining fair value is greatest for instruments categorized in Level III. The variability and availability of the observable inputs affected by the factors described above may cause transfers between Levels I, II, and III, which KKR recognizes at the beginning of the reporting period. Investments and other financial instruments that have readily observable market prices (such as those traded on a securities exchange) are stated at the last quoted sales price as of the reporting date. KKR does not adjust the quoted price for these investments, even in situations where KKR holds a large position and a sale could reasonably affect the quoted price. Management's determination of fair value is based upon the methodologies and processes described below and may incorporate assumptions that are management's best estimates after consideration of a variety of internal and external factors. Level II Valuation Methodologies Credit Investments, U.S. Municipal Securities, Corporate Bonds and Structured Securities: These financial instruments generally have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that KKR and others are willing to pay for an instrument. Ask prices represent the lowest price that KKR and others are willing to accept for an instrument. For financial instruments whose inputs are based on bid-ask prices obtained from third party pricing services, fair value may not always be a predetermined point in the bid-ask range. KKR's policy is generally to allow for mid-market pricing and adjusting to the point within the bid-ask range that meets KKR's best estimate of fair value. KKR may also use model-derived valuations whose inputs are observable or whose significant value drivers are observable. Investments and Debt Obligations of Consolidated CLO Vehicles: Investments of consolidated CLO vehicles are reported within Investments of Consolidated CFEs and are valued using the same valuation methodology as described above for credit investments. Under ASU 2014-13, KKR measures CLO debt obligations on the basis of the fair value of the financial assets of the CLO. Securities Indexed to Publicly-Listed Securities: These securities are typically valued using standard convertible security pricing models. The key inputs into these models that require some amount of judgment are the credit spreads utilized and the volatility assumed. To the extent the company being valued has other outstanding debt securities that are publicly-traded, the implied credit spread on the company's other outstanding debt securities would be utilized in the valuation. To the extent the company being valued does not have other outstanding debt securities that are publicly-traded, the credit spread will be estimated based on the implied credit spreads observed in comparable publicly-traded debt securities. In certain cases, an additional spread will be added to reflect an illiquidity discount due to the fact that the security being valued is not publicly-traded. The volatility assumption is based upon the historically observed volatility of the underlying equity security into which the convertible debt security is convertible and/or the volatility implied by the prices of options on the underlying equity security. Equity Securities: The valuation of certain equity securities is based on (i) an observable price for an identical security adjusted for the effect of a restriction or leverage that collateralized the equity securities and (ii) quoted prices for identical or similar instruments in markets that are not active. Derivatives: The valuation incorporates observable inputs comprising yield curves, foreign currency rates, interest rate volatility and credit spreads. Level III Valuation Methodologies Private Equity Investments: KKR generally employs two valuation methodologies when determining the fair value of a private equity investment. The first methodology is typically a market comparables analysis that considers key financial inputs, which may take into account recent public and private transactions and other available measures. The second methodology utilized is typically a discounted cash flow analysis, which incorporates significant assumptions and judgments. Estimates of key inputs used in this methodology include the weighted average cost of capital for the investment and assumed inputs used to calculate terminal values, such as exit EBITDA multiples. The results of the discounted cash flow approach can be significantly impacted by these estimates. Other inputs are also used in both methodologies. In addition, when a definitive agreement has been executed to sell an investment, KKR generally considers a significant determinant of fair value to be the consideration to be received by KKR pursuant to the executed definitive agreement. Upon completion of the valuations conducted using these methodologies, a weighting is ascribed to each method, and an illiquidity discount is typically applied where appropriate. The ultimate fair value recorded for a particular investment will generally be within a range suggested by the two methodologies, except that the value may be higher or lower than such range in the case of investments being sold pursuant to an executed definitive agreement. When determining the weighting ascribed to each valuation methodology, KKR considers, among other factors, the availability of direct market comparables, the applicability of a discounted cash flow analysis, the expected hold period and manner of realization for the investment, and in the case of investments being sold pursuant to an executed definitive agreement, an estimated probability of such sale being completed. These factors can result in different weightings among investments in the portfolio and in certain instances may result in up to a 100% weighting to a single methodology. When an illiquidity discount is to be applied, KKR seeks to take a uniform approach across its portfolio and generally applies a minimum 5% discount to all private equity investments. KKR then evaluates such private equity investments to determine if factors exist that could make it more challenging to monetize the investment and, therefore, justify applying a higher illiquidity discount. These factors generally include (i) whether KKR is unable to freely sell the portfolio company or conduct an initial public offering of the portfolio company due to the consent rights of a third party or similar factors, (ii) whether the portfolio company is undergoing significant restructuring activity or similar factors, and (iii) characteristics about the portfolio company regarding its size and/or whether the portfolio company is experiencing, or expected to experience, a significant decline in earnings. These factors generally make it less likely that a portfolio company would be sold or publicly offered in the near term at a price indicated by using just a market multiples and/or discounted cash flow analysis, and these factors tend to reduce the number of opportunities to sell an investment and/or increase the time horizon over which an investment may be monetized. Depending on the applicability of these factors, KKR determines the amount of any incremental illiquidity discount to be applied above the 5% minimum, and during the time KKR holds the investment, the illiquidity discount may be increased or decreased, from time to time, based on changes to these factors. The amount of illiquidity discount applied at any time requires considerable judgment about what a market participant would consider and is based on the facts and circumstances of each individual investment. Accordingly, the illiquidity discount ultimately considered by a market participant upon the realization of any investment may be higher or lower than that estimated by KKR in its valuations. In the case of growth equity investments, enterprise values may be determined using the market comparables analysis and discounted cash flow analysis described above. A scenario analysis may also be conducted to subject the estimated enterprise values to a downside, base and upside case, which involves significant assumptions and judgments. A milestone analysis may also be conducted to assess the current level of progress towards value drivers that we have determined to be important, which involves significant assumptions and judgments. The enterprise value in each case may then be allocated across the investment's capital structure to reflect the terms of the security and subjected to probability weightings. In certain cases, the values of growth equity investments may be based on recent or expected financings or other transactions. Real Asset Investments: Real asset investments in infrastructure, energy and real estate are valued using one or a combination of the discounted cash flow analysis, market comparables analysis and direct income capitalization methods, which in each case incorporates significant assumptions and judgments. Infrastructure investments are generally valued using the discounted cash flow analysis. Key inputs used in this methodology can include the weighted average cost of capital and assumed inputs used to calculate terminal values, such as exit EBITDA multiples. Energy investments are generally valued using a discounted cash flow approach, and where applicable, a market approach using comparable companies and transactions. Key inputs used in our valuations include (i) the weighted average cost of capital, (ii) future commodity prices, as quoted on indices, and long-term commodity price forecasts, and (iii) the asset’s projected future operating performance. Real estate investments are generally valued using a combination of direct income capitalization and discounted cash flow analysis. Certain real estate investments are valued by KKR based on ranges of valuations determined by independent valuation firms. Key inputs used in such methodologies that require estimates include an unlevered discount rate and current capitalization rate. The valuations of real assets investments also use other inputs. Credit Investments: Credit investments are valued using values obtained from dealers or market makers, and where these values are not available, credit investments are generally valued by KKR based on ranges of valuations determined by an independent valuation firm. Valuation models are based on discounted cash flow analyses, |
ACQUISITION OF GLOBAL ATLANTIC
ACQUISITION OF GLOBAL ATLANTIC | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITION OF GLOBAL ATLANTIC | ACQUISITION OF GLOBAL ATLANTIC On July 7, 2020, indirect subsidiaries of KKR & Co. Inc., namely Magnolia Parent LLC and Magnolia Merger Sub Limited, entered into an Agreement and Plan of Merger (the “GA Merger Agreement”) with Global Atlantic Financial Group Limited ("GAFG"), Global Atlantic Financial Life Limited ("GAFLL"), LAMC LP, and Goldman Sachs & Co. LLC, solely in its capacity as the Equity Representative (as defined in the GA Merger Agreement). Pursuant to the GA Merger Agreement, at the closing of the acquisition of Global Atlantic by KKR (the "GA Acquisition"), among other things, Global Atlantic Financial Group Limited continued as the surviving entity in its merger with Magnolia Merger Sub Limited and became a direct subsidiary of Magnolia Parent LLC, which subsequently changed its name to The Global Atlantic Financial Group LLC (“TGAFG”). On February 1, 2021 (the “GA Acquisition Date”), the GA Acquisition was completed, and KKR acquired all of the voting interests in Global Atlantic and an economic ownership of 61.1% of Global Atlantic prior to certain post-closing purchase price adjustments discussed below and after taking into account GA Rollover Investors’ and GA Co-Investors’ (each as defined below) equity ownership of Global Atlantic. In addition to entering into the retirement and life insurance business through KKR's indirect ownership of Global Atlantic's insurance companies, KKR's flagship investment management company became the investment adviser for Global Atlantic’s insurance companies, which increases KKR’s presence in the insurance community. Furthermore, the transaction allows Global Atlantic to gain access to KKR’s origination and asset management capabilities. Under the GA Merger Agreement, KKR agreed to pay former shareholders of Global Atlantic Financial Group Limited an amount in cash equal to 1.0x U.S. GAAP Shareholders’ Equity of Global Atlantic Financial Group Limited, excluding Accumulated Other Comprehensive Income and subject to certain other purchase price adjustments ("GA Book Value," determined as $4.7 billion as of February 1, 2021 for purposes of the purchase price determination). The amount of consideration payable by KKR was reduced by the amount of equity rolled over by certain former shareholders of Global Atlantic Financial Group Limited who elected to continue their equity ownership in Global Atlantic at closing ("GA Rollover Investors"). In addition, KKR syndicated equity interests in Global Atlantic to minority co-investors ("GA Co-Investors"), which also had the effect of reducing the amount of consideration payable by KKR at closing. The purchase price is as follows (in thousands): Cash consideration paid by KKR $ 2,914,455 GA Co-Investors and GA Rollover Investors 1,824,239 Total Purchase Price $ 4,738,694 The purchase price paid at closing was subject to certain post-closing adjustments, which were finalized in June 2021, and KKR and certain GA Co-Investors paid incremental amounts of $55 million and $3 million, respectively ($58 million in total). As a result of the post-closing adjustments, KKR's economic ownership of Global Atlantic increased from 61.1% at closing to 61.5%. The GA Acquisition was accounted for as a business combination under FASB Accounting Standards Codification Topic 805, Business Combinations ("Topic 805").The purchase price has been allocated to Global Atlantic's assets acquired and liabilities assumed based on estimates of their fair values as of the GA Acquisition Date. The fair value of assets acquired and liabilities assumed represent a provisional allocation as our evaluation of facts and circumstances available as of February 1, 2021 is ongoing. Pursuant to Topic 805, the financial statements will not be retrospectively adjusted for any changes to the provisional values of assets acquired and liabilities assumed that occur in subsequent periods. Rather, KKR will recognize any adjustments as we obtain information not available as of the completion of this preliminary fair value calculation. KKR will also be required to record, in the same period as the financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of any change to the provisional amounts, calculated as if the accounting had been completed at the GA Acquisition Date. KKR expects to finalize the purchase price allocation as soon as practicable, but no later than one year from the GA Acquisition Date. Goodwill of $497.1 million has been recorded based on the amount that the purchase price exceeds the fair value of the net assets acquired less the amounts attributable to noncontrolling interests. Goodwill is primarily attributable to the scale, skill sets, operations, and synergies that can be achieved subsequent to the GA Acquisition. The goodwill recorded is not expected to be deductible for tax purposes and it has been allocated to the Insurance Segment. The following table summarizes the provisional fair value amounts recognized for the assets acquired and liabilities assumed and resulting goodwill as of the GA Acquisition Date: February 1, 2021 ($ in thousands) Consideration Transferred Cash Consideration paid by KKR $ 2,914,455 GA Co-Investors 978,296 GA Rollover Investors 845,943 Settlement of pre-existing relationships (1) (60,200) Total Consideration Transferred (2) $ 4,678,494 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: Cash, Cash Equivalents and Restricted Cash $ 3,358,772 Investments 99,544,755 Reinsurance Recoverable 15,753,030 Insurance Intangible Assets 1,024,520 Other Assets (3) 3,325,652 Separate Account Assets 5,371,060 Policy Liabilities (100,374,765) Debt Obligations (1,450,920) Funds Withheld Payable at Interest (13,800,969) Accrued Expenses and Other Liabilities (2,735,811) Reinsurance Liabilities (180,573) Separate Account Liabilities (5,371,060) Total Identifiable Net Assets 4,463,691 Redeemable non-controlling interests (4) (91,845) Other Noncontrolling interests (4) (190,405) Goodwill $ 497,053 (1) Represents KKR debt obligations held by Global Atlantic at the GA Acquisition Date. (2) At the GA Acquisition Date, the transaction was funded with a combination of (i) cash on hand by KKR, (ii) cash proceeds from syndication of the equity interests in Global Atlantic to minority co-investors and equity rolled over from certain former Global Atlantic shareholders. The equity held by GA co-investors and rollover investors are presented as noncontrolling interests in the financial statements. Acquisition of Global Atlantic, Net of Cash Acquired in the consolidated statements of cash flows represents the Total Consideration Transferred (excluding GA Rollover Investors) net of acquired Cash and Cash Equivalents and Restricted Cash and Cash Equivalents. (3) Includes $1.0 billion of deferred tax assets recognized from the step-up in basis under purchase accounting. (4) Represents the fair value of Noncontrolling Interests in consolidated renewable energy entities held by Global Atlantic on the GA Acquisition Date. Such interests do not represent ownership interests held by GA Rollover Investors or GA Co-Investors in Global Atlantic's equity. Measurement Period Adjustments During the second quarter of 2021, KKR recognized measurement period adjustments to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The measurement period adjustments also reflected the increase in the total consideration transferred of $58 million as a result of final purchase price adjustments. Measurement period adjustments consist primarily of a $50 million increase in the value of distribution agreements acquired, a $63 million increase in policy liabilities, a $25 million increase in investments, and a $46 million increase in goodwill. The related impact to net income that would have been recognized in previous periods if the adjustments were recognized as of the GA Acquisition Date was not material to the consolidated financial statements. KKR expects to finalize the valuation of the acquired assets and assumed liabilities as soon as practicable, but not later than one year from the GA Acquisition Date. Any adjustments to the initial estimates of the fair values of the acquired assets and assumed liabilities will be recorded as adjustments to the respective assets and liabilities, with an offsetting amount allocated to goodwill. KKR performed a valuation of the acquired investments, policy liabilities, VOBA, other identifiable intangibles, and funds withheld at interest payables and receivables. The following is a summary of significant inputs to the valuation: Investments Global Atlantic’s investment portfolio primarily consists of fixed maturity securities, mortgage and other loan receivables, and also includes equity securities, and investments in real assets, such as renewable energy and transportation assets. All of the assets included within the investment portfolio were measured and reported at their fair values on the GA Acquisition Date consistent with the valuation methodologies discussed in Note 2. As a result, the cost basis of each respective investment was reset to equal fair value on the GA Acquisition Date. Policy liabilities Policy liabilities were remeasured based on generally accepted actuarial methods and reported at their fair values on the GA Acquisition Date. Assumptions for future mortality, persistency, policyholder behavior, expenses, investment return and other actuarial factors were based on an evaluation of Global Atlantic’s recent experience, industry experience, and anticipated future trends. These assumptions are intended to be representative of market assumptions used by buyers and sellers in similar transactions. The approach employed to develop these projection assumptions is described below: • Discount rates used to calculate fair value ranged from 11% to 15%, depending on product; • Mortality and persistency assumptions are based on both Global Atlantic and general industry experience; • Expenses were projected reflecting Global Atlantic’s unit expenses with an allocation of a portion of overhead expenses to in-force business; • Future investment income reflects a runoff of the existing asset portfolios and reinvestment strategies based on Global Atlantic’s assumptions for asset yield, quality, and maturity. The projections are based on forward interest rates implied by the Treasury yield curve. Credit rates reflect Global Atlantic’s target spreads; • Separate account and index account growth rates are based on long-term return expectations for different fund types and on the underlying mix of funds; and • Statutory reserves underlying the valuation reflect Global Atlantic’s current reserving methodologies. Value of business acquired VOBA represents the estimated fair value of future net cash flows from in-force life and annuity insurance contracts acquired at the GA Acquisition Date. Other identifiable intangible assets Other identifiable intangible assets represent distribution relationships, trade names and state insurance licenses. The distribution relationships were valued using the excess earnings method, which derives value based on the present value of the cash flow attributable to the distribution relationships, less returns for contributory assets. The trade name intangible asset represents the Global Atlantic trade name, and was valued using the relief-from-royalty method giving consideration to publicly available third-party trade name royalty rates as well as expected premiums generated by the use of the trade name over its anticipated life. The state insurance licenses represent Global Atlantic’s jurisdictional insurance licenses, which include 52 insurance licenses, encompassing all 50 U.S. states, the District of Columbia, and the U.S. Virgin Islands. They were protected through registration and were valued using the market approach based on third-party market transactions from which the prices paid for state insurance licenses could be derived. Funds withheld at interest receivables and payables Funds withheld at interest receivables and payables were remeasured at fair value based on the fair value of assets held in the underlying portfolios supporting those receivables or payables. The fair value and weighted average estimated useful lives of Value of Business Acquired and Other Identifiable Intangible Assets acquired in the GA Acquisition consist of the following (dollars in thousands): Fair Value Average Useful Life ($ in thousands) (in years) VOBA (included within Insurance Intangible Assets) $ 1,024,520 28.6 Negative VOBA (included within Policy Liabilities) (1,273,414) 22.2 Total VOBA $ (248,894) Value of Distribution Agreements Acquired $ 250,000 16 to 21 Trade Names 50,000 15 to 18 State Insurance Licenses 10,000 Indefinite Total Identifiable Other Intangible Assets (included within Other Assets) $ 310,000 As of the GA Acquisition Date, Global Atlantic's financial results are reflected in these financial statements. Global Atlantic's revenues of $2.2 billion and $4.5 billion and net income of $185.8 million and $239.7 million, in each case for the three and nine months ended September 30, 2021, respectively, are included in the consolidated statement of operations for the three and nine months ended September 30, 2021. Pro- Forma Financial Information Unaudited pro-forma financial information for the three and nine months ended September 30, 2021 and September 30, 2020 are presented below. Pro-forma financial information presented does not include adjustments to reflect any potential revenue synergies or cost savings that may be achievable in connection with the GA Acquisition and assumes the GA Acquisition occurred as of January 1, 2020. The unaudited pro forma financial information is presented for informational purposes only, and is not necessarily indicative of future operations or results had the GA Acquisition been completed as of January 1, 2020. Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Total Revenues $ 4,483,365 $ 3,275,305 $ 12,696,730 $ 5,606,280 Net Income Attributable to KKR & Co. Inc. Common Stockholders $ 1,131,354 $ 1,102,762 $ 4,147,132 $ 601,752 Amounts above reflect certain pro forma adjustments that were directly attributable to the GA Acquisition. These adjustments include the following: • adjustment to reflect the elimination of historical amortization of Global Atlantic’s intangibles and the additional amortization of intangibles measured at fair value as of the GA Acquisition Date; • adjustment to reflect the prospective reclassification from accumulated other comprehensive earnings of the unrealized gains on available-for-sale securities to a premium which will be amortized into income based on the expected life of the investment securities; • adjustments to reflect the KKR pro-rata economic ownership as well as financing consummated by KKR to complete the acquisition; and • adjustments to reflect the adoption of ASC 326 "Financial Instruments - Credit Losses" in 2020 by Global Atlantic. |
NET GAINS (LOSSES) FROM INVESTM
NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES - ASSET MANAGEMENT | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES - ASSET MANAGEMENT | NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES - ASSET MANAGEMENT Net Gains (Losses) from Investment Activities in the consolidated statements of operations consist primarily of the realized and unrealized gains and losses on investments (including foreign exchange gains and losses attributable to foreign denominated investments and related activities) and other financial instruments, including those for which the fair value option has been elected. Unrealized gains or losses result from changes in the fair value of these investments and other financial instruments during a period. Upon disposition of an investment or financial instrument, previously recognized unrealized gains or losses are reversed and an offsetting realized gain or loss is recognized in the current period. The following table summarizes total Net Gains (Losses) from Investment Activities: Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Net Realized Gains (Losses) Net Unrealized Gains (Losses) Total Net Realized Gains (Losses) Net Unrealized Gains (Losses) Total Private Equity (1) $ 296,410 $ 647,448 $ 943,858 $ 660,216 $ 930,918 $ 1,591,134 Credit (1) 74,945 (117,354) (42,409) (70,391) 385,850 315,459 Investments of Consolidated CFEs (1) 23,198 (15,013) 8,185 (33,373) 425,660 392,287 Real Assets (1) 61,807 575,891 637,698 (22,040) 273,639 251,599 Equity Method - Other (1) 311,420 (137,281) 174,139 (20,899) 456,563 435,664 Other Investments (1) (118,844) 199,961 81,117 (13,630) 71,438 57,808 Foreign Exchange Forward Contracts and Options (2) (2,777) 323,916 321,139 15,281 (295,687) (280,406) Securities Sold Short (2) (21,031) 2,579 (18,452) 34,461 (119,780) (85,319) Other Derivatives (2) (17,687) 6,577 (11,110) (10,291) (46,522) (56,813) Debt Obligations and Other (3) 2,190 20,292 22,482 9,233 (346,044) (336,811) Net Gains (Losses) From Investment $ 609,631 $ 1,507,016 $ 2,116,647 $ 548,567 $ 1,736,035 $ 2,284,602 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Net Realized Gains (Losses) Net Unrealized Gains (Losses) Total Net Realized Gains (Losses) Net Unrealized Gains (Losses) Total Private Equity (1) $ 1,322,179 $ 3,479,827 $ 4,802,006 $ 721,009 $ 735,245 $ 1,456,254 Credit (1) 130,191 (11,864) 118,327 (118,851) (422,537) (541,388) Investments of Consolidated CFEs (1) 44,954 173,775 218,729 (127,175) (424,918) (552,093) Real Assets (1) 148,581 1,243,725 1,392,306 36,027 (257,589) (221,562) Equity Method - Other (1) 410,491 305,085 715,576 (166,178) 410,371 244,193 Other Investments (1) (354,349) 908,906 554,557 (267,166) (330,621) (597,787) Foreign Exchange Forward Contracts and Options (2) (29,727) 282,030 252,303 134,427 (196,095) (61,668) Securities Sold Short (2) 36,517 21,313 57,830 60,502 (168,220) (107,718) Other Derivatives (2) (125,376) 83,805 (41,571) (9,481) (91,044) (100,525) Debt Obligations and Other (3) (50,505) 13,342 (37,163) 18,264 284,997 303,261 Net Gains (Losses) From Investment Activities $ 1,532,956 $ 6,499,944 $ 8,032,900 $ 281,378 $ (460,411) $ (179,033) (1) See Note 7 "Investments." (2) See Note 8 "Derivatives" and Note 14 "Other Assets and Accrued Expenses and Other Liabilities." |
NET INVESTMENT INCOME - INSURAN
NET INVESTMENT INCOME - INSURANCE | 9 Months Ended |
Sep. 30, 2021 | |
Investments, All Other Investments [Abstract] | |
NET INVESTMENT INCOME - INSURANCE | NET INVESTMENT INCOME - INSURANCE Net investment income for Global Atlantic is comprised primarily of interest income, including amortization of premiums and accretion of discounts, based on yields that change due to expectations in projected cash flows, dividend income from common and preferred stock, earnings from investments accounted for under equity method accounting, and lease income on other investments. The components of net investment income were as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Fixed maturity securities – interest and other income $ 632,314 $ 1,512,377 Mortgage and other loan receivables 247,917 617,334 Investments in transportation and other leased assets 56,317 146,004 Short-term and other investment income 23,285 41,349 Policy loans 3,203 22,138 Investments in real estate 4,501 10,028 Investments in renewable energy 62,468 96,400 Equity securities – dividends and other income 764 23 Income from (to) funds withheld at interest (135,632) (216,057) Gross investment income 895,137 2,229,596 Less investment expenses: Investment management and administration 88,789 190,458 Transportation and renewable energy asset depreciation and maintenance 47,331 117,749 Interest expense on derivative collateral and repurchase agreements 636 1,730 Net investment income $ 758,381 $ 1,919,659 Net investment (losses) gains from insurance operations primarily consists out of (i) realized gains and (losses) from the disposal of investments, (ii) unrealized gains and (losses) from investments held for trading, equity securities, or with fair value remeasurements recognized in earnings as a result of the election of a fair-value option, (iii) unrealized gains and (losses) on funds withheld at interest, (iv) unrealized gains and (losses) from derivatives not designated in an hedging relationship, and (v) allowances for credit losses, and other impairments of investments. Net investment gains (losses) were as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Equity securities and other investments $ 359,101 $ 431,728 Derivatives 40,792 70,098 Trading fixed maturity securities (141,683) (197,047) Allowance for credit losses on mortgage and other loan receivables (69,386) (250,690) AFS fixed maturity securities (15,231) (88,233) Allowance for losses on AFS fixed maturity securities (3,809) 21,287 Allowance for loan commitment losses provision (3,677) (15,372) Mortgage and other loans receivables (2,905) 15,527 Funds withheld receivable at interest (1,075) 45,685 Net investment gains (losses) $ 162,127 $ 32,983 Allowance for credit losses Available-for-sale fixed maturity securities The table below presents a roll-forward of the allowance for credit losses recognized for available-for-sale fixed maturity securities held by Global Atlantic: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Corporate Structured Total Corporate Structured Total Balance, as of beginning of period (1) $ — $ 91,646 $ 91,646 $ — $ 120,895 $ 120,895 Initial impairments for credit losses recognized on securities not previously impaired — 19,921 19,921 — 47,530 47,530 Initial credit loss allowance recognized on PCD securities — 1,576 1,576 — 7,204 7,204 Accretion of initial credit loss allowance on PCD securities — 1,879 1,879 — 2,200 2,200 Reductions due to sales (or maturities, pay downs or prepayments) during the period of securities previously identified as credit impaired — (2,510) (2,510) — (12,612) (12,612) Net additions / reductions for securities previously impaired — (16,112) (16,112) — (68,817) (68,817) Balance, as of end of period $ — $ 96,400 $ 96,400 $ — $ 96,400 $ 96,400 (1) Includes securities designated as purchased credit deteriorated as of the time of the acquisition of Global Atlantic. Mortgage and other loan receivables Changes in the allowance for credit losses on mortgage and other loan receivables held by Global Atlantic are summarized below: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Commercial Mortgage Loans Residential Mortgage Loans Consumer and Other Loan Receivables Total Commercial Mortgage Loans Residential Mortgage Loans Consumer and Other Loan Receivables Total Balance, as of beginning of period (1) $ 58,255 $ 76,536 $ 163,135 $ 297,926 $ 58,203 $ 62,056 $ — $ 120,259 Net provision (release) 17,750 (2,793) 54,429 69,386 17,802 10,888 222,000 250,690 Loans purchased with credit deterioration — — — — — 799 838 1,637 Charge-offs — (3,162) 5,274 2,112 — (3,162) — (3,162) Balance, as of end of period $ 76,005 $ 70,581 $ 222,838 $ 369,424 $ 76,005 $ 70,581 $ 222,838 $ 369,424 (1) Includes loans designated as purchased credit deteriorated as of the time of the acquisition of Global Atlantic. Proceeds and gross gains and losses from voluntary sales The proceeds from voluntary sales and the gross gains and losses on those sales of AFS fixed maturity securities were as follows: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 AFS fixed maturity securities: Proceeds from voluntary sales $ 7,440,645 $ 12,766,887 Gross gains 16,816 38,061 Gross losses (30,086) (103,190) The following reflects the changes to the deferred policy acquisition costs ("DAC") asset: Nine Months Ended September 30, 2021 Balance, as of GA Acquisition Date $ — Acquisition/reinsurance 51,322 Deferrals 259,203 Amortized to expense during the period (1) (13,016) Adjustment for unrealized investment losses (gains) during the period 4,907 Balance, as of end of period $ 302,416 (1) These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations. The following reflects the changes to the value of business acquired ("VOBA") asset: Nine Months Ended September 30, 2021 Balance, as of GA Acquisition Date $ 1,024,520 Amortized to expense during the period (1) (47,866) Balance, as of end of period $ 976,654 (1) These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations. The following reflects the changes to the negative VOBA liability: Nine Months Ended September 30, 2021 Balance, as of Acquisition Date $ 1,273,414 Amortized to expense during the period (1) (118,291) Balance, as of end of period $ 1,155,123 (1) These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations. The following reflects the changes to the unearned revenue reserve ("URR") and unearned front-end load ("UFEL): Nine Months Ended September 30, 2021 Balance, as of GA Acquisition Date $ — Deferrals 41,000 Amortized to expense during the period (1) (1,302) Adjustment for unrealized investment losses during the period (4,100) Balance, as of end of period $ 35,598 (1) These amounts are reported within policy fees in the consolidated statements of operatio ns. |
NET INVESTMENT GAINS (LOSSES) -
NET INVESTMENT GAINS (LOSSES) - INSURANCE | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
NET INVESTMENT GAINS (LOSSES) - INSURANCE | NET INVESTMENT INCOME - INSURANCE Net investment income for Global Atlantic is comprised primarily of interest income, including amortization of premiums and accretion of discounts, based on yields that change due to expectations in projected cash flows, dividend income from common and preferred stock, earnings from investments accounted for under equity method accounting, and lease income on other investments. The components of net investment income were as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Fixed maturity securities – interest and other income $ 632,314 $ 1,512,377 Mortgage and other loan receivables 247,917 617,334 Investments in transportation and other leased assets 56,317 146,004 Short-term and other investment income 23,285 41,349 Policy loans 3,203 22,138 Investments in real estate 4,501 10,028 Investments in renewable energy 62,468 96,400 Equity securities – dividends and other income 764 23 Income from (to) funds withheld at interest (135,632) (216,057) Gross investment income 895,137 2,229,596 Less investment expenses: Investment management and administration 88,789 190,458 Transportation and renewable energy asset depreciation and maintenance 47,331 117,749 Interest expense on derivative collateral and repurchase agreements 636 1,730 Net investment income $ 758,381 $ 1,919,659 Net investment (losses) gains from insurance operations primarily consists out of (i) realized gains and (losses) from the disposal of investments, (ii) unrealized gains and (losses) from investments held for trading, equity securities, or with fair value remeasurements recognized in earnings as a result of the election of a fair-value option, (iii) unrealized gains and (losses) on funds withheld at interest, (iv) unrealized gains and (losses) from derivatives not designated in an hedging relationship, and (v) allowances for credit losses, and other impairments of investments. Net investment gains (losses) were as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Equity securities and other investments $ 359,101 $ 431,728 Derivatives 40,792 70,098 Trading fixed maturity securities (141,683) (197,047) Allowance for credit losses on mortgage and other loan receivables (69,386) (250,690) AFS fixed maturity securities (15,231) (88,233) Allowance for losses on AFS fixed maturity securities (3,809) 21,287 Allowance for loan commitment losses provision (3,677) (15,372) Mortgage and other loans receivables (2,905) 15,527 Funds withheld receivable at interest (1,075) 45,685 Net investment gains (losses) $ 162,127 $ 32,983 Allowance for credit losses Available-for-sale fixed maturity securities The table below presents a roll-forward of the allowance for credit losses recognized for available-for-sale fixed maturity securities held by Global Atlantic: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Corporate Structured Total Corporate Structured Total Balance, as of beginning of period (1) $ — $ 91,646 $ 91,646 $ — $ 120,895 $ 120,895 Initial impairments for credit losses recognized on securities not previously impaired — 19,921 19,921 — 47,530 47,530 Initial credit loss allowance recognized on PCD securities — 1,576 1,576 — 7,204 7,204 Accretion of initial credit loss allowance on PCD securities — 1,879 1,879 — 2,200 2,200 Reductions due to sales (or maturities, pay downs or prepayments) during the period of securities previously identified as credit impaired — (2,510) (2,510) — (12,612) (12,612) Net additions / reductions for securities previously impaired — (16,112) (16,112) — (68,817) (68,817) Balance, as of end of period $ — $ 96,400 $ 96,400 $ — $ 96,400 $ 96,400 (1) Includes securities designated as purchased credit deteriorated as of the time of the acquisition of Global Atlantic. Mortgage and other loan receivables Changes in the allowance for credit losses on mortgage and other loan receivables held by Global Atlantic are summarized below: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Commercial Mortgage Loans Residential Mortgage Loans Consumer and Other Loan Receivables Total Commercial Mortgage Loans Residential Mortgage Loans Consumer and Other Loan Receivables Total Balance, as of beginning of period (1) $ 58,255 $ 76,536 $ 163,135 $ 297,926 $ 58,203 $ 62,056 $ — $ 120,259 Net provision (release) 17,750 (2,793) 54,429 69,386 17,802 10,888 222,000 250,690 Loans purchased with credit deterioration — — — — — 799 838 1,637 Charge-offs — (3,162) 5,274 2,112 — (3,162) — (3,162) Balance, as of end of period $ 76,005 $ 70,581 $ 222,838 $ 369,424 $ 76,005 $ 70,581 $ 222,838 $ 369,424 (1) Includes loans designated as purchased credit deteriorated as of the time of the acquisition of Global Atlantic. Proceeds and gross gains and losses from voluntary sales The proceeds from voluntary sales and the gross gains and losses on those sales of AFS fixed maturity securities were as follows: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 AFS fixed maturity securities: Proceeds from voluntary sales $ 7,440,645 $ 12,766,887 Gross gains 16,816 38,061 Gross losses (30,086) (103,190) The following reflects the changes to the deferred policy acquisition costs ("DAC") asset: Nine Months Ended September 30, 2021 Balance, as of GA Acquisition Date $ — Acquisition/reinsurance 51,322 Deferrals 259,203 Amortized to expense during the period (1) (13,016) Adjustment for unrealized investment losses (gains) during the period 4,907 Balance, as of end of period $ 302,416 (1) These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations. The following reflects the changes to the value of business acquired ("VOBA") asset: Nine Months Ended September 30, 2021 Balance, as of GA Acquisition Date $ 1,024,520 Amortized to expense during the period (1) (47,866) Balance, as of end of period $ 976,654 (1) These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations. The following reflects the changes to the negative VOBA liability: Nine Months Ended September 30, 2021 Balance, as of Acquisition Date $ 1,273,414 Amortized to expense during the period (1) (118,291) Balance, as of end of period $ 1,155,123 (1) These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations. The following reflects the changes to the unearned revenue reserve ("URR") and unearned front-end load ("UFEL): Nine Months Ended September 30, 2021 Balance, as of GA Acquisition Date $ — Deferrals 41,000 Amortized to expense during the period (1) (1,302) Adjustment for unrealized investment losses during the period (4,100) Balance, as of end of period $ 35,598 (1) These amounts are reported within policy fees in the consolidated statements of operatio ns. |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
INVESTMENTS | 90 Days Total Corporate Securities $ — $ — $ — $ 329,963 $ 329,963 Total borrowing $ — $ — $ — $ 329,963 $ 329,963 Other As of September 30, 2021, the cost or amortized cost and fair value of the assets on deposit with various state and governmental authorities were $183.6 million and $180.5 million." id="sjs-B4">INVESTMENTS Investments consist of the following: September 30, 2021 December 31, 2020 Asset Management Private Equity $ 25,568,516 $ 20,470,123 Credit 12,448,414 11,203,905 Investments of Consolidated CFEs 20,696,676 17,706,976 Real Assets 11,684,296 6,096,618 Equity Method - Other 4,573,679 4,471,441 Equity Method - Capital Allocation-Based Income 11,091,844 6,460,430 Other Investments 3,845,145 2,865,222 Investments - Asset Management $ 89,908,570 $ 69,274,715 Insurance Fixed maturity securities, available-for-sale, at fair value (1) $ 67,689,846 $ — Mortgage and other loan receivables 25,367,116 — Fixed maturity securities, trading, at fair value (2) 16,660,328 — Other investments 7,627,490 — Funds withheld receivable at interest 3,066,481 — Policy loans 765,931 — Equity securities at fair value 37,378 — Investments - Insurance $ 121,214,570 $ — Total Investments $ 211,123,140 $ 69,274,715 ( 1) Amortized cost of $68.1 billion, net of credit loss allowances of $96.4 million. (2) Amortized cost of $16.8 billion. As of September 30, 2021 and December 31, 2020, there were no investments which represented greater than 5% of total investments. For certain disclosures a comparison to prior period is not provided when the amounts relate to investments held by Global Atlantic, which was acquired by KKR on February 1, 2021. Fixed maturity securities The cost or amortized cost and fair value for AFS fixed maturity securities were as follows: Cost or amortized cost Allowance for Credit Losses (2) Gross unrealized Fair value As of September 30, 2021 gains losses AFS fixed maturity securities portfolio by type: U.S. government and agencies $ 1,030,859 $ — $ 14 $ (11,860) $ 1,019,013 U.S. state, municipal and political subdivisions 5,136,682 — 29,493 (61,090) 5,105,085 Corporate 41,280,338 — 205,390 (689,688) 40,796,040 RMBS 8,074,429 (71,565) 146,277 (70,457) 8,078,684 CMBS 3,981,119 — 28,830 (16,578) 3,993,371 CBOs 3,171,138 (17,187) 9,711 (17,132) 3,146,530 CLOs 3,024,860 (665) 8,845 (2,468) 3,030,572 All other structured securities (1) 2,523,746 (6,983) 21,473 (17,685) 2,520,551 Total AFS fixed maturity securities $ 68,223,171 $ (96,400) $ 450,033 $ (886,958) $ 67,689,846 (1) Includes primarily asset-backed securities ("ABS"). (2) Represents the cumulative amount of credit impairments that have been recognized in the consolidated statement of operations (as net investment (losses) gains) or that were recognized as a gross-up of the purchase price of PCD securities. Amount excludes unrealized losses related to non-credit impairment. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, or Global Atlantic may have the right to put or sell the obligations back to the issuers. The maturity distribution for AFS fixed maturity securities is as follows: As of September 30, 2021 Cost or Fair value Due in one year or less $ 829,405 $ 824,765 Due after one year through five years 9,801,829 9,766,497 Due after five years through ten years 11,800,470 11,704,970 Due after ten years 25,016,175 24,623,906 Subtotal 47,447,879 46,920,138 RMBS 8,002,864 8,078,684 CMBS 3,981,119 3,993,371 CBOs 3,153,951 3,146,530 CLOs 3,024,195 3,030,572 All other structured securities 2,516,763 2,520,551 Total AFS fixed maturity securities $ 68,126,771 $ 67,689,846 Purchased credit deteriorated securities Certain securities purchased by Global Atlantic were assessed at acquisition as having experienced a more-than-insignificant deterioration in credit quality since their origination. These securities are identified as PCD, and a reconciliation of the difference between the purchase price and the par value of these PCD securities is below: September 30, 2021 Purchase price of PCD securities acquired during the current period $ 1,726,900 Allowance for credit losses at acquisition 128,099 Discount (premium) attributable to other factors 308,053 Par value $ 2,163,052 Securities in a continuous unrealized loss position The following tables provide information about AFS fixed maturity securities that have been continuously in an unrealized loss position: Less than 12 months 12 months or more Total As of September 30, 2021 Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses AFS fixed maturity securities portfolio by type: U.S. government and agencies $ 982,449 $ (11,860) $ — $ — $ 982,449 $ (11,860) U.S. state, municipal and political subdivisions 3,212,070 (61,090) — — 3,212,070 (61,090) Corporate 31,334,306 (689,688) — — 31,334,306 (689,688) RMBS 2,612,695 (70,457) — — 2,612,695 (70,457) CBOs 1,421,081 (17,132) — — 1,421,081 (17,132) CMBS 1,912,047 (16,578) — — 1,912,047 (16,578) CLOs 680,755 (2,468) — — 680,755 (2,468) All other structured securities 1,281,447 (17,685) — — 1,281,447 (17,685) Total AFS fixed maturity securities in a continuous loss position $ 43,436,850 $ (886,958) $ — $ — $ 43,436,850 $ (886,958) Unrealized gains and losses can be created by changing interest rates or several other factors, including changing credit spreads. Global Atlantic had gross unrealized losses on below investment grade AFS fixed maturity securities of $5.8 million as of September 30, 2021. The single largest unrealized loss on AFS fixed maturity securities was $6.5 million as of September 30, 2021. Global Atlantic had 4,210 securities in an unrealized loss position as of September 30, 2021. Mortgage and other loan receivables Mortgage and other loan receivables consist of the following: As of September 30, 2021 Commercial mortgage loans (1) $ 11,901,653 Residential mortgage loans (1) 7,360,869 Consumer loans 5,284,524 Other loan receivables (1)(2)(3) 1,189,494 Total mortgage and other loan receivables 25,736,540 Allowance for credit losses (369,424) Total mortgage and other loan receivables, net of allowance for loan losses $ 25,367,116 (1) Includes $840.4 million of loans carried at fair value using the fair value option as of September 30, 2021. The fair value option was elected for these loans for asset-liability matching purposes. These loans had unpaid principal balances of $820.6 million as of September 30, 2021. (2) As of September 30, 2021, other loan receivables consisted primarily of renewable energy development loans of $559.3 million. (3) Includes $448.1 million of related party loans carried at fair value using the fair value option as of September 30, 2021. These loans had unpaid principal balances of $448.1 million as of September 30, 2021. The maturity distribution for residential and commercial mortgage loans was as follows as of September 30, 2021: Years Residential Commercial Total mortgage loans Remainder of 2021 $ 94,988 $ 368,629 $ 463,617 2022 528,800 1,052,447 1,581,247 2023 233,336 1,192,664 1,426,000 2024 500,069 1,601,678 2,101,747 2025 17,776 968,337 986,113 2026 373,710 2,249,266 2,622,976 2027 and thereafter 5,612,190 4,468,632 10,080,822 Total $ 7,360,869 $ 11,901,653 $ 19,262,522 Actual maturities could differ from contractual maturities, because borrowers may have the right to prepay (with or without prepayment penalties) and loans may be refinanced. The mortgage loan portfolio is diversified by both geographic region and property type to reduce concentration risk. The following tables present the mortgage loans by geographic region and property type: Mortgage loans - carrying value by geographic region September 30, 2021 Pacific $ 5,624,981 West South Central 2,506,058 South Atlantic 4,302,812 Middle Atlantic 2,630,050 East North Central 526,895 Mountain 1,585,458 New England 795,352 East South Central 920,981 West North Central 336,134 Other regions 33,801 Total by geographic region $ 19,262,522 Mortgage loans - carrying value by property type September 30, 2021 Residential $ 7,360,869 Office building 3,778,950 Apartment 4,922,659 Industrial 1,825,749 Retail 837,294 Other property types 336,116 Warehouse 200,885 Total by property type $ 19,262,522 As of September 30, 2021, Global Atlantic had $197.7 million of mortgage loans that were 90 days or more past due or in the process of foreclosure. Global Atlantic ceases accrual of interest on loans that are more than 90 days past due and recognizes income as cash is received. As of September 30, 2021, there were $197.7 million of mortgage loans that were non-income producing. As of September 30, 2021, 1% of residential mortgage loans and 1% of consumer loans have been granted forbearance due to COVID-19. This forbearance, which generally involves a 3-month period in which payments are not required (though must subsequently be made up), is not considered to result in troubled debt restructurings for the nine months ended September 30, 2021. Interest continues to accrue on loans in temporary forbearance. As of September 30, 2021, Global Atlantic had $4.0 million of consumer loans that were delinquent by more than 120 days or in default. Purchased credit deteriorated loans Certain residential mortgage loans purchased by Global Atlantic were assessed at acquisition as having experienced a more-than-insignificant deterioration in credit quality since their origination. These loans are identified as PCD, and a reconciliation of the difference between the purchase price and the par value of these PCD loans is below: September 30, 2021 Purchase price of PCD loans acquired during the current period $ 4,231,426 Allowance for credit losses at acquisition 121,895 Discount (premium) attributable to other factors (136,174) Par value $ 4,217,147 Credit quality indicators Mortgage and loan receivable performance status The following table represents the portfolio of mortgage and loan receivables by origination year and performance status: September 30, Performance status 2021 2020 2019 2018 2017 Prior Total Commercial mortgage loans Current $ 4,386,351 $ 1,124,617 $ 1,938,622 $ 1,535,710 $ 914,729 $ 2,001,624 $ 11,901,653 30 to 59 days past due — — — — — — — 60 to 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage loans $ 4,386,351 $ 1,124,617 $ 1,938,622 $ 1,535,710 $ 914,729 $ 2,001,624 $ 11,901,653 Residential mortgage loans Current $ 2,835,053 $ 1,485,965 $ 552,473 $ 275,733 $ 68,705 $ 1,809,831 $ 7,027,760 30 to 59 days past due 17,589 3,722 8,439 118 632 76,456 106,956 60 to 89 days past due — 96 1,025 — — 27,322 28,443 Over 90 days past due — 8,689 10,666 1,462 — 176,893 197,710 Total residential mortgage loans $ 2,852,642 $ 1,498,472 $ 572,603 $ 277,313 $ 69,337 $ 2,090,502 $ 7,360,869 Total mortgage loans $ 7,238,993 $ 2,623,089 $ 2,511,225 $ 1,813,023 $ 984,066 $ 4,092,126 $ 19,262,522 The following table represents the portfolio of consumer loan receivables by performance status: Performance status September 30, 2021 Consumer loans Current $ 5,237,492 30 to 59 days past due 25,894 60 to 89 days past due 12,683 Over 90 days past due 8,455 Total consumer loans $ 5,284,524 Loan-to-value ratio on mortgage loans The loan-to-value ratio is expressed as a percentage of the current amount of the loan relative to the value of the underlying collateral. The following table summarizes the loan-to-value ratios for commercial mortgage loans as of September 30, 2021: Loan-to-value as of September 30, 2021, by year of origination Carrying value loan-to-value 70% and less Carrying value loan-to-value 71% - 90% Carrying value loan-to-value over 90% Total carrying value 2021 $ 3,138,534 $ 1,247,817 $ — $ 4,386,351 2020 959,254 130,440 34,923 1,124,617 2019 1,801,925 136,697 — 1,938,622 2018 1,468,119 67,591 — 1,535,710 2017 850,772 63,957 — 914,729 2016 430,192 2,552 — 432,744 Prior 1,553,614 15,266 — 1,568,880 Total commercial mortgage loans $ 10,202,410 $ 1,664,320 $ 34,923 $ 11,901,653 Changing economic conditions affect the valuation of commercial mortgage loans. Changing vacancies and rents are incorporated into the discounted cash flow analysis that Global Atlantic performs for monitored loans and may contribute to the establishment of (or increase or decrease in) a commercial mortgage loan valuation allowance for credit losses. In addition, Global Atlantic continuously monitors its commercial mortgage loan portfolio to identify risk. Areas of emphasis are properties that have exposure to specific geographic events, or have deteriorating credit. The weighted average loan-to-value ratio for the residential mortgage loans was 73% as of September 30, 2021 . Other investments Other investments consist of the following: September 30, 2021 Investments in renewable energy (1)(2) $ 3,976,960 Investments in transportation and other leased assets (3) 2,205,946 Other investment partnerships 189,720 Investments in real estate 1,089,912 FHLB common stock and other investments 164,952 Total other investments $ 7,627,490 (1) Net of accumulated depreciation attributed to consolidated renewable energy assets of $140.3 million as of September 30, 2021. (2) Includes an equity investment in a related party, Origis USA, LLC, of $335.0 million carried at fair value using the fair value option as of September 30, 2021. (3) Net of accumulated depreciation of $74.8 million as of September 30, 2021. The total amount of other investments accounted for using the equity method of accounting was $1.2 billion as of September 30, 2021 . Global Atlantic's maximum exposure to loss related to these equity method investments is limited to the carrying value of these investments plus unfunded commitments of $22.7 million as of September 30, 2021. In addition, Global Atlantic has investments that would otherwise require the equity method of accounting for which the fair value option has been elected. The carrying amount of these investments was $476.8 million as of September 30, 2021. Funding agreements Certain Global Atlantic subsidiaries are members of regional banks in the FHLB system. These subsidiaries have also entered into funding agreements with their respective FHLB. The funding agreements are issued in exchange for cash. The funding agreements require that Global Atlantic pledge eligible assets, such as commercial mortgage loans, as collateral. With respect to certain classes of eligible assets, the FHLB holds the pledged eligible assets in custody at the respective FHLB. The liabilities for the funding agreements are included in policy liabilities in the consolidated statements of financial condition. Information related to the FHLB investment and funding agreements as of September 30, 2021 is as follows: As of September 30, 2021 Investment in common stock Funding agreements issued to FHLB member banks Collateral FHLB Indianapolis $ 74,790 $ 1,623,147 $ 2,520,502 FHLB Des Moines 34,600 620,293 1,025,735 FHLB Boston 22,520 327,858 556,674 Total $ 131,910 $ 2,571,298 $ 4,102,911 In addition, in January 2021, Global Atlantic launched an inaugural funding-agreement backed note ("FABN") program, through which GA Global Funding Trust, a special purpose, unaffiliated statutory trust, was established to offer its senior secured medium-term notes. Net proceeds from each sale of the aforementioned notes are used to purchase one or more funding agreements from Forethought Life Insurance Company, an insurance subsidiary of Global Atlantic. As of September 30, 2021, Global Atlantic had $2.9 billion of such funding agreements outstanding, with $7.1 billion of remaining capacity. Repurchase agreement transactions As of September 30, 2021, Global Atlantic participated in third-party repurchase agreements with a notional value of $317.9 million. As collateral for these transactions, as of September 30, 2021, Global Atlantic posted fixed maturity securities with a fair value and amortized cost of $330.0 million and $331.4 million, respectively, which are included in Insurance - Investments in the consolidated statements of financial condition. The gross obligation for repurchase agreements is reported in Other Liabilities in the consolidated statements of financial condition. The gross obligations by class of collateral pledged for repurchase agreements accounted for as secured borrowings as of September 30, 2021 is presented in the following table: As of September 30, 2021 Overnight <30 Days 30 - 90 Days > 90 Days Total Corporate Securities $ — $ — $ — $ 329,963 $ 329,963 Total borrowing $ — $ — $ — $ 329,963 $ 329,963 Other As of September 30, 2021, the cost or amortized cost and fair value of the assets on deposit with various state and governmental authorities were $183.6 million and $180.5 million. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES Asset Management As discussed in Note 2 "Summary of Significant Accounting Policies", KKR and certain of its consolidated funds have entered into derivative transactions as part of their overall risk management for the asset management business and investment strategies. These derivative contracts are not designated as hedging instruments for accounting purposes. Such contracts may include forward, swap and option contracts related to foreign currencies and interest rates to manage foreign exchange risk and interest rate risk arising from certain assets and liabilities. All derivatives are recognized in Other Assets or Accrued Expenses and Other Liabilities and are presented on a gross basis in the consolidated statements of financial condition and measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. KKR's derivative financial instruments contain credit risk to the extent that its counterparties may be unable to meet the terms of the agreements. KKR attempts to reduce this risk by limiting its counterparties to major financial institutions with strong credit ratings. Insurance Global Atlantic holds derivative instruments that are primarily used in its hedge program. Global Atlantic has established a hedge program that seeks to mitigate economic impacts primarily from interest rate and equity price movements, while taking into consideration accounting and capital impacts. For exchange traded derivatives, Global Atlantic offsets asset and liability positions in similar instruments executed with the same clearing member and the same clearing house where there is legal right of setoff. In addition, these exchange traded derivatives have daily settlement of margin. The restricted cash which was held in connection with open derivative transactions with exchange brokers was $196.0 million as of September 30, 2021. Derivatives designated as accounting hedges Where Global Atlantic has derivative instruments that are designated and qualify as accounting hedges, these derivative instruments receive hedge accounting. Global Atlantic has designated interest rate swaps to hedge the interest rate risk associated with the 2029 Senior Notes and 2031 Senior Notes in fair value hedges. The 2029 Senior Notes and 2031 Senior Notes are reported in debt in the consolidated statements of financial condition and are hedged through their respective maturities. These hedges qualify for the shortcut method of assessing hedge effectiveness. As of September 30, 2021, the carrying amount of the hedged 2029 Senior Notes was $476.2 million, which reflects a fair value hedge adjustment of $(16.4) million. A loss of $4.0 million and $16.4 million was recognized in interest expense in the consolidated statements of operations, due to changes in the fair value of the swap for the three and nine months ended September 30, 2021, respectively, fully offsetting the fair value change in the hedged 2029 Senior Notes. As of September 30, 2021, the carrying amount of the hedged 2031 Senior Notes was $646.0 million, which reflects a fair value hedge adjustment of $(4.0) million. A loss of $7.0 million and $4.0 million was recognized in interest expense in the consolidated statement of operations due to changes in the fair value of the swap for the three and nine months ended September 30, 2021, respectively, fully offsetting the fair value change in the hedged 2031 Senior Notes. Global Atlantic has designated interest rate swaps to hedge the interest rate risk associated with its FHLB funding agreement liabilities in a fair value hedge. The FHLB funding agreement liabilities are reported in policy liabilities in the consolidated statement of financial condition and are hedged through their maturities that range from 2023 to 2025. This hedge qualifies for the shortcut method of assessing hedge effectiveness. As of September 30, 2021, the carrying amount of the hedged FHLB loan liabilities was $1.1 billion, which reflects a fair value hedge adjustment of $(6.0) million. A gain of $1.3 million and a loss of $6.0 million was recognized in policy benefits and claims in the consolidated statements of operations due to changes in the fair value of the swaps for the three and nine months ended September 30, 2021, respectively, fully offsetting the fair value change in the hedged FHLB funding agreement liabilities. Global Atlantic has designated bond forwards to hedge the interest rate risk associated with the planned purchase of AFS debt securities in cash flow hedges. Regression analysis is used to assess the effectiveness of these hedges. As of September 30, 2021, there was a cumulative gain of $2.1 million on the bond forwards recorded in accumulated other comprehensive (loss) income. Amounts deferred in accumulated other comprehensive (loss) income are reclassified to net investment income following the qualifying purchases of AFS securities, as an adjustment to the yield earned over the life of the purchased securities, using the effective interest method. These arrangements are hedging purchases from July 2021 through January 2027 and are expected to affect earnings until 2051. There were $1.6 billion of securities purchased for the nine months ended September 30, 2021. Global Atlantic estimates that the amount of gains/losses in accumulated other comprehensive (loss) income to be reclassified into earnings in the next 12 months will not be material. Global Atlantic designates foreign exchange forward purchase contracts ("FX forwards") to hedge the foreign currency risk associated with foreign currency-denominated bonds in fair value hedges. These foreign currency-denominated bonds are accounted for as AFS fixed maturity securities. Changes in the fair value of the hedged AFS fixed maturity securities due to changes in spot exchange rates are reclassified from AOCI to earnings, which offsets the earnings impact of the spot changes of the FX forwards. The effectiveness of these hedges is assessed using the spot method. Changes in the fair value of the FX forwards related to changes in the spot-forward difference are excluded from the assessment of hedge effectiveness and are deferred in AOCI and recognized in earnings using a systematic and rational method over the life of the FX forwards. The change in the fair value of the FX forwards due to changes in the spot rate was $12.1 million and $13.8 million which was recognized in net investment gains (losses) for the three and nine months ended September 30, 2021, respectively, fully offset by amounts reclassified from AOCI due to changes in spot exchange rates on the AFS fixed maturity securities. The change in the fair value of the FX forwards due to changes in the spot-forward difference was $766 thousand and $399 thousand which was deferred in AOCI for the three and nine months ended September 30, 2021, respectively. $593 thousand and $1.2 million of amounts previously deferred in AOCI was amortized to net investment gains (losses) for the three and nine months ended September 30, 2021, respectively. The fair value and notional value of the derivative assets and liabilities were as follows: As of September 30, 2021 Notional value Derivative Derivative liabilities Asset Management Foreign Exchange Contracts and Options $ 9,615,615 $ 427,929 $ 444,713 Other Derivatives 628,150 1,747 37,798 Total Asset Management 429,676 482,511 Insurance Equity market contracts $ 30,956,133 $ 1,053,680 $ 158,446 Interest rate contracts 16,859,214 162,727 134,677 Foreign currency contracts 929,803 22,644 1,161 Credit risk contracts 60,000 — 1,600 Impact of netting (1) (121,098) (121,098) Fair value included within derivative assets and derivative liabilities 1,117,953 174,786 Embedded derivative – indexed universal life products — 490,013 Embedded derivative – annuity products — 1,652,714 Fair value included within policy liabilities — 2,142,727 Embedded derivative – funds withheld at interest 80,493 (36,755) Total Insurance 1,198,446 2,280,758 Fair value included within total assets and liabilities $ 1,628,122 $ 2,763,269 (1) Represents netting of derivative exposures covered by qualifying master netting agreements. As of December 31, 2020 Notional value Derivative Derivative liabilities Asset Management Foreign Exchange Contracts and Options $ 9,837,178 $ 250,398 $ 551,728 Other Derivatives 802,988 7,839 126,950 Total Asset Management 258,237 678,678 Fair value included within total assets and liabilities $ 258,237 $ 678,678 The amounts of derivative gains and losses recognized are reported in the consolidated statements of operations as follows: Derivative contracts not designated as hedges Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Asset Management Net Gains (Losses) from Investment Activities: Foreign Exchange Contracts and Options $ 321,139 $ (280,406) $ 252,303 $ (61,668) Other Derivatives (11,110) (56,813) (41,571) (100,525) Total included in Net Gains (Losses) from Investment Activities $ 310,029 $ (337,219) $ 210,732 $ (162,193) Insurance Net investment gains (losses): Embedded derivatives $ 93,970 $ — $ 117,248 $ — Equity index options (25,854) — 275,035 — Equity future contracts 1,783 — (171,982) — Interest rate contracts (24,135) — (149,274) — Credit risk contracts (196) — (254) — Total included in net investment gains (losses) $ 45,568 $ — $ 70,773 $ — Derivative contracts designated as hedges Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Insurance Revenues: Foreign currency forwards $ (4,776) $ — $ (675) $ — Total included in net investment gains (losses) $ (4,776) $ — $ (675) $ — Policy benefits and claims: Interest rate swap $ 74 $ — $ (6,552) $ — Total included in policy benefits and claims $ 74 $ — $ (6,552) Interest expense: Interest rate swap $ (7,923) $ — $ (14,307) $ — Total included in interest expense $ (7,923) $ — $ (14,307) $ — The amount of Global Atlantic's net derivative assets and liabilities after consideration of collateral received or pledged were as follows: As of September 30, 2021 Gross amount recognized Gross amounts offset in the statement of financial position (1) Net amounts presented in the statement of financial condition Collateral (received) / pledged Net amount after collateral Derivative assets (excluding embedded derivatives) $ 1,239,051 $ (121,098) $ 1,117,953 $ (967,632) $ 150,321 Derivative liabilities (excluding embedded derivatives) $ 295,884 $ (121,098) $ 174,786 $ — $ 174,786 (1) Represents netting of derivative exposures covered by qualifying master netting agreements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following tables summarize the valuation of assets and liabilities measured and reported at fair value by the fair value hierarchy. Investments classified as Equity Method - Other, for which the fair value option has not been elected, and Equity Method - Capital Allocation-Based Income have been excluded from the tables below. Assets, at fair value: September 30, 2021 Level I Level II Level III Total Asset Management Private Equity $ 2,520,158 $ 1,303,409 $ 21,744,949 $ 25,568,516 Credit — 2,247,803 10,200,611 12,448,414 Investments of Consolidated CFEs — 20,696,676 — 20,696,676 Real Assets — 51,112 11,633,184 11,684,296 Equity Method - Other 10,027 296,087 1,008,868 1,314,982 Other Investments 506,928 169,300 3,168,917 3,845,145 Total Investments 3,037,113 24,764,387 47,756,529 75,558,029 Foreign Exchange Contracts and Options — 427,929 — 427,929 Other Derivatives — 1,704 43 (1) 1,747 Total Assets at Fair Value - Asset Management $ 3,037,113 $ 25,194,020 $ 47,756,572 $ 75,987,705 Insurance AFS fixed maturity securities: U.S. government and agencies $ 740,317 $ 278,696 $ — $ 1,019,013 U.S. state, municipal and political subdivisions — 5,105,085 — 5,105,085 Corporate — 35,953,737 4,842,303 40,796,040 Structured securities — 20,572,721 196,987 20,769,708 Total AFS fixed maturity securities 740,317 61,910,239 5,039,290 67,689,846 Trading fixed maturity securities: U.S. government and agencies 28,133 247,428 — 275,561 U..S. state, municipal and political subdivisions — 1,029,943 — 1,029,943 Corporate — 11,232,964 1,384,965 12,617,929 Structured securities — 2,655,895 81,000 2,736,895 Total trading fixed maturity securities 28,133 15,166,230 1,465,965 16,660,328 Equity securities 8,515 — 28,863 37,378 Mortgage and other loan receivables (2) — — 1,288,478 1,288,478 Other investments (3) — — 795,228 795,228 Funds withheld receivable at interest — — 80,493 80,493 Reinsurance recoverable — — 1,325,487 1,325,487 Derivative assets: Equity market contracts 85,333 968,347 — 1,053,680 Interest rate contracts 14,690 148,037 — 162,727 Foreign currency contracts — 22,644 — 22,644 Impact of netting (4) (31,559) (89,539) — (121,098) Total derivative assets 68,464 1,049,489 — 1,117,953 Separate account assets 5,445,170 — — 5,445,170 Total Assets at Fair Value - Insurance $ 6,290,599 $ 78,125,958 $ 10,023,804 $ 94,440,361 Total Assets at Fair Value $ 9,327,712 $ 103,319,978 $ 57,780,376 $ 170,428,066 December 31, 2020 Level I Level II Level III Total Asset Management Private Equity $ 2,758,396 $ 2,476,823 $ 15,234,904 $ 20,470,123 Credit — 2,031,057 9,172,848 11,203,905 Investments of Consolidated CFEs — 17,706,976 — 17,706,976 Real Assets — 172,043 5,924,575 6,096,618 Equity Method - Other 485,988 7,254 1,014,378 1,507,620 Other Investments 434,481 88,760 2,341,981 2,865,222 Total Investments 3,678,865 22,482,913 33,688,686 59,850,464 Foreign Exchange Contracts and Options — 250,398 — 250,398 Other Derivatives 442 729 6,668 (1) 7,839 Total Assets at Fair Value - Asset Management $ 3,679,307 $ 22,734,040 $ 33,695,354 $ 60,108,701 Total Assets at Fair Value $ 3,679,307 $ 22,734,040 $ 33,695,354 $ 60,108,701 (1) Includes derivative assets that were valued using a third-party valuation firm. The approach used to estimate the fair value of these derivative assets was generally the discounted cash flow method, which includes consideration of the current portfolio, projected portfolio construction, projected portfolio realizations, portfolio volatility (based on the volatility, correlation, and size of each underlying asset class), and the discounting of future cash flows to the reporting date. (2) Includes related party balance of $448.1 million in Level III for mortgage and other loan receivables. (3) Other investments excluded from the fair value hierarchy include certain real estate and private equity funds for which fair value is measured at net asset value per share as a practical expedient. As of September 30, 2021, the fair value of these investments was $102.5 million. (4) Represents netting of derivative exposures covered by qualifying master netting agreements. Liabilities, at fair value: September 30, 2021 Level I Level II Level III Total Asset Management Securities Sold Short $ 262,151 $ — $ — $ 262,151 Foreign Exchange Contracts and Options — 444,713 — 444,713 Unfunded Revolver Commitments — — 50,910 (1) 50,910 Other Derivatives — 37,798 — 37,798 Debt Obligations of Consolidated CFEs — 19,969,156 — 19,969,156 Total Liabilities at Fair Value - Asset Management $ 262,151 $ 20,451,667 $ 50,910 $ 20,764,728 Insurance Policy liabilities $ — $ — $ 544,829 $ 544,829 Closed block policy liabilities — — 1,374,913 1,374,913 Funds withheld payable at interest — — (36,755) (36,755) Derivative instruments payable: Equity market contracts 17,897 140,549 — 158,446 Interest rate contracts 58,866 75,811 — 134,677 Foreign currency contracts — 1,161 — 1,161 Credit contracts — 1,600 — 1,600 Impact of netting (2) (31,559) (89,539) — (121,098) Total derivative instruments payable 45,204 129,582 — 174,786 Reinsurance liabilities — — — — Embedded derivative – indexed universal life products — — 490,013 490,013 Embedded derivative – annuity products — — 1,652,714 1,652,714 Total Liabilities at Fair Value - Insurance $ 45,204 $ 129,582 $ 4,025,714 $ 4,200,500 Total Liabilities at Fair Value $ 307,355 $ 20,581,249 $ 4,076,624 $ 24,965,228 December 31, 2020 Level I Level II Level III Total Asset Management Securities Sold Short $ 281,826 $ — $ — $ 281,826 Foreign Exchange Contracts and Options — 551,728 — 551,728 Unfunded Revolver Commitments — — 46,340 (1) 46,340 Other Derivatives 76,930 50,020 — 126,950 Debt Obligations of Consolidated CFEs — 17,372,740 — 17,372,740 Total Liabilities at Fair Value - Asset Management $ 358,756 $ 17,974,488 $ 46,340 $ 18,379,584 Total Liabilities at Fair Value $ 358,756 $ 17,974,488 $ 46,340 $ 18,379,584 (1) These unfunded revolver commitments are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments. (2) Represents netting of derivative exposures covered by qualifying master netting agreement. The following tables summarize changes in assets and liabilities measured and reported at fair value for which Level III inputs have been used to determine fair value for the three and nine months ended September 30, 2021 and 2020, respectively. The format of the tables has been modified to include the insurance assets and liabilities and, as such, the prior period presentation has been modified accordingly. Three Months Ended September 30, 2021 Balance, Beg. of Period Transfers In / (Out) - Changes in Consolidation Transfers Transfers Out Net Purchases/Issuances/Sales/Settlements Net Unrealized and Realized Gains (Losses) Change in OCI Balance, End of Period Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date Assets Asset Management Private Equity $ 19,023,638 $ — $ — $ (75,554) $ 1,636,915 $ 1,159,950 $ — $ 21,744,949 $ 1,094,045 $ — Credit 9,931,511 — — — 317,956 (56,665) 7,809 10,200,611 (15,427) 7,809 Real Assets 8,717,571 (174,658) — — 2,454,477 635,794 — 11,633,184 609,092 — Equity Method - Other 1,067,844 — — — (75,143) 16,167 — 1,008,868 (22,455) — Other Investments 2,971,242 — — — 105,878 91,797 — 3,168,917 76,256 — Other Derivatives 1,875 — — — 13,152 (14,984) — 43 (14,984) — Total Assets - Asset Management 41,713,681 (174,658) — (75,554) 4,453,235 1,832,059 7,809 47,756,572 1,726,527 7,809 Insurance AFS fixed maturity securities: Corporate fixed maturity securities 4,018,174 — 48,093 (29,400) 785,992 — 19,444 4,842,303 — 1,236 Structured securities 175,936 — 16,309 — 2,460 — 2,282 196,987 — 1,682 Total AFS fixed maturity securities 4,194,110 — 64,402 (29,400) 788,452 — 21,726 5,039,290 — 2,918 Trading fixed maturity securities: Corporate fixed maturity securities 1,009,357 — — — 368,624 6,984 — 1,384,965 4,926 — Structured securities 20,939 — 15,744 — 44,233 84 — 81,000 1,131 — Total trading fixed maturity securities 1,030,296 — 15,744 — 412,857 7,068 — 1,465,965 6,057 — Equity securities 97,029 — — — (90,855) 22,689 — 28,863 (10,074) — Mortgage and other loan receivables 1,224,789 — — — 58,303 5,386 — 1,288,478 2,047 — Other investments 491,635 — — — (33,619) 337,212 — 795,228 (22,496) — Funds withheld receivable at interest 78,450 — — — (437) 2,480 — 80,493 — — Reinsurance recoverable 1,288,097 — — — — 37,390 — 1,325,487 — — Total Assets - Insurance 8,404,406 — 80,146 (29,400) 1,134,701 412,225 21,726 10,023,804 (24,466) 2,918 — Total $ 50,118,087 $ (174,658) $ 80,146 $ (104,954) $ 5,587,936 $ 2,244,284 $ 29,535 $ 57,780,376 $ 1,702,061 $ 10,727 Nine Months Ended September 30, 2021 Balance, Beg. of Period Transfers In / (Out) - Changes in Consolidation Transfers Transfers Out Net Purchases/Issuances/Sales/Settlements Net Unrealized and Realized Gains (Losses) Change in OCI Balance, End of Period Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date Assets Asset Management Private Equity $ 15,234,904 $ — $ 5,034 $ (504,112) $ 1,853,614 $ 5,155,509 $ — $ 21,744,949 $ 5,011,447 $ — Credit 9,172,848 (1,021) 86,135 — 875,871 59,611 7,167 10,200,611 134,588 7,167 Real Assets 5,924,575 (174,658) 17,567 — 4,503,849 1,361,851 — 11,633,184 1,293,618 — Equity Method - Other 1,014,378 — — (22,601) (237,737) 254,828 — 1,008,868 215,103 — Other Investments 2,341,981 (2,879) — (115,274) 380,337 564,752 — 3,168,917 616,584 — Other Derivatives 6,668 — — — 23,762 (30,387) — 43 (30,387) — Total Assets - Asset Management 33,695,354 (178,558) 108,736 (641,987) 7,399,696 7,366,164 7,167 47,756,572 7,240,953 7,167 Insurance AFS fixed maturity securities: Corporate fixed maturity securities 3,504,578 — 76,277 (38,610) 1,298,035 — 2,023 4,842,303 — (9,447) Structured securities 197,970 — 16,309 — (17,047) — (245) 196,987 — 1,652 Total AFS fixed maturity securities 3,702,548 — 92,586 (38,610) 1,280,988 — 1,778 5,039,290 — (7,795) Trading fixed maturity securities: Corporate fixed maturity securities 676,650 — — — 705,027 3,288 — 1,384,965 604 — Structured securities 14,661 — 15,744 — 50,208 387 — 81,000 1,337 — Total trading fixed maturity securities 691,311 — 15,744 — 755,235 3,675 — 1,465,965 1,941 — Equity securities 66,660 — — — (90,855) 53,058 — 28,863 20,295 — Mortgage and other loan receivables 928,673 — — — 348,098 11,707 — 1,288,478 9,814 — Other investments 437,275 — 5,003 — (20,693) 373,643 — 795,228 13,510 — Funds withheld receivable at interest — — — — 152 80,341 — 80,493 — — Reinsurance recoverable — — — — — 1,325,487 — 1,325,487 — — Total Assets - Insurance 5,826,467 — 113,333 (38,610) 2,272,925 1,847,911 1,778 10,023,804 45,560 (7,795) Total $ 39,521,821 $ (178,558) $ 222,069 $ (680,597) $ 9,672,621 $ 9,214,075 $ 8,945 $ 57,780,376 $ 7,286,513 $ (628) Three Months Ended September 30, 2020 Balance, Beg. of Period Transfers In / (Out) - Changes in Consolidation Transfers In Transfers Out Net Purchases/Issuances/Sales/Settlements Net Unrealized and Realized Gains (Losses) Change in OCI Balance, End of Period Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date Assets Asset Management Private Equity $ 10,810,113 $ — $ — $ (18,315) $ 420,025 $ 1,415,156 $ — $ 12,626,979 $ 1,180,782 $ — Credit 8,721,478 231,872 — — (359,847) 108,889 21,586 8,723,978 127,060 21,586 Real Assets 3,223,540 (230,163) 197,972 — 991,283 257,473 — 4,440,105 280,582 — Equity Method - Other 1,622,885 (20,523) 136,374 (58,475) 76,437 176,161 — 1,932,859 175,898 — Other Investments 1,694,797 — — (2,473) 110,101 91,904 — 1,894,329 90,711 — Other Derivatives 26,078 — — — 4,026 (17,496) — 12,608 (17,496) — Total Assets - Asset Management $ 26,098,891 $ (18,814) $ 334,346 $ (79,263) $ 1,242,025 $ 2,032,087 $ 21,586 $ 29,630,858 $ 1,837,537 $ 21,586 Nine Months Ended September 30, 2020 Balance, Beg. of Period Transfers In / (Out) - Changes in Consolidation Transfers In Transfers Out Net Purchases/Issuances/Sales/Settlements Net Unrealized and Realized Gains (Losses) Change in OCI Balance, End of Period Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date Assets Asset Management Private Equity $ 9,871,682 $ — $ — $ (18,315) $ 1,071,229 $ 1,702,383 $ — $ 12,626,979 $ 1,466,074 $ — Credit 9,217,759 231,872 — — 36,767 (764,433) 2,013 8,723,978 (733,768) 2,013 Real Assets 3,567,944 (230,163) 197,972 (113,770) 1,240,108 (221,986) — 4,440,105 (247,961) — Equity Method - Other 1,656,045 (20,523) 136,374 (58,475) 158,437 61,001 — 1,932,859 60,926 — Other Investments 2,154,755 — — (2,473) 240,681 (498,634) — 1,894,329 (484,905) — Other Derivatives 21,806 — — — 3,628 (12,826) — 12,608 (12,310) — Total Assets - Asset Management $ 26,489,991 $ (18,814) $ 334,346 $ (193,033) $ 2,750,850 $ 265,505 $ 2,013 $ 29,630,858 $ 48,056 $ 2,013 Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Purchases Issuances Sales Settlements Net Purchases/ Issuances/ Sales/ Settlements Purchases Issuances Sales Settlements Net Purchases/ Issuances/ Sales/ Settlements Assets Asset Management Private Equity $ 1,768,420 $ — $ (131,505) $ — $ 1,636,915 $ 2,147,332 $ — $ (293,718) $ — $ 1,853,614 Credit 1,895,171 — (1,579,340) 2,125 317,956 4,476,350 — (3,440,035) (160,444) 875,871 Real Assets 2,983,593 — (529,116) — 2,454,477 5,541,325 — (1,037,476) — 4,503,849 Equity Method - Other 7,201 — (82,344) — (75,143) 21,800 — (259,537) — (237,737) Other Investments 257,463 — (151,585) — 105,878 588,865 — (208,528) — 380,337 Other Derivatives 13,152 — — — 13,152 23,762 — — — 23,762 Total Assets - Asset Management 6,925,000 — (2,473,890) 2,125 4,453,235 12,799,434 — (5,239,294) (160,444) 7,399,696 Insurance AFS fixed maturity securities: Corporate fixed maturity securities 2,155,228 — (13,846) (1,355,390) 785,992 4,072,144 — (48,073) (2,726,036) 1,298,035 Structured securities 4,218 — — (1,758) 2,460 4,289 — — (21,336) (17,047) Total AFS fixed maturity securities 2,159,446 — (13,846) (1,357,148) 788,452 4,076,433 — (48,073) (2,747,372) 1,280,988 Trading fixed maturity securities: Corporate fixed maturity securities 370,488 — (623) (1,241) 368,624 710,446 — (623) (4,796) 705,027 Structured securities 44,594 — — (361) 44,233 52,735 — — (2,527) 50,208 Total trading fixed maturity securities 415,082 — (623) (1,602) 412,857 763,181 — (623) (7,323) 755,235 Equity securities — — (83,864) (6,991) (90,855) $ — $ — $ (83,864) $ (6,991) (90,855) Mortgage and other loan receivables 65,517 — (6,541) (673) 58,303 380,555 — (22,200) (10,257) 348,098 Other investments 25,000 — (58,619) — (33,619) 37,926 — (58,619) — (20,693) Funds withheld receivable at interest — (437) — — (437) — 152 — — 152 Total Assets - Insurance 2,665,045 (437) (163,493) (1,366,414) 1,134,701 5,258,095 152 (213,379) (2,771,943) 2,272,925 Total $ 9,590,045 $ (437) $ (2,637,383) $ (1,364,289) $ 5,587,936 $ 18,057,529 $ 152 $ (5,452,673) $ (2,932,387) $ 9,672,621 Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Purchases Sales Settlements Net Purchases/Issuances/Sales/Settlements Purchases Sales Settlements Net Purchases/Issuances/Sales/Settlements Assets Asset Management Private Equity $ 1,266,063 $ (846,038) $ — $ 420,025 $ 1,950,875 $ (879,646) $ — $ 1,071,229 Credit 272,854 (642,056) 9,355 (359,847) 1,792,397 (1,732,825) (22,805) 36,767 Real Assets 994,130 (2,847) — 991,283 1,502,382 (262,274) — 1,240,108 Equity Method - Other 79,079 (2,642) — 76,437 161,147 (2,710) — 158,437 Other Investments 127,365 (17,264) — 110,101 309,358 (68,677) — 240,681 Other Derivatives 4,026 — — 4,026 4,988 (1,360) — 3,628 Total Assets - Asset Management $ 2,743,517 $ (1,510,847) $ 9,355 $ 1,242,025 $ 5,721,147 $ (2,947,492) $ (22,805) $ 2,750,850 Three Months Ended September 30, 2021 Balance, Beg. of Period Transfers In / (Out) - Changes in Consolidation Transfers In Transfers Out Net Purchases/Sales/Settlements/Issuances Net Unrealized and Realized Gains (Losses) Change in OCI Balance, End of Period Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date Liabilities Asset Management Unfunded Revolver Commitments $ 40,050 $ — $ — $ — $ — $ 10,860 $ — $ 50,910 $ 10,860 Total Liabilities - Asset Management 40,050 — — — — 10,860 — 50,910 10,860 Insurance Policy liabilities 548,377 — — — — (3,548) — 544,829 — Closed block policy liabilities 1,341,262 — — — — 32,941 710 1,374,913 — Funds withheld payable at interest 55,172 — — — — (91,927) — (36,755) — Embedded derivative – indexed universal life products 495,353 — — — 108 (5,448) — 490,013 — Embedded derivative – annuity products 1,521,447 — — — 81,926 49,341 — 1,652,714 — Total Liabilities - Insurance 3,961,611 — — — 82,034 (18,641) 710 4,025,714 — Total $ 4,001,661 $ — $ — $ — $ 82,034 $ (7,781) $ 710 $ 4,076,624 $ 10,860 Nine Months Ended September 30, 2021 Balance, Beg. of Period Transfers In / (Out) - Changes in Consolidation Transfers In Transfers Out Net Purchases/Sales/Settlements/Issuances Net Unrealized and Realized Gains (Losses) Change in OCI Balance, End of Period Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date Liabilities Asset Management Unfunded Revolver Commitments $ 46,340 $ — $ — $ — $ 628 $ 3,942 $ — $ 50,910 $ 3,942 Total Liabilities - Asset Management 46,340 — — — 628 3,942 — 50,910 3,942 Insurance Policy liabilities 637,800 — — — — (92,971) — 544,829 — Closed block policy liabilities 1,395,746 — — — — (22,205) 1,372 1,374,913 — Funds withheld payable at interest 59,230 — — — — (95,985) — (36,755) — Embedded derivative – indexed universal life products 386,746 — — — (393) 103,660 — 490,013 — Embedded derivative – annuity products 1,024,601 — — — 208,027 420,086 — 1,652,714 — Total Liabilities - Insurance 3,504,123 — — — 207,634 312,585 1,372 4,025,714 — Total $ 3,550,463 $ — $ — $ — $ 208,262 $ 316,527 $ 1,372 $ 4,076,624 $ 3,942 Three Months Ended September 30, 2020 Balance, Beg. of Period Transfers In / (Out) - Changes in Consolidation Transfers In Transfers Out Net Purchases/Sales/Settlements/Issuances Net Unrealized and Realized Gains (Losses) Change in OCI Balance, End of Period Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date Liabilities Asset Management Unfunded Revolver Commitments $ 70,148 $ — $ — $ — $ — $ (14,063) $ — $ 56,085 $ (14,063) Total Liabilities - Asset Management $ 70,148 $ — $ — $ — $ — $ (14,063) $ — $ 56,085 $ (14,063) Nine Months Ended September 30, 2020 Balance, Beg. of Period Transfers In / (Out) - Changes in Consolidation Transfers In Transfers Out Net Purchases/Sales/Settlements/Issuances Net Unrealized and Realized Gains (Losses) Change in OCI Balance, End of Period Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date Liabilities Asset Management Unfunded Revolver Commitments $ 75,842 $ — $ — $ — $ (2,464) $ (17,293) $ — $ 56,085 $ (17,293) Total Liabilities - Asset Management $ 75,842 $ — $ — $ — $ (2,464) $ (17,293) $ — $ 56,085 $ (17,293) Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Issuances Settlements Net settlements/Issuances Issuances Settlements Net settlements/Issuances Liabilities Asset Management Unfunded Revolver Commitments $ 11,319 $ (11,319) $ — $ 12,486 $ (11,858) $ 628 Total Liabilities - Asset Management 11,319 (11,319) — 12,486 (11,858) 628 Insurance Embedded derivative – indexed universal life products 4,775 (4,667) 108 14,853 (15,246) (393) Embedded derivative – annuity products 81,926 — 81,926 208,027 — 208,027 Total Liabilities - Insurance 86,701 (4,667) 82,034 222,880 (15,246) 207,634 Total $ 98,020 $ (15,986) $ 82,034 $ 235,366 $ (27,104) $ 208,262 Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Issuances Settlements Net settlements/Issuances Issuances Settlements Net settlements/Issuances Liabilities Asset Management Unfunded Revolver Commitments $ — $ — $ — $ — $ (2,464) $ (2,464) Total Liabilities - Asset Management $ — $ — $ — $ — $ (2,464) $ (2,464) Total realized and unrealized gains and losses recorded for Asset Management - Level III assets and liabilities are reported in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations while Insurance - Level III assets and liabilities are reported in Net Investment Gains and Policy Benefits and Claims in the accompanying consolidated statements of operations. The following table presents additional information about valuation methodologies and significant unobservable inputs used for financial assets and liabilities that are measured and reported at fair value and categorized within Level III as of September 30, 2021. Because input information includes only those items for which information is reasonably available, balances shown below may not equal total amounts reported for such Level III assets and liabilities: Level III Assets Fair Value September 30, 2021 Valuation Unobservable Input(s) (1) Weighted Average (2) Range Impact to Valuation from an Increase in Input (3) ASSET MANAGEMENT Private Equity $ 21,744,949 Private Equity $ 18,865,051 Inputs to market comparables, discounted cash flow and transaction price Illiquidity Discount 6.8% 5.0% - 15.0% Decrease Weight Ascribed to Market Comparables 25.7% 0.0% - 75.0% (4) Weight Ascribed to Discounted Cash Flow 54.8% 0.0% - 100.0% (5) Weight Ascribed to Transaction Price 19.5% 0.0% - 100.0% (6) Market comparables Enterprise Value/LTM EBITDA Multiple 17.6x 9.5x - 26.8x Increase Enterprise Value/Forward EBITDA Multiple 14.9x 8.0x - 20.0x Increase Discounted cash flow Weighted Average Cost of Capital 9.4% 3.5% - 15.2% Decrease Enterprise Value/LTM EBITDA Exit Multiple 13.4x 6.0x - 18.0x Increase Growth Equity $ 2,879,898 Inputs to market comparables, discounted cash flow and milestones Illiquidity Discount 9.7% 5.0% - 25.0% Decrease Weight Ascribed to Market Comparables 31.2% 0.0% - 100.0% (4) Weight Ascribed to Discounted Cash Flow 2.0% 0.0% - 50.0% (5) Weight Ascribed to Milestones 66.8% 0.0% - 100.0% (6) Scenario Weighting Base 73.9% 50.0% - 75.0% Increase Downside 7.5% 1.0% - 25.0% Decrease Upside 18.6% 0.0% - 35.0% Increase Credit $ 10,200,611 Yield Analysis Yield 5.3% 4.3% - 25.7% Decrease Net Leverage 5.1x 0.3x - 15.2x Decrease EBITDA Multiple 11.5x 1.1x - 37.8x Increase Real Assets $ 11,633,184 Energy $ 2,623,066 Inputs to market comparables and discounted cash flow Weight Ascribed to Market Comparables 46.1% 0.0% - 50.0% (4) Weight Ascribed to Discounted Cash Flow 53.9% 50.0% - 100.0% (5) Market comparables Enterprise Value/LTM EBITDA Multiple 6.1x 5.9x - 6.2x Increase Enterprise Value/Forward EBITDA Multiple 4.5x 4.1x - 8.0x Increase Discounted cash flow Weighted Average Cost of Capital 11.4% 10.3% - 14.7% Decrease Average Price Per BOE (8) $41.71 $39.43 - $44.74 Increase Infrastructure $ 3,083,444 Inputs to market comparables, discounted cash flow and transaction price Illiquidity Discount 5.0% 5.0% - 5.0% Decrease Weight Ascribed to Market Comparables 1.8% 0.0% - 25.0% (4) Weight Ascribed to Discounted Cash Flow 48.7% 0.0% - 100.0% (5) Weight Ascribed to Transaction Price 49.5% 0.0% - 100.0% (6) Market comparables Enterprise Value/Forward EBITDA Multiple 11.0x 11.0x - 11.0x Increase Discounted cash flow Weighted Average Cost of Capital 6.3% 4.8% - 8.3% Decrease Enterprise Value/LTM EBITDA Exit Multiple 12.2x 10.0x - 13.0x Increase Real Estate $ 5,926,674 Inputs to direct income capitalization, discounted cash flow and transaction price Weight Ascribed to Direct Income Capitalization 22.8% 0.0% - 100.0% (7) Weight Ascribed to Discounted Cash Flow 70.2% 0.0% - 100.0% (5) Weight Ascribed to Transaction Price 7.0% 0.0% - 100.0% (6) Direct income capitalization Current Capitalization Rate 5.1% 3.5% - 8.1% Decrease Discounted cash flow Unlevered Discount Rate 6.6% 5.3% - 18.0% Decrease Level III Assets Fair Value September 30, 2021 Valuation Unobservable Input(s) (1) Weighted Average (2) Range Impact to Valuation from an Increase in Input (3) Equity Method - Other $ 1,008,868 Inputs to market comparables, discounted cash flow and transaction price Illiquidity Discount 8.1% 5.0% - 10.0% Decrease Weight Ascribed to Market Comparables 34.1% 0.0% - 75.0% (4) Weight Ascribed to Discounted Cash Flow 26.5% 0.0% - 50.0% (5) Weight Ascribed to Transaction Price 39.4% 0.0% - 100.0% (6) Market comparables Enterprise Value/LTM EBITDA Multiple 11.5x 11.0x - 26.9x Increase Enterprise Value/Forward EBITDA Multiple 11.8x 4.1x - 19.5x Increase Discounted cash flow Weighted Average Cost of Capital 10.5% 5.8% - 16.0% Decrease Enterprise Value/LTM EBITDA Exit Multiple 11.0x 6.0x - 15.0x Increase Other Investments $ 3,168,917 (9) Inputs to market comparables, discounted cash flow and transaction price Illiquidity Discount 9.7% 6.3% - 20.0% Decrease Weight Ascribed to Market Comparables 22.5% 0.0% - 100.0% (4) Weight Ascribed to Discounted Cash Flow 39.5% 0.0% - 100.0% (5) Weight Ascribed to Transaction Price 38.0% 0.0% - 100.0% (6) Market comparables Enterprise Value/LTM EBITDA Multiple 13.7x 1.1x - 30.5x Increase Enterprise Value/Forward EBITDA Multiple 13.2x 0.9x - 17.1x Increase Discounted cash flow Weighted Average Cost of Capital 11.8% 7.6% - 25.0% Decrease Enterprise Value/LTM EBITDA Exit Multiple 10.0x 5.1x - 11.0x Increase INSURANCE Corporate fixed maturity securities $ 1,627,371 Discounted cash flow Discount Spread 2.11% —% - 4.83% Decrease Structured securities $ 159,372 Discounted cash flow Discount Spread 2.85% 2.20% - 6.15% Decrease Constant Prepayment Rate 7.32% 5.00% - 15.00% Increase/Decrease Constant Default Rate 1.16% 1.00% - 2.50% Decrease Loss Severity 100% Decrease Other investments $ 455,387 Direct capitalization Current Capitalization Rate 5.52% 4.95% - 6.09% Decrease Vacancy rate 5.00% Decrease Discounted cash flow Yield 8.00% Decrease Funds withheld receivable at interest $ 80,493 Discounted cash flow Duration/Weighted Average Life 10.43 years 0.0 years - 23.2 years Increase Contractholder Persistency 6.13% 3.50% - 16.20% Increase Nonperformance Risk 0.26% - 1.11% Decrease Reinsurance recoverable $ 1,325,487 Present value of expenses paid from the open block plus the cost of capital held in support of the liabilities. Expense assumption The average expense assumption is between $10.40 and $78.00 per policy, increased by inflation. Increase Unobservable inputs are a market participant’s view of the expenses, a risk margin on the uncertainty of the level of expenses and a cost of capital on the capital held in support of the liabilities. Expense risk margin 9.42% Decrease Cost of capital 3.69% - 13.85% Increase Discounted cash flow Mortality Rate 2.55% Increase Surrender Rate 5.33% Increase (1) In determining certain of these inputs, management evaluates a variety of factors including economic conditions, industry and market developments, market valuations of comparable companies and company specific developments including exit strategies and realization opportunities. Management has determined that market participants would take these inputs into account when valuing the investments and debt obligations. LTM means last twelve months and EBITDA means earnings before interest, taxes, depreciation and amortization. (2) Inputs were weighted based on the fair value of the investments included in the range. (3) Unless otherwise noted, this column represents the directional change in the fair value of the Level III investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements. (4) The directional change from an increase in the weight ascribed to the market comparables approach would increase the fair value of the Level III investments if the market comparables approach results in a higher valuation than the discounted cash flow approach and transaction price. The opposite would be true if the market comparables approach results in a lower valuation than the discounted cash flow approach and transaction price. (5) The directional change from an increase in the weight ascribed to the discounted cash flow approach would increase the fair value of the Level III investments if the discounted cash flow approach results in a higher valuation than the market comparables approach, transaction price and direct income capitalization approach. The opposite would be true if the discounted cash flow approach results in a lower valuation than the market comparables approach, transaction price and direct income capitalization approach. (6) The directional change from an increase in the weight ascribed to the transaction price or milestones would increase the fair value of the Level III investments if the transaction price or milestones results in a higher valuation than the market comparables and discounted cash flow approach. The opposite would be true if the transaction price or milestones results in a lower valuation than the market comparables approach and discounted cash flow approach. (7) The directional change from an increase in the weight ascribed to the direct income capitalization approach would increase the fair value of the Level III investments if the direct income capitalization approach results in a higher valuation than the discounted cash flow approach. The opposite would be true if the direct income capitalization approach results in a lower valuation than the discounted cash flow approach. (8) The total energy fair value amount includes multiple investments (in multiple locations throughout North America) that are held in multiple investment funds and produce varying quantities of oil, condensate, natural gas liquids, and natural gas. Commodity price may be measured using a common volumetric equivalent where one barrel of oil equivalent ("BOE"), is determined using the ratio of six thousand cubic feet of natural gas to one barrel of oil, condensate or natural gas liquids. The price per BOE is provided to show the aggregate of all price inputs for the various investments over a common volumetric equivalent although the valuations for specific investments may use price inputs specific to the asset for purposes of our valuations. The discounted cash flows include forecasted production of liquids (oil, condensate, and natural gas liquids) and natural gas with a forecasted revenue ratio of approximately 85% liquids and 15% natural gas. (9) Consists primarily of investments in common stock, preferred stock, warrants and options of companies that are not private equity, real assets, credit, equity method - other or investments of consolidated CFEs. Level III Liabilities Fair Value September 30, 2021 Valuation Unobservable Input(s) (1) Weighted Average (2) Range Impact to Valuation from an Increase in Input (3) ASSET MANAGEMENT Unfunded Revolver Commitments $ 50,910 Yield Analysis Yield 5.2% 3.9% - 6.9% Decrease INSURANCE Policy liabilities $ 544,829 Present value of best estimate liability cash flows. Unobservable inputs include a market participant view of the risk margin included in the discount rate which reflects the variability of the cash flows. Risk Margin Rate 0.26% - 1.45% Decrease Policyholder behavior is also a significant unobservable input, including surrender and mortality. Surrender Rate 3.15% - 6.92% Increase Mortality Rate 3.75% - 8.29% Increase Closed block policy liabilities $ 1,374,913 Present value of expenses paid fr |
FAIR VALUE OPTION
FAIR VALUE OPTION | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OPTION | FAIR VALUE OPTION The following table summarizes the financial instruments for which the fair value option has been elected: September 30, 2021 December 31, 2020 Assets Asset Management Credit $ 6,986,251 $ 5,958,958 Investments of Consolidated CFEs 20,696,676 17,706,976 Real Assets 185,117 177,240 Equity Method - Other 1,314,982 1,507,620 Other Investments 197,797 201,563 Total Asset Management $ 29,380,823 $ 25,552,357 Insurance Mortgage and other loan receivables $ 1,288,478 $ — Other investments 476,768 — Reinsurance recoverable 1,325,487 — Total Insurance $ 3,090,733 $ — Total Assets $ 32,471,556 $ 25,552,357 Liabilities Asset Management Debt Obligations of Consolidated CFEs $ 19,969,156 $ 17,372,740 Total Asset Management $ 19,969,156 $ 17,372,740 Insurance Policy liabilities $ 1,919,742 $ — Total Insurance $ 1,919,742 $ — Total Liabilities $ 21,888,898 $ 17,372,740 The following table presents the net realized and unrealized gains (losses) on financial instruments for which the fair value option was elected: Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Net Realized Gains (Losses) Net Unrealized Gains (Losses) Total Net Realized Net Unrealized Total Assets Asset Management Credit $ 19,414 $ 7,639 $ 27,053 $ 6,105 $ 93,955 $ 100,060 Investments of Consolidated CFEs 23,198 (15,013) 8,185 (33,373) 425,660 $ 392,287 Real Assets 391 7,591 7,982 — 6,423 $ 6,423 Equity Method - Other 293,819 (263,841) 29,978 (26,079) 344,316 $ 318,237 Other Investments 11,175 1,062 12,237 49 7,924 $ 7,973 Total Asset Management $ 347,997 $ (262,562) $ 85,435 $ (53,298) $ 878,278 $ 824,980 Insurance Mortgage and other loan receivables $ — $ 3,613 $ 3,613 $ — $ — $ — Other investments — 317,542 317,542 — — — Total Insurance $ — $ 321,155 $ 321,155 $ — $ — $ — Total Assets $ 347,997 $ 58,593 $ 406,590 $ (53,298) $ 878,278 $ 824,980 Liabilities Asset Management Debt Obligations of Consolidated CFEs $ 10,278 $ (10,437) $ (159) $ — $ (317,299) $ (317,299) Total Asset Management $ 10,278 $ (10,437) $ (159) $ — $ (317,299) $ (317,299) Insurance Policy liabilities $ — $ (3,463) $ (3,463) $ — $ — $ — Total Insurance $ — $ (3,463) $ (3,463) $ — $ — $ — Total Liabilities $ 10,278 $ (13,900) $ (3,622) $ — $ (317,299) $ (317,299) Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Net Realized Net Unrealized Gains (Losses) Total Net Realized Net Unrealized Total Assets Asset Management Credit $ 1,573 $ 15,543 $ 17,116 $ (42,878) $ 5,458 $ (37,420) Investments of Consolidated CFEs 44,954 173,775 218,729 (127,175) (424,918) (552,093) Real Assets 566 18,448 19,014 153 (17,882) (17,729) Equity Method - Other 368,931 (71,179) 297,752 (82,671) 271,243 188,572 Other Investments 16,581 17,627 34,208 (60,241) 52,755 (7,486) Total Asset Management $ 432,605 $ 154,214 $ 586,819 $ (312,812) $ (113,344) $ (426,156) Insurance Mortgage and other loan receivables $ — $ 9,443 $ 9,443 $ — $ — $ — Other investments — 353,112 353,112 — — — Total Insurance $ — $ 362,555 $ 362,555 $ — $ — $ — Total Assets $ 432,605 $ 516,769 $ 949,374 $ (312,812) $ (113,344) $ (426,156) Liabilities Asset Management Debt Obligations of Consolidated CFEs $ 9,740 $ (82,107) $ (72,367) $ — $ 337,634 $ 337,634 Total Asset Management $ 9,740 $ (82,107) $ (72,367) $ — $ 337,634 $ 337,634 Insurance Policy liabilities $ — $ (89,184) $ (89,184) $ — $ — $ — Total Insurance $ — $ (89,184) $ (89,184) $ — $ — $ — Total Liabilities $ 9,740 $ (171,291) $ (161,551) $ — $ 337,634 $ 337,634 |
INSURANCE INTANGIBLES, UNEARNED
INSURANCE INTANGIBLES, UNEARNED REVENUE RESERVES AND UNEARNED FRONT-END LOADS | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
INSURANCE INTANGIBLES, UNEARNED REVENUE RESERVES AND UNEARNED FRONT-END LOADS | NET INVESTMENT INCOME - INSURANCE Net investment income for Global Atlantic is comprised primarily of interest income, including amortization of premiums and accretion of discounts, based on yields that change due to expectations in projected cash flows, dividend income from common and preferred stock, earnings from investments accounted for under equity method accounting, and lease income on other investments. The components of net investment income were as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Fixed maturity securities – interest and other income $ 632,314 $ 1,512,377 Mortgage and other loan receivables 247,917 617,334 Investments in transportation and other leased assets 56,317 146,004 Short-term and other investment income 23,285 41,349 Policy loans 3,203 22,138 Investments in real estate 4,501 10,028 Investments in renewable energy 62,468 96,400 Equity securities – dividends and other income 764 23 Income from (to) funds withheld at interest (135,632) (216,057) Gross investment income 895,137 2,229,596 Less investment expenses: Investment management and administration 88,789 190,458 Transportation and renewable energy asset depreciation and maintenance 47,331 117,749 Interest expense on derivative collateral and repurchase agreements 636 1,730 Net investment income $ 758,381 $ 1,919,659 Net investment (losses) gains from insurance operations primarily consists out of (i) realized gains and (losses) from the disposal of investments, (ii) unrealized gains and (losses) from investments held for trading, equity securities, or with fair value remeasurements recognized in earnings as a result of the election of a fair-value option, (iii) unrealized gains and (losses) on funds withheld at interest, (iv) unrealized gains and (losses) from derivatives not designated in an hedging relationship, and (v) allowances for credit losses, and other impairments of investments. Net investment gains (losses) were as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Equity securities and other investments $ 359,101 $ 431,728 Derivatives 40,792 70,098 Trading fixed maturity securities (141,683) (197,047) Allowance for credit losses on mortgage and other loan receivables (69,386) (250,690) AFS fixed maturity securities (15,231) (88,233) Allowance for losses on AFS fixed maturity securities (3,809) 21,287 Allowance for loan commitment losses provision (3,677) (15,372) Mortgage and other loans receivables (2,905) 15,527 Funds withheld receivable at interest (1,075) 45,685 Net investment gains (losses) $ 162,127 $ 32,983 Allowance for credit losses Available-for-sale fixed maturity securities The table below presents a roll-forward of the allowance for credit losses recognized for available-for-sale fixed maturity securities held by Global Atlantic: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Corporate Structured Total Corporate Structured Total Balance, as of beginning of period (1) $ — $ 91,646 $ 91,646 $ — $ 120,895 $ 120,895 Initial impairments for credit losses recognized on securities not previously impaired — 19,921 19,921 — 47,530 47,530 Initial credit loss allowance recognized on PCD securities — 1,576 1,576 — 7,204 7,204 Accretion of initial credit loss allowance on PCD securities — 1,879 1,879 — 2,200 2,200 Reductions due to sales (or maturities, pay downs or prepayments) during the period of securities previously identified as credit impaired — (2,510) (2,510) — (12,612) (12,612) Net additions / reductions for securities previously impaired — (16,112) (16,112) — (68,817) (68,817) Balance, as of end of period $ — $ 96,400 $ 96,400 $ — $ 96,400 $ 96,400 (1) Includes securities designated as purchased credit deteriorated as of the time of the acquisition of Global Atlantic. Mortgage and other loan receivables Changes in the allowance for credit losses on mortgage and other loan receivables held by Global Atlantic are summarized below: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Commercial Mortgage Loans Residential Mortgage Loans Consumer and Other Loan Receivables Total Commercial Mortgage Loans Residential Mortgage Loans Consumer and Other Loan Receivables Total Balance, as of beginning of period (1) $ 58,255 $ 76,536 $ 163,135 $ 297,926 $ 58,203 $ 62,056 $ — $ 120,259 Net provision (release) 17,750 (2,793) 54,429 69,386 17,802 10,888 222,000 250,690 Loans purchased with credit deterioration — — — — — 799 838 1,637 Charge-offs — (3,162) 5,274 2,112 — (3,162) — (3,162) Balance, as of end of period $ 76,005 $ 70,581 $ 222,838 $ 369,424 $ 76,005 $ 70,581 $ 222,838 $ 369,424 (1) Includes loans designated as purchased credit deteriorated as of the time of the acquisition of Global Atlantic. Proceeds and gross gains and losses from voluntary sales The proceeds from voluntary sales and the gross gains and losses on those sales of AFS fixed maturity securities were as follows: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 AFS fixed maturity securities: Proceeds from voluntary sales $ 7,440,645 $ 12,766,887 Gross gains 16,816 38,061 Gross losses (30,086) (103,190) The following reflects the changes to the deferred policy acquisition costs ("DAC") asset: Nine Months Ended September 30, 2021 Balance, as of GA Acquisition Date $ — Acquisition/reinsurance 51,322 Deferrals 259,203 Amortized to expense during the period (1) (13,016) Adjustment for unrealized investment losses (gains) during the period 4,907 Balance, as of end of period $ 302,416 (1) These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations. The following reflects the changes to the value of business acquired ("VOBA") asset: Nine Months Ended September 30, 2021 Balance, as of GA Acquisition Date $ 1,024,520 Amortized to expense during the period (1) (47,866) Balance, as of end of period $ 976,654 (1) These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations. The following reflects the changes to the negative VOBA liability: Nine Months Ended September 30, 2021 Balance, as of Acquisition Date $ 1,273,414 Amortized to expense during the period (1) (118,291) Balance, as of end of period $ 1,155,123 (1) These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations. The following reflects the changes to the unearned revenue reserve ("URR") and unearned front-end load ("UFEL): Nine Months Ended September 30, 2021 Balance, as of GA Acquisition Date $ — Deferrals 41,000 Amortized to expense during the period (1) (1,302) Adjustment for unrealized investment losses during the period (4,100) Balance, as of end of period $ 35,598 (1) These amounts are reported within policy fees in the consolidated statements of operatio ns. |
REINSURANCE
REINSURANCE | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
REINSURANCE | REINSURANCEGlobal Atlantic maintains a number of reinsurance treaties with third parties whereby Global Atlantic assumes fixed annuity, variable annuity, payout annuity, universal life, variable universal life and term life insurance policies on a coinsurance, modified coinsurance and funds withheld basis. Global Atlantic also maintains other reinsurance treaties including the cession of certain fixed annuity, variable annuity, payout annuity, universal life policies, individual disability income policies and discontinued accident and health insurance. The effects of all reinsurance agreements on the consolidated statement of financial condition were as follows: September 30, 2021 Policy liabilities: Direct $ 65,847,071 Assumed 58,764,838 Total policy liabilities 124,611,909 Ceded (1) (25,248,798) Net policy liabilities $ 99,363,111 (1) Reported within reinsurance recoverable within the consolidated statement of financial condition. A key credit quality indicator is a counterparty’s A.M. Best financial strength rating. A.M. Best ratings are an independent opinion of a reinsurer’s ability to meet ongoing obligations to policyholders. Global Atlantic mitigates counterparty credit risk by requiring collateral and credit enhancements in various forms including engaging in funds withheld at interest and modified coinsurance transactions. The following shows the amortized cost basis of Global Atlantic’s reinsurance recoverable and funds withheld receivable at interest by credit quality indicator and any associated credit enhancements Global Atlantic has obtained to mitigate counterparty credit risk: As of September 30, 2021 A.M. Best Rating (1) Reinsurance recoverable and funds withheld receivable at interest (2) Credit enhancements (3) Net reinsurance credit exposure A++ $ 7,267 $ — $ 7,267 A+ 1,937,673 — 1,937,673 A 2,777,536 — 2,777,536 A- 5,740,269 5,304,491 435,778 B++ 33,421 — 33,421 B+ 2,307 — 2,307 B 10,425 — 10,425 B- 4,213 — 4,213 Not rated (4) 17,717,883 18,320,143 — Total $ 28,230,994 $ 23,624,634 $ 5,208,620 _________________ (1) Ratings are periodically updated (at least annually) as A.M. Best issues new ratings. (2) At amortized cost, excluding any associated embedded derivative assets and liabilities (3) Includes funds withheld payable at interest and deferred intangible reinsurance assets and liabilities. (4) Includes $17.7 billion associated with cessions to Ivy Re Limited, a Bermuda insurance company and a subsidiary of an unaffiliated investment vehicle that participates in qualifying reinsurance transactions sourced by Global Atlantic. As of September 30, 2021, Global Atlantic had $3.1 billion of funds withheld receivable at interest, with six counterparties related to modified coinsurance and funds withheld contracts. The assets supporting these receivables were held in trusts and not part of the respective counterparty’s general accounts. The effects of reinsurance on the consolidated statements of operations were as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Premiums: Direct $ 28,509 $ 74,959 Assumed (1) 1,908,614 3,778,810 Ceded (962,220) (2,154,857) Net premiums $ 974,903 $ 1,698,912 _________________ (1) Includes related party balances of $0 thousand and $8.7 million for the three and nine months ended September 30, 2021, respectively. Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Policy fees: Direct $ 233,029 $ 614,910 Assumed (1) 77,694 210,411 Ceded (342) (995) Net policy fees $ 310,381 $ 824,326 _________________ (1) Includes related party balances of $0 thousand and $6.2 million for the three and nine months ended September 30, 2021, respectively. Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Policy benefits and claims: Direct $ 554,134 $ 1,996,642 Assumed (1) 2,254,670 3,987,189 Ceded (1,111,758) (2,390,268) Net policy benefits and claims $ 1,697,046 $ 3,593,563 _________________ (1) Includes related party balances of $0 thousand and $76.2 million for the three and nine months ended September 30, 2021, respectively. Global Atlantic holds collateral for and provides collateral to our reinsurance clients. Global Atlantic held $23.4 billion of collateral on behalf of our reinsurers as of September 30, 2021. As of September 30, 2021, reinsurers held collateral of $1.3 billion on behalf of Global Atlantic. A significant portion of the collateral that Global Atlantic provides to its reinsurance clients is provided in the form of assets held in a trust for the benefit of the counterparty. As of September 30, 2021, these trusts were required to hold, and held in excess of, $54.4 billion of assets to support reserves of $55.2 billion. Of the cash held in trust, Global Atlantic classified $201.7 million as restricted as of September 30, 2021. |
NET INCOME (LOSS) ATTRIBUTABLE
NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF COMMON STOCK | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF COMMON STOCK | NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF COMMON STOCK For the three and nine months ended September 30, 2021 and 2020, basic and diluted Net Income (Loss) attributable to KKR & Co. Inc. per share of common stock were calculated as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Net Income (Loss) Available to KKR & Co. Inc. $ 1,131,354 $ 1,047,685 $ 4,053,271 $ 457,448 (+) Series C Mandatory Convertible Preferred Dividend (if dilutive) 17,250 8,817 51,750 — Net Income (Loss) Available to KKR & Co. Inc. $ 1,148,604 $ 1,056,502 $ 4,105,021 $ 457,448 Basic Net Income (Loss) Per Share of Common Stock Weighted Average Shares of Common Stock Outstanding - Basic 583,030,506 562,425,576 580,742,033 560,124,947 Net Income (Loss) Attributable to KKR & Co. Inc. $ 1.94 $ 1.86 $ 6.98 $ 0.82 Diluted Net Income (Loss) Per Share of Common Stock Weighted Average Shares of Common Stock Outstanding - Basic 583,030,506 562,425,576 580,742,033 560,124,947 Incremental Common Shares: Assumed vesting of dilutive equity awards 27,562,994 9,954,502 22,055,422 9,786,034 Assumed conversion of Series C Mandatory Convertible Preferred Stock 26,822,600 16,736,309 26,822,600 — Weighted Average Shares of Common Stock Outstanding - Diluted 637,416,100 589,116,387 629,620,055 569,910,981 Net Income (Loss) Attributable to KKR & Co. Inc. $ 1.80 $ 1.79 $ 6.52 $ 0.80 For the three and nine months ended September 30, 2021, Weighted Average Shares of Common Stock Outstanding - Diluted includes the following: (i) Unvested equity awards, including certain equity awards that have met their market-price vesting condition but have not satisfied their service-based condition, which have been granted under the Equity Incentive Plans. Vesting of these equity interests dilute equityholders of KKR Group Partnership, including KKR & Co. Inc. and KKR Holdings pro rata in accordance with their respective ownership interests in KKR Group Partnership. (ii) For the three and nine months ended September 30, 2021, the impact of Series C Mandatory Convertible Preferred Stock calculated under the if-converted method was dilutive, and as such (i) 26.8 million shares of common stock (assuming a conversion ratio based on the average volume weighted average price per share of common stock over the 20 consecutive trading day period beginning on, and including, the 21st scheduled trading day immediately prior to September 30, 2021) were included in the Weighted Average Shares of Common Stock Outstanding - Diluted and (ii) $17.3 million and $51.8 million, respectively, of Series C Mandatory Convertible Preferred dividends were excluded from Net Income (Loss) Available to KKR & Co. Inc. Common Stockholders - Diluted. KKR Holdings Units For the three and nine months ended September 30, 2021 and 2020, KKR Holdings units have been excluded from the calculation of Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock - Diluted since the exchange of these units would not dilute KKR & Co. Inc.'s respective ownership interests in KKR Group Partnership. Three Months Ended Nine Months Ended 2021 2020 2021 2020 Weighted Average KKR Holdings Units 271,027,751 282,692,900 272,674,225 285,757,397 Market Condition Awards As of September 30, 2021, 2.0 million of unvested equity awards that are subject to market-price and service-based vesting conditions were excluded from the calculation of Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock - Diluted since the market-price vesting condition was not satisfied. See Note 18 "Equity Based Compensation." |
OTHER ASSETS AND ACCRUED EXPENS
OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES | 9 Months Ended |
Sep. 30, 2021 | |
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | |
OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES | OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES Other Assets consist of the following: September 30, 2021 December 31, 2020 Asset Management Unsettled Investment Sales (1) $ 500,507 $ 197,635 Receivables 39,789 75,697 Due from Broker (2) 291,775 644,028 Deferred Tax Assets, net (See Note 17) 91,959 83,822 Interest Receivable 191,085 145,532 Fixed Assets, net (3) 813,488 760,606 Foreign Exchange Contracts and Options (4) 427,929 250,398 Goodwill (5) 83,500 83,500 Derivative Assets 1,747 7,839 Prepaid Taxes 91,295 77,041 Prepaid Expenses 33,720 26,366 Operating Lease Right of Use Assets (6) 224,855 190,758 Deferred Financing Costs 18,243 22,810 Other 144,438 99,304 Total Asset Management $ 2,954,330 $ 2,665,336 Insurance Unsettled Investment Sales (1) $ 2,272,772 $ — Deferred Tax Assets, net 779,889 — Derivative Assets 1,117,953 — Accrued Investment Income 825,124 — Goodwill 497,053 — Intangible Assets and Deferred Sales Inducements (7) 298,235 — Operating Lease Right of Use Assets (6) 162,435 — Other 123,431 — Premiums and Other Account Receivables 66,328 — Current Income Tax Recoverable 5,151 — Total Insurance $ 6,148,371 $ — Total Other Assets $ 9,102,701 $ 2,665,336 (1) Represents amounts due from third parties for investments sold for which cash settlement has not occurred. (2) Represents amounts held at clearing brokers resulting from securities transactions. (3) Net of accumulated depreciation and amortization of $130.1 million and $151.3 million as of September 30, 2021 and December 31, 2020, respectively. Depreciation and amortization expense of $11.3 million and $4.6 million for the three months ended September 30, 2021 and 2020, respectively, and $33.6 million and $14.2 million for the nine months ended September 30, 2021 and 2020, respectively, are included in General, Administrative and Other in the accompanying consolidated statements of operations. (4) Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign currency denominated investments. Such instruments are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. See Note 4 "Net Gains (Losses) from Investment Activities - Asset Management" for the net changes in fair value associated with these instruments. (5) As of September 30, 2021, the carrying value of goodwill is recorded and assessed for impairment at the reporting unit. (6) For Asset Management, non-cancelable operating leases consist of leases for office space in North America, Europe, Asia and Australia. KKR is the lessee under the terms of the operating leases. The operating lease cost was $11.9 million and $13.9 million for the three months ended September 30, 2021 and 2020, respectively, and $37.1 million and $39.7 million for the nine months ended September 30, 2021 and 2020, respectively. For Insurance, non-cancelable operating leases consist of leases for office space and renewable energy forward power purchase agreements in the U.S. For the three and nine months ended September 30, 2021 the operating lease costs were $3.9 million and $10.5 million, respectively. Insurance lease right-of-use assets are reported net of $21.1 million in deferred rent and lease incentives. (7) The definite life intangible assets are amortized by using the straight-line method over the useful life of the assets which is an average of 17 years. The indefinite life intangible assets are not subject to amortization. The amortization expense of definite life intangible assets was $4.4 million and $11.8 million for the three and nine months ended September 30, 2021, respectively. Accrued Expenses and Other Liabilities consist of the following: September 30, 2021 December 31, 2020 Asset Management Amounts Payable to Carry Pool (1) $ 3,562,686 $ 1,916,669 Unsettled Investment Purchases (2) 1,382,929 850,714 Securities Sold Short (3) 262,151 281,826 Derivative Liabilities 37,798 126,950 Accrued Compensation and Benefits 847,283 150,883 Interest Payable 159,129 182,044 Foreign Exchange Contracts and Options (4) 444,713 551,728 Accounts Payable and Accrued Expenses 161,952 130,661 Taxes Payable 28,979 88,040 Uncertain Tax Positions 76,643 76,643 Unfunded Revolver Commitments 50,910 46,340 Operating Lease Liabilities (5) 227,624 191,564 Deferred Tax Liabilities, net (See Note 17) 1,091,098 199,425 Other Liabilities 580,844 464,326 Total Asset Management $ 8,914,739 $ 5,257,813 Insurance Unsettled Investment Purchases (2) $ 1,930,044 $ — Collateral on Derivative Instruments 967,632 Accrued Expenses 542,510 — Securities Sold Under Agreements to Repurchase 317,938 — Derivative Liabilities 174,786 — Operating Lease Liabilities (5) 181,302 — Accrued Employee Related Expenses 189,471 — Tax Payable to Former Parent Company 73,608 — Interest Payable 36,086 — Accounts and Commissions Payable 19,798 — Other Tax Related Liabilities 9,787 — Total Insurance $ 4,442,962 $ — Total Accrued Expenses and Other Liabilities $ 13,357,701 $ 5,257,813 (1) Represents the amount of carried interest payable to current and former KKR employees with respect to KKR's investment funds and co-investment vehicles that provide for carried interest. (2) Represents amounts owed to third parties for investment purchases for which cash settlement has not occurred. (3) Represents the obligations of KKR to deliver a specified security at a future point in time. Such securities are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. See Note 4 "Net Gains (Losses) from Investment Activities - Asset Management" for the net changes in fair value associated with these instruments. (4) Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign currency denominated investments. Such instruments are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. See Note 4 "Net Gains (Losses) from Investment Activities- Asset Management" for the net changes in fair value associated with these instruments. (5) For Asset Management, operating leases have remaining lease terms that range from approximately 1 year to 14 years, some of which include options to extend the leases for up to 3 years. The weighted average remaining lease terms were 9.1 years and 9.8 years as of September 30, 2021 and December 31, 2020, respectively. The weighted average discount rates were 1.2% and 1.2% as of September 30, 2021 and December 31, 2020, respectively. For Insurance, operating leases for office space have remaining lease terms that range from approximately 1 year to 12 years, some of which include options to extend the leases for up to 10 years. The weighted average remaining lease terms was 8.0 years as of September 30, 2021. The weighted average discount rates was 2.9% as of September 30, 2021. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES Consolidated VIEs KKR consolidates certain VIEs in which it is determined that KKR is the primary beneficiary as described in Note 2 "Summary of Significant Accounting Policies." The consolidated VIEs are predominately CFEs and certain investment funds sponsored by KKR. The primary purpose of these VIEs is to provide strategy specific investment opportunities to earn investment gains, current income or both in exchange for management and performance based fees or carried interest. KKR's investment strategies differ for these VIEs; however, the fundamental risks have similar characteristics, including loss of invested capital and loss of management and performance based fees or carried interest. KKR does not provide performance guarantees and has no other financial obligation to provide funding to these consolidated VIEs, beyond amounts previously committed, if any. Furthermore, KKR consolidates certain VIEs, which are created by Global Atlantic to hold investments, including investments in transportation, renewable energy, consumer and other loans and fixed maturity securities. Unconsolidated VIEs KKR holds variable interests in certain VIEs which are not consolidated as it has been determined that KKR is not the primary beneficiary. VIEs that are not consolidated predominantly include certain investment funds sponsored by KKR as well as certain investment partnerships where Global Atlantic retains an economic interest. KKR's investment strategies differ by investment fund; however, the fundamental risks have similar characteristics, including loss of invested capital and loss of management and performance based fees or carried interest. KKR's maximum exposure to loss as a result of its investments in the unconsolidated investment funds is the carrying value of such investments, including KKR's capital interest and any unrealized carried interest. Accordingly, disaggregation of KKR's involvement by type of unconsolidated investment fund would not provide more useful information. For these unconsolidated investment funds in which KKR is the sponsor, KKR may have an obligation as general partner to provide commitments to such investment funds. As of September 30, 2021, KKR's commitments to these unconsolidated investment funds were $3.9 billion. KKR has not provided any financial support other than its obligated amount as of September 30, 2021. Global Atlantic also has unfunded commitments of $25.3 million in relation to other limited partnership interests as of September 30, 2021. As of September 30, 2021 and December 31, 2020, the maximum exposure to loss, before allocations to the carry pool and noncontrolling interests, if any, for those VIEs in which KKR is determined not to be the primary beneficiary but in which it has a variable interest is as follows: September 30, 2021 December 31, 2020 Investments - Asset Management $ 11,091,844 $ 6,460,430 Due from (to) Affiliates, net 830,982 586,595 Maximum Exposure to Loss - Asset Management $ 11,922,826 $ 7,047,025 Other Investment in Partnership - Insurance $ 184,492 $ — Investment in Renewable Partnerships - Insurance 365,443 — Maximum Exposure to Loss- Insurance $ 549,935 $ — Total Maximum Exposure to Loss $ 12,472,761 $ 7,047,025 |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | DEBT OBLIGATIONS Asset Management Debt Obligations In Asset Management, KKR enters into credit agreements and issues debt for its general operating and investment purposes. KKR consolidates and reports debt obligations of KKR Financial Holdings LLC, a KKR subsidiary ("KFN"), which are non-recourse to KKR beyond the assets of KFN. Certain of KKR's consolidated investment funds have entered into financing arrangements with financial institutions, generally to provide liquidity to such investment funds. These financing arrangements are generally not direct obligations of the general partners of KKR's investment funds (beyond KKR's capital interest) or its management companies. Such borrowings have varying maturities and bear interest at floating rates. Borrowings are generally secured by the investment purchased with the proceeds of the borrowing and/or the uncalled capital commitment of each respective fund. When an investment vehicle borrows, the proceeds are available only for use by that investment vehicle and are not available for the benefit of other investment vehicles or KKR. Collateral within each investment vehicle is also available only against borrowings by that investment vehicle and not against the borrowings of other investment vehicles or KKR. In certain other cases, investments and other assets held directly by majority-owned consolidated investment vehicles have been funded with borrowings that are collateralized by the investments and assets they own. These borrowings are non-recourse to KKR beyond the investments or assets serving as collateral or the capital that KKR has committed to fund such investment vehicles. Such borrowings have varying maturities and generally bear interest at fixed rates. In addition, consolidated CFEs issue debt securities to third-party investors which are collateralized by assets held by the CFE. Debt securities issued by CFEs are supported solely by the assets held at the CFEs and are not collateralized by assets of any other KKR entity. CFEs also may have warehouse facilities with banks to provide liquidity to the CFE. The CFE's debt obligations are non-recourse to KKR beyond the assets of the CFE. KKR's Asset Management debt obligations consisted of the following: September 30, 2021 December 31, 2020 Financing Available Borrowing Outstanding Fair Value Financing Available Borrowing Outstanding Fair Value Revolving Credit Facilities: Corporate Credit Agreement $ 1,000,000 $ — $ — $ 1,000,000 $ — $ — KCM Credit Agreement 728,593 — — 705,014 — — KCM 364-Day Revolving Credit Agreement 750,000 — — 750,000 — — Notes Issued: (1) KKR ¥25 billion (or $224.0 million) 0.509% Notes Due 2023 (4) — 223,556 223,384 — 241,331 241,580 KKR ¥5 billion (or $44.8 million) 0.764% Notes Due 2025 (4) — 44,404 44,789 — 47,919 48,554 KKR €650 million (or $756.7 million) 1.625% Notes Due 2029 (5) — 749,389 809,635 — 790,157 870,647 KKR $750 million 3.750% Notes Due 2029 (4) — 743,111 832,290 — 742,196 874,658 KKR ¥10.3 billion (or $92.3 million) 1.595% Notes Due 2038 (4) — 91,270 95,229 — 98,640 104,004 KKR $500 million 5.500% Notes Due 2043 (6) (4) — 491,065 659,885 — 492,513 666,885 KKR $1 billion 5.125% Notes Due 2044 (6) (4) — 951,301 1,249,501 — 991,471 1,307,220 KKR $500 million 3.625% Notes Due 2050 (4) — 492,419 536,120 — 492,123 556,095 KKR $750 million 3.500% Notes Due 2050 (6) (4) — 735,783 787,515 — 735,161 830,280 KKR $500 million 4.625% Notes Due 2061 (5) — 485,955 518,000 — — — KFN $500 million 5.500% Notes Due 2032 (2) — 494,903 490,670 — 494,540 502,992 KFN $120 million 5.200% Notes Due 2033 (2) — 118,623 115,341 — 118,533 118,300 KFN $70 million 5.400% Notes Due 2033 (2) — 68,934 68,455 — 68,866 70,267 KFN Issued Junior Subordinated Notes (3) (2) — 235,802 180,732 — 234,808 165,627 2,478,593 5,926,515 6,611,546 2,455,014 5,548,258 6,357,109 Other Debt Obligations (6) 8,787,351 33,062,029 33,097,029 5,621,883 27,875,338 27,889,438 $ 11,265,944 $ 38,988,544 $ 39,708,575 $ 8,076,897 $ 33,423,596 $ 34,246,547 (1) Borrowing outstanding includes: (i) unamortized note discount (net of premium), as applicable and (ii) unamortized debt issuance costs, as applicable. Financing costs related to the issuance of the notes have been deducted from the note liability and are being amortized over the life of the notes. (2) These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments. (3) KKR consolidates KFN and reports KFN's outstanding $258.5 million aggregate principal amount of junior subordinated notes. The weighted average interest rate is 2.6% and 2.7% and the weighted average years to maturity is 15.0 years and 15.8 years as of September 30, 2021 and December 31, 2020, respectively. (4) The notes are classified as Level II within the fair value hierarchy and fair value is determined by third party broker quotes. (5) The notes are classified as Level I within the fair value hierarchy and fair value is determined by quoted prices in active markets since the debt is publicly listed. (6) As of September 30, 2021, the borrowing outstanding reflects the elimination for the portion of these debt obligations that are held by Global Atlantic. Asset Management Revolving Credit Facilities Corporate Credit Agreement On August 4, 2021, KKR Group Partnership L.P. and Kohlberg Kravis Roberts & Co. L.P. (the "Borrowers") amended and restated their Amended and Restated Credit Agreement, dated as of December 7, 2018 (the “Prior Corporate Credit Agreement”), by and among the Borrowers, the guarantors from time to time party thereto, the lending institutions from time to time party thereto, and HSBC Bank USA, National Association, as administrative agent with the Second Amended and Restated Credit Agreement (the “New Corporate Credit Agreement”), by and among the Borrowers, the guarantors from time to time party thereto, the lending institutions from time to time party thereto, and HSBC Bank USA, National Association, as administrative agent, which (1) provides for up to $1.0 billion of revolving borrowings (with the option to request an increase of up to an additional $500 million), (2) has a maturity of August 2026, (3) contains customary events of default, representations and warranties and covenants that are substantially similar to those that were in the Prior Corporate Credit Agreement and (4) includes updated financial covenants based on the total indebtedness to fee and yield EBITDA and fee paying assets under management covenants. Interest on any funded balances accrues at LIBOR plus a spread ranging from 0.565% to 1.10% based on corporate credit ratings. The Borrowers must pay a facility fee on the total commitments ranging from 0.06% to 0.15% based on corporate credit ratings. KCM Short-Term Credit Agreement On April 9, 2021, KKR Capital Markets Holdings L.P. and certain other capital markets subsidiaries (the "KCM Borrowers") entered into a 364-day revolving credit agreement (the "KCM Short-Term Credit Agreement”) with the same administrative agent, and one or more lenders party to the KCM Credit Agreement. The KCM Short-Term Credit Agreement replaces the prior 364-day revolving credit agreement, dated as of April 10, 2020, between the KCM Borrowers and the administrative agent, and one or more lenders party to the KCM Short-Term Agreement, which was terminated according to its terms on April 9, 2021. The KCM Short-Term Credit Agreement provides for revolving borrowings up to $750 million, expires on April 8, 2022, and ranks pari passu with the KCM Credit Agreement. If a borrowing is made under the KCM Short-Term Credit Agreement, the interest rate will vary depending on the type of drawdown requested. If the borrowing is a Eurocurrency loan, it will be based on a LIBOR rate plus an applicable margin initially ranging between 1.50% and 2.75%, depending on the duration of the loan. If the borrowing is an ABR loan, it will be based on the prime rate plus an applicable margin ranging between 0.50% and 1.75%, depending on the amount and nature of the loan. Borrowings under the KCM Short-Term Credit Agreement may only be used to facilitate the settlement of debt transactions syndicated by KKR's capital markets business. Obligations under the KCM Short-Term Credit Agreement are limited to the KCM Borrowers, which are solely entities involved in KKR's capital markets business, and liabilities under the KCM Short-Term Credit Agreement are non-recourse to other parts of KKR. The KCM Short-Term Credit Agreement contains customary representations and warranties, events of default, and affirmative and negative covenants, including a financial covenant providing for a maximum debt to equity ratio for the KCM Borrowers. The KCM Borrowers' obligations under the KCM Short-Term Credit Agreement are secured by certain assets of the KCM Borrowers, including a pledge of equity interests of certain subsidiaries of the KCM Borrowers. Asset Management Notes Issuance and Redemptions KKR Issued 4.625% Subordinated Notes Due 2061 On March 31, 2021, KKR Group Finance Co. IX LLC, an indirect subsidiary of KKR & Co. Inc., issued $500 million aggregate principal amount of its 4.625% Subordinated Notes due 2061 (the "KKR 2061 Subordinated Notes"). The KKR 2061 Subordinated Notes are guaranteed by KKR & Co. Inc. and KKR Group Partnership. The KKR 2061 Subordinated Notes bear interest at a rate of 4.625% per annum and will mature on April 1, 2061, unless earlier redeemed. Interest on the KKR 2061 Subordinated Notes accrues from March 31, 2021 and is payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, commencing on July 1, 2021 and ending on the applicable maturity date. The KKR 2061 Subordinated Notes are unsecured and subordinated obligations of the issuer. The KKR 2061 Subordinated Notes are fully and unconditionally guaranteed, jointly and severally, on a subordinated basis, by each of the guarantors. The guarantees are unsecured obligations of the guarantors. The indenture includes covenants, including limitations on the issuer’s and the guarantors’ ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or convey all or substantially all of their assets. The indenture also provides for events of default and further provides that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding KKR 2061 Subordinated Notes may declare the KKR 2061 Subordinated Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the KKR 2061 Subordinated Notes and any accrued and unpaid interest on the KKR 2061 Subordinated Notes automatically become due and payable. On or after April 1, 2026, the issuer may redeem the KKR 2061 Subordinated Notes at its option, in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the KKR 2061 Subordinated Notes to be redeemed, together with accrued and unpaid interest to, but excluding, the date of redemption, provided that if the KKR 2061 Subordinated Notes are not redeemed in whole, at least $25 million aggregate principal amount of the KKR 2061 Subordinated Notes must remain outstanding after giving effect to such redemption. If a “tax redemption event” occurs, the KKR 2061 Subordinated Notes may be redeemed, in whole, but not in part, within 120 days of the occurrence of such tax redemption event at a redemption price equal to their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption. In addition, the KKR 2061 Subordinated Notes may be redeemed, in whole, but not in part, at any time prior to April 1, 2026, within 90 days of the occurrence of a “rating agency event”, at a redemption price equal to 102% of their principal amount plus any accrued and unpaid interest to, but excluding, the date of redemption. Other Asset Management Debt Obligations As of September 30, 2021, other debt obligations consisted of the following: Financing Available Borrowing Fair Value Weighted Weighted Average Remaining Maturity in Years Financing Facilities of Consolidated Funds and Other (1) $ 8,787,351 $ 13,092,873 $ 13,127,873 2.8% 4.0 Debt Obligations of Consolidated CLOs — 19,969,156 19,969,156 (2) 10.5 $ 8,787,351 $ 33,062,029 $ 33,097,029 (1) Includes borrowings collateralized by fund investments, fund co-investments and other assets held by levered investment vehicles of $1.7 billion. (2) The senior notes of the consolidated CLOs had a weighted average interest rate of 1.7%. The subordinated notes of the consolidated CLOs do not have contractual interest rates but instead receive a pro rata amount of the net distributions from the excess cash flows of the respective CLO vehicle. Accordingly, weighted average borrowing rates for the subordinated notes are based on cash distributions during the period, if any. Debt obligations of consolidated CLOs are collateralized by assets held by each respective CLO vehicle and assets of one CLO vehicle may not be used to satisfy the liabilities of another. As of September 30, 2021, the fair value of the consolidated CLO assets was $22.1 billion. This collateral consisted of Cash and Cash Equivalents Held at Consolidated Entities, Investments, and Other Assets. Insurance Debt Obligations Global Atlantic's debt obligations consisted of the following: September 30, 2021 Financing Available Borrowing Outstanding Fair Value (3) Revolving Credit Facilities: Global Atlantic revolving credit facility, due May 2023 $ 1,000,000 $ — $ — Notes Issued and Others: Global Atlantic senior notes, due October 2029 500,000 548,600 Global Atlantic senior notes, due June 2031 650,000 658,320 Global Atlantic subordinated debentures, due October 2046 (1) 250,000 250,000 Global Atlantic subordinated debentures, due July 2051 750,000 775,350 2,150,000 $ 2,232,270 Purchase accounting adjustments (2) 51,875 Debt issuance costs, net of accumulated amortization (18,934) Fair value loss (gain) of hedged debt obligations, recognized in earnings (20,350) $ 2,162,591 (1) On October 1, 2021, subsequent to the end of the quarter, GA FinCo redeemed the full principal amount of its then outstanding $250 million GA 2046 Subordinated Debentures. (2) The amortization of the purchase accounting adjustments was $825 thousand and $4.0 million for the three and nine months ended September 30, 2021, respectively. (3) These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments. Global Atlantic Credit Agreement GA FinCo is the borrower and GAFL is the guarantor under a revolving credit facility ("GA Credit Agreement"). On May 21, 2018, GAFL amended and restated the GA Credit Agreement to, among other things: (1) upsize the facility size from $650 million to $1 billion; (2) increase the aggregate letters of credit GAFL may issue from $350 million to $500 million; (3) extend the maturity of the GA Credit Agreement from December 2021 to May 2023; and (4) remove certain restrictive covenants. Interest on any funded balances accrues at LIBOR plus a spread ranging from 1.125% to 2.00% based on GAFL's long-term issuer credit ratings. The borrower must pay a commitment fee on any unfunded committed balance under the GA Credit Agreement ranging from 0.15% to 0.35% based on the long-term issuer credit rating. The commitment fee on unfunded balances is paid quarterly in arrears. The GA Credit Agreement contains customary events of default, representations and warranties and covenants, including, among other things, covenants that GAFL’s consolidated debt to total capitalization, as defined in the GA Credit Agreement, cannot be more than 35% and that GAFL’s consolidated net worth determined in accordance with GAAP cannot be less than 70% of the value of GAFL’s consolidated net worth as of March 31, 2018, plus 50% of net income since March 31, 2018. On November 6, 2020, GA FinCo entered into an amendment of the GA Credit Agreement, whereby the definition of Change of Control was amended to permit the GA Acquisition. If an event of default occurs, the lenders under the GA Credit Agreement will be entitled to take various actions, including the termination of their commitments and the acceleration of amounts due thereunder. On June 18, 2021, GA FinCo repaid approximately $420 million outstanding indebtedness under the GA Credit Agreement along with accrued and unpaid interest, from the proceeds from the 2031 Senior Notes (as discussed below). As of September 30, 2021, there were no revolving borrowings outstanding and no letters of credit outstanding under the GA Credit Agreement. On August 4, 2021, GA FinCo terminated the existing GA Credit Agreement and replaced it with a new credit agreement (the "New GA Credit Agreement"), with GA FinCo as borrower, and GAFL, as guarantor, and Wells Fargo Bank, N.A., as administrative agent, that (1) provides for up to $1.0 billion of revolving borrowings (with the option to request an increase of up to an additional $250 million), including up to $500 million of letters of credit, (2) has a maturity of August 2026, and (3) contains customary events of default, representations and warranties and covenants that are substantially similar to those that were in the terminated GA Credit Agreement, including the consolidated debt to capitalization and net worth covenants. Interest on any funded balances accrues at LIBOR plus a spread ranging from 1.125% to 2.00% based on GAFL's long-term issuer credit ratings. The borrower must pay a commitment fee on any unfunded committed balance under the New GA Credit Agreement ranging from 0.125% to 0.325% based on long-term issuer credit ratings. Global Atlantic Senior Notes due 2029 On October 7, 2019, GA FinCo issued $500 million aggregate principal amount of 4.400% senior unsecured notes due 2029 ("GA 2029 Senior Notes"). The GA 2029 Senior Notes were issued pursuant to an Indenture, dated as of October 7, 2019, among GA FinCo, as issuer, GAFL, as guarantor, and U.S. Bank National Association, as trustee as supplemented by the First Supplemental Indenture, dated as of October 7, 2019, among GA FinCo, GAFL and the trustee. The GA 2029 Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by GAFL. The GA 2029 Senior Notes bear interest at a rate of 4.400% per year. Interest on the GA 2029 Senior Notes is payable semi-annually in arrears on April 15 and October 15 of each year, beginning on April 15, 2020. The GA 2029 Senior Notes will mature on October 15, 2029. The indenture includes covenants, including limitations on the issuer’s and the guarantors’ ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or convey all or substantially all of their assets. The indenture also provides for events of default and further provides that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding GA 2020 Senior Notes may declare the GA 2029 Senior Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, rehabilitation or reorganization, the principal amount of the GA 2029 Senior Notes and any accrued and unpaid interest on the GA 2029 Senior Notes automatically become due and payable. GA FinCo may, at its option, redeem some or all of the GA 2029 Senior Notes at any time: (i) prior to July 15, 2029 at a redemption price equal to 100% of the principal amount of the GA 2029 Senior Notes to be redeemed plus a “make-whole” premium and accrued and unpaid interest, if any, to the date of redemption; and (ii) on or after July 15, 2029 at a redemption price equal to 100% of the principal amount of the GA 2029 Senior Notes to be redeemed, plus accrued and unpaid interest to the date of redemption. Global Atlantic Subordinated Debentures due 2046 On October 5, 2016, GA FinCo, as issuer, and GAFL, as guarantor, entered into an issuing and paying agency agreement pursuant to which GA FinCo issued $250 million of the subordinated debentures unconditionally guaranteed on a subordinated basis by GAFL in a private placement ("GA 2046 Subordinated Debentures"). Interest on the GA 2046 Subordinated Debentures was payable semi-annually in arrears on April 1 and October 1 of each year and accrued at 9.5% per annum from and including October 5, 2016 to, but excluding, October 1, 2021. On October 1, 2021 and on each fifth anniversary of such date thereafter, each, a “reset date,” the interest rate would be recomputed based on the yield (rounded to two decimal places) reported as of two business days prior to the reset date for the most recently issued actively traded on the run U.S. Treasury securities having a maturity of five years from the reset date, plus 8.38% per annum. Subsequent to the end of the quarter, on October 1, 2021 GA FinCo redeemed the full principal amount of its then outstanding $250 million GA 2046 Subordinated Debentures and completed the final interest payment. Upon completion of the redemption, GA FinCo is no longer subject to the debt covenants associated with the GA 2046 Subordinated Debentures. Global Atlantic Senior Notes due 2031 On June 17, 2021, GA FinCo issued $650 million aggregate principal amount of 3.125% senior unsecured notes due 2031 (the “GA 2031 Senior Notes”). The GA 2031 Senior Notes were issued pursuant to an indenture, dated as of June 17, 2021, among GA FinCo, as issuer, GAFL, as guarantor, and U.S. Bank National Association, as trustee, and supplemented by the Second Supplemental Indenture, dated as of June 17, 2021, among GA FinCo, GAFL and the trustee. The GA 2031 Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by GAFL. The GA 2031 Senior Notes bear interest at a rate of 3.125% per year. Interest on the GA 2031 Senior Notes is payable semi-annually in arrears on June 15 and December 15 of each year, beginning on June 17, 2021. The GA 2031 Senior Notes will mature on June 15, 2031. GA FinCo may, at its option, redeem some or all of the GA 2031 Senior Notes at any time: (i) prior to March 15, 2031 at a redemption price equal to 100% of the principal amount of the GA 2031 Senior Notes to be redeemed plus a “make-whole” premium and accrued and unpaid interest, if any, to the date of redemption; and (ii) on or after March 15, 2031 at a redemption price equal to 100% of the principal amount of the GA 2031 Senior Notes to be redeemed, plus accrued and unpaid interest to the date of redemption. Global Atlantic Subordinated Debentures due 2051 On July 6, 2021, GA FinCo issued $750 million of 4.70% fixed-to-fixed rate subordinated debentures maturing on October 15, 2051 (the “GA 2051 Subordinated Debentures.”) The GA 2051 subordinated debentures were issued pursuant to the Subordinated Indenture, dated as of July 6, 2021 among GA FinCo, as issuer, GAFL, as guarantor, and U.S. Bank National Association, as trustee, as supplemented by the First Supplemental Indenture thereto, dated as of July 6, 2021. The GA 2051 subordinated debentures will bear interest (i) from, and including, July 6, 2021 to, but not including, the initial interest reset date of October 15, 2026 at an annual rate of 4.70% and (ii) from and including October 15, 2026, during each interest reset period, at an annual rate equal to the five-year Treasury rate as of the most recent reset interest determination date, plus 3.796%. Interest on the subordinated debentures is payable semi-annually in arrears on April 15 and October 15 of each year, commencing on October 15, 2021, and on the maturity date. GA FinCo has the right on one or more occasions to defer the payment of interest on the GA 2051 subordinated debentures for up to five consecutive years. During an optional deferral period, interest will continue to accrue at the interest rate on the GA 2051 subordinated debentures, compounded semi-annually as of each interest payment date. If GA FinCo has exercised its right to defer interest payments on the GA 2051 subordinated debentures, GA FinCo and GAFL generally may not (1) make payments on or redeem or purchase (A) GA FinCo or GAFL common stock, or (B) with respect to GA FinCo, any indebtedness ranking on parity with or junior to the GA 2051 subordinated debentures, and with respect to GAFL, any indebtedness ranking on parity with or junior to the guarantee or (2) make any guarantee payments with respect to any guarantee by GA FinCo or GAFL of any securities or any of their respective subsidiaries if such guarantee ranks equally with or junior to the debentures. GA FinCo may elect to redeem the GA 2051 subordinated debentures either (1) in whole at any time or in part from time to time during the three-month period prior to, and including, October 15, 2026, or the three month period prior to, and including, each subsequent interest reset date, in each case at 100% of the principal amount of the subordinated debentures being redeemed, plus accrued and unpaid interest (including compounded interest, if any) to, but excluding, the redemption date; (2) in whole, but not in part, at any time within 90 days after the occurrence of a tax event at 100% of the principal amount of the subordinated debentures being redeemed, plus accrued and unpaid interest (including compounded interest, if any) to, but excluding, the redemption date; (3) in whole, but not in part, at any time within 90 days after the occurrence of a rating agency event at 102% of the principal amount of the subordinated debentures being redeemed, plus accrued and unpaid interest (including compounded interest, if any) to, but excluding, the redemption date; or (4) in whole, but not in part, at any time within 90 days after the occurrence of a regulatory capital event at 100% of the principal amount of the subordinated debentures being redeemed, plus accrued and unpaid interest (including compounded interest, if any) to, but excluding, the redemption date. Debt Covenants |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES KKR & Co. Inc. is a domestic corporation for U.S. federal income tax purposes and is subject to U.S. federal, state and local income taxes at the entity level on its share of taxable income. In addition, KKR Group Partnership and certain of its subsidiaries operate as partnerships for U.S. federal tax purposes but as taxable entities for certain state, local or non-U.S. tax purposes. Moreover, certain corporate subsidiaries of KKR, including certain Global Atlantic subsidiaries, are domestic corporations for U.S. federal income tax purposes and are subject to U.S. federal, state, and local income taxes. Income taxes reported in these consolidated financial statements include the taxes described in this paragraph. The effective tax rates were 10.4% and 10.8% for the three months ended September 30, 2021 and 2020, respectively and 9.2% and 22.7% for the nine months ended September 30, 2021 and 2020, respectively. The effective tax rate differs from the statutory rate primarily because a substantial portion of the reported net income (loss) before taxes is not attributable to KKR but rather is attributable to noncontrolling interests held in KKR’s consolidated entities by KKR's principals or by third parties. Future realization of deferred tax assets is dependent on KKR generating sufficient taxable income before the tax benefits are expected to expire. KKR considers projections of taxable income in evaluating its ability to utilize those deferred tax assets. In projecting its taxable income, KKR begins with historical results and incorporates assumptions concerning the amount and timing of future pretax operating income. Those assumptions require significant judgment and are consistent with the plans and estimates that KKR uses to manage its business. As of September 30, 2021, $22.7 million of deferred tax assets are not considered to be more likely than not to be realized prior to the expiration of the related loss carryforwards. For that portion of the total deferred tax asset, a valuation allowance has been recorded. During the three and nine months ended September 30, 2021, there were no material changes to KKR’s uncertain tax positions and KKR believes there will be no significant increase or decrease to the uncertain tax positions within 12 months of the reporting date. |
EQUITY BASED COMPENSATION
EQUITY BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY BASED COMPENSATION | EQUITY BASED COMPENSATION Equity Based Compensation - Asset Management The following table summarizes the expense associated with equity-based compensation for the three and nine months ended September 30, 2021 and 2020, respectively. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 KKR Equity Incentive Plan Awards (1) $ 73,363 $ 42,488 $ 199,646 $ 133,424 KKR Holdings Awards 8,713 21,759 35,238 63,358 Total $ 82,076 $ 64,247 $ 234,884 $ 196,782 (1) Includes $10.9 million and $11.4 million of equity based compensation related to our insurance business for the three and nine months ended September 30, 2021. KKR Equity Incentive Plan Awards Under KKR's Equity Incentive Plans, KKR is permitted to grant equity awards representing ownership interests in KKR & Co. Inc. common stock. On March 29, 2019, the 2019 Equity Incentive Plan became effective. Following the effectiveness of the 2019 Equity Incentive Plan, KKR no longer makes further grants under the 2010 Equity Incentive Plan, and the 2019 Equity Incentive Plan became KKR's only plan for providing new equity-based awards by KKR & Co. Inc. Outstanding awards under the 2010 Equity Incentive Plan will remain outstanding, unchanged and subject to the terms of the 2010 Equity Incentive Plan and their respective equity award agreements, until the vesting, expiration or lapse of such awards in accordance with their terms. The total number of equity awards representing shares of common stock that may be issued under the 2019 Equity Incentive Plan is equivalent to 15% of the aggregate number of the shares of common stock and KKR Group Partnership Units (excluding KKR Group Partnership Units held by KKR & Co. Inc. or its wholly-owned subsidiaries), subject to annual adjustment. Equity awards granted pursuant to the Equity Plans generally consist of (i) restricted stock units ("RSUs") that convert to shares of common stock of KKR & Co. Inc. (or cash equivalent) upon vesting and (ii) restricted holdings units ("RHUs") that are exchangeable into shares of common stock of KKR & Co. Inc. upon vesting and certain other conditions. Vested awards under the Equity Incentive Plans dilute KKR & Co. Inc. common stockholders and KKR Holdings pro rata in accordance with their respective percentage interests in KKR Group Partnership. Service-Vesting Awards Under the Equity Incentive Plans, KKR grants equity awards that are subject to service-based vesting, typically over a three Expense associated with the vesting of these Service-Vesting Awards is based on the closing price of KKR & Co. Inc. common stock on the date of grant, discounted for the lack of participation rights in the expected dividends on unvested equity awards. Expense is recognized on a straight line basis over the life of the award and assumes a forfeiture rate of up to 7% annually based upon expected turnover by class of recipient. As of September 30, 2021, there was approximately $381.9 million of total estimated unrecognized expense related to unvested Service-Vesting Awards. That cost is expected to be recognized as follows: Year Unrecognized Expense Remainder of 2021 $ 31.6 2022 118.5 2023 91.6 2024 68.3 2025 58.1 2026 13.8 Total $ 381.9 A summary of the status of unvested Service-Vesting Awards granted under the Equity Incentive Plans from January 1, 2021 through September 30, 2021 is presented below: Shares Weighted Balance, January 1, 2021 23,866,696 $ 28.28 Granted 862,206 46.14 Vested (5,826,257) 23.05 Forfeitures (393,731) 29.12 Balance, September 30, 2021 18,508,914 $ 30.75 The weighted average remaining vesting period over which unvested Service-Vesting Awards are expected to vest is 1.7 years. A summary of the remaining vesting tranches of awards granted under the Equity Incentive Plans is presented below: Vesting Date Shares October 1, 2021 3,084,758 April 1, 2022 3,755,974 October 1, 2022 1,731,067 April 1, 2023 3,051,901 October 1, 2023 472,249 April 1, 2024 2,448,822 October 1, 2024 204,313 April 1, 2025 1,879,243 October 1, 2025 158,430 April 1, 2026 1,722,157 18,508,914 Market Condition Awards Under KKR's Equity Incentive Plans, KKR also grants equity awards that are subject to a market price-based vesting condition (referred to hereafter as "Market Condition Awards"). KKR has granted 19.5 million of Market Condition Awards, subject to both stock price target requirements and service requirements. The number of Market Condition awards that will vest will depend upon the market price of KKR common stock reaching and maintaining a 20 day average closing price based on the vesting schedules provided below on or prior to May 1, 2026, subject to the employee's continued service to May 1, 2026, subject to exceptions. For any price targets not achieved, that portion of the unvested awards will be automatically canceled and forfeited. These awards are subject to additional transfer restrictions and minimum retained ownership requirements after vesting. Each recipient received awards with market price-based vesting conditions based on either Type 1 or Type 2, not both. Vesting Condition Type 1 Vesting Condition Type 2 Stock Price Vesting % Stock Price Vesting % $ 45.00 25.0 % $ 45.00 16.7 % $ 50.00 50.0 % $ 50.00 33.4 % $ 55.00 75.0 % $ 55.00 50.0 % $ 60.00 100.0 % $ 60.00 66.8 % $ 65.00 83.5 % $ 70.00 100.0 % Due to the existence of the service requirement, the vesting period for these Market Condition Awards is explicit, and as such, compensation expense will be recognized on a straight-line basis over the period from the date of grant through May 1, 2026 and assumes a forfeiture rate of up to 4% annually based upon expected turnover. The fair value of the awards granted are based on a Monte-Carlo simulation valuation model. In addition, the grant date fair value assumes that holders of the Market Condition Awards will not participate in dividends or distributions until such awards have met all of their vesting requirements. Below is a summary of the grant date fair value based on the Monte-Carlo simulation valuation model. Vesting Condition Weighted Range Type 1 22.56 $22.56 - $22.56 Type 2 23.16 $19.87 - $40.09 Below is a summary of the significant assumptions used to estimate the grant date fair value of these Market Condition Awards: Significant Assumptions Weighted Range Closing KKR share price as of valuation date $39.22 $37.93 - $50.35 Risk Free Rate 0.44% 0.41% - 0.92% Volatility 28.04% 28.00% - 30.00% Dividend Yield 1.49% 1.15% - 1.53% Expected Cost of Equity 10.67% 9.13% - 10.76% As of September 30, 2021, there was approximately $321.5 million of total estimated unrecognized expense related to these unvested Market Condition awards. That cost is expected to be recognized as follows: Year Unrecognized Expense Remainder of 2021 $ 15.1 2022 62.5 2023 67.2 2024 72.4 2025 77.4 2026 26.9 Total $ 321.5 A summary of the status of unvested Market Condition awards granted under the Equity Incentive Plans from January 1, 2021 through September 30, 2021 is presented below: Shares Weighted Balance, January 1, 2021 16,875,000 $ 21.07 Granted 2,600,000 35.02 Vested — — Forfeitures — — Balance, September 30, 2021 19,475,000 $ 22.93 As of September 30, 2021, 17.5 million of these Market Condition awards met their market-price based vesting condition. KKR Holdings Awards KKR Holdings units are exchangeable for KKR Group Partnership Units and allow for their exchange into common stock of KKR & Co. Inc. on a one-for-one basis. As of September 30, 2021 and 2020, KKR Holdings owned approximately 31.7% or 271,027,751 units and 33.0% or 278,781,478 units, respectively, of outstanding KKR Group Partnership Units. Awards for KKR Holdings units that have been granted are generally subject to service-based vesting, typically over a three The fair value of awards granted out of KKR Holdings is generally based on the closing price of KKR & Co. Inc. common stock on the date of grant discounted for the lack of participation rights in the expected distributions on unvested units. KKR determined this to be the best evidence of fair value as KKR & Co. Inc. common stock is traded in an active market and has an observable market price. Additionally, a KKR Holdings unit is an instrument with terms and conditions similar to those of KKR & Co. Inc. common stock. Specifically, units in KKR Holdings and shares of KKR & Co. Inc. represent ownership interests in KKR Group Partnership Units and, subject to any vesting, minimum retained ownership requirements and transfer restrictions, each KKR Holdings unit is exchangeable into a KKR Group Partnership Unit and then into a share of KKR & Co. Inc. common stock on a one-for-one basis. KKR Holdings awards give rise to equity-based compensation in the consolidated statements of operations based on the grant-date fair value of the award discounted for the lack of participation rights in the expected distributions on unvested units. This discount is consistent with that noted above for shares issued under the Equity Incentive Plans. Expense is recognized on a straight line basis over the life of the award and assumes a forfeiture rate of up to 7% annually based on expected turnover by class of recipient. As of September 30, 2021, there was approximately $34.6 million of estimated unrecognized expense related to unvested KKR Holdings awards. That cost is expected to be recognized as follows: Year Unrecognized Expense Remainder of 2021 $ 8.7 2022 25.9 Total $ 34.6 A summary of the status of unvested awards granted under the KKR Holdings Plan from January 1, 2021 through September 30, 2021 is presented below: Units Weighted Balance, January 1, 2021 10,240,000 $ 14.33 Granted — — Vested (2,905,000) 11.16 Forfeitures — — Balance, September 30, 2021 7,335,000 $ 15.58 The weighted average remaining vesting period over which unvested awards are expected to vest is 0.5 years. A summary of the remaining vesting tranches of awards granted under the KKR Holdings Plan is presented below: Vesting Date Units October 1, 2021 3,425,000 October 1, 2022 3,910,000 7,335,000 Equity Based Compensation - Insurance The following table summarizes the expense associated with Global Atlantic equity-based compensation for the three and nine months ended September 30, 2021. Three Months Ended Nine Months Ended 2021 2020 2021 2020 Global Atlantic Book Value and Other Awards $ 16,999 $ — $ 35,672 $ — KKR Equity Incentive Plan Awards 10,854 — 11,378 — Total $ 27,853 $ — $ 47,050 $ — No equity-based compensation costs were capitalized during the three and nine months ended September 30, 2021. On February 1, 2021, in connection with the GA Acquisition, employees of Global Atlantic were awarded a one-time grant of RSUs under the 2019 Equity Incentive Plan. These awards (i) are subject to service-based vesting conditions and (ii) expense associated with the vesting of these awards is based on the closing price of KKR & Co. Inc. common stock on the date of grant, consistent with other awards granted under the 2019 Equity Incentive Plan as described above. On July 1, 2021, a grant of a Market Condition Award was made under the 2019 Equity Incentive Plan. This award is subject to meeting certain stock price target requirements of KKR & Co. Inc. common stock but has no service vesting condition. Expense associated with the grant date fair value of this award of $10.5 million was fully recognized in the three months ended September 30, 2021. Liability Classified Awards - Book Value Awards The following table presents Global Atlantic’s unrecognized compensation expense and the expected weighted average period over which these expenses will be recognized as of September 30, 2021: September 30, 2021 Expense Weighted average period (years) GA Book Value Awards $ 80,130 2.55 Unrecognized compensation expense, as of end of period $ 80,130 On February 1, 2021, Global Atlantic adopted the Global Atlantic Financial Company Book Value Award Plan ("GA Book Value Plan") to enhance the ability of Global Atlantic to attract, motivate and retain its employees and to promote the success of the Global Atlantic business. The GA Book Value Plan authorizes the grant of cash-settled awards ("book value awards") representing the right to receive one or more payments upon vesting equal to the product of an initial dollar value set by the award multiplied by a pre-determined formula as of each applicable vesting date. The predetermined formula is equal to the quotient determined by dividing the book value of one share of TGAFG on the applicable vesting date by the book value of a share on the original grant date, subject to adjustments. Book value awards generally vest in three equal, annual installments, subject to continued employment. On February 1, 2021, under the terms of the GA Merger Agreement and in accordance with applicable plan documentation, former Global Atlantic restricted share awards that were unvested immediately prior to the closing of the GA Acquisition converted into the right to receive a number of book value awards under the GA Book Value Plan having the same value and the same vesting schedule as the former Global Atlantic restricted share awards immediately prior to the closing of the GA Acquisition. An aggregate of 3,020,017 unvested former Global Atlantic restricted share awards having a fair value of $29.47 per share were converted to book value awards at an aggregate grant-date value of $89 million. On February 28, 2021, book value awards having an aggregate value of approximately $28 million vested as set forth in the former Global Atlantic grant agreements and resulted in a cash payment of $17 million to participants, net of applicable tax withholding. Also in connection with the GA Acquisition, on February 1, 2021, Global Atlantic employees were issued a one-time grant of book value awards having an aggregate initial value of $23 million. These one-time book value awards vest over five On March 1, 2021, pursuant to the GA Book Value Plan, book value awards having an aggregate initial value of approximately $32 million were granted. Such book value awards generally vest annually over three years in equal increments, subject to continued employment. Global Atlantic is recording compensation expense over the vesting schedule of the awards, net of an estimated forfeiture rate of 4%. Global Atlantic began recognizing long-term incentive expense for the book value awards described above at the grant dates, based on their initial value. The table below presents the activity related to book value awards for the nine months ended September 30, 2021: Book value awards ($ in thousands) Outstanding amount as of beginning of period $ — Pre-acquisition awards converted to book-value awards on February 1, 2021 89,000 Granted 57,213 Forfeited (5,508) Impact of change in book value on outstanding awards 6,597 Vested and issued (31,086) Outstanding amount as of end of period $ 116,216 GA Equity Incentive Plan Awards On June 24, 2021, Global Atlantic issued 1,000 non-voting incentive shares to a Bermuda exempted partnership owned by certain Global Atlantic employees, who are eligible to receive incentive units under Global Atlantic's Senior Management Equity Incentive Plan ("GA Equity Incentive Plan"). These incentive units represent an interest in the receipt of certain amounts based on Global Atlantic's book value, market value, and AUM, in each case as derived in part from the value of TGAFG’s fully-diluted equity shares. On June 24, 2021, Global Atlantic granted approximately 808 incentive units under the GA Equity Incentive Plan. The book value component of the incentive units vests 20% per year on each anniversary of the GA Acquisition Date, as long as the grantee remains then employed, and will be settled in cash. The market value and AUM components of the incentive units cliff vest upon the earlier to occur of (i) the fifth (5th) anniversary of the GA Acquisition Date, or (ii) a change of control, and will be settled in a variable number of TGAFG’s non-voting common shares. Except in the event of termination due to death or disability, generally, unvested market value and AUM amounts are forfeited upon a termination of employment. The GA Equity Incentive Plan is accounted for as a hybrid compensation plan, consisting of components most closely aligned with a profit-sharing plan under ASC 710, Compensation - General , as well as components within scope of ASC 718, Compensation - Stock Compensation , in all cases with obligations liability-classified. Accordingly, with regard to awards within scope of ASC 710, Global Atlantic records expense based on payouts deemed to be probable and reasonably estimable based on the book value growth of Global Atlantic at the grant date and at each reporting period. For award components subject to liability-classification under ASC 718, Global Atlantic records expense, net of an estimated forfeiture rate, based on the fair value of awards granted, with periodic adjustments to expense for changes in fair value, over the requisite 5-year service period. The aggregate value of the GA Equity Incentive Plan awards at the date of grant was $197 million, based on the intrinsic value of the book value component at the date of grant ($5 million) and the fair value of the market value and AUM components at the date of grant ($192 million, collectively), based on the projected growth in value of each component over the 5-year vesting schedule and applying a forfeiture rate of 0%. Expense will be remeasured at each reporting period and adjusted as needed until the awards are forfeited or settled. Global Atlantic recorded compensation expense of $20.5 million and $25.3 million for the three and nine months ended September 30, 2021, respectively, related to the GA Units granted under the GA Equity Incentive Plan, with a corresponding offset to other liabilities. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Due from Affiliates consists of: September 30, 2021 December 31, 2020 Amounts due from portfolio companies $ 208,320 $ 164,113 Amounts due from unconsolidated investment funds 892,860 707,758 Amounts due from related entities 1,694 1,123 Due from Affiliates $ 1,102,874 $ 872,994 Due to Affiliates consists of: September 30, 2021 December 31, 2020 Amounts due to KKR Holdings - tax receivable agreement $ 237,825 $ 204,014 Amounts due to unconsolidated investment funds 61,878 121,163 Due to Affiliates $ 299,703 $ 325,177 |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING KKR operates through two reportable segments which are presented below and reflect how its chief operating decision-makers allocate resources and assess performance: • Asset Management - the asset management business offers a broad range of investment management services to investment funds, vehicles and accounts (including Global Atlantic) and provides capital markets services to portfolio companies and third parties. This reportable segment also reflects how its business lines operate collaboratively with predominantly a single expense pool. • Insurance - the insurance business is operated by Global Atlantic, which is a leading U.S. annuity and life insurance company that provides a broad suite of protection, legacy and savings products and reinsurance solutions to clients across individual and institutional markets. Global Atlantic primarily generates income by earning a spread between its investment income and the cost of policyholder benefits. KKR’s segment profitability measure used to make operating decisions and assess performance across KKR’s reportable segments is presented prior to giving effect to the allocation of income (loss) among KKR & Co. Inc., KKR Holdings and holders of other exchangeable securities, and the consolidation of the investment funds, vehicles and accounts that KKR advises, manages or sponsors (including CFEs). KKR's segment profitability measure excludes: (i) equity-based compensation charges, (ii) amortization of acquired intangibles, (iii) strategic transaction-related charges and (iv) non-recurring items, if any. Strategic transaction-related items arise from corporate actions and consist primarily of (i) impairments, (ii) non-monetary gains or losses on divestitures, (iii) transaction costs from strategic acquisitions, and (iv) depreciation on real estate that KKR owns and occupies. Inter-segment transactions are not eliminated from segment results when management considers those transactions in assessing the results of the respective segments. These transactions include (i) management fees earned by KKR as the investment adviser for Global Atlantic insurance companies and (ii) interest income and expense based on lending arrangements where one or more KKR subsidiaries borrow from a Global Atlantic insurance subsidiary. Inter-segment transactions are recorded by each segment based on the definitive documents that contain arms' length terms and comply with applicable regulatory requirements. Segment operating earnings for the Asset Management and Insurance segments is further defined as follows: • Asset Management Segment Operating Earnings is the profitability measure used to make operating decisions and to assess the performance of the Asset Management segment and is comprised of: (i) Fee Related Earnings, (ii) Realized Performance Income, (iii) Realized Performance Income Compensation, (iv) Realized Investment Income (Loss), and (v) Realized Investment Income Compensation. Asset Management Segment Operating Earnings excludes (i) unrealized carried interest, (ii) net unrealized gains (losses) on investments, and (iii) related unrealized performance income compensation expense. Management fees earned by KKR as the adviser, manager, or sponsor for its investment funds, vehicles and accounts, including management fees paid to KKR by Global Atlantic's insurance companies and management fees paid to Global Atlantic by reinsurance investment vehicles, are included in Asset Management Segment Operating Earnings. • Insurance Segment Operating Earnings is the profitability measure used to make operating decisions and to assess the performance of the Insurance segment and is comprised of: (i) Net Investment Income, (ii) Net Cost of Insurance, (iii) General, Administrative, and Other Expenses, (iv) Income Taxes, and (v) Net income Attributable to Noncontrolling Interests. The non-operating adjustments made to derive Insurance Segment Operating Earnings eliminate the impact of: (i) realized (gains) losses related to asset/liability matching investments strategies, (ii) unrealized investment (gains) losses, (iii) changes in the fair value of derivatives, embedded derivatives, and fair value liabilities for fixed-indexed annuities, indexed universal life contracts and variable annuities, and (iv) the associated income tax effects of all exclusions from Insurance Segment Operating Earnings except for equity-based compensation expense. Insurance Segment Operating Earnings includes (i) realized gains and losses not related to asset/liability matching investments strategies and (ii) the investment management fee expenses that are earned by KKR as the investment adviser of Global Atlantic's insurance companies. Modification of Segment Information In connection with the acquisition of Global Atlantic on February 1, 2021, KKR reevaluated the manner in which it makes operational and resource deployment decisions and assesses the overall performance of KKR's business. Effective with the three months ended March 31, 2021, the items detailed below have changed with respect to the preparation of the reports used by KKR's chief operating decision makers. As a result, KKR has modified the presentation of its segment financial information with retrospective application to all prior periods presented. The most significant changes between KKR's current segment presentation and its previous segment presentation reported prior to the three months ended March 31, 2021, are as follows: • Two Reportable Segments - KKR operates through two reportable segment due to the acquisition of Global Atlantic, which represents a separate reportable segment. The Asset Management segment represents KKR's business separate from its insurance operations and what previously was identified as one operating and reportable segment. The Asset Management segment continues to reflect how the chief operating decision makers allocate resources and assess performance in the asset management business, which includes operating collaboratively across asset management business lines, with predominantly a single expense pool. • Segment Operating Earnings - Segment Operating Earnings is the performance measure for KKR's segment profitability and is used by management in making operational and resource deployment decisions. Previously, due to the conclusion that KKR operated under one reportable segment, no measure of segment profit or loss was disclosed. In connection with these modifications, segment information as of and for the three and nine months ended September 30, 2020 has been presented in this Quarterly Report on Form 10-Q to conform to KKR's current segment presentation for comparability purposes. Consequently, this information will be different from the historical segment financial results previously reported by KKR in its reports filed with the SEC. Segment Presentation The following tables set forth information regarding KKR's segment results: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Management Fees (1) $ 559,016 $ 369,442 $ 1,478,878 $ 1,042,634 Transaction and Monitoring Fees, Net 249,670 201,086 645,108 380,415 Fee Related Performance Revenues 9,897 10,181 34,760 27,869 Fee Related Compensation (184,224) (170,220) (485,760) (342,417) Other Operating Expenses (104,772) (86,472) (309,483) (247,046) Fee Related Earnings 529,587 324,017 1,363,503 861,455 Realized Performance Income 432,784 224,020 1,222,403 934,018 Realized Performance Income Compensation (274,955) (157,885) (797,965) (599,753) Realized Investment Income (2) 447,565 260,415 1,277,701 495,904 Realized Investment Income Compensation (67,142) (56,803) (191,663) (85,646) Asset Management Segment Operating Earnings 1,067,839 593,764 2,873,979 1,605,978 Net Investment Income (1) (2) 771,982 — 1,977,383 — Net Cost of Insurance (436,415) — (1,076,566) — General, Administrative and Other (139,489) — (338,325) — Pre-tax Insurance Operating Earnings 196,078 — 562,492 — Income Taxes (9,046) — (63,148) — Net Income Attributable to Noncontrolling Interest (72,043) — (193,570) — Insurance Segment Operating Earnings 114,989 — 305,774 — Total Segment Operating Earnings $ 1,182,828 $ 593,764 $ 3,179,753 $ 1,605,978 (1) Includes intersegment management fees of $46.7 million and $108.5 million for the three and nine months ended September 30, 2021. (2) Includes intersegment interest expense and income of $10.8 million and $11.9 million for the three and nine months ended September 30, 2021. As of September 30, 2021 September 30, 2020 Segment Assets: - Asset Management $ 31,853,573 $ 25,249,013 - Insurance 164,436,876 — Total Segment Assets $ 196,290,449 $ 25,249,013 Three Months Ended Nine Months Ended Noncash expenses excluded from September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Equity Based Compensation and Other - Asset Management $ 62,510 $ 42,488 $ 188,269 $ 133,424 - Insurance 40,086 — 64,061 — Total Non-cash expenses $ 102,596 $ 42,488 $ 252,330 $ 133,424 Reconciliations of Total Segment Amounts The following tables reconcile the Segment Revenues, Segment Operating Earnings, and Segment Assets to their equivalent GAAP measure: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Total GAAP Revenues $ 4,483,365 $ 1,895,238 $ 12,182,552 $ 2,225,727 Impact of Consolidation and Other 134,524 85,393 392,883 278,898 Asset Management Adjustments: Capital Allocation-Based Income (GAAP) (1,526,667) (1,331,898) (5,736,707) (888,342) Realized Carried Interest 413,114 217,978 1,183,826 924,974 Realized Investment Income 447,565 260,415 1,277,701 495,904 Capstone Fees (25,178) (17,429) (66,286) (55,542) Expense Reimbursements (34,857) (44,553) (122,642) (100,779) Insurance Adjustments: Premiums (974,903) — (1,698,912) — Policy Fees (310,381) — (824,326) — Other Income (31,938) — (82,160) — Investment Gains and Losses (156,909) — 83,153 — Derivative Gains and Losses 53,179 — 47,151 — Total Segment Revenues (1) $ 2,470,914 $ 1,065,144 $ 6,636,233 $ 2,880,840 (1) Total Segment Revenues is comprised of (i) Management Fees, (ii) Transaction and Monitoring Fees, Net, (iii) Fee Related Performance Revenues, (iv) Realized Performance Income, (v) Realized Investment Income, and (vi) Net Investment Income. Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Income (Loss) Before Tax (GAAP) $ 3,660,927 $ 3,333,676 $ 12,621,574 $ 902,473 Impact of Consolidation and Other (1,472,312) (1,203,808) (4,985,859) 196,297 Interest Expense 63,446 54,458 185,100 152,676 Equity-based compensation - KKR Holdings 8,764 21,802 35,734 63,596 Asset Management Adjustments: Unrealized Carried Interest (911,156) (995,376) (3,872,150) 186,537 Net Unrealized Gains (Losses) (598,304) (1,088,901) (2,890,326) 18,049 Unrealized Carried Interest Compensation 397,449 418,728 1,667,447 (57,771) Strategic Corporate Transaction-Related Charges 7,362 10,697 17,497 10,697 Equity-based compensation 44,488 40,801 138,196 128,399 Equity-based compensation - Performance based 18,022 1,687 50,073 5,025 Insurance Adjustments: Net (Gains) Losses from Investments and Derivatives (75,241) — 183,842 — Strategic Corporate Transaction-Related Charges 3,931 — 15,947 — Equity-based and Other Compensation 40,086 — 64,061 — Amortization of Acquired Intangibles 4,412 — 11,765 — Income Taxes (9,046) — (63,148) — Total Segment Operating Earnings $ 1,182,828 $ 593,764 $ 3,179,753 $ 1,605,978 As of September 30, 2021 September 30, 2020 Total GAAP Assets $ 265,799,650 $ 70,655,333 Impact of Consolidation and Other (65,502,921) (43,250,461) Carry Pool Reclassifications (3,562,686) (1,393,381) Other Reclassifications (443,594) (762,478) Total Segment Assets $ 196,290,449 $ 25,249,013 |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
EQUITY | EQUITY Stockholders' Equity Common Stock The common stock of KKR & Co. Inc. is entitled to vote as provided by its certificate of incorporation, Delaware General Corporation Law and the rules of the NYSE. Subject to preferences that apply to shares of Series C Mandatory Convertible Preferred Stock and any other shares of preferred stock outstanding at the time on which dividends are payable, the holders of common stock are entitled to receive dividends out of funds legally available if the board of directors, in its discretion, determines to declare dividends and then only at the times and in the amounts that the board of directors may determine. The common stock is not entitled to preemptive rights and is not subject to conversion, redemption or sinking fund provisions. Series I and Series II Preferred Stock Except for any distribution required by Delaware law to be made upon a dissolution event, the holders of Series I preferred stock and Series II preferred stock do not have any economic rights to receive dividends. Series I preferred stock is entitled to vote on various matters that may be submitted to vote of the stockholders and the other matters as set forth in the certificate of incorporation. For matters on which common stock is entitled to vote, so long as the ratio at which KKR Group Partnership Units are exchangeable for shares of common stock remains on a one-for-one basis, Series II preferred stock will vote together with common stock as a single class and on an equivalent basis, except Series II preferred stock will vote separately as a class on any amendment to the certificate of incorporation that changes certain terms, rights or preferences of Series II preferred stock. Upon a dissolution event, each holder of Series I preferred stock will be entitled to a payment equal to $0.01 per share of Series I preferred stock and each holder of Series II preferred stock will be entitled to a payment equal to $0.000000001 per share of Series II preferred stock. For details on the Reorganization Agreement and a discussion of the elimination of these classes of preferred stock in connection with the Reorganization Agreement, s ee Note 24 "Subsequent Events." Series A and Series B Preferred Stock The board of directors is authorized, subject to limitations prescribed by Delaware law, to issue preferred stock in one or more series, to establish from time to time the number of shares to be included in each series, and to fix the designation, powers (including voting powers), preferences and rights of the shares of each series and any of its qualifications, limitations or restrictions, in each case without further vote or action by the stockholders (except as may be required by the terms of any preferred stock then outstanding). KKR & Co. Inc. had outstanding 13,800,000 shares of Series A Preferred Stock. Series A Preferred Stock had traded on the NYSE under the symbol "KKR PR A" and was originally issued on March 17, 2016. On June 15, 2021, KKR redeemed all of its Series A Preferred Stock at a redemption price per share equal to the $25.00 liquidation preference plus declared and unpaid dividends, which amounted to $350.8 million. The series of preferred units with economic terms that mirror those of the Series A Preferred Stock that was issued by KKR Group Partnership for the benefit of KKR & Co. Inc. were concurrently extinguished. Net income available to KKR was impacted by a charge of $12.0 million for the redemption of the Series A Preferred Stock. This charge is based on the excess of the redemption value over the carrying value of the Series A Preferred Stock. KKR & Co. Inc. had outstanding 6,200,000 shares of Series B Preferred Stock. Series B Preferred Stock had traded on the NYSE under the symbol "KKR PR B" and was originally issued on June 20, 2016. On September 15, 2021, KKR redeemed all of its Series B Preferred Stock at a redemption price per share equal to the $25.00 liquidation preference plus declared and unpaid dividends, which amounted to $157.5 million. The series of preferred units with economic terms that mirror those of the Series B Preferred Stock that was issued by KKR Group Partnership for the benefit of KKR & Co. Inc. were concurrently extinguished. Net income available to KKR was impacted by a charge of $5.4 million for the redemption of the Series B Preferred Stock. This charge is based on the excess of the redemption value over the carrying value of the Series B Preferred Stock. Series C Mandatory Convertible Preferred Stock On August 14, 2020, KKR & Co. Inc. issued 23,000,000 shares, or $1.15 billion aggregate liquidation preference, of its 6.00% Series C Mandatory Convertible Preferred Stock (the "Series C Mandatory Convertible Preferred Stock"). Unless converted or redeemed earlier in accordance with the terms of the Series C Mandatory Convertible Preferred Stock, each share of Series C Mandatory Convertible Preferred Stock will automatically convert on the mandatory conversion date, which is expected to be September 15, 2023, into between 1.1662 shares and 1.4285 shares of common stock, in each case, subject to customary anti-dilution adjustments described in the certificate of designations related to the Series C Mandatory Convertible Preferred Stock. The number of shares of common stock issuable upon conversion will be determined based on the average volume weighted average price per share of common stock over the 20 consecutive trading day period beginning on, and including, the 21st scheduled trading day immediately prior to September 15, 2023. Dividends on the Series C Mandatory Convertible Preferred Stock will be payable on a cumulative basis when, as and if declared by our board of directors, or an authorized committee thereof, at an annual rate of 6.00% on the liquidation preference of $50.00 per share of Series C Mandatory Convertible Preferred Stock, and may be paid in cash or, subject to certain limitations, in shares of common stock or, subject to certain limitations, any combination of cash and shares of common stock. If declared, dividends on the Series C Mandatory Convertible Preferred Stock will be payable quarterly on March 15, June 15, September 15 and December 15 of each year to, and including, September 15, 2023, commencing on December 15, 2020. Upon KKR & Co. Inc.’s voluntary or involuntary liquidation, winding-up or dissolution, each holder of the Series C Mandatory Convertible Preferred Stock would be entitled to receive a liquidation preference in the amount of $50.00 per share of Series C Mandatory Convertible Preferred Stock, plus an amount equal to accumulated and unpaid dividends on such shares, whether or not declared, to, but excluding, the date fixed for liquidation, winding-up or dissolution, to be paid out of KKR & Co. Inc.’s assets legally available for distribution to its stockholders after satisfaction of debt and other liabilities owed to KKR & Co. Inc.’s creditors and holders of shares of its stock ranking senior to the Series C Mandatory Convertible Preferred Stock and before any payment or distribution is made to holders of any stock ranking junior to the Series C Mandatory Convertible Preferred Stock, including, without limitation, common stock. In connection with the issuance of the Series C Mandatory Convertible Preferred Stock, the limited partnership agreement of KKR Group Partnership was amended to provide for preferred units with economic terms designed to mirror those of the Series C Mandatory Convertible Preferred Stock. Share Repurchase Program Under KKR's repurchase program, shares of common stock of KKR & Co. Inc. may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing, manner, price and amount of any repurchases will be determined by KKR in its discretion and will depend on a variety of factors, including legal requirements, price and economic and market conditions. In addition to the repurchases of common stock, the repurchase program will be used for the retirement (by cash settlement or the payment of tax withholding amounts upon net settlement) of equity awards granted pursuant to our Equity Incentive Plans representing the right to receive common stock. KKR expects that the program, which has no expiration date, will be in effect until the maximum approved dollar amount has been used. The program does not require KKR to repurchase or retire any specific number of shares of common stock or equity awards, respectively, and the program may be suspended, extended, modified or discontinued at any time. As of October 29, 2021, the remaining amount available under the repurchase program was $160 million. The repurchase program will be automatically renewed if the remaining amount available for repurchases reaches a specific threshold. The following table presents KKR & Co. Inc. common stock that has been repurchased or equity awards retired under the repurchase program: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Shares of common stock repurchased — — 2,667,995 10,209,673 Equity awards for common stock retired — — 2,366,447 1,728,914 Noncontrolling Interests Noncontrolling interests represent (i) noncontrolling interests in consolidated entities and (ii) noncontrolling interests held by KKR Holdings. Noncontrolling Interests in Consolidated Entities and Other Noncontrolling interests in consolidated entities represent the non-redeemable ownership interests in KKR that are held primarily by: (i) third party fund investors in KKR's consolidated funds and certain other entities; (ii) third parties entitled to up to 1% of the carried interest received by certain general partners of KKR's funds that have made investments on or prior to December 31, 2015; (iii) certain former principals and their designees representing a portion of the carried interest received by the general partners of KKR's private equity funds that was allocated to them with respect to private equity investments made during such former principals' tenure with KKR prior to October 1, 2009; (iv) certain current and former principals representing all of the capital invested by or on behalf of the general partners of KKR's private equity funds prior to October 1, 2009 and any returns thereon; (v) third parties in KKR's Capital Markets business line; (vi) holders of other exchangeable securities, which consist of vested restricted holdings units granted under the 2019 Equity Plan that are exchangeable into shares of common stock of KKR & Co. Inc.; and (vii) third parties in KKR's insurance business including GA Rollover Investors, GA Co-Investors and third party investors in Global Atlantic's consolidated renewable energy entities. Noncontrolling Interests held by KKR Holdings Noncontrolling interests held by KKR Holdings consist of economic interests held by principals indirectly in KKR Group Partnership Units. Such principals receive financial benefits from KKR's business in the form of distributions received from KKR Holdings and through their direct and indirect participation in the value of KKR Group Partnership Units held by KKR Holdings. These financial benefits are not paid by KKR & Co. Inc. and are borne by KKR Holdings. The following tables present the calculation of total noncontrolling interests: Three Months Ended September 30, 2021 Noncontrolling Interests in Consolidated Entities and Other Noncontrolling Interests Held by KKR Holdings Total Noncontrolling Interests Balance at the beginning of the period $ 28,402,888 $ 7,935,515 $ 36,338,403 Net income (loss) attributable to noncontrolling interests (1) 1,452,730 670,839 2,123,569 Other comprehensive income (loss), net of tax (2) (54,640) (31,904) (86,544) Exchange of KKR Holdings Units to Common Stock (3) — — — Equity-based and other non-cash compensation 32,255 8,764 41,019 Capital contributions 3,658,497 — 3,658,497 Capital distributions (1,981,504) (49,844) (2,031,348) Changes in consolidation (12,352) — (12,352) Balance at the end of the period $ 31,497,874 $ 8,533,370 $ 40,031,244 Nine Months Ended September 30, 2021 Noncontrolling Interests in Consolidated Entities and Other Noncontrolling Interests Held by KKR Holdings Total Noncontrolling Interests Balance at the beginning of the period $ 20,570,716 $ 6,512,382 $ 27,083,098 Net income (loss) attributable to noncontrolling interests (1) 4,889,401 2,425,961 7,315,362 Other comprehensive income (loss), net of tax (2) (132,351) (77,377) (209,728) Exchange of KKR Holdings Units to Common Stock (3) — (122,065) (122,065) Equity-based and other non-cash compensation 71,993 35,734 107,727 Capital contributions 9,721,024 25 9,721,049 Capital distributions (3,734,474) (241,290) (3,975,764) Impact of Acquisition (4) 190,405 — 190,405 Changes in consolidation (78,840) — (78,840) Balance at the end of the period $ 31,497,874 $ 8,533,370 $ 40,031,244 Three Months Ended September 30, 2020 Noncontrolling Interests in Consolidated Entities and Other Noncontrolling Interests Held by KKR Holdings Total Noncontrolling Interests Balance at the beginning of the period $ 14,217,950 $ 5,221,844 $ 19,439,794 Net income (loss) attributable to noncontrolling interests (1) 1,217,728 691,730 1,909,458 Other comprehensive income (loss), net of tax (2) 2,121 7,121 9,242 Exchange of KKR Holdings Units to Common Stock (3) — (140,794) (140,794) Equity-based and other non-cash compensation — 21,802 21,802 Capital contributions 3,486,352 25 3,486,377 Capital distributions (2,531,637) (85,652) (2,617,289) Transfer of Oil and Gas Interests (See Note 2) — (23,358) (23,358) Changes in consolidation (239,258) — (239,258) Balance at the end of the period $ 16,153,256 $ 5,692,718 $ 21,845,974 Nine Months Ended September 30, 2020 Noncontrolling Interests in Consolidated Entities and Other Noncontrolling Interests Held by KKR Holdings Total Noncontrolling Interests Balance at the beginning of the period $ 13,966,250 $ 5,728,634 $ 19,694,884 Net income (loss) attributable to noncontrolling interests (1) (95,721) 301,946 206,225 Other comprehensive income (loss), net of tax (2) (5,053) 249 (4,804) Exchange of KKR Holdings Units to Common Stock (3) — (221,548) (221,548) Equity-based and other non-cash compensation — 63,596 63,596 Capital contributions 5,796,607 73 5,796,680 Capital distributions (3,247,739) (164,319) (3,412,058) Transfer of interests under common control (5) (21,830) 7,445 (14,385) Transfer of Oil and Gas Interests (See Note 2) — (23,358) (23,358) Changes in consolidation (239,258) — (239,258) Balance at the end of the period $ 16,153,256 $ 5,692,718 $ 21,845,974 (1) Refer to the table below for calculation of net income (loss) attributable to noncontrolling interests held by KKR Holdings. (2) With respect to noncontrolling interests held by KKR Holdings, calculated on a pro rata basis based on the weighted average KKR Group Partnership Units held by KKR Holdings during the reporting period. (3) Calculated based on the proportion of KKR Holdings units exchanged for KKR & Co. Inc. common stock. The exchange agreement with KKR Holdings provides for the exchange of KKR Group Partnership Units held by KKR Holdings for KKR & Co. Inc. common stock. (4) Represents other noncontrolling interests at the GA Acquisition Date. See Note 3. (5) KKR acquired KKR Capstone on January 1, 2020. KKR Capstone was consolidated prior to January 1, 2020 and consequently, this transaction was accounted for as an equity transaction. This transaction resulted in an increase to KKR Group Partnership's equity. Accordingly, both KKR's equity and noncontrolling interests held by KKR Holdings increased for their proportionate share of the KKR Capstone equity based on their ownership in KKR Group Partnership on January 1, 2020. Net income (loss) attributable to each of KKR & Co. Inc. common stockholders, KKR Holdings and holders of other exchangeable securities, with the exception of certain tax assets and liabilities that are directly allocable to KKR & Co. Inc., is attributed based on the percentage of the weighted average KKR Group Partnership Units directly or indirectly held by them. However, primarily because of the (i) contribution of certain expenses borne entirely by KKR Holdings and holders of other exchangeable securities, (ii) the periodic exchange of KKR Holdings units and other exchangeable securities for KKR & Co. Inc. common stock pursuant to the exchange agreement and (iii) the contribution of certain expenses borne entirely by KKR associated with the Equity Incentive Plans, equity allocations shown in the consolidated statement of changes in equity differ from their respective pro rata ownership interests in KKR's net assets. The following table presents net income (loss) attributable to noncontrolling interests held by KKR Holdings: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net income (loss) $ 3,281,645 $ 2,974,301 $ 11,459,886 $ 697,513 (-) Net income (loss) attributable to Redeemable Noncontrolling Interests 1,519 — 2,856 — (-) Net income (loss) attributable to Noncontrolling Interests in consolidated entities and other 1,452,730 1,217,728 4,889,401 (95,721) (-) Series A and B Preferred Stock Dividends 7,953 8,341 36,647 25,023 (-) Series C Mandatory Convertible Preferred Stock Dividends 17,250 — 51,750 — (+) Income tax expense (benefit) attributable to KKR & Co. Inc. 311,745 319,717 1,104,628 159,855 Net income (loss) attributable to KKR & Co. Inc. $ 2,113,938 $ 2,067,949 $ 7,583,860 $ 928,066 Net income (loss) attributable to Noncontrolling Interests held by KKR Holdings $ 670,839 $ 691,730 $ 2,425,961 $ 301,946 |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 9 Months Ended |
Sep. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTSGlobal Atlantic has redeemable non-controlling interests related to renewable energy entities of approximately $93.3 million as of September 30, 2021 as determined by the HLBV method. The estimated redemption value of redeemable non-controlling interests is calculated as the discounted cash flows subsequent to the expected flip date of the respective renewable energy entity. The flip date represents the date at which the allocation of income and cash flows among the investors in the entity is adjusted, pursuant to the redeemable non-controlling interest investors having achieved an agreed-upon return. The flip date of renewable energy partnerships determines when the redeemable non-controlling interests are eligible to be redeemed. Eligible redemption dates range from 2022 to 2027. For the redeemable non-controlling interests outstanding as of September 30, 2021, the estimated redemption value that would be due at the respective redemption dates is $6.7 million. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Funding Commitments and Others As of September 30, 2021, KKR had unfunded commitments consisting of $10,949.0 million to its investment funds. KKR has also agreed for certain of its investment vehicles to fund or otherwise be liable for a portion of their investment losses (up to a maximum of approximately $116 million) and/or to provide them with liquidity upon certain termination events (the maximum amount of which is unknown until the scheduled termination date of the investment vehicle). In addition to these uncalled commitments and funding obligations to KKR's investment funds and vehicles, KKR has entered into contractual commitments primarily with respect to underwriting transactions, debt financing, revolving credit facilities, and syndications in KKR's Capital Markets business line. As of September 30, 2021, these commitments amounted to $1.2 billion. Whether these amounts are actually funded, in whole or in part, depends on the contractual terms of such commitments, including the satisfaction or waiver of any conditions to closing or funding. KKR's capital markets business has arrangements with third parties, which reduce its risk when underwriting certain debt transactions, and thus our unfunded commitments as of September 30, 2021 have been reduced to reflect the amount to be funded by such third parties. In the case of purchases of investments or assets in KKR's Principal Activities business line, the amount to be funded includes amounts that are intended to be syndicated to third parties, and the actual amounts to be funded may be less than shown. Global Atlantic has commitments to purchase or fund investments of $1.6 billion as of September 30, 2021. These commitments include those related to commercial mortgage loans, other lending facilities and other investments. For those commitments that represent a contractual obligation to extend credit, Global Atlantic has recorded a liability of $15.4 million for current expected credit losses as of September 30, 2021. In addition, Global Atlantic has entered into certain forward flow agreements to purchase loans. Global Atlantic's obligations under these agreements are subject to change, curtailment, and cancellation based on various provisions including repricing mechanics, due diligence reviews, and performance or pool quality, among other factors. Non-cancelable Operating Leases KKR's non-cancelable operating leases consist of leases of office space around the world. There are no material rent holidays, contingent rent, rent concessions or leasehold improvement incentives associated with any of these property leases. In addition to base rentals, certain lease agreements are subject to escalation provisions and rent expense is recognized on a straight‑line basis over the term of the lease agreement. Global Atlantic also enters into land leases for its consolidated investments in renewable energy. Contingent Repayment Guarantees The partnership documents governing KKR's carry-paying investment funds and vehicles generally include a "clawback" provision that, if triggered, may give rise to a contingent obligation requiring the general partner to return amounts to the fund for distribution to the fund investors at the end of the life of the fund. Under a clawback obligation, upon the liquidation of a fund, the general partner is required to return, typically on an after-tax basis, previously distributed carry to the extent that, due to the diminished performance of later investments, the aggregate amount of carry distributions received by the general partner during the term of the fund exceed the amount to which the general partner was ultimately entitled, including the effects of any performance thresholds. As of September 30, 2021, approximately $78.0 million of carried interest was subject to this clawback obligation, assuming that all applicable carry-paying funds and their alternative investment vehicles were liquidated at their September 30, 2021 fair values. Although KKR would be required to remit the entire amount to fund investors that are entitled to receive the clawback payment, KKR would be entitled to seek reimbursement of approximately $32.0 million of that amount from KKR Associates Holdings L.P., which is not a KKR subsidiary. As of September 30, 2021, KKR Associates Holdings L.P. had access to cash reserves sufficient to reimburse the full $32.0 million that would be due to KKR. If the investments in all carrying-paying funds were to be liquidated at zero value the clawback obligation would have been approximately $2.4 billion, and KKR would be entitled to seek reimbursement of approximately $1.0 billion of that amount from KKR Associates Holdings L.P. Carried interest is recognized in the consolidated statements of operations based on the contractual conditions set forth in the agreements governing the fund as if the fund were terminated and liquidated at the reporting date and the fund's investments were realized at the then estimated fair values. Amounts earned pursuant to carried interest are earned by the general partner of those funds to the extent that cumulative investment returns are positive and where applicable, preferred return thresholds have been met. If these investment amounts earned decrease or turn negative in subsequent periods, recognized carried interest will be reversed and to the extent that the aggregate amount of carry distributions received by the general partner during the term of the fund exceed the amount to which the general partner was ultimately entitled, a clawback obligation would be recorded. For funds that are consolidated, this clawback obligation, if any, is reflected as an increase in noncontrolling interests in the consolidated statements of financial condition. For funds that are not consolidated, this clawback obligation, if any, is reflected as a reduction of KKR's investment balance as this is where carried interest is initially recorded. Indemnifications and Other Guarantees KKR may incur contingent liabilities for claims that may be made against it in the future. KKR enters into contracts that contain a variety of representations, warranties and covenants, including indemnifications. For example, KKR (including KFN) and certain of KKR's investment funds have provided and provide certain indemnities relating to environmental and other matters and have provided and provide non-recourse carve-out guarantees for fraud, willful misconduct and other customary wrongful acts, each in connection with the financing of KKR's corporate real estate and certain real estate investments and for certain investment vehicles that KKR manages. KKR's maximum exposure under these arrangements is currently unknown and KKR's liabilities for these matters would require a claim to be made against KKR in the future. KKR provides credit support to certain of its subsidiaries' obligations in connection with a limited number of investment vehicles that KKR manages. For example, KKR has guaranteed the obligations of a general partner to post collateral on behalf of its investment vehicle in connection with such vehicle's derivative transactions. KKR also (i) provides credit support regarding repayment and funding obligations to third-party lenders to certain of its employees, excluding its executive officers, in connection with their personal investments in KKR investment funds and in an investment vehicle that includes third party investors and invests in KKR funds and alongside KKR funds and (ii) provides credit support to a hedge fund partnership. KKR is not a guarantor for any borrowings, credit facilities or debt securities of its Indian debt financing company. KKR may also become liable for certain fees payable to sellers of businesses or assets if a transaction does not close, subject to certain conditions, if any, specified in the acquisition agreements for such businesses or assets. The Global Atlantic business was formerly owned by The Goldman Sachs Group, Inc. (together with its subsidiaries, "Goldman Sachs"). In connection with the separation of Global Atlantic from Goldman Sachs in 2013, Global Atlantic entered into a tax benefit payment agreement with Goldman Sachs. Under the tax benefit payment agreement, GA FinCo is obligated to make annual payments out of available cash, guaranteed by GAFG, to Goldman Sachs over an approximately 25-year period totaling $214 million. As of September 30, 2021, the present value of the remaining amount to be paid is $74 million. Although these payments are subordinated and deferrable, deferral of these payments would result in restrictions on distributions by GA FinCo and GAFG. In lieu of funding certain investments in loan facilities to third party borrowers in cash, Global Atlantic has arranged for third-party banks to issue letters of credit on behalf of the borrowers in the amount of $31.4 million, as of September 30, 2021, with expiration dates between September 2021 to October 2022. Global Atlantic has available lines of credit that would allow for additional letters of credit to be issued on behalf of the borrowers, up to $218.6 million, as of September 30, 2021. For accounting purposes, these letters of credit are considered guarantees of certain obligations of the borrowers. If a letter of credit were drawn, Global Atlantic would be obligated to repay the issuing third-party bank, and Global Atlantic would recognize a loan receivable from the borrowers on the consolidated statements of financial condition. Global Atlantic monitors the likelihood of these letters of credit being drawn, and any related contingent obligation. As of September 30, 2021, the expected credit loss on the contingent liability associated with these letters of credit was not material. Litigation From time to time, KKR (including Global Atlantic) is involved in various legal proceedings, lawsuits, arbitration and claims incidental to the conduct of KKR's businesses. KKR's asset management and insurance businesses are also subject to extensive regulation, which may result in regulatory proceedings against them. In December 2017, KKR & Co. L.P. (which is now KKR & Co. Inc.) and its Co-Chief Executive Officers were named as defendants in a lawsuit filed in Kentucky state court alleging, among other things, the violation of fiduciary and other duties in connection with certain separately managed accounts that Prisma Capital Partners LP, a former subsidiary of KKR, manages for the Kentucky Retirement Systems. Also named as defendants in the lawsuit are certain current and former trustees and officers of the Kentucky Retirement Systems, Prisma Capital Partners LP, and various other service providers to the Kentucky Retirement Systems and their related persons. KKR and other defendants’ motions to dismiss were denied by the trial court in November 2018, but in April 2019 the Kentucky Court of Appeals vacated the trial court's opinion and order denying the motions to dismiss the case for lack of standing. The decision of the Court of Appeals was appealed by plaintiffs to the Supreme Court of Kentucky. On July 9, 2020, the Supreme Court of Kentucky reversed the trial court's order and remanded the case to the trial court with direction to dismiss the complaint for lack of constitutional standing. On July 20, 2020, the Office of the Attorney General, on behalf of the Commonwealth of Kentucky, filed a motion to intervene as a plaintiff in the lawsuit and on July 21, 2020 filed a new lawsuit in the same Kentucky trial court making essentially the same allegations against the defendants, including KKR & Co. Inc. and Messrs. Kravis and Roberts. On July 29, 2020, certain private plaintiffs in the original lawsuit filed a motion to further amend their original complaint and to add new plaintiffs. On July 30, 2020, KKR and other defendants filed objections to the Attorney General’s motion to intervene. On December 28, 2020, the trial court dismissed the complaint filed by the original plaintiffs and denied their motion to amend their original complaint and add new plaintiffs, but granted the Office of the Attorney General’s motion to intervene. In January 2021, some of the attorneys for the private plaintiffs in the original lawsuit filed a new lawsuit, and a motion to intervene in the original lawsuit, on behalf of a new set of plaintiffs, who claim to be "Tier 3" members of Kentucky Retirement Systems, alleging substantially the same allegations as in the original lawsuit. The motion to intervene in the original lawsuit was denied. In addition, the Kentucky Retirement Systems had commissioned an investigation into certain matters alleged in the Attorney General's complaint. The trial court ordered that this investigation be completed by May 17, 2021, and the Attorney General was permitted to amend its complaint after reviewing the investigation's report within ten days of the Attorney General's receipt of it. On May 24, 2021, the Attorney General filed a First Amended Complaint on behalf of the Commonwealth of Kentucky. This complaint continues to name KKR & Co. L.P. and its Co-Chief Executive Officers, as defendants, and makes similar allegations against them. KKR and the other defendants moved to dismiss the First Amended Complaint on July 30, 2021. On July 9, 2021, the individual plaintiffs served an amended complaint, which purports to assert, on behalf of a class of beneficiaries of Kentucky Retirement Systems, direct claims for breach of fiduciary duty and civil violations under the Racketeer Influenced and Corrupt Organizations Act ("RICO"). This complaint was removed to the U.S. District Court for the Eastern District of Kentucky. On August 20, 2021, the same and other individual plaintiffs filed a second complaint in Kentucky state court, purportedly on behalf of Kentucky Retirement Systems' funds, alleging the same claims against KKR & Co. Inc. and Messrs. Kravis and Roberts as in the July 9 th amended complaint but without the RICO allegations. KKR (including Global Atlantic) currently is and expects to continue to become, from time to time, subject to examinations, inquiries and investigations by various U.S. and non-U.S. governmental and regulatory agencies, including but not limited to the SEC, Department of Justice, U.S. state attorney generals, Financial Industry Regulatory Authority ("FINRA"), the U.K. Financial Conduct Authority, Central Bank of Ireland, Monetary Authority of Singapore, U.S. state insurance regulatory authorities, and the Bermuda Monetary Authority. Such examinations, inquiries and investigations may result in the commencement of civil, criminal or administrative proceedings or fines against KKR or its personnel. Moreover, in the ordinary course of business, KKR (including Global Atlantic) is and can be both the defendant and the plaintiff in numerous lawsuits with respect to acquisitions, bankruptcy, insolvency and other events. Such lawsuits may involve claims that adversely affect the value of certain investments owned by KKR's funds and Global Atlantic's insurance companies. KKR establishes an accrued liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. No loss contingency is recorded for matters where such losses are either not probable or reasonably estimable (or both) at the time of determination. Such matters may be subject to many uncertainties, including among others: (i) the proceedings may be in early stages; (ii) damages sought may be unspecified, unsupportable, unexplained or uncertain; (iii) discovery may not have been started or is incomplete; (iv) there may be uncertainty as to the outcome of pending appeals or motions; (v) there may be significant factual issues to be resolved or (vi) there may be novel legal issues or unsettled legal theories to be presented or a large number of parties. Consequently, management is unable to estimate a range of potential loss, if any, related to these matters. In addition, loss contingencies may be, in part or in whole, subject to insurance or other payments such as contributions and/or indemnity, which may reduce any ultimate loss. KKR has included in its financial statements the reserve for regulatory, litigation and related matters that Global Atlantic includes in its financial statements, including with respect to matters arising from the conversion of life insurance policies from systems previously managed by Athene Holdings Limited to the platform of one of Global Atlantic's third party service providers, Alliance-One, a subsidiary of DXC Technology Company. It is not possible to predict the ultimate outcome of all pending legal proceedings, and some of the matters discussed above seek or may seek potentially large and/or indeterminate amounts. Based on information known by management, management has not concluded that the final resolutions of the matters above will have a material effect upon the financial statements. However, given the potentially large and/or indeterminate amounts sought or may be sought in certain of these matters and the inherent unpredictability of investigations and litigations, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on KKR's financial results in any particular period. Other Financing Arrangements Global Atlantic has financing arrangements with unaffiliated third parties to support the reserves of its affiliated captive reinsurers. Total fees expensed associated with these financing arrangements were $3.5 million and $11.9 million for the three and nine months ended September 30, 2021, respectively, and are included in insurance expenses in the consolidated statements of operations. As of September 30, 2021, the total capacity of the financing arrangements with third parties was $2.0 billion. Other than the matters disclosed above, there were no outstanding or unpaid balances from the financing arrangements with unaffiliated third parties as of September 30, 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Common Stock Dividend A dividend of $0.145 per share of common stock of KKR & Co. Inc. was announced on November 2, 2021, and will be paid on November 30, 2021 to common stockholders of record as of the close of business on November 15, 2021. KKR Holdings will receive its pro rata share of the distribution from KKR Group Partnership. Preferred Stock Dividends A dividend of $0.75 per share of Series C Mandatory Convertible Preferred Stock has been declared as announced on November 2, 2021 and set aside for payment on December 15, 2021 to holders of record of Series C Mandatory Convertible Preferred Stock as of the close of business on December 1, 2021. Reorganization Agreement On October 11, 2021, KKR announced a series of integrated transactions that provide for: (i) a simplifying reorganization of KKR’s current corporate structure whereby all holders of common stock of KKR & Co. Inc. immediately prior to such reorganization and all holders of interests in KKR Holdings immediately prior to such reorganization will receive the same common stock in a new parent company of KKR (“New KKR Parent”), (ii) the future elimination of control of New KKR Parent by KKR Management LLP (“KKR Management”), an entity owned by senior KKR employees that is the sole holder of KKR & Co. Inc.’s controlling Series I Preferred Stock, by having all voting power vested in the common stock of New KKR Parent on a one vote per share basis on the Sunset Date (as defined below), which will be no later than December 31, 2026, (iii) also on the Sunset Date, the future acquisition of control by KKR of KKR Associates Holdings L.P. (“KKR Associates Holdings”), the entity providing for the allocation of carry proceeds to KKR employees, also known as the carry pool, (iv) the termination of KKR's tax receivable agreement with KKR Holdings other than with respect to exchanges prior to the Final Exchange (as defined below), and (v) in the merger of KKR Holdings with a subsidiary of New KKR Parent (the “Holdings Merger”), the issuance to limited partners of KKR Holdings of 8.5 million shares (as adjusted for any stock splits or similar adjustments) of common stock of New KKR Parent (the “Reorganization Shares”), which will not be transferrable (except in the case of death or for estate planning purposes) prior to the Sunset Date. The “Sunset Date” will be the earlier of (i) December 31, 2026 and (ii) the six-month anniversary of the first date on which the death or permanent disability of both Mr. Henry Kravis and Mr. George Roberts (collectively, "Co-Founders") has occurred (or any earlier date consented to by KKR Management in its sole discretion). The terms of these transactions are reflected in the Reorganization Agreement, dated as of October 8, 2021, by and among KKR & Co. Inc., KKR Group Holdings Corp., KKR Group Partnership L.P., KKR Holdings, KKR Holdings GP Limited, KKR Associates Holdings, KKR Associates Holdings GP Limited and KKR Management (the “Reorganization Agreement”). The transactions contemplated to occur under the Reorganization Agreement (including the establishment of New KKR Parent, the Holdings Merger, the termination of the tax receivable agreement except with respect to exchanges of Holdings units made prior thereto, and the changes to occur effective on the Sunset Date) are all required to be consummated together as integrated transactions under the Reorganization Agreement. While the Sunset Date itself is expected to occur after, and is conditioned upon, the completion of the merger transactions, the changes to occur effective on the Sunset Date will be unconditional commitments upon the completion of the merger transactions. Immediately prior to the closing of the mergers contemplated by the Reorganization Agreement, the vesting of 500,000 outstanding units of KKR Holdings (“KKR Holdings Units”) held by each of KKR’s Co-Executive Chairmen and of 1,455,000 outstanding KKR Holdings Units held by each of KKR’s Co-Executive Chairmen, each of which are currently scheduled to vest on October 1, 2022, will be accelerated, and such Holdings Units will become vested and receive their allocable share of the common stock and Reorganization Shares in the Holdings Merger. The customary one- and two-year transfer restrictions applicable to such KKR Holdings Units will continue to apply to the shares of New KKR Parent to be received in exchange therefor pursuant to the Reorganization Agreement until October 1, 2023 and October 1, 2024. The 500,000 KKR Holdings Units held by each of KKR’s Co-Executive Chairmen are already considered fully vested given their age and years of service at KKR. In the case of KKR’s Co-Chief Executive Officers only, each of their 1,455,000 KKR Holdings Units (or shares of common stock of New KKR Parent received in respect thereof) will be subject to forfeiture if such executive is not employed by KKR on October 1, 2022 (except in the case of death or permanent disability). KKR Holdings has allocated 1,150,000 KKR Holdings Units to each of KKR’s Co-Chief Executive Officers, of which 30% is subject to forfeiture if such executive is not employed by KKR on October 1, 2022 (except in the case of death or permanent disability). These shares are subject to customary one- and two-year transfer restrictions that apply, as applicable, until October 1, 2023 and October 1, 2024. KKR’s Co-Founders are authorized to allocate the balance of any outstanding and unallocated KKR Holdings Units, in their sole discretion, to themselves or others, on such terms as they determine, prior to the closing of the mergers contemplated by the Reorganization Agreement. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited financial statements of KKR & Co. Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the instructions to this Quarterly Report on Form 10-Q. The condensed consolidated financial statements (referred to hereafter as the "financial statements"), including these notes, are unaudited and exclude some of the disclosures required in annual financial statements. Management believes it has made all necessary adjustments (consisting of only normal recurring items) such that the financial statements are presented fairly and that estimates made in preparing the financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The consolidated balance sheet data as of December 31, 2020 were derived from audited financial statements included in KKR's Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the "SEC") on February 19, 2021, and the financial statements should be read in conjunction with the audited financial statements included therein. Additionally, in the accompanying financial statements, the condensed consolidated statements of financial condition are referred to hereafter as the "consolidated statements of financial condition"; the condensed consolidated statements of operations are referred to hereafter as the "consolidated statements of operations"; the condensed consolidated statements of comprehensive income (loss) are referred to hereafter as the "consolidated statements of comprehensive income (loss)"; the condensed consolidated statements of changes in equity and redeemable non-controlling interests are referred to hereafter as the "consolidated statements of changes in equity"; and the condensed consolidated statements of cash flows are referred to hereafter as the "consolidated statements of cash flows." KKR consolidates the financial results of KKR Group Partnership and its consolidated entities, which include the accounts of KKR's investment management and capital markets companies, the general partners of certain unconsolidated investment funds, general partners of consolidated investment funds and their respective consolidated investment funds, certain other entities including CFEs and Global Atlantic. References in the accompanying financial statements to "principals" are to KKR's senior employees who hold interests in KKR's business through KKR Holdings. References to Global Atlantic hereafter includes the insurance companies of Global Atlantic, which are consolidated by KKR starting on the GA Acquisition Date (refer to Note 3 "Acquisition of Global Atlantic" for additional information on the transaction). The presentations in the consolidated statement of financial condition and consolidated statement of operations reflect the significant industry diversification of KKR by its acquisition of Global Atlantic. Global Atlantic operates an insurance business, and KKR operates an asset management business, each of which possess distinct characteristics. As a result, KKR developed a two-tiered approach for the financial statements presentation, where Global Atlantic's insurance operations are presented separately from KKR's asset management business. KKR believes that these separate presentations provide a more informative view of the consolidated financial position and results of operations than traditional aggregated presentations and that reporting Global Atlantic’s insurance operations separately is appropriate given, among other factors, the relative significance of Global Atlantic’s policy liabilities, which are not obligations of KKR (other than the insurance companies that issued them). If a traditional aggregate presentation were to be used, KKR would expect to eliminate or combine several identical or similar captions, which would condense the presentations, but would also reduce the level of information presented. KKR also believes that using a traditional aggregate presentation would result in no new line items compared to the two-tier presentation included in the financial statements in this report . In addition, in connection with the Global Atlantic acquisition, we organized our business into two segments: Asset Management and Insurance. Global Atlantic’s operations constitute the Insurance segment. See Note 20 "Segment Reporting". The summary of the significant accounting policies has been organized considering the two-tiered approach and includes a section for common accounting policies and an accounting policy section for each of the two tiers when a policy is specific to one of the tiers. All intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, and investment income (loss) during the reporting periods. Such estimates include but are not limited to (i) the valuation of investments and financial instruments, (ii) the determination of the income tax provision, (iii) the impairment of goodwill and intangible assets, (iv) the impairment of available-for-sale investments, (v) the valuation of insurance policy liabilities, (vi) the valuation of embedded derivatives, (vii) the determination of the allowance for loan losses, and (viii) amortization of deferred revenues and expenses associated with the insurance business. Actual results could differ from those estimates, and such differences could be material to the financial statements. |
Principles of Consolidation | Principles of Consolidation The types of entities KKR assesses for consolidation include (i) subsidiaries, including management companies, broker-dealers and general partners of investment funds that KKR manages, (ii) entities that have the attributes of an investment company, like investment funds, (iii) CFEs, (iv) Global Atlantic and its insurance companies beginning on February 1, 2021, and (v) other entities. Each of these entities is assessed for consolidation on a case by case basis depending on the specific facts and circumstances surrounding that entity. For further information on the acquisition accounting for Global Atlantic see Note 3 "Acquisition of Global Atlantic". Pursuant to its consolidation policy, KKR first considers whether an entity is considered a VIE and therefore whether to apply the consolidation guidance under the VIE model. Entities that do not qualify as VIEs are assessed for consolidation as voting interest entities ("VOEs") under the voting interest model. KKR's funds are, for GAAP purposes, investment companies and therefore are not required to consolidate their investments in portfolio companies even if majority-owned and controlled. Rather, the consolidated funds and vehicles reflect their investments at fair value as described below in "Fair Value Measurements." An entity in which KKR holds a variable interest is a VIE if any one of the following conditions exist: (a) the total equity investment at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support, (b) the holders of the equity investment at risk (as a group) lack either the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity's activities that have a significant effect on the success of the legal entity or the obligation to absorb the expected losses or right to receive the expected residual returns, or (c) the voting rights of some investors are disproportionate to their obligation to absorb the expected losses of the legal entity, their rights to receive the expected residual returns of the legal entity, or both and substantially all of the legal entity's activities either involve or are conducted on behalf of an investor with disproportionately few voting rights. Limited partnerships and other similar entities where unaffiliated limited partners have not been granted (i) substantive participatory rights or (ii) substantive rights to either dissolve the partnership or remove the general partner ("kick-out rights") are VIEs. KKR's investment funds that are not CFEs (i) are generally limited partnerships, (ii) generally provide KKR with operational discretion and control, and (iii) generally have fund investors with no substantive rights to impact ongoing governance and operating activities of the fund, including the ability to remove the general partner, and, as such, the limited partners do not have kick-out rights. Accordingly, most of KKR's investment funds are categorized as VIEs. KKR consolidates all VIEs in which it is the primary beneficiary. A reporting entity is determined to be the primary beneficiary if it holds a controlling financial interest in a VIE. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (i) whether an entity in which KKR holds a variable interest is a VIE and (ii) whether KKR's involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (for example, management and performance income), would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment. Fees earned by KKR that are customary and commensurate with the level of effort required to provide those services, and where KKR does not hold other economic interests in the entity that would absorb more than an insignificant amount of the expected losses or returns of the entity, would not be considered to be variable interests. KKR factors in all economic interests including interests held through related parties, to determine if it holds a variable interest. KKR determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion when facts and circumstances change. For entities that are determined not to be VIEs, these entities are generally considered VOEs and are evaluated under the voting interest model. KKR consolidates VOEs it controls through a majority voting interest or through other means. The consolidation assessment, including the determination as to whether an entity qualifies as a VIE or VOE, depends on the facts and circumstances for each entity, and therefore certain of KKR's investment funds may qualify as VIEs whereas others may qualify as VOEs. With respect to CLOs (which are generally VIEs), in KKR's role as collateral manager, KKR generally has the power to direct the activities of the CLO that most significantly impact the economic performance of the entity. In some, but not all cases, KKR, through its residual interest in the CLO may have variable interests that represent an obligation to absorb losses of, or a right to receive benefits from, the CLO that could potentially be significant to the CLO. In cases where KKR has both the power to direct the activities of the CLO that most significantly impact the CLO's economic performance and the obligation to absorb losses of the CLO or the right to receive benefits from the CLO that could potentially be significant to the CLO, KKR is deemed to be the primary beneficiary and consolidates the CLO. In March 2021, KKR invested approximately $20 million in the sponsor shareholder of KKR Acquisition Holdings I Corp., a special purpose acquisition company ("SPAC"). The sponsor shareholder is a limited liability company whose only assets are equity securities of the SPAC. The investors in the sponsor shareholder are KKR and an unaffiliated investor. KKR is not the managing member of the sponsor shareholder, and KKR does not have the sole power to direct the activities that most significantly impact the sponsor shareholder. As such, KKR treats its investment in the sponsor shareholder as an equity method investment. Global Atlantic has formed certain VIEs to hold investments, including investments in transportation, renewable energy, consumer and other loans and fixed maturity securities. These VIEs issue beneficial interests primarily to Global Atlantic’s insurance companies, and Global Atlantic maintains the power to direct the activities of the VIEs that most significantly impact their economic performance and bears the obligation to absorb losses or receive benefits from the VIEs that could potentially be significant. Accordingly, Global Atlantic is the primary beneficiary of these VIEs, which are consolidated in Global Atlantic’s results. Where these VIEs or entities consolidated by these VIEs issue beneficial interests to third-party investors, they are reported as non-controlling interests by Global Atlantic. For certain consolidated renewable energy partnerships consolidated by Global Atlantic's insurance companies, Global Atlantic uses a hypothetical liquidation at book value method ("HLBV") to allocate income and cash flows based on third-party investors’ claim to net assets, including those for the noncontrolling interests and redeemable noncontrolling interests. KKR classifies certain noncontrolling interests with redemption features that are not solely within the control of KKR outside of permanent equity on its consolidated statements of financial condition. These redeemable non-controlling interests are reported using the greater of the carrying value at each reporting date as determined by the HLBV method or the estimated redemption value in each reporting period. |
Cash and Cash Equivalents | Cash and Cash Equivalents KKR considers all liquid short‑term investments with original maturities of 90 days or less when purchased to be cash equivalents. Cash and cash equivalents includes cash held at consolidated entities, which represents cash that, although not legally restricted, is not available generally to fund liquidity needs of KKR, as the use of such funds is generally limited to the investment activities of KKR's investment funds and CFEs. In prior periods, those amounts were classified in a separate line " Cash and Cash Equivalents Held at Consolidated Entities " on the statement of financial condition, and the comparable information have been recasted to current presentation. The carrying values of cash and cash equivalents are considered to be reasonable estimates of their fair values. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents Restricted cash and cash equivalents primarily represent amounts that are held by third parties under certain of KKR's financing and derivative transactions. The duration of this restricted cash generally matches the duration of the related financing or derivative transaction. Global Atlantic’s restricted cash principally includes certain cash and cash equivalents held in trusts formed for the benefit of ceding companies or held in connection with open derivative transactions. The carrying values of restricted cash and cash equivalents are considered to be reasonable estimates of their fair values. |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation techniques are applied. These valuation techniques involve varying levels of management estimation and judgment, the degree of which is dependent on a variety of factors. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Investments and financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: Level I - Pricing inputs are unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date. The types of financial instruments included in this category are publicly-listed equities, U.S. government and agencies securities, and securities sold short. Level II - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the measurement date, and fair value is determined through the use of models or other valuation methodologies. The types of financial instruments included in this category are credit investments, fixed-income securities held by consolidated insurance companies, investments and debt obligations of consolidated CLO entities, convertible debt securities indexed to publicly-listed securities, less liquid and restricted equity securities, certain funds withheld payable at interest, and certain over-the-counter derivatives such as foreign currency option and forward contracts. Level III - Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. The types of financial instruments generally included in this category are private portfolio companies, real assets investments, certain credit investments, equity method investments for which the fair value option was elected, certain fixed-income and structured securities held by the consolidated insurance subsidiaries, reinsurance recoverables carried at fair value, certain insurance policy liabilities carried at fair value, and certain embedded derivatives related to (i) certain funds withheld payable at interest, and (ii) annuities and indexed universal life products, which contain equity-indexed features. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. KKR's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the asset. A significant decrease in the volume and level of activity for the asset or liability is an indication that transactions or quoted prices may not be representative of fair value because in such market conditions there may be increased instances of transactions that are not orderly. In those circumstances, further analysis of transactions or quoted prices is needed, and a significant adjustment to the transactions or quoted prices may be necessary to estimate fair value. The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors, including, for example, the type of instrument, whether the instrument has recently been issued, whether the instrument is traded on an active exchange or in the secondary market, and current market conditions. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires additional judgment. Accordingly, the degree of judgment exercised by KKR in determining fair value is greatest for instruments categorized in Level III. The variability and availability of the observable inputs affected by the factors described above may cause transfers between Levels I, II, and III, which KKR recognizes at the beginning of the reporting period. Investments and other financial instruments that have readily observable market prices (such as those traded on a securities exchange) are stated at the last quoted sales price as of the reporting date. KKR does not adjust the quoted price for these investments, even in situations where KKR holds a large position and a sale could reasonably affect the quoted price. Management's determination of fair value is based upon the methodologies and processes described below and may incorporate assumptions that are management's best estimates after consideration of a variety of internal and external factors. Level II Valuation Methodologies Credit Investments, U.S. Municipal Securities, Corporate Bonds and Structured Securities: These financial instruments generally have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that KKR and others are willing to pay for an instrument. Ask prices represent the lowest price that KKR and others are willing to accept for an instrument. For financial instruments whose inputs are based on bid-ask prices obtained from third party pricing services, fair value may not always be a predetermined point in the bid-ask range. KKR's policy is generally to allow for mid-market pricing and adjusting to the point within the bid-ask range that meets KKR's best estimate of fair value. KKR may also use model-derived valuations whose inputs are observable or whose significant value drivers are observable. Investments and Debt Obligations of Consolidated CLO Vehicles: Investments of consolidated CLO vehicles are reported within Investments of Consolidated CFEs and are valued using the same valuation methodology as described above for credit investments. Under ASU 2014-13, KKR measures CLO debt obligations on the basis of the fair value of the financial assets of the CLO. Securities Indexed to Publicly-Listed Securities: These securities are typically valued using standard convertible security pricing models. The key inputs into these models that require some amount of judgment are the credit spreads utilized and the volatility assumed. To the extent the company being valued has other outstanding debt securities that are publicly-traded, the implied credit spread on the company's other outstanding debt securities would be utilized in the valuation. To the extent the company being valued does not have other outstanding debt securities that are publicly-traded, the credit spread will be estimated based on the implied credit spreads observed in comparable publicly-traded debt securities. In certain cases, an additional spread will be added to reflect an illiquidity discount due to the fact that the security being valued is not publicly-traded. The volatility assumption is based upon the historically observed volatility of the underlying equity security into which the convertible debt security is convertible and/or the volatility implied by the prices of options on the underlying equity security. Equity Securities: The valuation of certain equity securities is based on (i) an observable price for an identical security adjusted for the effect of a restriction or leverage that collateralized the equity securities and (ii) quoted prices for identical or similar instruments in markets that are not active. Derivatives: The valuation incorporates observable inputs comprising yield curves, foreign currency rates, interest rate volatility and credit spreads. Level III Valuation Methodologies Private Equity Investments: KKR generally employs two valuation methodologies when determining the fair value of a private equity investment. The first methodology is typically a market comparables analysis that considers key financial inputs, which may take into account recent public and private transactions and other available measures. The second methodology utilized is typically a discounted cash flow analysis, which incorporates significant assumptions and judgments. Estimates of key inputs used in this methodology include the weighted average cost of capital for the investment and assumed inputs used to calculate terminal values, such as exit EBITDA multiples. The results of the discounted cash flow approach can be significantly impacted by these estimates. Other inputs are also used in both methodologies. In addition, when a definitive agreement has been executed to sell an investment, KKR generally considers a significant determinant of fair value to be the consideration to be received by KKR pursuant to the executed definitive agreement. Upon completion of the valuations conducted using these methodologies, a weighting is ascribed to each method, and an illiquidity discount is typically applied where appropriate. The ultimate fair value recorded for a particular investment will generally be within a range suggested by the two methodologies, except that the value may be higher or lower than such range in the case of investments being sold pursuant to an executed definitive agreement. When determining the weighting ascribed to each valuation methodology, KKR considers, among other factors, the availability of direct market comparables, the applicability of a discounted cash flow analysis, the expected hold period and manner of realization for the investment, and in the case of investments being sold pursuant to an executed definitive agreement, an estimated probability of such sale being completed. These factors can result in different weightings among investments in the portfolio and in certain instances may result in up to a 100% weighting to a single methodology. When an illiquidity discount is to be applied, KKR seeks to take a uniform approach across its portfolio and generally applies a minimum 5% discount to all private equity investments. KKR then evaluates such private equity investments to determine if factors exist that could make it more challenging to monetize the investment and, therefore, justify applying a higher illiquidity discount. These factors generally include (i) whether KKR is unable to freely sell the portfolio company or conduct an initial public offering of the portfolio company due to the consent rights of a third party or similar factors, (ii) whether the portfolio company is undergoing significant restructuring activity or similar factors, and (iii) characteristics about the portfolio company regarding its size and/or whether the portfolio company is experiencing, or expected to experience, a significant decline in earnings. These factors generally make it less likely that a portfolio company would be sold or publicly offered in the near term at a price indicated by using just a market multiples and/or discounted cash flow analysis, and these factors tend to reduce the number of opportunities to sell an investment and/or increase the time horizon over which an investment may be monetized. Depending on the applicability of these factors, KKR determines the amount of any incremental illiquidity discount to be applied above the 5% minimum, and during the time KKR holds the investment, the illiquidity discount may be increased or decreased, from time to time, based on changes to these factors. The amount of illiquidity discount applied at any time requires considerable judgment about what a market participant would consider and is based on the facts and circumstances of each individual investment. Accordingly, the illiquidity discount ultimately considered by a market participant upon the realization of any investment may be higher or lower than that estimated by KKR in its valuations. In the case of growth equity investments, enterprise values may be determined using the market comparables analysis and discounted cash flow analysis described above. A scenario analysis may also be conducted to subject the estimated enterprise values to a downside, base and upside case, which involves significant assumptions and judgments. A milestone analysis may also be conducted to assess the current level of progress towards value drivers that we have determined to be important, which involves significant assumptions and judgments. The enterprise value in each case may then be allocated across the investment's capital structure to reflect the terms of the security and subjected to probability weightings. In certain cases, the values of growth equity investments may be based on recent or expected financings or other transactions. Real Asset Investments: Real asset investments in infrastructure, energy and real estate are valued using one or a combination of the discounted cash flow analysis, market comparables analysis and direct income capitalization methods, which in each case incorporates significant assumptions and judgments. Infrastructure investments are generally valued using the discounted cash flow analysis. Key inputs used in this methodology can include the weighted average cost of capital and assumed inputs used to calculate terminal values, such as exit EBITDA multiples. Energy investments are generally valued using a discounted cash flow approach, and where applicable, a market approach using comparable companies and transactions. Key inputs used in our valuations include (i) the weighted average cost of capital, (ii) future commodity prices, as quoted on indices, and long-term commodity price forecasts, and (iii) the asset’s projected future operating performance. Real estate investments are generally valued using a combination of direct income capitalization and discounted cash flow analysis. Certain real estate investments are valued by KKR based on ranges of valuations determined by independent valuation firms. Key inputs used in such methodologies that require estimates include an unlevered discount rate and current capitalization rate. The valuations of real assets investments also use other inputs. Credit Investments: Credit investments are valued using values obtained from dealers or market makers, and where these values are not available, credit investments are generally valued by KKR based on ranges of valuations determined by an independent valuation firm. Valuation models are based on discounted cash flow analyses, for which the key inputs are determined based on market comparables, which incorporate similar instruments from similar issuers. Real Estate Mortgage Loans: Real estate mortgage loans are illiquid, structured investments that are specific to the property and its operating performance. KKR engages an independent valuation firm to estimate the fair value of each loan. KKR reviews the quarterly loan valuation estimates provided by the independent valuation firm. These loans are generally valued using a discounted cash flow model using discount rates derived from observable market data applied to the capital structure of the respective sponsor and estimated property value. Other Investments: With respect to other investments including equity method investments, KKR generally employs the same valuation methodologies as described above for private equity, credit investments and real assets investments when valuing these other investments. Funds withheld at interest: The funds withheld receivables and payables at interest carried at fair value are primarily valued based on the fair value of the underlying investments, which have quoted prices or other observable inputs to pricing. A portion of the funds withheld receivable and payables at interest carried at fair value represent embedded derivatives and are valued using present value techniques that consider inputs including contract duration. Reinsurance recoverables: Reinsurance recoverables carried at fair value are valued using present value techniques that consider inputs including mortality and surrender rates for the associated policies, as well as estimates of policy expenses and the cost of capital held in support of the related closed block policy liabilities. Insurance liabilities and insurance embedded derivatives : Policy liabilities carried at fair value are valued using present value techniques that discount estimated liability cash flows at a rate that reflects the variability of those cash flows and also consider policyholder behavior (including lapse rates, surrender rates and mortality). Closed block policy liabilities carried at fair value are valued using present value techniques that consider inputs including mortality and surrender rates for the respective policies, as well as estimates of policy expenses and the cost of capital held in support of the liabilities. The funds withheld payable at interest carried at fair value represents embedded derivatives and is valued based on the change in the fair value of the assets supporting the payable. Other embedded derivative liabilities are related to our fixed-indexed annuity, variable annuity and indexed universal life products, which contain equity-indexed features. The embedded derivative liabilities are calculated as the present value of future projected benefits in excess of the projected guaranteed benefits, using an option budget as the indexed account value growth rate and considering an adjustment to reflect the risk of nonperformance on our obligation and inputs such as projected withdrawal and surrender activity, and mortality. KKR calculates nonperformance risk using a blend of observable peer holding company credit spreads, adjusted to reflect the claims paying ability of our insurance entities, as well as an adjustment to reflect the priority of policyholder claims. Key unobservable inputs that have a significant impact on KKR's Level III valuations as described above are included in Note 9 "Fair Value Measurements." KKR utilizes several unobservable pricing inputs and assumptions in determining the fair value of its Level III financial instruments. These unobservable pricing inputs and assumptions may differ by financial instruments and in the application of KKR's valuation methodologies. KKR's reported fair value estimates could vary materially if KKR had chosen to incorporate different unobservable pricing inputs and other assumptions or, for certain applicable investments, if KKR only used either the discounted cash flow methodology or the market comparables methodology instead of assigning a weighting to both methodologies. There is inherent uncertainty involved in the valuation of Level III financial instruments and there is no assurance that, upon liquidation or sale, KKR will realize the values reflected in our valuations. Our valuations may differ significantly from the values |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of acquisition cost over the fair value of net tangible and intangible assets acquired in connection with an acquisition. Goodwill is assessed for impairment annually in the third quarter of each fiscal year or more frequently if circumstances indicate impairment may have occurred. Goodwill is recorded in Other Assets in the accompanying consolidated statements of financial condition. KKR has the option to either (i) perform a quantitative impairment test or (ii) first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, in which case the quantitative test would then be performed. When performing a quantitative impairment test, KKR compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, the goodwill impairment loss is equal to the excess of the carrying value over the fair value, limited to the carrying amount of goodwill allocated to that reporting unit. The estimated fair values of the reporting units are derived based on valuation techniques KKR believes market participants would use for each respective reporting unit. The estimated fair values are generally determined by utilizing a discounted cash flow methodology or methodologies that incorporate market multiples of certain comparable companies. KKR tests goodwill for impairment at the reporting unit level, which is generally at the level of or one level below its reportable segments. Goodwill recorded as a result of the acquisition of Global Atlantic has been allocated to the Insurance Segment. See Note 20 "Segment Reporting". During the third quarter of 2021, KKR performed its annual impairment analysis for the goodwill recorded at the asset management and insurance reporting units. KKR elected to perform a qualitative assessment (commonly known as "step zero") for the purposes of its annual goodwill impairment analysis. Based upon this assessment, KKR determined that it is more likely than not that the fair value of each reporting unit exceeds its carrying value. Factors considered in the qualitative assessment included macroeconomic conditions, industry and market considerations, cost factors, current and projected financial performance, changes in management or strategy and market capitalization. Intangible assets, which primarily relate to intangible assets acquired in the GA Acquisition are recorded in Other Assets in the accompanying consolidated statements of financial condition and are amortized over their estimated useful lives and are reviewed for impairment on an interim basis when impairment indicators are present. Impairment losses are recorded within Insurance Expenses in the consolidated statements of operations. The finite lived intangible assets are amortized using the straight-line method over the useful life of the assets which is between 15 to 19 years. The indefinite lived intangible assets are not subject to amortization. |
Fixed Assets, Depreciation and Amortization | Fixed Assets, Depreciation and Amortization Fixed assets consist primarily of corporate real estate, leasehold improvements, furniture and computer hardware. Such amounts are recorded at cost less accumulated depreciation and amortization and are included in Other Assets within the accompanying consolidated statements of financial condition. Depreciation and amortization are calculated using the straight‑line method over the assets' estimated economic useful lives, which for leasehold improvements are the lesser of the lease term or the life of the asset, for KKR's owner occupied corporate real estate is up to forty years, and three |
Foreign Currency | Foreign CurrencyConsolidated entities that have a functional currency that differs from KKR's reporting currency are primarily KKR's investment management and capital markets companies located outside the United States and certain CFEs. Foreign currency denominated assets and liabilities are translated using the exchange rates prevailing at the end of each reporting period. Results of foreign operations are translated at the weighted average exchange rate for each reporting period. Translation adjustments are included as a component of accumulated other comprehensive income (loss) until realized. Foreign currency income or expenses resulting from transactions outside of the functional currency of a consolidated entity are recorded as incurred in general, administrative and other expense in the consolidated statements of operations. |
Leases | Leases At contract inception, KKR determines if an arrangement contains a lease by evaluating whether (i) the identified asset has been deployed in the contract explicitly or implicitly and (ii) KKR obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. Additionally, at contract inception KKR will evaluate whether the lease is an operating or finance lease. Right-of-use ("ROU") assets represent KKR’s right to use an underlying asset for the lease term and lease liabilities represent KKR’s obligation to make lease payments arising from the lease. ROU assets and the associated lease liabilities are recognized at the commencement date based on the present value of the future minimum lease payments over the lease term. The discount rate implicit in the lease is generally not readily determinable. Consequently, KKR uses its incremental borrowing rate based on the information available including, but not limited to, collateral assumptions, the term of the lease, and the economic environment in which the lease is denominated at the commencement date in determining the present value of the future lease payments. The ROU assets are recognized as the initial measurement of the lease liabilities plus any initial direct costs and any prepaid lease payments less lease incentives received, if any. The lease terms may include options to extend or terminate the lease which are accounted for when it is reasonably certain that KKR will exercise that option. Certain leases that include lease and non-lease components are accounted for as one single lease component. In addition to contractual rent payments, occupancy lease agreements generally include additional payments for certain costs incurred by the landlord, such as building expenses and utilities. To the extent these are fixed or determinable, they are included as part of the lease payments used to measure the Operating Lease Liability. Operating lease expense is recognized on a straight-line basis over the lease term and is recorded within Occupancy and Related Charges in the accompanying consolidated statements of operations. The ROU assets are included in Other Assets and the lease liabilities are included in Accrued Expenses and Other Liabilities in the accompanying consolidated statements of financial condition. See Note 14 "Other Assets and Accrued Expenses and Other Liabilities." |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances, excluding those resulting from contributions from and distributions to owners. In the accompanying consolidated financial statements, comprehensive income is comprised of (i) Net Income (Loss), as presented in the consolidated statements of operations, (ii) unrealized gains (losses) on available-for-sale securities and (iii) net foreign currency translation. |
Income Taxes | Income Taxes KKR & Co. Inc. is a domestic corporation for U.S. federal income tax purposes and is subject to U.S. federal, state and local income taxes at the entity level on its share of taxable income. In addition, KKR Group Partnership and certain of its subsidiaries operate as partnerships for U.S. federal tax purposes but as taxable entities for certain state, local or non-U.S. tax purposes. Moreover, certain corporate subsidiaries of KKR, including certain Global Atlantic subsidiaries, are domestic corporations for U.S. federal income tax purposes and are subject to U.S. federal, state, and local income taxes. Deferred Income Taxes Income taxes are accounted for using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis, using tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations in the period when the change is enacted. Deferred tax assets, which are recorded in Other Assets within the statement of financial condition, are reduced by a valuation allowance when, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. When evaluating the realizability of the deferred tax assets, all evidence, both positive and negative, is considered. Items considered when evaluating the need for a valuation allowance include the ability to carry back losses, future reversals of existing temporary differences, tax planning strategies, and expectations of future earnings. For a particular tax‑paying component of an entity and within a particular tax jurisdiction, deferred tax assets and liabilities are offset and presented as a single amount within Other Assets or Accrued and Other Liabilities, as applicable, in the accompanying statements of financial condition. Uncertain Tax Positions KKR analyzes its tax filing positions in all of the U.S. federal, state and local tax jurisdictions and foreign tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these jurisdictions. If, based on this analysis, KKR determines that uncertainties in tax positions exist, a reserve is established. The reserve for uncertain tax positions is recorded in Accrued and Other Liabilities in the accompanying statements of financial condition. KKR recognizes accrued interest and penalties related to uncertain tax positions within the provision for income taxes in the consolidated statements of operations. KKR records uncertain tax positions on the basis of a two‑step process: (a) determination is made whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (b) those tax positions that meet the more‑likely‑than‑not threshold are recognized as the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority. |
Investments | Investments Investments consist primarily of private equity, credit, investments of consolidated CFEs, real assets, equity method and other investments. Investments denominated in currencies other than the entity's functional currency are valued based on the spot rate of the respective currency at the end of the reporting period with changes related to exchange rate movements reflected in the consolidated statements of operations. Security and loan transactions are recorded on a trade date basis. Further disclosure on investments is presented in Note 7 "Investments." The following describes the types of securities held within each investment class. Private Equity - Consists primarily of equity investments in operating businesses, including growth equity investments. Credit - Consists primarily of investments in below investment grade corporate debt securities (primarily high yield bonds and syndicated bank loans), originated, distressed and opportunistic credit, real estate mortgage loans, and interests in unconsolidated CLOs. Investments of Consolidated CFEs - Consists primarily of investments in below investment grade corporate debt securities (primarily high yield bonds and syndicated bank loans) held directly by the consolidated CLOs. Real Assets - Consists primarily of investments in (i) energy related assets, principally oil and natural gas properties, (ii) infrastructure assets, and (iii) real estate, principally residential and commercial real estate assets and businesses. Equity Method - Other - Consists primarily of (i) certain direct interests in operating companies in which KKR is deemed to exert significant influence under GAAP and (ii) certain interests in partnerships and joint ventures that hold private equity and real assets investments. Equity Method - Capital Allocation-Based Income - Consists primarily of (i) the capital interest KKR holds as the general partner in certain investment funds, which are not consolidated and (ii) the carried interest component of the general partner interest, which are accounted for as a single unit of account. Other - Consists primarily of investments in common stock, preferred stock, warrants and options of companies that are not private equity, real assets, credit or investments of consolidated CFEs. Investments held by Consolidated Investment Funds The consolidated investment funds are, for GAAP purposes, investment companies and reflect their investments and other financial instruments, including portfolio companies that are majority-owned and controlled by KKR's investment funds, at fair value. KKR has retained this specialized accounting for the consolidated investment funds in consolidation. Accordingly, the unrealized gains and losses resulting from changes in fair value of the investments and other financial instruments held by the consolidated investment funds are reflected as a component of Net Gains (Losses) from Investment Activities in the consolidated statements of operations. Certain energy investments are made through consolidated investment funds, including investments in working and royalty interests in oil and natural gas properties as well as investments in operating companies that operate in the energy industry. Since these investments are held through consolidated investment funds, such investments are reflected at fair value as of the end of the reporting period. Investments in operating companies that are held through KKR's consolidated investment funds are generally classified within private equity investments and investments in working and royalty interests in oil and natural gas properties are generally classified as real asset investments. Energy Investments held by KKR On August 18, 2020, KKR transferred all the working and royalty interests in oil and natural gas properties, which were directly held by KKR and not held through investment funds, into a consolidated investment fund. Before the transfer, oil and natural gas activities were accounted for under the successful efforts method of accounting and such working and royalty interests were consolidated based on the proportion of the working and royalty interests held by KKR. Subsequent to the transfer, such working and royalty interests are carried at fair value in accordance with ASC 946, Financial Services - Investment Companies, and recorded within investments in the consolidated statements of financial condition. Any changes in fair value are recorded within Net Gains (Losses) from Investment Activities in the consolidated statements of operations. No gain or loss has been recorded in the consolidated statement of operations as result of the transfer. KKR recognized the differential between the net carrying value of such working and royalty interests and the fair value at the time of the transfer within stockholders' equity. This transaction resulted in an adjustment to KKR Group Partnership's equity, and accordingly, both KKR's equity and noncontrolling interests held by KKR Holdings were adjusted for their proportionate share based on their ownership in KKR Group Partnership at the time of transfer. See the consolidated statements of changes in equity and Note 21 "Equity". The fair value has been determined in accordance with KKR’s Level III Valuation Methodologies. Fair Value Option For certain investments and other financial instruments, KKR has elected the fair value option. Such election is irrevocable and is applied on a financial instrument by financial instrument basis at initial recognition. KKR has elected the fair value option for certain private equity, real assets, credit, investments of consolidated CFEs, equity method - other and other financial instruments not held through a consolidated investment fund. Accounting for these investments at fair value is consistent with how KKR accounts for its investments held through consolidated investment funds. Changes in the fair value of such instruments are recognized in Net Gains (Losses) from Investment Activities in the consolidated statements of operations. Interest income on interest bearing credit securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest Income in the consolidated statements of operations. Equity Method For certain investments in entities over which KKR exercises significant influence but which do not meet the requirements for consolidation and for which KKR has not elected the fair value option, KKR uses the equity method of accounting. The carrying value of equity method investments, for which KKR has not elected the fair value option, is determined based on the amounts invested by KKR, adjusted for the equity in earnings or losses of the investee allocated based on KKR's respective ownership percentage, less distributions. For equity method investments for which KKR has not elected the fair value option, KKR records its proportionate share of the investee's earnings or losses based on the most recently available financial information of the investee, which in certain cases may lag the date of KKR's financial statements by no more than three calendar months. As of September 30, 2021, equity method investees for which KKR reports financial results on a lag include Marshall Wace LLP ("Marshall Wace"). KKR evaluates its equity method investments for which KKR has not elected the fair value option for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. The carrying value of investments classified as Equity Method - Capital Allocation-Based Income approximates fair value, because the underlying investments of the unconsolidated investment funds are reported at fair value. Financial Instruments held by Consolidated CFEs KKR measures both the financial assets and financial liabilities of the consolidated CFEs in its financial statements using the more observable of the fair value of the financial assets and the fair value of the financial liabilities which results in KKR's consolidated net income (loss) reflecting KKR's own economic interests in the consolidated CFEs including (i) changes in the fair value of the beneficial interests retained by KKR and (ii) beneficial interests that represent compensation for services rendered. For the consolidated CLOs, KKR has determined that the fair value of the financial assets of the consolidated CLOs is more observable than the fair value of the financial liabilities of the consolidated CLOs. As a result, the financial assets of the consolidated CLOs are being measured at fair value and the financial liabilities are being measured in consolidation as: (1) the sum of the fair value of the financial assets and the carrying value of any nonfinancial assets that are incidental to the operations of the CLOs less (2) the sum of the fair value of any beneficial interests retained by KKR (other than those that represent compensation for services) and KKR's carrying value of any beneficial interests that represent compensation for services. The resulting amount is allocated to the individual financial liabilities (other than the beneficial interests retained by KKR). Investments In the normal course of business, Global Atlantic enters into transactions involving various types of investments. Investments include the following: U.S. government and agency obligations; commercial mortgage-backed securities ("CMBS"), residential mortgage-backed securities ("RMBS"), CLOs, collateralized bond obligations ("CBOs") and all other structured securities (consisting primarily of asset-backed securities ("ABS") (collectively, "structured securities"); corporate bonds; state and political subdivision obligations; foreign government obligations; equity securities; mortgage and other loan receivables; policy loans; and other non-derivative investments. Investments are recorded on a trade-date basis. Available-for-sale fixed maturity securities Global Atlantic primarily accounts for its fixed maturity securities (including bonds, structured securities and redeemable preferred stock) as available-for-sale ("AFS"). AFS fixed maturity securities are carried at fair value. Impairment associated with AFS fixed maturity securities is recognized as an allowance for credit losses. The allowance for credit losses is established either by a charge to net investment losses in the consolidated statements of operations, for securities identified as credit impaired after purchase, or by a gross-up recognition of an initial allowance for purchased credit deteriorated ("PCD") securities. PCD securities are those purchased by Global Atlantic that were assessed at acquisition as having experienced a more-than-insignificant deterioration in credit quality since their origination. Global Atlantic considers an AFS fixed maturity security to be PCD if there are indicators of a credit loss at the acquisition date or, in the case of structured securities, if there is a significant difference between contractual cash flows and expected cash flows at acquisition. PCD securities also include those AFS fixed maturity securities previously held by Global Atlantic that were similarly assessed at the time of the KKR acquisition. The initial amortized cost for a PCD security equals the purchase price plus the initial allowance for credit losses. The initial allowance for credit losses is determined using a discounted cash flow method based on the best estimate of the present value of cash flows expected to be collected. After purchase, the accounting for a PCD security is consistent with that applied to all other securities. Unrealized gains and losses on AFS fixed maturity securities, net of tax and insurance intangible amortization, are reported in accumulated other comprehensive income in the consolidated statements of financial condition. Realized investment gains and losses are recognized on a first-in first-out basis and are reported in net investment losses in the consolidated statements of operations. The amortized cost of fixed maturity securities is adjusted for impairment charge-offs, amortization of premiums and accretion of discounts. Such amortization and accretion is calculated using the effective yield method and included in net investment income in the consolidated statements of operations. For structured securities, Global Atlantic recognizes interest income using a constant effective yield based on estimated cash flows generated from internal models utilizing interest rate, default and prepayment assumptions. Effective yields for structured securities that are not of high credit quality are recalculated and adjusted prospectively based on changes in expected undiscounted future cash flows, after consideration of any appropriate recognition or release of an allowance for credit losses. For structured securities that are of high credit quality, effective yields are recalculated based on payments received and updated prepayment expectations, and amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. Prepayment fees are recorded when earned in net investment income in the consolidated statements of operations. Global Atlantic generally suspends accrual of interest for securities that are more than 90 days past due and reverses any related accrued interest to net investment income in the consolidated statements of operations. When a security is in non-accrual status, coupon payments are recognized as interest income as cash is received, subject to consideration as to the overall collectibility of the security. A security is returned to accrual status when Global Atlantic determines that the collection of amounts due is probable. The allowance for credit losses excludes accrued interest from the amortized cost basis for which losses are estimated. Trading fixed maturity securities Global Atlantic accounts for certain fixed maturity securities as trading at acquisition, based on intent or via the election of the fair value option. Trading securities are carried at fair value, with realized and unrealized gains and losses reported in net investment gains (losses) in the consolidated statements of operations. Interest income from these securities is reported in net investment income. These trading securities, for which investment results accrue to the benefit of either contractholders or reinsurance counterparties, are primarily used to match asset and liability accounting. Equity securities Global Atlantic accounts for its investments in equity securities (including common stock and non-redeemable preferred stock) that do not require equity method accounting or result in consolidation, at fair value. Realized and unrealized investment gains and losses are reported in net investment gains (losses) in the consolidated statements of operations. Mortgage and other loan receivables Global Atlantic purchases and originates mortgage and other loan receivables, and these loans are carried at cost, less the allowance for credit losses and as adjusted for amortization/accretion of premiums/discounts. The allowance for credit losses is established either by a charge to net investment losses in the consolidated statements of operations or, for PCD mortgage and other loan receivables, by a gross-up recognition of the initial allowance in the consolidated statements of financial condition. PCD mortgage and other loan receivables are those purchased by Global Atlantic that were assessed at acquisition as having experienced a more-than-insignificant deterioration in credit quality since their origination. PCD mortgage and other loan receivables also include those mortgage and other loan receivables previously held by Global Atlantic that were similarly assessed at the time of the GA Acquisition. The initial amortized cost for a PCD mortgage or other loan receivable equals the purchase price plus the initial allowance for credit losses. The initial allowance for credit losses is determined using a method consistent with that used for other similar loans. See further discussion of allowance methods below. After purchase, the accounting for a PCD mortgage or other loan receivable is consistent with that applied to all other mortgage and other loan receivables. As part of the GA Acquisition, Global Atlantic identified $3.7 billion of PCD mortgage and other loan receivables with a related allowance of $120.3 million. The allowance on the Non-PCD mortgage and other loan receivables, instead, had to be recognized outside the purchase accounting analysis and had an impact on the consolidated statement of operations of $183.6 million. Loan premiums or discounts are amortized or accreted using the effective yield method. Interest income is accrued on the principal balance of each loan based on its contractual interest rate. The accrual of interest is generally suspended when the collection of interest is no longer probable or the collection of any portion of principal is doubtful. Global Atlantic generally suspends accrual of interest for loans that are more than 90 days past due and reverses any related accrued interest to net investment income in the consolidated statements of operations. When a loan is in non-accrual status, coupon payments are generally recognized as interest income as cash is received, subject to consideration as to the overall collectibility of the loan. A loan is returned to accrual status when Global Atlantic determines that the collection of amounts due is probable. The allowance for credit losses excludes accrued interest from the amortized cost basis for which losses are estimated. Policy loans Policy loans are loans policyholders take out against their life insurance policies. Each policy loan is fully collateralized by the cash surrender value of the policyholder’s life insurance policy. Policy loans are carried at unpaid principal balances. Interest income on such loans is recognized as earned using the contractually agreed upon interest rate and reflected in net investment income in the consolidated statements of operations. Generally, interest is capitalized on the associated policy’s anniversary date. Other investments Other investments in the consolidated statements of financial condition include Global Atlantic’s investments in investment partnerships, for which Global Atlantic does not have voting control or power to direct activities. These investments are accounted for using the equity method of accounting unless Global Atlantic’s interest is so minor that it has virtually no influence over partnership operating or financial policies. The equity method of accounting requires that the investments be initially recorded at cost and the carrying amount of the investment subsequently be adjusted to recognize Global Atlantic’s share of the earnings and losses of the investee. Where there is a difference between the cost of the investment and Global Atlantic’s proportionate share of the equity method investee’s net assets, this basis difference is accreted to net investment income over the life of the underlying assets. In applying the equity method, Global Atlantic uses financial information provided by the investee, generally on a one to three month lag due to the timing of the receipt of related financial statements. The income from Global Atlantic’s equity method investments is included in net investment income in the consolidated statements of operations. In limited circumstances, Global Atlantic elects to apply the fair value option to investment partnerships, which are carried at fair value with unrealized gains and losses reported in net investment gains (losses) in the consolidated statements of operations. The contributions to and distributions from investment partnerships are classified as investing activities within the consolidated statements of cash flows. Global Atlantic consolidates investment partnerships and other entities when it is deemed to control or is considered the primary beneficiary of a VIE. The results of certain consolidated investment entities are reported on a one to three month lag and intervening events are evaluated for materiality and recognition by disclosure or otherwise, as appropriate. Included in other investments are Global Atlantic’s investments in renewable energy entities, including partnerships and limited liability companies. Respective investments are consolidated when Global Atlantic has control, or are accounted for using the equity method of accounting when Global Atlantic has the ability to exercise significant influence but not control. These investments involve tiered capital structures that facilitate a waterfall of returns and allocations to ensure the efficient use of tax credits. A conventional income statement oriented approach to the equity method of accounting, or to the recognition of non-controlling interests (when Global Atlantic is consolidating the investment), based on ownership percentages does not accurately reflect the proper allocation of income and cash flows for these investments. Instead, Global Atlantic uses the hypothetical liquidation at book value method ("HLBV”) which is a balance sheet oriented approach to the equity method of accounting and to the recognition of non-controlling interests that allocates income and cash flows based on changes to each investor’s claim to net assets assuming a liquidation of the investee as of each reporting date, including an assessment of the likelihood of liquidation in determining the contractual provisions to utilize when applying the HLBV method. Investments in real assets included in other investments in the consolidated statements of financial condition relate to Global Atlantic’s consolidated investments in renewable energy entities and investments in transportation assets. The income, as well as the depreciation and other expenses associated with these tangible assets is reported in net investment income in the consolidated statements of operations. Income on consolidated investments in renewable energy entities is earned from the sale of the energy generated under long-term contracts. Income on investments in transportation assets is earned from the lease of these assets. Tangible assets associated with renewable energy entities primarily comprise solar energy systems, which are depreciated on a straight-line basis over their estimated useful lives of generally 35 years. Transportation assets are primarily aircraft and railcars, which are depreciated to their estimated salvage value on a straight-line basis over their remaining useful lives. These useful lives generally range up to 25 years for aircraft and 45 years for railcars, as determined from the date of manufacture. Global Atlantic has investments in real estate, some of which are accounted for at cost less depreciation. The useful lives for these real estate investments generally range up to 30 years. Other investments in real estate held in consolidated investment companies that account for such real estate at fair value under investment company accounting. Net rental income on the investments in real estate is recognized in net investment income and changes in the fair value of real estate held in consolidated investment companies are recognized in net investment gains (losses) in the consolidated statements of operations. Investments in Federal Home Loan Bank ("FHLB") common stock are also included in other investments in the consolidated statements of financial condition and are accounted at cost. Other investments The determination of the amount of impairment on other classes of investments also requires significant judgment and is based upon a periodic evaluation and assessment of known and inherent risks associated with the respective asset class. Such assessments are revised as conditions change and new information becomes available. Impairment of consolidated renewable energy assets and transportation assets is assessed whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. When indicators of impairment are present, a recoverability test is performed to determine if the sum of the estimated undiscounted future cash flows attributable to the assets is greater than the carrying amount. If the undiscounted estimated future cash flows are less than the carrying amount, an impairment loss is recognized based on the amount by which the carrying amount exceeds its estimated fair value. Impairment of investments subject to the equity method of accounting is assessed whenever events or circumstances suggest that the carrying amount may not be recoverable. An impairment charge is recognized in earnings for a decline in value that is determined to be other than temporary and is measured as the difference between the carrying amount and the fair value of the equity method investment as of the balance sheet date. |
Due from and Due to Affiliates | Due from and Due to Affiliates KKR considers its principals and their related entities, unconsolidated investment funds and the portfolio companies of its funds to be affiliates for accounting purposes. Receivables from and payables to affiliates are recorded at their current settlement amount. |
Freestanding Derivatives | Freestanding Derivatives Freestanding derivatives are instruments that KKR and certain of its consolidated funds have entered into as part of their overall risk management and investment strategies. These derivative contracts are not designated as hedging instruments for accounting purposes. Such contracts may include forward, swap and option contracts related to foreign currencies and interest rates to manage foreign exchange risk and interest rate risk arising from certain assets and liabilities. All derivatives are recognized in Other Assets or Accrued Expenses and Other Liabilities and are presented on a gross basis in the consolidated statements of financial condition and measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. KKR's derivative financial instruments contain credit risk to the extent that its counterparties may be unable to meet the terms of the agreements. KKR attempts to reduce this risk by limiting its counterparties to major financial institutions with strong credit ratings. Derivative instruments Derivatives are instruments that derive their values from underlying asset prices, indices, foreign exchange rates, reference rates and other inputs or a combination of these factors. Derivatives may be privately negotiated contracts, which are usually referred to as over-the-counter ("OTC") derivatives, or they may be listed and traded on an exchange ("exchange-traded"). Global Atlantic’s derivative instruments are primarily used to hedge certain risks, including interest rate risk and equity market risk, and to a lesser extent foreign exchange and inflation risks. Where certain criteria are met, some of these hedging arrangements may achieve hedge accounting. Derivative instruments are generally recognized at estimated fair value in either funds withheld receivable at interest, other assets, funds withheld payable at interest or accrued expenses and other liabilities in the consolidated statements of financial condition, with changes in fair value recorded in net investment gains (losses) in the consolidated statements of operations. Where certain qualifying criteria are met, some derivative instruments are designated as accounting hedges and are recognized at estimated fair value in derivative assets or accrued expenses and other liabilities in the consolidated statements of financial condition. For derivative instruments designated as fair value hedges, changes in fair value are recognized in the consolidated statements of operations, in the same line where the hedged item is reported. For derivative instruments designated as cash flow hedges, changes in fair value are initially recognized in accumulated other comprehensive income (loss) in the consolidated statements of financial condition and subsequently reclassified to the consolidated statements of operations, in the same line item where the hedged item is reported. |
Securities Sold Short | Securities Sold Short Whether part of a hedging transaction or a transaction in its own right, securities sold short represent obligations of KKR to deliver the specified security at the contracted price at a future point in time, and thereby create a liability to repurchase the security in the market at the prevailing prices. The liability for such securities sold short, which is recorded in Accrued Expenses and Other Liabilities in the statement of financial condition, is marked to market based on the current fair value of the underlying security at the reporting date with changes in fair value recorded as unrealized gains or losses in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. These transactions may involve market risk in excess of the amount currently reflected in the accompanying consolidated statements of financial condition. |
Revenues | Fees and Other Fees and Other, as detailed above, are accounted for as contracts with customers. Under ASC 606, Revenue from Contracts with Customers ("ASC 606"), KKR is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) KKR satisfies its performance obligation. In determining the transaction price, KKR has included variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. The following table summarizes KKR's revenues from contracts with customers: Revenue Type Customer Performance Obligation Performance Obligation Satisfied Over Time or Point In Time (1) Variable or Payment Terms Subject to Return Once Recognized Classification of Uncollected Amounts (2) Management Fees Investment funds, CLOs and other vehicles Investment management services Over time as services are rendered Variable consideration since varies based on fluctuations in the basis of the management fee over time Typically quarterly or annually in arrears No Due from Affiliates Transaction Fees Portfolio companies and third party companies Advisory services and debt and equity arranging and underwriting Point in time when the transaction (e.g. underwriting) is completed Fixed consideration Typically paid on or shortly after transaction closes No Due from Affiliates (portfolio companies) Other Assets (third parties) Monitoring Fees Recurring Fees Portfolio companies Monitoring services Over time as services are rendered Variable consideration since varies based on fluctuations in the basis of the recurring fee Typically quarterly in arrears No Due from Affiliates Termination Fees Portfolio companies Monitoring services Point in time when the termination is completed Fixed consideration Typically paid on or shortly after termination occurs No Due from Affiliates Incentive Fees Investment funds and other vehicles Investment management services that result in achievement of minimum investment return levels Over time as services are rendered Variable consideration since contingent upon the investment fund and other vehicles achieving more than stipulated investment return hurdles Typically paid shortly after the end of the performance measurement period No Due from Affiliates Expense Reimbursements Investment funds and portfolio companies Investment management and monitoring services Point in time when the related expense is incurred Fixed consideration Typically shortly after expense is incurred No Due from Affiliates Oil and Gas Revenues Oil and gas wholesalers Delivery of oil liquids and gas Point in time when delivery has occurred and title has transferred Fixed consideration Typically shortly after delivery No Other Assets Consulting Fees Portfolio companies and other companies Consulting and other services Over time as services are rendered Fixed consideration Typically quarterly in arrears No Due from Affiliates (1) For performance obligations satisfied at a point in time, there were no significant judgments made in evaluating when a customer obtains control of the promised service. (2) For amounts classified in Other Assets, see Note 14 "Other Assets and Accrued Expenses and Other Liabilities." For amounts classified in Due from Affiliates, see Note 19 "Related Party Transactions." Management Fees KKR provides investment management services to investment funds, CLOs, and other vehicles and entities in exchange for a management fee. Management fees are determined quarterly based on an annual rate and are generally based upon a percentage of the capital committed or capital invested during the investment period. Thereafter, management fees are generally based on a percentage of remaining invested capital, net asset value, gross assets or as otherwise defined in the respective contractual agreements. Since some of the factors that cause the fees to fluctuate are outside of KKR's control, management fees are considered to be constrained and are therefore not included in the transaction price. Additionally, after the contract is established there are no significant judgments made when determining the transaction price. Management fees earned from KKR's consolidated investment funds and other vehicles and entities are eliminated in consolidation. However, because these amounts are funded by, and earned from, noncontrolling interests, KKR's allocated share of the net income from the consolidated investment funds and other vehicles is increased by the amount of fees that are eliminated. Accordingly, the elimination of these fees does not impact the net income (loss) attributable to KKR or KKR stockholders' equity. Fee Credits Under the terms of the management agreements with certain of its investment funds, KKR is required to share with such funds an agreed upon percentage of certain fees, including monitoring and transaction fees earned from portfolio companies ("Fee Credits"). Investment funds earn Fee Credits only with respect to monitoring and transaction fees that are allocable to the fund's investment in the portfolio company and not, for example, any fees allocable to capital invested through co-investment vehicles. Fee Credits are calculated after deducting certain costs incurred in connection with pursuing potential investments that do not result in completed transactions ("broken-deal expenses") and generally amount to 80% for older funds formed on or prior to January 1, 2015, or 100% for newer funds, of allocable monitoring and transaction fees after broken-deal expenses are recovered, although the actual percentage may vary from fund to fund. Fee Credits are recognized and owed to investment funds concurrently with the recognition of monitoring fees, transaction fees and broken-deal expenses. Since Fee Credits are payable to investment funds, amounts owed are generally applied as a reduction of the management fee that is otherwise billed to the investment fund. Fee credits are recorded as a reduction of revenues in the consolidated statement of operations. Fee Credits owed to investment funds are recorded in Due to Affiliates on the consolidated statements of financial condition. See Note 19 "Related Party Transactions." Transaction Fees KKR (i) arranges debt and equity financing, places and underwrites securities offerings, and provides other types of capital markets services for companies seeking financing in its Capital Markets business line and (ii) provides advisory services in connection with successful Private Markets and Public Markets business line portfolio company investment transactions, in each case, in exchange for a transaction fee. Transaction fees are separately negotiated for each transaction and are generally based on (i) for Capital Markets business line transactions, a percentage of the overall transaction size and (ii) for Private Markets and Public Markets business line transactions, a percentage of either total enterprise value of an investment or a percentage of the aggregate price paid for an investment. After the contract is established, there are no significant judgments made when determining the transaction price. Monitoring Fees KKR provides services in connection with monitoring portfolio companies in exchange for a fee. Recurring monitoring fees are separately negotiated for each portfolio company. In addition, certain monitoring fee arrangements may provide for a termination payment following an initial public offering or change of control as defined in the contractual terms of the related agreement. These termination payments are recognized in the period when the related transaction closes. After the contract is established, there are no significant judgments made when determining the transaction price. Incentive Fees KKR provides investment management services to certain investment funds, CLOs and other vehicles in exchange for a management fee as discussed above and, in some cases an incentive fee when KKR is not entitled to a carried interest. Incentive fee rates generally range from 5% to 20% of investment gains. Incentive fees are considered a form of variable consideration as these fees are subject to reversal, and therefore the recognition of such fees is deferred until the end of each fund's measurement period when the performance-based incentive fees become fixed and determinable. Incentive fees are generally paid within 90 days of the end of the investment vehicles' measurement period. After the contract is established, there are no significant judgments made when determining the transaction price. Incentive fees earned from KKR's consolidated investment funds, CLOs, and other vehicles are eliminated in consolidation. However, because these amounts are funded by, and earned from, noncontrolling interests, KKR's allocated share of the net income from the consolidated investment funds, CLOs, and other vehicles is increased by the amount of fees that are eliminated. Accordingly, the elimination of these fees does not impact the net income (loss) attributable to KKR or KKR stockholders' equity. Expense Reimbursements Providing investment management services to investment funds and monitoring KKR’s portfolio companies require KKR to arrange for services on behalf of them. In those situations where KKR is acting as an agent on behalf of its investment funds or portfolio companies, it presents the cost of services on a net basis as a reduction of Revenues. In all other situations, KKR is primarily responsible for fulfilling the services and is therefore acting as a principal for those arrangements for accounting purposes. As a result, the expense and related reimbursement associated with those services is presented on a gross basis. Costs incurred are classified within Expenses and reimbursements of such costs are classified as Expense Reimbursements within Revenues on the consolidated statements of operations. After the contract is established, there are no significant judgments made when determining the transaction price. Oil and Gas Revenue On August 18, 2020, KKR transferred all the working and royalty interests in oil and natural gas properties, which were directly held by KKR and not held through investment funds, into a consolidated investment fund. Before the transfer, oil and gas revenue was recognized when the performance obligations were satisfied, which occurred at the point in time when control of the product transferred to the customer. Performance obligations were typically satisfied through the monthly delivery of production. Revenue was recognized based on KKR's proportionate share of production from non-operated properties as marketed by the operator. After the contract was established, there were no significant judgments made when determining the transaction price. As result of the transfer of all the working and royalty interests into a consolidated investment fund, no oil and gas revenue has been recognized since the date of the transfer. Consulting Fees KKR provides consulting and other services to portfolio companies and other companies in exchange for a consulting fee. Consulting fees are separately negotiated with each company for which services are provided. After the contract is established, there are no significant judgments made when determining the transaction price. Capital Allocation-Based Income (Loss) Capital allocation-based income (loss) is earned from those arrangements where KKR has a general partner capital interest and is entitled to a disproportionate allocation of investment income (referred to hereafter as "carried interest"). KKR accounts for its general partner interests in capital allocation-based arrangements as financial instruments under ASC 323, Investments - Equity Method and Joint Ventures ("ASC 323") since the general partner has significant governance rights in the investment funds in which it invests, which demonstrates significant influence. In accordance with ASC 323, KKR records equity method income based on the proportionate share of the income of the investment fund, including carried interest, assuming the investment fund was liquidated as of each reporting date pursuant to each investment fund's governing agreements. Accordingly, these general partner interests are accounted for outside of the scope of ASC 606. Other arrangements surrounding contractual incentive fees through an advisory contract are separate and distinct and accounted for in accordance with ASC 606. In these incentive fee arrangements, accounted for in accordance with ASC 606, KKR’s economics in the entity do not involve an allocation of capital. See "Incentive Fees" above. Carried interest is allocated to the general partner based on cumulative fund performance to date, and where applicable, subject to a preferred return to the funds' limited partners. At the end of each reporting period, KKR calculates the carried interest that would be due to KKR for each investment fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as carried interest to reflect either (a) positive performance resulting in an increase in the carried interest allocated to the general partner or (b) negative performance that would cause the amount due to KKR to be less than the amount previously recognized, resulting in a negative adjustment to carried interest allocated to the general partner. In each case, it is necessary to calculate the carried interest on cumulative results compared to the carried interest recorded to date and to make the required positive or negative adjustments. KKR ceases to record negative carried interest allocations once previously recognized carried interest allocations for an investment fund have been fully reversed. KKR is not obligated to make payments for guaranteed returns or hurdles and, therefore, cannot have negative carried interest over the life of an investment fund. Accrued but unpaid carried interest as of the reporting date is reflected in Investments in the consolidated statements of financial condition. |
Compensation and Benefits | Compensation and Benefits Compensation and Benefits expense includes (i) base cash compensation consisting of salaries and wages, (ii) benefits, (iii) carry pool allocations, (iv) equity-based compensation, and (v) discretionary cash bonuses. To supplement base cash compensation, benefits, carry pool allocations, and equity-based compensation, KKR typically pays discretionary cash bonuses, which are included in Compensation and Benefits expense in the consolidated statements of operations, based principally on the level of (i) management fees and other fee revenues (including incentive fees), (ii) realized carried interest and (iii) realized investment income earned during the year. The amounts paid as discretionary cash bonuses, if any, are at KKR’s sole discretion and vary by individual to individual and from period to period, including having no cash bonus. KKR accrues discretionary cash bonuses when payment becomes probable and reasonably estimable which is generally in the period when KKR makes the decision to pay discretionary cash bonuses and is based upon a number of factors including the recognition of fee revenues, realized carried interest, realized investment income and other factors determined during the year. KKR decides whether to pay a discretionary cash bonus and determines the percentage of applicable revenue components to pay compensation only upon the occurrence of the realization event. There is no contractual or other binding obligation that requires KKR to pay a discretionary cash bonus to its employees, except in limited circumstances. While most cash bonuses paid to most employees are borne by KKR and result in customary compensation and benefits expense, certain cash bonuses that are paid to certain of KKR's principals can be borne by KKR Holdings. These bonuses can be funded with distributions that KKR Holdings receives on KKR Group Partnership Units held by KKR Holdings but are not then passed on to holders of unvested units of KKR Holdings. Because KKR principals are not entitled to receive distributions on units that are unvested, any amounts allocated to principals in excess of a principal's vested equity interests are reflected as employee compensation and benefits expense. These compensation charges, if any, are currently recorded based on the amount of cash expected to be paid by KKR Holdings. Carry Pool Allocation With respect to KKR's funds that provide for carried interest, KKR allocates a portion of the realized and unrealized carried interest that it earns to a carry pool established at KKR Associates Holdings L.P. (which is not a subsidiary of KKR), from which its employees and certain other carry pool participants are eligible to receive a carried interest allocation. The allocation is determined based upon a fixed arrangement between KKR Associates Holdings L.P. and KKR, and KKR does not exercise discretion on whether to make an allocation to the carry pool upon a realization event. These amounts are accounted for as compensatory profit sharing arrangements in Accrued Expenses and Other Liabilities within the accompanying consolidated statements of financial condition in conjunction with the related carried interest income and are recorded as compensation expense. Upon a reversal of carried interest income, the related carry pool allocation, if any, is also reversed. Accordingly, such compensation expense is subject to both positive and negative adjustments. In February 2021, following the approval of a majority of KKR & Co. Inc.'s independent directors, KKR amended the percentage of carried interest that is allocable to the carry pool to 65% for (i) current investment funds for which no or de minimis amounts of carried interest was accrued as of December 31, 2020 and (ii) all future funds. For all other funds, the percentage of carried interest remains 40% or 43%, as applicable. The percentage of carried interest allocable to the carry pool may be increased above 65% only with the approval of a majority of KKR & Co. Inc.'s independent directors. Equity-based Compensation In addition to the cash-based compensation and carry pool allocations as described above, employees receive equity awards under the Amended and Restated KKR & Co. Inc. 2010 Equity Incentive Plan (the "2010 Equity Incentive Plan") and the Amended and Restated KKR & Co. Inc. 2019 Equity Incentive Plan (the "2019 Equity Incentive Plan" and, together with the 2010 Equity Incentive Plan, the "Equity Incentive Plans"). Most of these awards are subject to service-based vesting typically over a three five Profit Sharing Plan |
General, Administrative and Other | General, Administrative and Other General, administrative and other expense consists primarily of professional fees paid to legal advisors, accountants, advisors and consultants, insurance costs, travel and related expenses, communications and information services, depreciation and amortization charges, expenses (including impairment charges) incurred by oil and gas entities that are consolidated, broken-deal expenses, placement fees and other general operating expenses. A portion of these general administrative and other expenses, in particular broken-deal expenses, are borne by fund investors. |
Investment Income | Investment Income Investment income consists primarily of the net impact of: (i) Realized and unrealized gains and losses on investments, securities sold short, derivatives and debt obligations of consolidated CFEs which are recorded in Net Gains (Losses) from Investment Activities. Upon disposition of an investment, previously recognized unrealized gains or losses are reversed and a realized gain or loss is recognized. (ii) Foreign exchange gains and losses relating to mark‑to‑market activity on foreign exchange forward contracts, foreign currency options and foreign denominated debt which are recorded in Net Gains (Losses) from Investment Activities. (iii) Dividends, which are recognized on the ex‑dividend date, or, in the absence of a formal declaration of a record date, on the date it is received. (iv) Interest income, which is recognized as earned. |
Investment in credit losses and impairment on available-for-sale fixed maturity securities | Available-for-sale fixed maturity securities One of the significant estimates related to AFS securities is the evaluation of those investments for credit losses. The evaluation of investments for credit losses is a quantitative and qualitative quarterly process that is subject to risks and uncertainties and involves significant estimates and judgments by management. Changes in the estimates and judgments used in such analysis can have a significant impact on the consolidated statements of operations. Global Atlantic regularly reviews its AFS securities for declines in fair value below amortized cost that it determines to be due to credit losses. For fixed maturity securities, Global Atlantic first considers the intent to sell a security, or whether it is more-likely-than-not that it will be required to sell the security, before the recovery of its amortized cost. If Global Atlantic intends to sell an AFS fixed maturity security with an unrealized loss or it is more-likely-than-not that it will be required to sell an AFS fixed maturity security with an unrealized loss before recovery of its amortized cost basis, the amortized cost is written down to fair value and a corresponding charge is recognized to net investment losses. For AFS fixed maturity securities in an unrealized loss position that Global Atlantic does not intend to sell, and will not be required to sell, Global Atlantic bifurcates the impairment into two components: credit impairment and non-credit impairment. Credit impairments are measured as the difference between the security’s cost or amortized cost and its estimated recoverable value, which is the present value of its expected future cash flows discounted at the current effective interest rate. The estimated recoverable value is subject to a floor equal to the fair value of the security. The remaining difference between the security’s fair value and the recoverable value, if any, is the non-credit impairment. Credit impairments are recognized in the allowance for credit losses on AFS fixed maturity securities, which is established via a charge to net investment losses in the consolidated statements of operations, and non-credit impairments are charged to accumulated other comprehensive income in the consolidated statements of financial condition. The review of each AFS fixed maturity in an unrealized loss position for credit losses includes an analysis of gross unrealized losses by severity. A severe unrealized loss position on a fixed maturity security may not impact the recoverability of all contractual cash flows or the ability to recover an amount at least equal to the investment’s amortized cost. The facts and circumstances available relevant to the severity of the loss position are analyzed, including changes in market interest rates, credit issues, changes in business climate, management changes, litigation, government actions, and other similar factors that may impact the issuer’s ability to meet current and future principal and interest obligations. Indicators of credit impairment may include changes in the issuers’ credit ratings, the frequency of late payments, pricing levels and deterioration in any, or a combination of, key financial ratios, financial statements, revenue forecasts and cash flow projections. In determining the estimated recoverable value, the review of expected future cash flows for structured securities includes assumptions about key systemic risks (e.g., unemployment rates, housing prices) and loan-specific information (e.g., delinquency rates, loan-to-value ratios). Estimating future cash flows is a quantitative and qualitative process that incorporates information received from third parties, along with assumptions and judgments about the future performance of the underlying collateral. For corporate and government bonds the recoverable value is determined using cash flow estimates that consider facts and circumstances relevant to the security and the issuer, including overall financial strength and secondary sources of repayment as well as pending restructuring or disposition of assets. Where information for such cash flow estimates is limited or deemed not reliable, fair value is considered the best estimate of the recoverable value. In periods subsequent to the initial recognition of an allowance for credit losses on a fixed maturity security, whether for a PCD security or a security impaired since purchase, Global Atlantic continues to monitor credit loss expectations. Deterioration in the estimated recoverable value of a credit impaired security is recognized as an addition to the allowance for credit losses, as limited by the amount by which the security’s fair value is less than amortized cost. Improvements in the estimated recoverable value of a credit impaired security or improvements in the fair value of a credit impaired security that limit the amount of the allowance result in reductions in the allowance for credit losses, which are recognized as a credit to net investment gains in the consolidated statements of income. Amounts are charged off against the allowance for credit losses when deemed uncollectible or when Global Atlantic determines that it intends to sell, or more likely than not will be required to sell, the security. Charge-offs are reflected as a decrease in the allowance and a direct write down in the amortized cost of the security. If Global Atlantic recovers all or a portion of an amount previously written off on a credit impaired security, the recovery is recognized as a realized investment gain. |
Impairment in credit losses and impairment on mortgage and other loan receivables | Mortgage and other loan receivables Global Atlantic updates its estimate of the expected credit losses on its investments in mortgage and other loan receivables each quarter. For loans that share similar risk characteristics, expected credit losses are measured on a pool basis. For commercial mortgage loans, the current expected credit losses are estimated using a model that evaluates the probability that each loan will default and estimates the amount of loss given the occurrence of such a default over the life of each loan in the portfolio. The model incorporates historical and current data on the relevant property market and projects potential future paths for each loan’s collateral, considering both the net income to be generated by the collateral real estate and its market value. The model considers how macroeconomic forecasts (such as gross domestic product, unemployment, and interest rates) influence commercial real estate market factors (including vacancy rates, rental and income growth rates, property value changes), and in turn how commercial real estate market conditions, in combination with loan specific information (including debt service coverage and loan to value), drive commercial mortgage loan credit risk. For residential mortgage loans and consumer loans, the current expected credit losses are primarily estimated using a discounted cash flow model. The model considers loan-specific information as well as current, historical and forecasted data relevant to the respective loans, including home prices, interest rates and unemployment. Expected cash flows are projected for each loan and are discounted using the effective interest rate of the respective loan. Any shortfalls between the discounted cash flows and the amortized cost of each individual loan are aggregated to determine the total allowances on the residential mortgage loan and consumer loan portfolios. For certain residential mortgage loans secured by single-family rental properties, current expected credit losses are determined using a model consistent with that described above for commercial mortgage loans. With regard to the use of forecasts in the determination of Global Atlantic’s current expected credit losses, the reversion of forecasts to historical data is based on reversion dynamics that depend on the specific variable and its interaction with the other parameters of the respective model; however, the forecasts generally tend to revert to a long-term equilibrium trend within two to three years from the forecast start date. For the investment in other loan receivables, a variety of methodologies are used to estimate the respective current expected credit losses. These methodologies consider the terms specific to each loan, including the value of any collateral, and evaluate the risk of loss over the life of these loans. Global Atlantic also assesses and measures an allowance for credit losses arising from off-balance sheet commitments, including loan commitments, that are not unconditionally cancellable by Global Atlantic. This allowance for credit losses for off-balance sheet commitments is determined using methods consistent with those used for the associated mortgage and other loan receivable class, as described above, and is recognized in other liabilities in the consolidated statements of financial condition, since there is no funded asset for the committed amount. When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the carrying amount of the loan is charged off against the allowance. If Global Atlantic recovers all or a portion of an amount previously written off on a credit impaired loan, the recovery is recognized as a realized investment gain. |
Deferral and amortization of certain revenues and expenses | Deferral and amortization of certain revenues and expenses Deferrals Deferred policy acquisition costs ("DAC") consist of commissions and other costs that are directly related to the successful acquisition of new or renewal life insurance or annuity contracts. Deferred sales inducements ("DSI") are generated by annuities that offer enhanced crediting rates or bonus payments to policyholders and is included in other assets in the consolidated statements of financial condition. DAC is recorded in insurance intangibles in the consolidated statements of financial condition. Value of business acquired ("VOBA") represents the difference between the carrying value of the purchased in-force insurance contract liabilities at the time of the business combination and the estimated fair value of insurance and reinsurance contracts. VOBA can be either positive or negative. Positive VOBA is recorded in insurance intangibles. Negative VOBA is recorded in the same financial statement line in the consolidated statement of financial condition as the associated reserves. Revenues from certain universal life insurance products are deferred to future periods and an unearned revenue reserve ("URR") liability is established. The amount deferred is equal to the excess of the revenue collected over an estimate of the ultimate future level of these revenues and included in policy liabilities in the consolidated statements of financial condition. Deferred revenue liability ("DRL") represents the gross premium less the net premium on limited pay contracts (i.e., payout annuities). DRL is included in policy liabilities in the consolidated statements of financial condition. For certain preneed contracts, the gross premium is in excess of the benefit reserve plus additional insurance liability. An unearned front-end load ("UFEL") is established to defer the recognition of this front-end load. UFEL is included in policy liabilities in the consolidated statements of financial condition. Amortization For interest-sensitive products (fixed-indexed annuities and variable annuities, most universal life including preneed contracts, and variable universal life), DAC and DSI assets are generally amortized in proportion to actual historical gross profits and estimated future gross profits over the estimated lives of the contracts. The amount of gross profit consists principally of investment returns (including hedge gains and losses) in excess of the amounts credited to policyholders, asset-based and other policy fees, and surrender charges reduced by death and other excess benefits and expenses. Numerous factors including mortality, benefit utilization, surrender activity, premium persistency, and the economic environment influence the level and timing of gross profits. Estimated gross profits are updated each reporting period with actual gross profits as part of the amortization process for the interest-sensitive policies. When actual gross profits are higher in the period than had been previously estimated, more amortization is recognized than planned. When actual gross profits are lower than had been previously estimated, less amortization is recognized than planned. These relationships hold provided that future estimates of gross profits remain unchanged, which may not always be true. VOBA is generally amortized on a constant level basis using policy count over the estimated lives of the contracts. When a different basis of amortization is determined to be more representative of the economics, such as when negative estimated gross profits or margins occur, an alternative basis of amortization may be selected for DAC and VOBA. For most term and whole life products, DAC is amortized in proportion to premium revenue recognized. DRL is amortized on a straight-line basis for whole life and term life insurance policies. For annuities, universal life and indexed universal life policies, DRL is amortized in proportion to the pattern of policyholder death benefits in-force. For payout annuities, DRL is recognized in income in a constant relationship with the amount of expected future payments. URR is amortized consistent with the amortization of DAC on similar products. UFEL is amortized consistent with the method used in the amortization of DAC for preneed contracts. The key assumptions used in the calculation of the amortization of DAC, VOBA and DSI are periodically updated as part of the assumptions review process, which results in revisions to the estimated future gross profits. The effects of changes in assumptions are recorded as unlocking in the period in which the changes are made. The following are types of changes to future assumptions that would generally result in a negative unlocking (i.e., an acceleration of amortization resulting in a reduction to net income): lower equity returns, lower investment returns, higher operating expenses, higher mortality, and unfavorable lapses. The carrying amounts of DAC, DSI, URR and UFEL are adjusted for the effects of realized and unrealized gains and losses on debt and equity securities classified as AFS and certain derivatives. Internal replacements |
Separate accounts | Separate accounts Separate account assets and liabilities represent segregated funds administered and invested by Global Atlantic for the benefit of variable annuities and variable universal life insurance contractholders and certain pension funds. Global Atlantic reports separately, as assets and liabilities, investments held in the separate accounts and liabilities of separate accounts if: (1) such separate accounts are legally recognized; (2) assets supporting the contract liabilities are legally insulated from Global Atlantic’s general account liabilities; (3) investments are directed by the contract owner or participant; and (4) all investment performance, net of contract fees and assessments, is passed through to the contract owner. |
Policy liabilities | Policy liabilities Policy liabilities, or collectively, “reserves,” are the portion of past premiums or assessments received that are set aside to meet future policy and contract obligations as they become due. Interest accrues on these reserves and on future premiums, which may also be available to pay for future obligations. Global Atlantic establishes reserves to pay future policyholder benefits, claims, and certain expenses for its life policies and annuity contracts. Reserves are estimates based on models that include many actuarial assumptions and projections. These assumptions and projections, which are inherently uncertain, involve significant judgment, including assumptions as to the levels and/or timing of premiums, benefits, claims, expenses, interest credits, investment results (including equity market returns), mortality, longevity, and persistency. The assumptions on which reserves are based are intended to represent an estimation of experience for the period that policyholder benefits are payable. The adequacy of these reserves and the assumptions underlying those reserves are reviewed at least annually. Global Atlantic cannot, however, determine with precision the amount or the timing of actual policyholder benefit payments. If actual experience is better than or equal to the assumptions, then reserves would be adequate to provide for future policyholder benefits and expenses. If experience is worse than the assumptions, additional reserves may be required to meet future policy and contract obligations. This would result in a charge to Global Atlantic’s net income during the period in which excess policyholder benefits are paid or an increase in reserves occurs. For a majority of Global Atlantic’s in-force policies, including its universal life policies and most annuity contracts, the base policy reserve is equal to the account value. For these products, the account value represents Global Atlantic’s obligation to repay to the policyholder the amounts held on deposit. However, there are several significant blocks of business where additional policyholder reserves are explicitly calculated, including variable annuities, fixed-indexed annuities, universal life with secondary guarantees, indexed universal life and preneed policies. Fixed-rate and fixed-indexed annuities Contractholder deposits fund reserves for fixed-indexed annuities earning a fixed rate of interest and certain other fixed-rate annuity products are computed under a retrospective deposit method and represent policyholder account balances before applicable surrender charges. For certain fixed-rate annuity products, an additional reserve was established for above market interest rate guarantees upon acquisition. These reserves are amortized on a straight-line basis over the remaining guaranteed interest rate period. Certain of Global Atlantic’s fixed-indexed annuity products enable the policyholder to allocate contract value between a fixed crediting rate and strategies which reflect the change in the value of an index, such as the S&P 500 Index or other indices. These products are accounted for as investment-type contracts. The liability for these products consists of a combination of the underlying account value and an embedded derivative value. The liability for the underlying account value is primarily based on policy guarantees and its initial value is the difference between the premium payment and the fair value of the embedded derivative. Thereafter, the account value liability is determined in a manner consistent with the accounting for a deposit liability under the “constant yield method.” All future host balances are determined as: (1) the initial host balance; (2) plus interest; (3) less applicable policyholder benefits. The interest rate used in the prior roll forward is re-determined on each valuation date, per the constant yield method. The embedded derivative component’s fair value is based on an estimate of the policyholders’ expected participation in future increases in the relevant index. The fair value of this embedded derivative component includes assumptions, including those about future interest rates and investment yields, future costs for options used to hedge the contract obligations, projected withdrawal and surrender activity, benefit utilization and the level and limits on contract participation in any future increases in the respective index option. The account value liability and embedded derivative are recorded in policy liabilities in the consolidated statements of financial condition, with changes in value of the liabilities recorded in policy benefits and claims in the consolidated statements of operations. Global Atlantic issues funding agreements to certain unaffiliated (and non-unconsolidated) special purpose entities that have issued debt securities for which payment of interest and principal is secured by such funding agreements. Global Atlantic’s funding agreements are considered investment type contracts and liabilities are calculated as the present value of future payments. Global Atlantic's obligation is reported in policy liabilities in the consolidated statements of financial condition. Interest expense is calculated using the effective interest method and recorded in policy benefits and claims in the consolidated statements of income. Contractholder deposit funds reserves for certain assumed blocks of fixed-indexed and fixed-rate annuity products are accounted for as investment-type contracts. A net liability (consisting of the benefit reserve plus deferred revenue liability less DAC) is established at inception and amortized under the constant yield method. Guaranteed benefits Certain fixed-rate and fixed-indexed annuity contracts provide the contractholder with guaranteed minimum death benefits ("GMDB") and/or guaranteed minimum withdrawal benefits ("GMWB"). The associated reserves for these benefits are calculated by estimating the present value of total expected (excess) benefit payments over the life of the contract divided by the present value of total expected assessments over the life of the contract, or the “benefit ratio,” and multiplying this ratio by the cumulative assessments recorded from the contract inception through the balance sheet date less cumulative benefit payments plus interest on the reserves. The liabilities are included in policy liabilities in the consolidated statements of financial condition. The change in the reserve is included in policy benefits and claims in the consolidated statements of operations. Long-term care benefit riders Certain fixed-rate contracts provide the policyholder with long-term care benefit riders. The long-term care benefit rider permits access to the policy’s account value, along with a supplemental rider benefit value, free of a surrender charge, to reimburse the policyholder for certain qualified long-term care expenses. Depending on the outcome of simplified underwriting, the rider benefit is capped at the return of account value plus one or two times the account value. The benefit rider paid to the policyholder is subject to a monthly maximum such that the benefit is typically paid out over a period of six years or longer. The liabilities for these benefits are calculated by using the benefit ratio multiplied by the cumulative assessments recorded from the contract inception through the balance sheet date less cumulative benefit payments plus interest on the reserves. The change in the reserve is included in policy benefits and claims in the consolidated statements of operations. Variable annuities Variable annuity contracts offered and assumed by Global Atlantic provide the contractholder with GMDB and/or GMWB. The liabilities for these benefits are included in policy liabilities in the consolidated statements of financial condition. The change in the liabilities for these benefits is included in policy benefits and claims in the consolidated statements of operations. Global Atlantic issued variable annuity contracts with GMDB features. Global Atlantic elected the fair value option to measure the liability for certain of these variable annuity contracts. Fair value is calculated as the present value of the estimated death benefits less the present value of the GMDB fees, using 1,000 risk neutral scenarios. Global Atlantic discounts the cash flows using the U.S. Treasury rates plus an adjustment for own company credit risk. Global Atlantic also issues variable annuity contracts with a GMWB. The GMWB feature represents an embedded derivative. The embedded derivative is required to be bifurcated and measured at fair value. This liability is calculated as the present value of the excess GMWB claims less the present value of GMWB fees, using 1,000 risk neutral scenarios. Global Atlantic discounts the cash flows using U.S. Treasury rates plus an adjustment for own company credit risk. Payout annuities Payout annuities include single premium immediate annuities, annuitizations of deferred annuities and structured settlements. These contracts subject the insurer to risks over a period that extends beyond the period or periods in which premiums are collected. These contracts may be either non-life contingent or life contingent. Non-life contingent annuities are accounted for as financial instruments. For life contingent annuities, Global Atlantic records a liability at the present value of future annuity payments and estimated future expenses calculated using expected mortality and costs, and interest assumptions. Any gross premiums received in excess of the net premium is the DRL and is recognized in income in a constant relationship with the amount of expected future payments. The liabilities are recorded in policy liabilities in the consolidated statements of financial condition. Also included under payout annuities are liabilities for disability income benefits which pertain primarily to disability income policies that are already in claim payout status. Liabilities for disability income benefits are calculated as the present value of future disability payments and estimated future expenses using expected mortality and costs, and interest assumptions. The liabilities are recorded in policy liabilities in the consolidated statements of financial condition. Universal life policies For universal life policies, the base benefit reserves are deemed to be equal to the policyholder account value. Policy liabilities for indexed universal life with returns linked to the performance of a specified market index are equal to the sum of two components: (1) the fair value of the embedded derivative; and (2) the host (or guaranteed) component. The fair value of the embedded derivative component is based on the fair value of the policyholders’ expected participation in future increases in the relevant index over the life of the contract. The fair value of this embedded derivative component includes assumptions, including those about future interest rates and investment yields, future costs for options used to hedge the contract obligations, projected benefits, benefit utilization and the level and limits on contract participation in any future increases in the respective index option. The initial host balance is established at the time of premium payment and is equal to the total account value less the embedded derivative component. Thereafter, the balance of the host component is determined in a manner consistent with the accounting for a deposit liability under the “constant yield method.” All future host balances are determined as: (1) the initial host balance; (2) plus interest; (3) less applicable policyholder benefits. The interest rate used in the prior roll forward is re-determined on each valuation date, per the constant yield method. Global Atlantic holds additional liabilities for universal life products with secondary guarantees, sometimes referred to as no-lapse guarantees. For these products, the fair value of the embedded derivative is the present value of the best estimate option budget projection minus the guaranteed surrender benefits over the life of the contract. The additional liabilities are measured using the benefit ratio approach where excess benefits are spread over the life of the contract based on assessments collected from the policyholder. Generally, total expected excess benefit payments are the aggregate of death claims after the policyholder account value is exhausted. The exception is when the cost of insurance charges are insufficient to produce consistently positive earnings in the future. In this case, all death benefits are deemed to be excess benefits. Variable universal life policies Certain assumed variable universal life policies include several forms of secondary guarantees. Global Atlantic holds additional liabilities for its secondary guarantees as discussed above. Preneed policies Global Atlantic’s preneed life insurance contracts are accounted for as universal life-type contracts which require that the retrospective deposit method be used. That accounting method establishes a liability for policyholder benefits in an amount determined by the account or contract balance that accrues to the benefit of the policyholder. This account value is deemed to be equal to the contract’s statutory cash surrender value. The majority of Global Atlantic’s preneed insurance contracts feature death benefits with a discretionary death benefit growth rate. Global Atlantic has the discretion to adjust these rates up or down. Global Atlantic has established an additional reserve for expected future discretionary benefits which is reflected as policy liabilities in the consolidated statements of financial condition. Global Atlantic has also issued preneed insurance contracts with crediting rates tied to inflation as measured by the U.S. Consumer Price Index. Whole and term life Global Atlantic has established liabilities for amounts payable under insurance policies, including whole life insurance and term life insurance policies. Generally, liabilities for these policies are calculated as the present value of future expected benefits to be paid reduced by the present value of future expected net premiums. Principal assumptions used in the establishment of liabilities for future policyholder benefits are mortality, policy lapse, renewal, investment returns, inflation, expenses and other contingent events as appropriate for the respective product. These assumptions, which include provisions for adverse deviations, are established at the time the policy is issued and are intended to estimate the experience for the period the policyholder benefits are payable. By utilizing these assumptions, liabilities are established on a block-of-business basis. For whole life and term long-duration insurance contracts, assumptions such as mortality, morbidity and interest rates are locked-in upon the issuance of new business. However, significant adverse changes in experience on such contracts may require Global Atlantic to establish premium deficiency reserves. Premium deficiency reserves are established, if necessary, when the liability for future policyholder benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policyholder benefits and expenses. Such reserves are determined based on assumptions at the time the premium deficiency reserve is established and do not include a provision for adverse deviation. |
Outstanding claims | Outstanding claims Outstanding claims include amounts payable relating to in course of settlement and incurred but not reported claim liabilities. In course of settlement claim liabilities are established for policies when Global Atlantic is notified of the death of the policyholder but the claim has not been paid as of the reporting date. Incurred but not reported claim liabilities are determined using studies of past experience and are estimated using actuarial assumptions of historical claims expense, adjusted for current trends and conditions. These estimates are continually reviewed and the ultimate liability may vary significantly from the amounts initially recognized, which are reflected in net income in the period in which they are determined. Changes in policyholder and contract claims are recorded in policy benefits and claims in the consolidated statements of operations. |
Closed blocks | Closed blocks Through its insurance companies, Global Atlantic has acquired several closed blocks of participating life insurance policies. Global Atlantic has elected to account for the closed block policy liabilities using the fair value option. The assets and cash flow generated by the closed blocks inure solely to the benefit of the holders of policies included in the closed blocks. All closed block assets will ultimately be paid out as policyholder benefits and through policyholder dividends. In the event that the closed blocks’ assets are insufficient to meet the benefits of the closed blocks’ benefits, general assets of Global Atlantic would be used to meet the contractual benefits to the closed blocks’ policyholders. |
Reinsurance | Reinsurance Consistent with the overall business strategy, Global Atlantic assumes certain policy risks written by other insurance companies on a coinsurance, modified coinsurance or funds withheld coinsurance basis. Reinsurance accounting is applied for ceded and assumed transactions when risk transfer provisions have been met. To meet risk transfer requirements, a long-duration reinsurance contract must transfer mortality or morbidity risks, and subject the reinsurer to a reasonable possibility of a significant loss. Those contracts that do not meet risk transfer requirements are accounted for using deposit accounting. Global Atlantic seeks to diversify risk and limits its overall financial exposure through reinsurance. With respect to ceded reinsurance, Global Atlantic values reinsurance recoverables on reported claims at the time the underlying claim is recognized in accordance with contract terms. For future policyholder benefits, Global Atlantic estimates the amount of reinsurance recoverables based on the terms of the reinsurance contracts and historical reinsurance recovery information. The reinsurance recoverables are based on what Global Atlantic believes are reasonable estimates and the balance is reported as an asset in the consolidated statements of financial condition. However, the ultimate amount of the reinsurance recoverable is not known until all claims are settled. The cost of reinsurance, which is the difference between the amount paid for a reinsurance contract and the amount of the liabilities for policy benefits relating to the underlying reinsured contracts, is deferred and amortized over the reinsurance contract period for short-duration contracts, or over the terms of the reinsured policies on a basis consistent with the reporting of those policies for long-duration contracts. Cost of reinsurance assets and liabilities are reported in insurance intangibles and policy liabilities in the consolidated statements of financial condition, respectively and includes certain variable incentive compensation directly related to reinsurance contract acquisition. Reinsurance contracts do not relieve Global Atlantic from its obligations to policyholders, and failure of reinsurers to honor their obligations could result in losses to Global Atlantic; consequently, allowances are established for expected credit losses, via a charge to policy benefits and claims in the consolidated statements of operations. Global Atlantic’s funds withheld receivable at interest and reinsurance recoverable assets are reviewed for expected |
Recognition of insurance revenue and related benefits and insurance expenses | Recognition of insurance revenue and related benefits Premiums related to whole life and term life insurance contracts and payout contracts with life contingencies are recognized in premiums in the consolidated statements of operations when due from the contractholders. Amounts received as payment for universal life and investment-type contracts are reported as deposits to contractholder account balances and recorded in policy liabilities in the consolidated statements of financial condition. Amounts received as payment for Global Atlantic’s fixed fund variable annuities are reported as a component of policy liabilities in the consolidated statements of financial condition. Revenues from these contracts consist primarily of fees assessed against the contractholder account balance for mortality, policy administration, separate account administration and surrender charges, and are reported in policy fees in the consolidated statements of operations. Additionally, Global Atlantic earns investment income from the investment of contract deposits in Global Atlantic’s insurance companies' general account portfolio, which is reported in net investment income in the consolidated statements of operations. Fees assessed that represent compensation to Global Atlantic for benefits to be provided in future periods and certain other fees are established as an unearned revenue reserve liability and amortized into revenue over the expected life of the related contracts in proportion to estimated gross profits in a manner consistent with DAC for these contracts. Unearned revenue reserves are reported in policy liabilities in the consolidated statements of financial condition and amortized into policy fees in the consolidated statements of operations. Benefits and expenses for these products include claims in excess of related account balances, expenses for contract administration and interest credited to contractholder account balances in the consolidated statements of operations. |
Other income | Other income Other income is primarily comprised of administration, management fees and distribution fees |
Equity-based, incentive and other deferred compensation | Equity-based, incentive and other deferred compensation Global Atlantic has established a long-term incentive plan to foster and promote its long-term financial success. Compensation expense for Global Atlantic’s incentive awards is recognized only when vesting is deemed to be probable. Global Atlantic measures compensation cost for service-based, equity-classified share-based payment awards at fair value as of the grant date and recognizes it in general, administrative and other expenses in the consolidated statements of operations as compensation expense over the requisite service period for awards expected to vest. Global Atlantic recognizes the expense using the straight-line attribution method, with adjustments for estimated forfeitures. For awards with performance-based vesting, expense recognition is deferred until the performance factor occurs or becomes probable. Global Atlantic measures compensation cost for liability-classified share-based payment awards or other deferred compensation plans using the fair value method, beginning on the grant date, and re-measures the fair value of the awards at each reporting period until the awards are settled. Accrued compensation expense is recognized, net of an estimated forfeiture rate, in general, administrative and other expenses in the consolidated statements of operations and within accrued expenses and other liabilities in the consolidated statements of financial condition, respectively. |
Recently Issued Accounting Pronouncements | Adoption of new accounting pronouncements The Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") and related regulatory actions On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits net operating loss ("NOL") carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019 and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The provisions of the CARES Act, as amended by the Consolidated Appropriations Act, also permit financial institutions to suspend requirements under U.S. GAAP for loan modifications that otherwise would be categorized as troubled debt restructurings (“TDRs”) if (1) the borrower was not more than 30 days past due as of December 31, 2019, and (2) the modifications are related to arrangements that defer or delay the payment of principal or interest, or change the interest rate on the loan, provided the modifications are made between March 1, 2020 and the earlier of 60 days after the end of the national emergency related to the COVID-19 pandemic or December 31, 2022. Global Atlantic has applied this guidance to loan forbearance requests that meet the requirements. See Note 7—“Investments,” for additional information on loan modifications. Simplifying the accounting for income taxes On December 18, 2019, the Financial Accounting Standards Board (the "FASB") issued ASU No. 2019-12, which modifies ASC 740 to simplify the accounting for income taxes. The ASU, among other changes, (i) provides a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax and (ii) provides guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction. The guidance is effective for fiscal periods beginning after December 15, 2020. The adoption did not have a material impact on the financial statements. Reference rate reform On March 12, 2020, the FASB issued ASU No. 2020-04, which provides temporary optional expedients and exceptions to the guidance in GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The temporary optional expedients and exceptions can be elected through December 31, 2022. For the quarter ended September 30, 2021, KKR has not elected to apply the temporary optional expedients and exceptions and will be reevaluating the application each quarter. Future application of accounting standards Targeted improvements to the accounting for long-duration contracts In August 2018, the FASB issued new guidance for insurance and reinsurance companies that issue long-duration contracts such as life insurance and annuities. The objective of this guidance is to improve, simplify and enhance the financial reporting of long-duration contracts by providing financial statement users with useful information in a timely and transparent manner. The primary changes include: (1) more timely recognition of assumption changes in the liability for future policy benefits and use of a current rate for the discounting of future cash flows; (2) standardization and improvement in the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts (referred to as market risk benefits); (3) simplification of the amortization of deferred acquisition costs; and (4) enhanced disclosures. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. For changes related to the liability for future policy benefits and deferred acquisition costs, the new guidance requires adoption using a modified retrospective approach upon transition with an option to elect a retrospective approach. For changes related to market risk benefits, the new guidance requires a retrospective approach. KKR intends to implement this standard to Global Atlantic's insurance business using the retrospective approach for the liability for future policy benefits, deferred acquisition costs and market risk benefits with an adoption date of January 1, 2023. Global Atlantic has completed the design and planning phase of its implementation effort and has begun detailed implementation activities. KKR continues to evaluate the impact of this guidance but anticipates that the new standard will have a material impact |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling interests represent (i) noncontrolling interests in consolidated entities and (ii) noncontrolling interests held by KKR Holdings. Noncontrolling Interests in Consolidated Entities and Other Noncontrolling interests in consolidated entities represent the non-redeemable ownership interests in KKR that are held primarily by: (i) third party fund investors in KKR's consolidated funds and certain other entities; (ii) third parties entitled to up to 1% of the carried interest received by certain general partners of KKR's funds that have made investments on or prior to December 31, 2015; (iii) certain former principals and their designees representing a portion of the carried interest received by the general partners of KKR's private equity funds that was allocated to them with respect to private equity investments made during such former principals' tenure with KKR prior to October 1, 2009; (iv) certain current and former principals representing all of the capital invested by or on behalf of the general partners of KKR's private equity funds prior to October 1, 2009 and any returns thereon; (v) third parties in KKR's Capital Markets business line; (vi) holders of other exchangeable securities, which consist of vested restricted holdings units granted under the 2019 Equity Plan that are exchangeable into shares of common stock of KKR & Co. Inc.; and (vii) third parties in KKR's insurance business including GA Rollover Investors, GA Co-Investors and third party investors in Global Atlantic's consolidated renewable energy entities. Noncontrolling Interests held by KKR Holdings Noncontrolling interests held by KKR Holdings consist of economic interests held by principals indirectly in KKR Group Partnership Units. Such principals receive financial benefits from KKR's business in the form of distributions received from KKR Holdings and through their direct and indirect participation in the value of KKR Group Partnership Units held by KKR Holdings. These financial benefits are not paid by KKR & Co. Inc. and are borne by KKR Holdings. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of fees | For the three and nine months ended September 30, 2021 and 2020, respectively, revenues consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Management Fees $ 349,249 $ 254,467 $ 931,624 $ 696,892 Fee Credits (164,720) (89,487) (322,402) (185,746) Transaction Fees 437,619 300,805 978,399 561,259 Monitoring Fees 29,823 28,824 98,164 86,875 Incentive Fees 6,962 63 13,092 731 Expense Reimbursements 34,857 44,553 122,642 100,779 Oil and Gas Revenue — 6,687 — 21,054 Consulting Fees 25,178 17,428 66,286 55,541 Total Fees and Other 718,968 563,340 1,887,805 1,337,385 Carried Interest 1,216,433 1,077,932 4,553,527 626,338 General Partner Capital Interest 310,234 253,966 1,183,180 262,004 Total Capital Allocation-Based Income (Loss) 1,526,667 1,331,898 5,736,707 888,342 Total Revenues - Asset Management $ 2,245,635 $ 1,895,238 $ 7,624,512 $ 2,225,727 |
Revenues from contracts with customers | The following table summarizes KKR's revenues from contracts with customers: Revenue Type Customer Performance Obligation Performance Obligation Satisfied Over Time or Point In Time (1) Variable or Payment Terms Subject to Return Once Recognized Classification of Uncollected Amounts (2) Management Fees Investment funds, CLOs and other vehicles Investment management services Over time as services are rendered Variable consideration since varies based on fluctuations in the basis of the management fee over time Typically quarterly or annually in arrears No Due from Affiliates Transaction Fees Portfolio companies and third party companies Advisory services and debt and equity arranging and underwriting Point in time when the transaction (e.g. underwriting) is completed Fixed consideration Typically paid on or shortly after transaction closes No Due from Affiliates (portfolio companies) Other Assets (third parties) Monitoring Fees Recurring Fees Portfolio companies Monitoring services Over time as services are rendered Variable consideration since varies based on fluctuations in the basis of the recurring fee Typically quarterly in arrears No Due from Affiliates Termination Fees Portfolio companies Monitoring services Point in time when the termination is completed Fixed consideration Typically paid on or shortly after termination occurs No Due from Affiliates Incentive Fees Investment funds and other vehicles Investment management services that result in achievement of minimum investment return levels Over time as services are rendered Variable consideration since contingent upon the investment fund and other vehicles achieving more than stipulated investment return hurdles Typically paid shortly after the end of the performance measurement period No Due from Affiliates Expense Reimbursements Investment funds and portfolio companies Investment management and monitoring services Point in time when the related expense is incurred Fixed consideration Typically shortly after expense is incurred No Due from Affiliates Oil and Gas Revenues Oil and gas wholesalers Delivery of oil liquids and gas Point in time when delivery has occurred and title has transferred Fixed consideration Typically shortly after delivery No Other Assets Consulting Fees Portfolio companies and other companies Consulting and other services Over time as services are rendered Fixed consideration Typically quarterly in arrears No Due from Affiliates (1) For performance obligations satisfied at a point in time, there were no significant judgments made in evaluating when a customer obtains control of the promised service. (2) For amounts classified in Other Assets, see Note 14 "Other Assets and Accrued Expenses and Other Liabilities." For amounts classified in Due from Affiliates, see Note 19 "Related Party Transactions." |
ACQUISITION OF GLOBAL ATLANTIC
ACQUISITION OF GLOBAL ATLANTIC (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Purchase Price | The purchase price is as follows (in thousands): Cash consideration paid by KKR $ 2,914,455 GA Co-Investors and GA Rollover Investors 1,824,239 Total Purchase Price $ 4,738,694 |
Amounts Recognized for Assets Acquired and Liabilities Assumed and Resulting Goodwill | The following table summarizes the provisional fair value amounts recognized for the assets acquired and liabilities assumed and resulting goodwill as of the GA Acquisition Date: February 1, 2021 ($ in thousands) Consideration Transferred Cash Consideration paid by KKR $ 2,914,455 GA Co-Investors 978,296 GA Rollover Investors 845,943 Settlement of pre-existing relationships (1) (60,200) Total Consideration Transferred (2) $ 4,678,494 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: Cash, Cash Equivalents and Restricted Cash $ 3,358,772 Investments 99,544,755 Reinsurance Recoverable 15,753,030 Insurance Intangible Assets 1,024,520 Other Assets (3) 3,325,652 Separate Account Assets 5,371,060 Policy Liabilities (100,374,765) Debt Obligations (1,450,920) Funds Withheld Payable at Interest (13,800,969) Accrued Expenses and Other Liabilities (2,735,811) Reinsurance Liabilities (180,573) Separate Account Liabilities (5,371,060) Total Identifiable Net Assets 4,463,691 Redeemable non-controlling interests (4) (91,845) Other Noncontrolling interests (4) (190,405) Goodwill $ 497,053 (1) Represents KKR debt obligations held by Global Atlantic at the GA Acquisition Date. (2) At the GA Acquisition Date, the transaction was funded with a combination of (i) cash on hand by KKR, (ii) cash proceeds from syndication of the equity interests in Global Atlantic to minority co-investors and equity rolled over from certain former Global Atlantic shareholders. The equity held by GA co-investors and rollover investors are presented as noncontrolling interests in the financial statements. Acquisition of Global Atlantic, Net of Cash Acquired in the consolidated statements of cash flows represents the Total Consideration Transferred (excluding GA Rollover Investors) net of acquired Cash and Cash Equivalents and Restricted Cash and Cash Equivalents. (3) Includes $1.0 billion of deferred tax assets recognized from the step-up in basis under purchase accounting. (4) Represents the fair value of Noncontrolling Interests in consolidated renewable energy entities held by Global Atlantic on the GA Acquisition Date. Such interests do not represent ownership interests held by GA Rollover Investors or GA Co-Investors in Global Atlantic's equity. |
Acquired Finite-Lived and Indefinite-Lived Intangible Assets | The fair value and weighted average estimated useful lives of Value of Business Acquired and Other Identifiable Intangible Assets acquired in the GA Acquisition consist of the following (dollars in thousands): Fair Value Average Useful Life ($ in thousands) (in years) VOBA (included within Insurance Intangible Assets) $ 1,024,520 28.6 Negative VOBA (included within Policy Liabilities) (1,273,414) 22.2 Total VOBA $ (248,894) Value of Distribution Agreements Acquired $ 250,000 16 to 21 Trade Names 50,000 15 to 18 State Insurance Licenses 10,000 Indefinite Total Identifiable Other Intangible Assets (included within Other Assets) $ 310,000 |
Pro-Forma Financial Information | Unaudited pro-forma financial information for the three and nine months ended September 30, 2021 and September 30, 2020 are presented below. Pro-forma financial information presented does not include adjustments to reflect any potential revenue synergies or cost savings that may be achievable in connection with the GA Acquisition and assumes the GA Acquisition occurred as of January 1, 2020. The unaudited pro forma financial information is presented for informational purposes only, and is not necessarily indicative of future operations or results had the GA Acquisition been completed as of January 1, 2020. Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Total Revenues $ 4,483,365 $ 3,275,305 $ 12,696,730 $ 5,606,280 Net Income Attributable to KKR & Co. Inc. Common Stockholders $ 1,131,354 $ 1,102,762 $ 4,147,132 $ 601,752 |
NET GAINS (LOSSES) FROM INVES_2
NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES - ASSET MANAGEMENT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of total net gains (losses) from investment activities | The following table summarizes total Net Gains (Losses) from Investment Activities: Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Net Realized Gains (Losses) Net Unrealized Gains (Losses) Total Net Realized Gains (Losses) Net Unrealized Gains (Losses) Total Private Equity (1) $ 296,410 $ 647,448 $ 943,858 $ 660,216 $ 930,918 $ 1,591,134 Credit (1) 74,945 (117,354) (42,409) (70,391) 385,850 315,459 Investments of Consolidated CFEs (1) 23,198 (15,013) 8,185 (33,373) 425,660 392,287 Real Assets (1) 61,807 575,891 637,698 (22,040) 273,639 251,599 Equity Method - Other (1) 311,420 (137,281) 174,139 (20,899) 456,563 435,664 Other Investments (1) (118,844) 199,961 81,117 (13,630) 71,438 57,808 Foreign Exchange Forward Contracts and Options (2) (2,777) 323,916 321,139 15,281 (295,687) (280,406) Securities Sold Short (2) (21,031) 2,579 (18,452) 34,461 (119,780) (85,319) Other Derivatives (2) (17,687) 6,577 (11,110) (10,291) (46,522) (56,813) Debt Obligations and Other (3) 2,190 20,292 22,482 9,233 (346,044) (336,811) Net Gains (Losses) From Investment $ 609,631 $ 1,507,016 $ 2,116,647 $ 548,567 $ 1,736,035 $ 2,284,602 Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Net Realized Gains (Losses) Net Unrealized Gains (Losses) Total Net Realized Gains (Losses) Net Unrealized Gains (Losses) Total Private Equity (1) $ 1,322,179 $ 3,479,827 $ 4,802,006 $ 721,009 $ 735,245 $ 1,456,254 Credit (1) 130,191 (11,864) 118,327 (118,851) (422,537) (541,388) Investments of Consolidated CFEs (1) 44,954 173,775 218,729 (127,175) (424,918) (552,093) Real Assets (1) 148,581 1,243,725 1,392,306 36,027 (257,589) (221,562) Equity Method - Other (1) 410,491 305,085 715,576 (166,178) 410,371 244,193 Other Investments (1) (354,349) 908,906 554,557 (267,166) (330,621) (597,787) Foreign Exchange Forward Contracts and Options (2) (29,727) 282,030 252,303 134,427 (196,095) (61,668) Securities Sold Short (2) 36,517 21,313 57,830 60,502 (168,220) (107,718) Other Derivatives (2) (125,376) 83,805 (41,571) (9,481) (91,044) (100,525) Debt Obligations and Other (3) (50,505) 13,342 (37,163) 18,264 284,997 303,261 Net Gains (Losses) From Investment Activities $ 1,532,956 $ 6,499,944 $ 8,032,900 $ 281,378 $ (460,411) $ (179,033) (1) See Note 7 "Investments." (2) See Note 8 "Derivatives" and Note 14 "Other Assets and Accrued Expenses and Other Liabilities." |
NET INVESTMENT INCOME - INSUR_2
NET INVESTMENT INCOME - INSURANCE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, All Other Investments [Abstract] | |
Investment Income | The components of net investment income were as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Fixed maturity securities – interest and other income $ 632,314 $ 1,512,377 Mortgage and other loan receivables 247,917 617,334 Investments in transportation and other leased assets 56,317 146,004 Short-term and other investment income 23,285 41,349 Policy loans 3,203 22,138 Investments in real estate 4,501 10,028 Investments in renewable energy 62,468 96,400 Equity securities – dividends and other income 764 23 Income from (to) funds withheld at interest (135,632) (216,057) Gross investment income 895,137 2,229,596 Less investment expenses: Investment management and administration 88,789 190,458 Transportation and renewable energy asset depreciation and maintenance 47,331 117,749 Interest expense on derivative collateral and repurchase agreements 636 1,730 Net investment income $ 758,381 $ 1,919,659 |
NET INVESTMENT GAINS (LOSSES)_2
NET INVESTMENT GAINS (LOSSES) - INSURANCE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Net Investment Gains | Net investment gains (losses) were as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Equity securities and other investments $ 359,101 $ 431,728 Derivatives 40,792 70,098 Trading fixed maturity securities (141,683) (197,047) Allowance for credit losses on mortgage and other loan receivables (69,386) (250,690) AFS fixed maturity securities (15,231) (88,233) Allowance for losses on AFS fixed maturity securities (3,809) 21,287 Allowance for loan commitment losses provision (3,677) (15,372) Mortgage and other loans receivables (2,905) 15,527 Funds withheld receivable at interest (1,075) 45,685 Net investment gains (losses) $ 162,127 $ 32,983 |
Roll-forward of the Allowance for Credit Losses for Fixed Maturity Securities | The table below presents a roll-forward of the allowance for credit losses recognized for available-for-sale fixed maturity securities held by Global Atlantic: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Corporate Structured Total Corporate Structured Total Balance, as of beginning of period (1) $ — $ 91,646 $ 91,646 $ — $ 120,895 $ 120,895 Initial impairments for credit losses recognized on securities not previously impaired — 19,921 19,921 — 47,530 47,530 Initial credit loss allowance recognized on PCD securities — 1,576 1,576 — 7,204 7,204 Accretion of initial credit loss allowance on PCD securities — 1,879 1,879 — 2,200 2,200 Reductions due to sales (or maturities, pay downs or prepayments) during the period of securities previously identified as credit impaired — (2,510) (2,510) — (12,612) (12,612) Net additions / reductions for securities previously impaired — (16,112) (16,112) — (68,817) (68,817) Balance, as of end of period $ — $ 96,400 $ 96,400 $ — $ 96,400 $ 96,400 (1) Includes securities designated as purchased credit deteriorated as of the time of the acquisition of Global Atlantic. |
Changes in the Allowance for Loan Losses for Mortgages and Other Receivables | Changes in the allowance for credit losses on mortgage and other loan receivables held by Global Atlantic are summarized below: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Commercial Mortgage Loans Residential Mortgage Loans Consumer and Other Loan Receivables Total Commercial Mortgage Loans Residential Mortgage Loans Consumer and Other Loan Receivables Total Balance, as of beginning of period (1) $ 58,255 $ 76,536 $ 163,135 $ 297,926 $ 58,203 $ 62,056 $ — $ 120,259 Net provision (release) 17,750 (2,793) 54,429 69,386 17,802 10,888 222,000 250,690 Loans purchased with credit deterioration — — — — — 799 838 1,637 Charge-offs — (3,162) 5,274 2,112 — (3,162) — (3,162) Balance, as of end of period $ 76,005 $ 70,581 $ 222,838 $ 369,424 $ 76,005 $ 70,581 $ 222,838 $ 369,424 (1) Includes loans designated as purchased credit deteriorated as of the time of the acquisition of Global Atlantic. |
Proceeds from Voluntary Sales and Gross Gains and Losses for AFS Fixed Maturity Securities | The proceeds from voluntary sales and the gross gains and losses on those sales of AFS fixed maturity securities were as follows: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 AFS fixed maturity securities: Proceeds from voluntary sales $ 7,440,645 $ 12,766,887 Gross gains 16,816 38,061 Gross losses (30,086) (103,190) |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
Summary of Investments | Investments consist of the following: September 30, 2021 December 31, 2020 Asset Management Private Equity $ 25,568,516 $ 20,470,123 Credit 12,448,414 11,203,905 Investments of Consolidated CFEs 20,696,676 17,706,976 Real Assets 11,684,296 6,096,618 Equity Method - Other 4,573,679 4,471,441 Equity Method - Capital Allocation-Based Income 11,091,844 6,460,430 Other Investments 3,845,145 2,865,222 Investments - Asset Management $ 89,908,570 $ 69,274,715 Insurance Fixed maturity securities, available-for-sale, at fair value (1) $ 67,689,846 $ — Mortgage and other loan receivables 25,367,116 — Fixed maturity securities, trading, at fair value (2) 16,660,328 — Other investments 7,627,490 — Funds withheld receivable at interest 3,066,481 — Policy loans 765,931 — Equity securities at fair value 37,378 — Investments - Insurance $ 121,214,570 $ — Total Investments $ 211,123,140 $ 69,274,715 ( 1) Amortized cost of $68.1 billion, net of credit loss allowances of $96.4 million. (2) Amortized cost of $16.8 billion. Other investments consist of the following: September 30, 2021 Investments in renewable energy (1)(2) $ 3,976,960 Investments in transportation and other leased assets (3) 2,205,946 Other investment partnerships 189,720 Investments in real estate 1,089,912 FHLB common stock and other investments 164,952 Total other investments $ 7,627,490 (1) Net of accumulated depreciation attributed to consolidated renewable energy assets of $140.3 million as of September 30, 2021. (2) Includes an equity investment in a related party, Origis USA, LLC, of $335.0 million carried at fair value using the fair value option as of September 30, 2021. (3) Net of accumulated depreciation of $74.8 million as of September 30, 2021. |
Schedule of AFS Fixed Maturity Securities | The cost or amortized cost and fair value for AFS fixed maturity securities were as follows: Cost or amortized cost Allowance for Credit Losses (2) Gross unrealized Fair value As of September 30, 2021 gains losses AFS fixed maturity securities portfolio by type: U.S. government and agencies $ 1,030,859 $ — $ 14 $ (11,860) $ 1,019,013 U.S. state, municipal and political subdivisions 5,136,682 — 29,493 (61,090) 5,105,085 Corporate 41,280,338 — 205,390 (689,688) 40,796,040 RMBS 8,074,429 (71,565) 146,277 (70,457) 8,078,684 CMBS 3,981,119 — 28,830 (16,578) 3,993,371 CBOs 3,171,138 (17,187) 9,711 (17,132) 3,146,530 CLOs 3,024,860 (665) 8,845 (2,468) 3,030,572 All other structured securities (1) 2,523,746 (6,983) 21,473 (17,685) 2,520,551 Total AFS fixed maturity securities $ 68,223,171 $ (96,400) $ 450,033 $ (886,958) $ 67,689,846 (1) Includes primarily asset-backed securities ("ABS"). (2) Represents the cumulative amount of credit impairments that have been recognized in the consolidated statement of operations (as net investment (losses) gains) or that were recognized as a gross-up of the purchase price of PCD securities. Amount excludes unrealized losses related to non-credit impairment. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, or Global Atlantic may have the right to put or sell the obligations back to the issuers. The maturity distribution for AFS fixed maturity securities is as follows: As of September 30, 2021 Cost or Fair value Due in one year or less $ 829,405 $ 824,765 Due after one year through five years 9,801,829 9,766,497 Due after five years through ten years 11,800,470 11,704,970 Due after ten years 25,016,175 24,623,906 Subtotal 47,447,879 46,920,138 RMBS 8,002,864 8,078,684 CMBS 3,981,119 3,993,371 CBOs 3,153,951 3,146,530 CLOs 3,024,195 3,030,572 All other structured securities 2,516,763 2,520,551 Total AFS fixed maturity securities $ 68,126,771 $ 67,689,846 The following tables provide information about AFS fixed maturity securities that have been continuously in an unrealized loss position: Less than 12 months 12 months or more Total As of September 30, 2021 Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses AFS fixed maturity securities portfolio by type: U.S. government and agencies $ 982,449 $ (11,860) $ — $ — $ 982,449 $ (11,860) U.S. state, municipal and political subdivisions 3,212,070 (61,090) — — 3,212,070 (61,090) Corporate 31,334,306 (689,688) — — 31,334,306 (689,688) RMBS 2,612,695 (70,457) — — 2,612,695 (70,457) CBOs 1,421,081 (17,132) — — 1,421,081 (17,132) CMBS 1,912,047 (16,578) — — 1,912,047 (16,578) CLOs 680,755 (2,468) — — 680,755 (2,468) All other structured securities 1,281,447 (17,685) — — 1,281,447 (17,685) Total AFS fixed maturity securities in a continuous loss position $ 43,436,850 $ (886,958) $ — $ — $ 43,436,850 $ (886,958) |
Purchased Credit Deteriorated Securities | These securities are identified as PCD, and a reconciliation of the difference between the purchase price and the par value of these PCD securities is below: September 30, 2021 Purchase price of PCD securities acquired during the current period $ 1,726,900 Allowance for credit losses at acquisition 128,099 Discount (premium) attributable to other factors 308,053 Par value $ 2,163,052 Certain residential mortgage loans purchased by Global Atlantic were assessed at acquisition as having experienced a more-than-insignificant deterioration in credit quality since their origination. These loans are identified as PCD, and a reconciliation of the difference between the purchase price and the par value of these PCD loans is below: September 30, 2021 Purchase price of PCD loans acquired during the current period $ 4,231,426 Allowance for credit losses at acquisition 121,895 Discount (premium) attributable to other factors (136,174) Par value $ 4,217,147 |
Mortgage and Other Loans Receivable | Mortgage and other loan receivables consist of the following: As of September 30, 2021 Commercial mortgage loans (1) $ 11,901,653 Residential mortgage loans (1) 7,360,869 Consumer loans 5,284,524 Other loan receivables (1)(2)(3) 1,189,494 Total mortgage and other loan receivables 25,736,540 Allowance for credit losses (369,424) Total mortgage and other loan receivables, net of allowance for loan losses $ 25,367,116 (1) Includes $840.4 million of loans carried at fair value using the fair value option as of September 30, 2021. The fair value option was elected for these loans for asset-liability matching purposes. These loans had unpaid principal balances of $820.6 million as of September 30, 2021. (2) As of September 30, 2021, other loan receivables consisted primarily of renewable energy development loans of $559.3 million. (3) Includes $448.1 million of related party loans carried at fair value using the fair value option as of September 30, 2021. These loans had unpaid principal balances of $448.1 million as of September 30, 2021. |
Maturity Distribution by Contractual Maturity for Residential and Commercial Mortgage Loans | The maturity distribution for residential and commercial mortgage loans was as follows as of September 30, 2021: Years Residential Commercial Total mortgage loans Remainder of 2021 $ 94,988 $ 368,629 $ 463,617 2022 528,800 1,052,447 1,581,247 2023 233,336 1,192,664 1,426,000 2024 500,069 1,601,678 2,101,747 2025 17,776 968,337 986,113 2026 373,710 2,249,266 2,622,976 2027 and thereafter 5,612,190 4,468,632 10,080,822 Total $ 7,360,869 $ 11,901,653 $ 19,262,522 |
Mortgage Loan Portfolio by Geographic Region and Property Type | The mortgage loan portfolio is diversified by both geographic region and property type to reduce concentration risk. The following tables present the mortgage loans by geographic region and property type: Mortgage loans - carrying value by geographic region September 30, 2021 Pacific $ 5,624,981 West South Central 2,506,058 South Atlantic 4,302,812 Middle Atlantic 2,630,050 East North Central 526,895 Mountain 1,585,458 New England 795,352 East South Central 920,981 West North Central 336,134 Other regions 33,801 Total by geographic region $ 19,262,522 Mortgage loans - carrying value by property type September 30, 2021 Residential $ 7,360,869 Office building 3,778,950 Apartment 4,922,659 Industrial 1,825,749 Retail 837,294 Other property types 336,116 Warehouse 200,885 Total by property type $ 19,262,522 |
Receivables by Credit Quality Indicator | The following table represents the portfolio of mortgage and loan receivables by origination year and performance status: September 30, Performance status 2021 2020 2019 2018 2017 Prior Total Commercial mortgage loans Current $ 4,386,351 $ 1,124,617 $ 1,938,622 $ 1,535,710 $ 914,729 $ 2,001,624 $ 11,901,653 30 to 59 days past due — — — — — — — 60 to 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage loans $ 4,386,351 $ 1,124,617 $ 1,938,622 $ 1,535,710 $ 914,729 $ 2,001,624 $ 11,901,653 Residential mortgage loans Current $ 2,835,053 $ 1,485,965 $ 552,473 $ 275,733 $ 68,705 $ 1,809,831 $ 7,027,760 30 to 59 days past due 17,589 3,722 8,439 118 632 76,456 106,956 60 to 89 days past due — 96 1,025 — — 27,322 28,443 Over 90 days past due — 8,689 10,666 1,462 — 176,893 197,710 Total residential mortgage loans $ 2,852,642 $ 1,498,472 $ 572,603 $ 277,313 $ 69,337 $ 2,090,502 $ 7,360,869 Total mortgage loans $ 7,238,993 $ 2,623,089 $ 2,511,225 $ 1,813,023 $ 984,066 $ 4,092,126 $ 19,262,522 The following table represents the portfolio of consumer loan receivables by performance status: Performance status September 30, 2021 Consumer loans Current $ 5,237,492 30 to 59 days past due 25,894 60 to 89 days past due 12,683 Over 90 days past due 8,455 Total consumer loans $ 5,284,524 |
Loan-To-Value Ratios | The following table summarizes the loan-to-value ratios for commercial mortgage loans as of September 30, 2021: Loan-to-value as of September 30, 2021, by year of origination Carrying value loan-to-value 70% and less Carrying value loan-to-value 71% - 90% Carrying value loan-to-value over 90% Total carrying value 2021 $ 3,138,534 $ 1,247,817 $ — $ 4,386,351 2020 959,254 130,440 34,923 1,124,617 2019 1,801,925 136,697 — 1,938,622 2018 1,468,119 67,591 — 1,535,710 2017 850,772 63,957 — 914,729 2016 430,192 2,552 — 432,744 Prior 1,553,614 15,266 — 1,568,880 Total commercial mortgage loans $ 10,202,410 $ 1,664,320 $ 34,923 $ 11,901,653 |
FHLB Investment and Funding Agreements | Information related to the FHLB investment and funding agreements as of September 30, 2021 is as follows: As of September 30, 2021 Investment in common stock Funding agreements issued to FHLB member banks Collateral FHLB Indianapolis $ 74,790 $ 1,623,147 $ 2,520,502 FHLB Des Moines 34,600 620,293 1,025,735 FHLB Boston 22,520 327,858 556,674 Total $ 131,910 $ 2,571,298 $ 4,102,911 |
Schedule of Repurchase Agreements | The gross obligations by class of collateral pledged for repurchase agreements accounted for as secured borrowings as of September 30, 2021 is presented in the following table: As of September 30, 2021 Overnight <30 Days 30 - 90 Days > 90 Days Total Corporate Securities $ — $ — $ — $ 329,963 $ 329,963 Total borrowing $ — $ — $ — $ 329,963 $ 329,963 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value and Notional Value of Derivative Assets and Liabilities | The fair value and notional value of the derivative assets and liabilities were as follows: As of September 30, 2021 Notional value Derivative Derivative liabilities Asset Management Foreign Exchange Contracts and Options $ 9,615,615 $ 427,929 $ 444,713 Other Derivatives 628,150 1,747 37,798 Total Asset Management 429,676 482,511 Insurance Equity market contracts $ 30,956,133 $ 1,053,680 $ 158,446 Interest rate contracts 16,859,214 162,727 134,677 Foreign currency contracts 929,803 22,644 1,161 Credit risk contracts 60,000 — 1,600 Impact of netting (1) (121,098) (121,098) Fair value included within derivative assets and derivative liabilities 1,117,953 174,786 Embedded derivative – indexed universal life products — 490,013 Embedded derivative – annuity products — 1,652,714 Fair value included within policy liabilities — 2,142,727 Embedded derivative – funds withheld at interest 80,493 (36,755) Total Insurance 1,198,446 2,280,758 Fair value included within total assets and liabilities $ 1,628,122 $ 2,763,269 (1) Represents netting of derivative exposures covered by qualifying master netting agreements. As of December 31, 2020 Notional value Derivative Derivative liabilities Asset Management Foreign Exchange Contracts and Options $ 9,837,178 $ 250,398 $ 551,728 Other Derivatives 802,988 7,839 126,950 Total Asset Management 258,237 678,678 Fair value included within total assets and liabilities $ 258,237 $ 678,678 |
Derivative Gains and Losses | The amounts of derivative gains and losses recognized are reported in the consolidated statements of operations as follows: Derivative contracts not designated as hedges Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Asset Management Net Gains (Losses) from Investment Activities: Foreign Exchange Contracts and Options $ 321,139 $ (280,406) $ 252,303 $ (61,668) Other Derivatives (11,110) (56,813) (41,571) (100,525) Total included in Net Gains (Losses) from Investment Activities $ 310,029 $ (337,219) $ 210,732 $ (162,193) Insurance Net investment gains (losses): Embedded derivatives $ 93,970 $ — $ 117,248 $ — Equity index options (25,854) — 275,035 — Equity future contracts 1,783 — (171,982) — Interest rate contracts (24,135) — (149,274) — Credit risk contracts (196) — (254) — Total included in net investment gains (losses) $ 45,568 $ — $ 70,773 $ — Derivative contracts designated as hedges Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Insurance Revenues: Foreign currency forwards $ (4,776) $ — $ (675) $ — Total included in net investment gains (losses) $ (4,776) $ — $ (675) $ — Policy benefits and claims: Interest rate swap $ 74 $ — $ (6,552) $ — Total included in policy benefits and claims $ 74 $ — $ (6,552) Interest expense: Interest rate swap $ (7,923) $ — $ (14,307) $ — Total included in interest expense $ (7,923) $ — $ (14,307) $ — |
Offsetting Assets | The amount of Global Atlantic's net derivative assets and liabilities after consideration of collateral received or pledged were as follows: As of September 30, 2021 Gross amount recognized Gross amounts offset in the statement of financial position (1) Net amounts presented in the statement of financial condition Collateral (received) / pledged Net amount after collateral Derivative assets (excluding embedded derivatives) $ 1,239,051 $ (121,098) $ 1,117,953 $ (967,632) $ 150,321 Derivative liabilities (excluding embedded derivatives) $ 295,884 $ (121,098) $ 174,786 $ — $ 174,786 (1) Represents netting of derivative exposures covered by qualifying master netting agreements. |
Offsetting Liabilities | The amount of Global Atlantic's net derivative assets and liabilities after consideration of collateral received or pledged were as follows: As of September 30, 2021 Gross amount recognized Gross amounts offset in the statement of financial position (1) Net amounts presented in the statement of financial condition Collateral (received) / pledged Net amount after collateral Derivative assets (excluding embedded derivatives) $ 1,239,051 $ (121,098) $ 1,117,953 $ (967,632) $ 150,321 Derivative liabilities (excluding embedded derivatives) $ 295,884 $ (121,098) $ 174,786 $ — $ 174,786 (1) Represents netting of derivative exposures covered by qualifying master netting agreements. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities at fair value | The following tables summarize the valuation of assets and liabilities measured and reported at fair value by the fair value hierarchy. Investments classified as Equity Method - Other, for which the fair value option has not been elected, and Equity Method - Capital Allocation-Based Income have been excluded from the tables below. Assets, at fair value: September 30, 2021 Level I Level II Level III Total Asset Management Private Equity $ 2,520,158 $ 1,303,409 $ 21,744,949 $ 25,568,516 Credit — 2,247,803 10,200,611 12,448,414 Investments of Consolidated CFEs — 20,696,676 — 20,696,676 Real Assets — 51,112 11,633,184 11,684,296 Equity Method - Other 10,027 296,087 1,008,868 1,314,982 Other Investments 506,928 169,300 3,168,917 3,845,145 Total Investments 3,037,113 24,764,387 47,756,529 75,558,029 Foreign Exchange Contracts and Options — 427,929 — 427,929 Other Derivatives — 1,704 43 (1) 1,747 Total Assets at Fair Value - Asset Management $ 3,037,113 $ 25,194,020 $ 47,756,572 $ 75,987,705 Insurance AFS fixed maturity securities: U.S. government and agencies $ 740,317 $ 278,696 $ — $ 1,019,013 U.S. state, municipal and political subdivisions — 5,105,085 — 5,105,085 Corporate — 35,953,737 4,842,303 40,796,040 Structured securities — 20,572,721 196,987 20,769,708 Total AFS fixed maturity securities 740,317 61,910,239 5,039,290 67,689,846 Trading fixed maturity securities: U.S. government and agencies 28,133 247,428 — 275,561 U..S. state, municipal and political subdivisions — 1,029,943 — 1,029,943 Corporate — 11,232,964 1,384,965 12,617,929 Structured securities — 2,655,895 81,000 2,736,895 Total trading fixed maturity securities 28,133 15,166,230 1,465,965 16,660,328 Equity securities 8,515 — 28,863 37,378 Mortgage and other loan receivables (2) — — 1,288,478 1,288,478 Other investments (3) — — 795,228 795,228 Funds withheld receivable at interest — — 80,493 80,493 Reinsurance recoverable — — 1,325,487 1,325,487 Derivative assets: Equity market contracts 85,333 968,347 — 1,053,680 Interest rate contracts 14,690 148,037 — 162,727 Foreign currency contracts — 22,644 — 22,644 Impact of netting (4) (31,559) (89,539) — (121,098) Total derivative assets 68,464 1,049,489 — 1,117,953 Separate account assets 5,445,170 — — 5,445,170 Total Assets at Fair Value - Insurance $ 6,290,599 $ 78,125,958 $ 10,023,804 $ 94,440,361 Total Assets at Fair Value $ 9,327,712 $ 103,319,978 $ 57,780,376 $ 170,428,066 December 31, 2020 Level I Level II Level III Total Asset Management Private Equity $ 2,758,396 $ 2,476,823 $ 15,234,904 $ 20,470,123 Credit — 2,031,057 9,172,848 11,203,905 Investments of Consolidated CFEs — 17,706,976 — 17,706,976 Real Assets — 172,043 5,924,575 6,096,618 Equity Method - Other 485,988 7,254 1,014,378 1,507,620 Other Investments 434,481 88,760 2,341,981 2,865,222 Total Investments 3,678,865 22,482,913 33,688,686 59,850,464 Foreign Exchange Contracts and Options — 250,398 — 250,398 Other Derivatives 442 729 6,668 (1) 7,839 Total Assets at Fair Value - Asset Management $ 3,679,307 $ 22,734,040 $ 33,695,354 $ 60,108,701 Total Assets at Fair Value $ 3,679,307 $ 22,734,040 $ 33,695,354 $ 60,108,701 (1) Includes derivative assets that were valued using a third-party valuation firm. The approach used to estimate the fair value of these derivative assets was generally the discounted cash flow method, which includes consideration of the current portfolio, projected portfolio construction, projected portfolio realizations, portfolio volatility (based on the volatility, correlation, and size of each underlying asset class), and the discounting of future cash flows to the reporting date. (2) Includes related party balance of $448.1 million in Level III for mortgage and other loan receivables. (3) Other investments excluded from the fair value hierarchy include certain real estate and private equity funds for which fair value is measured at net asset value per share as a practical expedient. As of September 30, 2021, the fair value of these investments was $102.5 million. (4) Represents netting of derivative exposures covered by qualifying master netting agreements. Liabilities, at fair value: September 30, 2021 Level I Level II Level III Total Asset Management Securities Sold Short $ 262,151 $ — $ — $ 262,151 Foreign Exchange Contracts and Options — 444,713 — 444,713 Unfunded Revolver Commitments — — 50,910 (1) 50,910 Other Derivatives — 37,798 — 37,798 Debt Obligations of Consolidated CFEs — 19,969,156 — 19,969,156 Total Liabilities at Fair Value - Asset Management $ 262,151 $ 20,451,667 $ 50,910 $ 20,764,728 Insurance Policy liabilities $ — $ — $ 544,829 $ 544,829 Closed block policy liabilities — — 1,374,913 1,374,913 Funds withheld payable at interest — — (36,755) (36,755) Derivative instruments payable: Equity market contracts 17,897 140,549 — 158,446 Interest rate contracts 58,866 75,811 — 134,677 Foreign currency contracts — 1,161 — 1,161 Credit contracts — 1,600 — 1,600 Impact of netting (2) (31,559) (89,539) — (121,098) Total derivative instruments payable 45,204 129,582 — 174,786 Reinsurance liabilities — — — — Embedded derivative – indexed universal life products — — 490,013 490,013 Embedded derivative – annuity products — — 1,652,714 1,652,714 Total Liabilities at Fair Value - Insurance $ 45,204 $ 129,582 $ 4,025,714 $ 4,200,500 Total Liabilities at Fair Value $ 307,355 $ 20,581,249 $ 4,076,624 $ 24,965,228 December 31, 2020 Level I Level II Level III Total Asset Management Securities Sold Short $ 281,826 $ — $ — $ 281,826 Foreign Exchange Contracts and Options — 551,728 — 551,728 Unfunded Revolver Commitments — — 46,340 (1) 46,340 Other Derivatives 76,930 50,020 — 126,950 Debt Obligations of Consolidated CFEs — 17,372,740 — 17,372,740 Total Liabilities at Fair Value - Asset Management $ 358,756 $ 17,974,488 $ 46,340 $ 18,379,584 Total Liabilities at Fair Value $ 358,756 $ 17,974,488 $ 46,340 $ 18,379,584 (1) These unfunded revolver commitments are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments. (2) Represents netting of derivative exposures covered by qualifying master netting agreement. |
Summary of changes in assets and liabilities reported at fair value for which Level III inputs have been used to determine fair value | The following tables summarize changes in assets and liabilities measured and reported at fair value for which Level III inputs have been used to determine fair value for the three and nine months ended September 30, 2021 and 2020, respectively. The format of the tables has been modified to include the insurance assets and liabilities and, as such, the prior period presentation has been modified accordingly. Three Months Ended September 30, 2021 Balance, Beg. of Period Transfers In / (Out) - Changes in Consolidation Transfers Transfers Out Net Purchases/Issuances/Sales/Settlements Net Unrealized and Realized Gains (Losses) Change in OCI Balance, End of Period Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date Assets Asset Management Private Equity $ 19,023,638 $ — $ — $ (75,554) $ 1,636,915 $ 1,159,950 $ — $ 21,744,949 $ 1,094,045 $ — Credit 9,931,511 — — — 317,956 (56,665) 7,809 10,200,611 (15,427) 7,809 Real Assets 8,717,571 (174,658) — — 2,454,477 635,794 — 11,633,184 609,092 — Equity Method - Other 1,067,844 — — — (75,143) 16,167 — 1,008,868 (22,455) — Other Investments 2,971,242 — — — 105,878 91,797 — 3,168,917 76,256 — Other Derivatives 1,875 — — — 13,152 (14,984) — 43 (14,984) — Total Assets - Asset Management 41,713,681 (174,658) — (75,554) 4,453,235 1,832,059 7,809 47,756,572 1,726,527 7,809 Insurance AFS fixed maturity securities: Corporate fixed maturity securities 4,018,174 — 48,093 (29,400) 785,992 — 19,444 4,842,303 — 1,236 Structured securities 175,936 — 16,309 — 2,460 — 2,282 196,987 — 1,682 Total AFS fixed maturity securities 4,194,110 — 64,402 (29,400) 788,452 — 21,726 5,039,290 — 2,918 Trading fixed maturity securities: Corporate fixed maturity securities 1,009,357 — — — 368,624 6,984 — 1,384,965 4,926 — Structured securities 20,939 — 15,744 — 44,233 84 — 81,000 1,131 — Total trading fixed maturity securities 1,030,296 — 15,744 — 412,857 7,068 — 1,465,965 6,057 — Equity securities 97,029 — — — (90,855) 22,689 — 28,863 (10,074) — Mortgage and other loan receivables 1,224,789 — — — 58,303 5,386 — 1,288,478 2,047 — Other investments 491,635 — — — (33,619) 337,212 — 795,228 (22,496) — Funds withheld receivable at interest 78,450 — — — (437) 2,480 — 80,493 — — Reinsurance recoverable 1,288,097 — — — — 37,390 — 1,325,487 — — Total Assets - Insurance 8,404,406 — 80,146 (29,400) 1,134,701 412,225 21,726 10,023,804 (24,466) 2,918 — Total $ 50,118,087 $ (174,658) $ 80,146 $ (104,954) $ 5,587,936 $ 2,244,284 $ 29,535 $ 57,780,376 $ 1,702,061 $ 10,727 Nine Months Ended September 30, 2021 Balance, Beg. of Period Transfers In / (Out) - Changes in Consolidation Transfers Transfers Out Net Purchases/Issuances/Sales/Settlements Net Unrealized and Realized Gains (Losses) Change in OCI Balance, End of Period Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date Assets Asset Management Private Equity $ 15,234,904 $ — $ 5,034 $ (504,112) $ 1,853,614 $ 5,155,509 $ — $ 21,744,949 $ 5,011,447 $ — Credit 9,172,848 (1,021) 86,135 — 875,871 59,611 7,167 10,200,611 134,588 7,167 Real Assets 5,924,575 (174,658) 17,567 — 4,503,849 1,361,851 — 11,633,184 1,293,618 — Equity Method - Other 1,014,378 — — (22,601) (237,737) 254,828 — 1,008,868 215,103 — Other Investments 2,341,981 (2,879) — (115,274) 380,337 564,752 — 3,168,917 616,584 — Other Derivatives 6,668 — — — 23,762 (30,387) — 43 (30,387) — Total Assets - Asset Management 33,695,354 (178,558) 108,736 (641,987) 7,399,696 7,366,164 7,167 47,756,572 7,240,953 7,167 Insurance AFS fixed maturity securities: Corporate fixed maturity securities 3,504,578 — 76,277 (38,610) 1,298,035 — 2,023 4,842,303 — (9,447) Structured securities 197,970 — 16,309 — (17,047) — (245) 196,987 — 1,652 Total AFS fixed maturity securities 3,702,548 — 92,586 (38,610) 1,280,988 — 1,778 5,039,290 — (7,795) Trading fixed maturity securities: Corporate fixed maturity securities 676,650 — — — 705,027 3,288 — 1,384,965 604 — Structured securities 14,661 — 15,744 — 50,208 387 — 81,000 1,337 — Total trading fixed maturity securities 691,311 — 15,744 — 755,235 3,675 — 1,465,965 1,941 — Equity securities 66,660 — — — (90,855) 53,058 — 28,863 20,295 — Mortgage and other loan receivables 928,673 — — — 348,098 11,707 — 1,288,478 9,814 — Other investments 437,275 — 5,003 — (20,693) 373,643 — 795,228 13,510 — Funds withheld receivable at interest — — — — 152 80,341 — 80,493 — — Reinsurance recoverable — — — — — 1,325,487 — 1,325,487 — — Total Assets - Insurance 5,826,467 — 113,333 (38,610) 2,272,925 1,847,911 1,778 10,023,804 45,560 (7,795) Total $ 39,521,821 $ (178,558) $ 222,069 $ (680,597) $ 9,672,621 $ 9,214,075 $ 8,945 $ 57,780,376 $ 7,286,513 $ (628) Three Months Ended September 30, 2020 Balance, Beg. of Period Transfers In / (Out) - Changes in Consolidation Transfers In Transfers Out Net Purchases/Issuances/Sales/Settlements Net Unrealized and Realized Gains (Losses) Change in OCI Balance, End of Period Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date Assets Asset Management Private Equity $ 10,810,113 $ — $ — $ (18,315) $ 420,025 $ 1,415,156 $ — $ 12,626,979 $ 1,180,782 $ — Credit 8,721,478 231,872 — — (359,847) 108,889 21,586 8,723,978 127,060 21,586 Real Assets 3,223,540 (230,163) 197,972 — 991,283 257,473 — 4,440,105 280,582 — Equity Method - Other 1,622,885 (20,523) 136,374 (58,475) 76,437 176,161 — 1,932,859 175,898 — Other Investments 1,694,797 — — (2,473) 110,101 91,904 — 1,894,329 90,711 — Other Derivatives 26,078 — — — 4,026 (17,496) — 12,608 (17,496) — Total Assets - Asset Management $ 26,098,891 $ (18,814) $ 334,346 $ (79,263) $ 1,242,025 $ 2,032,087 $ 21,586 $ 29,630,858 $ 1,837,537 $ 21,586 Nine Months Ended September 30, 2020 Balance, Beg. of Period Transfers In / (Out) - Changes in Consolidation Transfers In Transfers Out Net Purchases/Issuances/Sales/Settlements Net Unrealized and Realized Gains (Losses) Change in OCI Balance, End of Period Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date Assets Asset Management Private Equity $ 9,871,682 $ — $ — $ (18,315) $ 1,071,229 $ 1,702,383 $ — $ 12,626,979 $ 1,466,074 $ — Credit 9,217,759 231,872 — — 36,767 (764,433) 2,013 8,723,978 (733,768) 2,013 Real Assets 3,567,944 (230,163) 197,972 (113,770) 1,240,108 (221,986) — 4,440,105 (247,961) — Equity Method - Other 1,656,045 (20,523) 136,374 (58,475) 158,437 61,001 — 1,932,859 60,926 — Other Investments 2,154,755 — — (2,473) 240,681 (498,634) — 1,894,329 (484,905) — Other Derivatives 21,806 — — — 3,628 (12,826) — 12,608 (12,310) — Total Assets - Asset Management $ 26,489,991 $ (18,814) $ 334,346 $ (193,033) $ 2,750,850 $ 265,505 $ 2,013 $ 29,630,858 $ 48,056 $ 2,013 Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Purchases Issuances Sales Settlements Net Purchases/ Issuances/ Sales/ Settlements Purchases Issuances Sales Settlements Net Purchases/ Issuances/ Sales/ Settlements Assets Asset Management Private Equity $ 1,768,420 $ — $ (131,505) $ — $ 1,636,915 $ 2,147,332 $ — $ (293,718) $ — $ 1,853,614 Credit 1,895,171 — (1,579,340) 2,125 317,956 4,476,350 — (3,440,035) (160,444) 875,871 Real Assets 2,983,593 — (529,116) — 2,454,477 5,541,325 — (1,037,476) — 4,503,849 Equity Method - Other 7,201 — (82,344) — (75,143) 21,800 — (259,537) — (237,737) Other Investments 257,463 — (151,585) — 105,878 588,865 — (208,528) — 380,337 Other Derivatives 13,152 — — — 13,152 23,762 — — — 23,762 Total Assets - Asset Management 6,925,000 — (2,473,890) 2,125 4,453,235 12,799,434 — (5,239,294) (160,444) 7,399,696 Insurance AFS fixed maturity securities: Corporate fixed maturity securities 2,155,228 — (13,846) (1,355,390) 785,992 4,072,144 — (48,073) (2,726,036) 1,298,035 Structured securities 4,218 — — (1,758) 2,460 4,289 — — (21,336) (17,047) Total AFS fixed maturity securities 2,159,446 — (13,846) (1,357,148) 788,452 4,076,433 — (48,073) (2,747,372) 1,280,988 Trading fixed maturity securities: Corporate fixed maturity securities 370,488 — (623) (1,241) 368,624 710,446 — (623) (4,796) 705,027 Structured securities 44,594 — — (361) 44,233 52,735 — — (2,527) 50,208 Total trading fixed maturity securities 415,082 — (623) (1,602) 412,857 763,181 — (623) (7,323) 755,235 Equity securities — — (83,864) (6,991) (90,855) $ — $ — $ (83,864) $ (6,991) (90,855) Mortgage and other loan receivables 65,517 — (6,541) (673) 58,303 380,555 — (22,200) (10,257) 348,098 Other investments 25,000 — (58,619) — (33,619) 37,926 — (58,619) — (20,693) Funds withheld receivable at interest — (437) — — (437) — 152 — — 152 Total Assets - Insurance 2,665,045 (437) (163,493) (1,366,414) 1,134,701 5,258,095 152 (213,379) (2,771,943) 2,272,925 Total $ 9,590,045 $ (437) $ (2,637,383) $ (1,364,289) $ 5,587,936 $ 18,057,529 $ 152 $ (5,452,673) $ (2,932,387) $ 9,672,621 Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Purchases Sales Settlements Net Purchases/Issuances/Sales/Settlements Purchases Sales Settlements Net Purchases/Issuances/Sales/Settlements Assets Asset Management Private Equity $ 1,266,063 $ (846,038) $ — $ 420,025 $ 1,950,875 $ (879,646) $ — $ 1,071,229 Credit 272,854 (642,056) 9,355 (359,847) 1,792,397 (1,732,825) (22,805) 36,767 Real Assets 994,130 (2,847) — 991,283 1,502,382 (262,274) — 1,240,108 Equity Method - Other 79,079 (2,642) — 76,437 161,147 (2,710) — 158,437 Other Investments 127,365 (17,264) — 110,101 309,358 (68,677) — 240,681 Other Derivatives 4,026 — — 4,026 4,988 (1,360) — 3,628 Total Assets - Asset Management $ 2,743,517 $ (1,510,847) $ 9,355 $ 1,242,025 $ 5,721,147 $ (2,947,492) $ (22,805) $ 2,750,850 Three Months Ended September 30, 2021 Balance, Beg. of Period Transfers In / (Out) - Changes in Consolidation Transfers In Transfers Out Net Purchases/Sales/Settlements/Issuances Net Unrealized and Realized Gains (Losses) Change in OCI Balance, End of Period Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date Liabilities Asset Management Unfunded Revolver Commitments $ 40,050 $ — $ — $ — $ — $ 10,860 $ — $ 50,910 $ 10,860 Total Liabilities - Asset Management 40,050 — — — — 10,860 — 50,910 10,860 Insurance Policy liabilities 548,377 — — — — (3,548) — 544,829 — Closed block policy liabilities 1,341,262 — — — — 32,941 710 1,374,913 — Funds withheld payable at interest 55,172 — — — — (91,927) — (36,755) — Embedded derivative – indexed universal life products 495,353 — — — 108 (5,448) — 490,013 — Embedded derivative – annuity products 1,521,447 — — — 81,926 49,341 — 1,652,714 — Total Liabilities - Insurance 3,961,611 — — — 82,034 (18,641) 710 4,025,714 — Total $ 4,001,661 $ — $ — $ — $ 82,034 $ (7,781) $ 710 $ 4,076,624 $ 10,860 Nine Months Ended September 30, 2021 Balance, Beg. of Period Transfers In / (Out) - Changes in Consolidation Transfers In Transfers Out Net Purchases/Sales/Settlements/Issuances Net Unrealized and Realized Gains (Losses) Change in OCI Balance, End of Period Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date Liabilities Asset Management Unfunded Revolver Commitments $ 46,340 $ — $ — $ — $ 628 $ 3,942 $ — $ 50,910 $ 3,942 Total Liabilities - Asset Management 46,340 — — — 628 3,942 — 50,910 3,942 Insurance Policy liabilities 637,800 — — — — (92,971) — 544,829 — Closed block policy liabilities 1,395,746 — — — — (22,205) 1,372 1,374,913 — Funds withheld payable at interest 59,230 — — — — (95,985) — (36,755) — Embedded derivative – indexed universal life products 386,746 — — — (393) 103,660 — 490,013 — Embedded derivative – annuity products 1,024,601 — — — 208,027 420,086 — 1,652,714 — Total Liabilities - Insurance 3,504,123 — — — 207,634 312,585 1,372 4,025,714 — Total $ 3,550,463 $ — $ — $ — $ 208,262 $ 316,527 $ 1,372 $ 4,076,624 $ 3,942 Three Months Ended September 30, 2020 Balance, Beg. of Period Transfers In / (Out) - Changes in Consolidation Transfers In Transfers Out Net Purchases/Sales/Settlements/Issuances Net Unrealized and Realized Gains (Losses) Change in OCI Balance, End of Period Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date Liabilities Asset Management Unfunded Revolver Commitments $ 70,148 $ — $ — $ — $ — $ (14,063) $ — $ 56,085 $ (14,063) Total Liabilities - Asset Management $ 70,148 $ — $ — $ — $ — $ (14,063) $ — $ 56,085 $ (14,063) Nine Months Ended September 30, 2020 Balance, Beg. of Period Transfers In / (Out) - Changes in Consolidation Transfers In Transfers Out Net Purchases/Sales/Settlements/Issuances Net Unrealized and Realized Gains (Losses) Change in OCI Balance, End of Period Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date Liabilities Asset Management Unfunded Revolver Commitments $ 75,842 $ — $ — $ — $ (2,464) $ (17,293) $ — $ 56,085 $ (17,293) Total Liabilities - Asset Management $ 75,842 $ — $ — $ — $ (2,464) $ (17,293) $ — $ 56,085 $ (17,293) Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Issuances Settlements Net settlements/Issuances Issuances Settlements Net settlements/Issuances Liabilities Asset Management Unfunded Revolver Commitments $ 11,319 $ (11,319) $ — $ 12,486 $ (11,858) $ 628 Total Liabilities - Asset Management 11,319 (11,319) — 12,486 (11,858) 628 Insurance Embedded derivative – indexed universal life products 4,775 (4,667) 108 14,853 (15,246) (393) Embedded derivative – annuity products 81,926 — 81,926 208,027 — 208,027 Total Liabilities - Insurance 86,701 (4,667) 82,034 222,880 (15,246) 207,634 Total $ 98,020 $ (15,986) $ 82,034 $ 235,366 $ (27,104) $ 208,262 Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Issuances Settlements Net settlements/Issuances Issuances Settlements Net settlements/Issuances Liabilities Asset Management Unfunded Revolver Commitments $ — $ — $ — $ — $ (2,464) $ (2,464) Total Liabilities - Asset Management $ — $ — $ — $ — $ (2,464) $ (2,464) |
Summary of valuation methodologies used for assets, measured at fair value and categorized within Level III | The following table presents additional information about valuation methodologies and significant unobservable inputs used for financial assets and liabilities that are measured and reported at fair value and categorized within Level III as of September 30, 2021. Because input information includes only those items for which information is reasonably available, balances shown below may not equal total amounts reported for such Level III assets and liabilities: Level III Assets Fair Value September 30, 2021 Valuation Unobservable Input(s) (1) Weighted Average (2) Range Impact to Valuation from an Increase in Input (3) ASSET MANAGEMENT Private Equity $ 21,744,949 Private Equity $ 18,865,051 Inputs to market comparables, discounted cash flow and transaction price Illiquidity Discount 6.8% 5.0% - 15.0% Decrease Weight Ascribed to Market Comparables 25.7% 0.0% - 75.0% (4) Weight Ascribed to Discounted Cash Flow 54.8% 0.0% - 100.0% (5) Weight Ascribed to Transaction Price 19.5% 0.0% - 100.0% (6) Market comparables Enterprise Value/LTM EBITDA Multiple 17.6x 9.5x - 26.8x Increase Enterprise Value/Forward EBITDA Multiple 14.9x 8.0x - 20.0x Increase Discounted cash flow Weighted Average Cost of Capital 9.4% 3.5% - 15.2% Decrease Enterprise Value/LTM EBITDA Exit Multiple 13.4x 6.0x - 18.0x Increase Growth Equity $ 2,879,898 Inputs to market comparables, discounted cash flow and milestones Illiquidity Discount 9.7% 5.0% - 25.0% Decrease Weight Ascribed to Market Comparables 31.2% 0.0% - 100.0% (4) Weight Ascribed to Discounted Cash Flow 2.0% 0.0% - 50.0% (5) Weight Ascribed to Milestones 66.8% 0.0% - 100.0% (6) Scenario Weighting Base 73.9% 50.0% - 75.0% Increase Downside 7.5% 1.0% - 25.0% Decrease Upside 18.6% 0.0% - 35.0% Increase Credit $ 10,200,611 Yield Analysis Yield 5.3% 4.3% - 25.7% Decrease Net Leverage 5.1x 0.3x - 15.2x Decrease EBITDA Multiple 11.5x 1.1x - 37.8x Increase Real Assets $ 11,633,184 Energy $ 2,623,066 Inputs to market comparables and discounted cash flow Weight Ascribed to Market Comparables 46.1% 0.0% - 50.0% (4) Weight Ascribed to Discounted Cash Flow 53.9% 50.0% - 100.0% (5) Market comparables Enterprise Value/LTM EBITDA Multiple 6.1x 5.9x - 6.2x Increase Enterprise Value/Forward EBITDA Multiple 4.5x 4.1x - 8.0x Increase Discounted cash flow Weighted Average Cost of Capital 11.4% 10.3% - 14.7% Decrease Average Price Per BOE (8) $41.71 $39.43 - $44.74 Increase Infrastructure $ 3,083,444 Inputs to market comparables, discounted cash flow and transaction price Illiquidity Discount 5.0% 5.0% - 5.0% Decrease Weight Ascribed to Market Comparables 1.8% 0.0% - 25.0% (4) Weight Ascribed to Discounted Cash Flow 48.7% 0.0% - 100.0% (5) Weight Ascribed to Transaction Price 49.5% 0.0% - 100.0% (6) Market comparables Enterprise Value/Forward EBITDA Multiple 11.0x 11.0x - 11.0x Increase Discounted cash flow Weighted Average Cost of Capital 6.3% 4.8% - 8.3% Decrease Enterprise Value/LTM EBITDA Exit Multiple 12.2x 10.0x - 13.0x Increase Real Estate $ 5,926,674 Inputs to direct income capitalization, discounted cash flow and transaction price Weight Ascribed to Direct Income Capitalization 22.8% 0.0% - 100.0% (7) Weight Ascribed to Discounted Cash Flow 70.2% 0.0% - 100.0% (5) Weight Ascribed to Transaction Price 7.0% 0.0% - 100.0% (6) Direct income capitalization Current Capitalization Rate 5.1% 3.5% - 8.1% Decrease Discounted cash flow Unlevered Discount Rate 6.6% 5.3% - 18.0% Decrease Level III Assets Fair Value September 30, 2021 Valuation Unobservable Input(s) (1) Weighted Average (2) Range Impact to Valuation from an Increase in Input (3) Equity Method - Other $ 1,008,868 Inputs to market comparables, discounted cash flow and transaction price Illiquidity Discount 8.1% 5.0% - 10.0% Decrease Weight Ascribed to Market Comparables 34.1% 0.0% - 75.0% (4) Weight Ascribed to Discounted Cash Flow 26.5% 0.0% - 50.0% (5) Weight Ascribed to Transaction Price 39.4% 0.0% - 100.0% (6) Market comparables Enterprise Value/LTM EBITDA Multiple 11.5x 11.0x - 26.9x Increase Enterprise Value/Forward EBITDA Multiple 11.8x 4.1x - 19.5x Increase Discounted cash flow Weighted Average Cost of Capital 10.5% 5.8% - 16.0% Decrease Enterprise Value/LTM EBITDA Exit Multiple 11.0x 6.0x - 15.0x Increase Other Investments $ 3,168,917 (9) Inputs to market comparables, discounted cash flow and transaction price Illiquidity Discount 9.7% 6.3% - 20.0% Decrease Weight Ascribed to Market Comparables 22.5% 0.0% - 100.0% (4) Weight Ascribed to Discounted Cash Flow 39.5% 0.0% - 100.0% (5) Weight Ascribed to Transaction Price 38.0% 0.0% - 100.0% (6) Market comparables Enterprise Value/LTM EBITDA Multiple 13.7x 1.1x - 30.5x Increase Enterprise Value/Forward EBITDA Multiple 13.2x 0.9x - 17.1x Increase Discounted cash flow Weighted Average Cost of Capital 11.8% 7.6% - 25.0% Decrease Enterprise Value/LTM EBITDA Exit Multiple 10.0x 5.1x - 11.0x Increase INSURANCE Corporate fixed maturity securities $ 1,627,371 Discounted cash flow Discount Spread 2.11% —% - 4.83% Decrease Structured securities $ 159,372 Discounted cash flow Discount Spread 2.85% 2.20% - 6.15% Decrease Constant Prepayment Rate 7.32% 5.00% - 15.00% Increase/Decrease Constant Default Rate 1.16% 1.00% - 2.50% Decrease Loss Severity 100% Decrease Other investments $ 455,387 Direct capitalization Current Capitalization Rate 5.52% 4.95% - 6.09% Decrease Vacancy rate 5.00% Decrease Discounted cash flow Yield 8.00% Decrease Funds withheld receivable at interest $ 80,493 Discounted cash flow Duration/Weighted Average Life 10.43 years 0.0 years - 23.2 years Increase Contractholder Persistency 6.13% 3.50% - 16.20% Increase Nonperformance Risk 0.26% - 1.11% Decrease Reinsurance recoverable $ 1,325,487 Present value of expenses paid from the open block plus the cost of capital held in support of the liabilities. Expense assumption The average expense assumption is between $10.40 and $78.00 per policy, increased by inflation. Increase Unobservable inputs are a market participant’s view of the expenses, a risk margin on the uncertainty of the level of expenses and a cost of capital on the capital held in support of the liabilities. Expense risk margin 9.42% Decrease Cost of capital 3.69% - 13.85% Increase Discounted cash flow Mortality Rate 2.55% Increase Surrender Rate 5.33% Increase (1) In determining certain of these inputs, management evaluates a variety of factors including economic conditions, industry and market developments, market valuations of comparable companies and company specific developments including exit strategies and realization opportunities. Management has determined that market participants would take these inputs into account when valuing the investments and debt obligations. LTM means last twelve months and EBITDA means earnings before interest, taxes, depreciation and amortization. (2) Inputs were weighted based on the fair value of the investments included in the range. (3) Unless otherwise noted, this column represents the directional change in the fair value of the Level III investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements. (4) The directional change from an increase in the weight ascribed to the market comparables approach would increase the fair value of the Level III investments if the market comparables approach results in a higher valuation than the discounted cash flow approach and transaction price. The opposite would be true if the market comparables approach results in a lower valuation than the discounted cash flow approach and transaction price. (5) The directional change from an increase in the weight ascribed to the discounted cash flow approach would increase the fair value of the Level III investments if the discounted cash flow approach results in a higher valuation than the market comparables approach, transaction price and direct income capitalization approach. The opposite would be true if the discounted cash flow approach results in a lower valuation than the market comparables approach, transaction price and direct income capitalization approach. (6) The directional change from an increase in the weight ascribed to the transaction price or milestones would increase the fair value of the Level III investments if the transaction price or milestones results in a higher valuation than the market comparables and discounted cash flow approach. The opposite would be true if the transaction price or milestones results in a lower valuation than the market comparables approach and discounted cash flow approach. (7) The directional change from an increase in the weight ascribed to the direct income capitalization approach would increase the fair value of the Level III investments if the direct income capitalization approach results in a higher valuation than the discounted cash flow approach. The opposite would be true if the direct income capitalization approach results in a lower valuation than the discounted cash flow approach. (8) The total energy fair value amount includes multiple investments (in multiple locations throughout North America) that are held in multiple investment funds and produce varying quantities of oil, condensate, natural gas liquids, and natural gas. Commodity price may be measured using a common volumetric equivalent where one barrel of oil equivalent ("BOE"), is determined using the ratio of six thousand cubic feet of natural gas to one barrel of oil, condensate or natural gas liquids. The price per BOE is provided to show the aggregate of all price inputs for the various investments over a common volumetric equivalent although the valuations for specific investments may use price inputs specific to the asset for purposes of our valuations. The discounted cash flows include forecasted production of liquids (oil, condensate, and natural gas liquids) and natural gas with a forecasted revenue ratio of approximately 85% liquids and 15% natural gas. (9) Consists primarily of investments in common stock, preferred stock, warrants and options of companies that are not private equity, real assets, credit, equity method - other or investments of consolidated CFEs. Level III Liabilities Fair Value September 30, 2021 Valuation Unobservable Input(s) (1) Weighted Average (2) Range Impact to Valuation from an Increase in Input (3) ASSET MANAGEMENT Unfunded Revolver Commitments $ 50,910 Yield Analysis Yield 5.2% 3.9% - 6.9% Decrease INSURANCE Policy liabilities $ 544,829 Present value of best estimate liability cash flows. Unobservable inputs include a market participant view of the risk margin included in the discount rate which reflects the variability of the cash flows. Risk Margin Rate 0.26% - 1.45% Decrease Policyholder behavior is also a significant unobservable input, including surrender and mortality. Surrender Rate 3.15% - 6.92% Increase Mortality Rate 3.75% - 8.29% Increase Closed block policy liabilities $ 1,374,913 Present value of expenses paid from the open block plus the cost of capital held in support of the liabilities. Expense assumption The average expense assumption is between $10.40 and $78.00 per policy, increased by inflation. Increase Nonperformance Risk 0.26% - 1.11% Decrease Unobservable inputs are a market participant’s view of the expenses, a risk margin on the uncertainty of the level of expenses and a cost of capital on the capital held in support of the liabilities. Expense Risk Margin 9.42% Decrease Cost of Capital 3.69% - 13.85% Increase Discounted cash flow Mortality Rate 2.55% Increase Surrender Rate 5.33% Increase Level III Liabilities Fair Value September 30, 2021 Valuation Unobservable Input(s) (1) Weighted Average (2) Range Impact to Valuation from an Increase in Input (3) Funds withheld payable at interest $ (36,755) Discounted cash flow Duration/Weighted Average Life 10.60 years 0.0 years - 20.1 years Decrease Contractholder Persistency 6.13% 3.50% - 16.20% Decrease Nonperformance Risk 0.26% - 1.11% Decrease Embedded derivative – indexed universal life products $ 490,013 Policy persistency is a significant unobservable input. Lapse Rate 3.71% Decrease Mortality Rate 0.68% Decrease Future costs for options used to hedge the contract obligations Option Budge Assumption 3.60% Increase Nonperformance Risk 0.26% - 1.11% Decrease Embedded derivative – annuity products $ 1,652,714 Policyholder behavior is a significant unobservable input, including utilization and lapse. Utilization: Fixed-indexed annuity 3.70% Decrease Variable annuity 4.19% 2.27% - 32.56% Decrease Surrender Rate: Fixed-indexed annuity 9.85% Decrease Variable annuity 3.63% - 41.90% Decrease Mortality Rate Fixed-indexed annuity 1.95% Decrease Variable annuity 1.33% - 7.57% Decrease Future costs for options used to hedge the contract obligations Option Budge Assumption: Retail RIA 1.60% Increase Fixed-indexed annuity 2.10% Increase Variable annuity n/a Increase Nonperformance Risk 0.26% - 1.11% Decrease (1) In determining certain of these inputs, management evaluates a variety of factors including economic conditions, industry and market developments, market valuations of comparable companies and company specific developments including exit strategies and realization opportunities. Management has determined that market participants would take these inputs into account when valuing the investments and debt obligations. LTM means last twelve months, and EBITDA means earnings before interest, taxes, depreciation and amortization. (2) Inputs were weighted based on the fair value of the investments included in the range. (3) Unless otherwise noted, this column represents the directional change in the fair value of the Level III investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements. |
Summary of financial instruments not carried at fair value | The following tables present carrying amounts and fair values of Global Atlantic’s financial instruments which are not carried at fair value as of September 30, 2021. Fair Value Hierarchy As of September 30, 2021 Carrying Value Level I Level II Level III Fair Value ($ in thousands) Financial assets: Insurance Mortgage and other loan receivables $ 24,078,587 $ — $ — $ 24,826,227 $ 24,826,227 Policy loans 765,931 — — 751,674 751,674 FHLB common stock and other investments 833,519 — — 833,519 833,519 Funds withheld receivables at interest 2,985,988 — 2,985,988 — 2,985,988 Cash and cash equivalents 4,717,240 4,717,240 — — 4,717,240 Restricted cash and cash equivalents 398,572 398,572 — — 398,572 Total financial assets $ 33,779,837 $ 5,115,812 $ 2,985,988 $ 26,411,420 $ 34,513,220 Financial liabilities: Insurance Other contractholder deposit funds $ 29,989,672 $ — $ 28,063,998 $ — $ 28,063,998 Supplementary contracts without life contingencies 30,513 — — 30,704 30,704 Funding agreements 2,571,298 — — 2,563,810 2,563,810 Funds withheld payables at interest 23,651,565 — 23,651,565 — 23,651,565 Debt obligations 2,162,591 — — 2,244,861 2,244,861 Securities sold under agreements to repurchase 317,938 — 317,938 — 317,938 Total financial liabilities $ 58,723,577 $ — $ 52,033,501 $ 4,839,375 $ 56,872,876 |
FAIR VALUE OPTION (Tables)
FAIR VALUE OPTION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of disclosures of financial instruments for which the fair value option was elected | The following table summarizes the financial instruments for which the fair value option has been elected: September 30, 2021 December 31, 2020 Assets Asset Management Credit $ 6,986,251 $ 5,958,958 Investments of Consolidated CFEs 20,696,676 17,706,976 Real Assets 185,117 177,240 Equity Method - Other 1,314,982 1,507,620 Other Investments 197,797 201,563 Total Asset Management $ 29,380,823 $ 25,552,357 Insurance Mortgage and other loan receivables $ 1,288,478 $ — Other investments 476,768 — Reinsurance recoverable 1,325,487 — Total Insurance $ 3,090,733 $ — Total Assets $ 32,471,556 $ 25,552,357 Liabilities Asset Management Debt Obligations of Consolidated CFEs $ 19,969,156 $ 17,372,740 Total Asset Management $ 19,969,156 $ 17,372,740 Insurance Policy liabilities $ 1,919,742 $ — Total Insurance $ 1,919,742 $ — Total Liabilities $ 21,888,898 $ 17,372,740 The following table presents the net realized and unrealized gains (losses) on financial instruments for which the fair value option was elected: Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Net Realized Gains (Losses) Net Unrealized Gains (Losses) Total Net Realized Net Unrealized Total Assets Asset Management Credit $ 19,414 $ 7,639 $ 27,053 $ 6,105 $ 93,955 $ 100,060 Investments of Consolidated CFEs 23,198 (15,013) 8,185 (33,373) 425,660 $ 392,287 Real Assets 391 7,591 7,982 — 6,423 $ 6,423 Equity Method - Other 293,819 (263,841) 29,978 (26,079) 344,316 $ 318,237 Other Investments 11,175 1,062 12,237 49 7,924 $ 7,973 Total Asset Management $ 347,997 $ (262,562) $ 85,435 $ (53,298) $ 878,278 $ 824,980 Insurance Mortgage and other loan receivables $ — $ 3,613 $ 3,613 $ — $ — $ — Other investments — 317,542 317,542 — — — Total Insurance $ — $ 321,155 $ 321,155 $ — $ — $ — Total Assets $ 347,997 $ 58,593 $ 406,590 $ (53,298) $ 878,278 $ 824,980 Liabilities Asset Management Debt Obligations of Consolidated CFEs $ 10,278 $ (10,437) $ (159) $ — $ (317,299) $ (317,299) Total Asset Management $ 10,278 $ (10,437) $ (159) $ — $ (317,299) $ (317,299) Insurance Policy liabilities $ — $ (3,463) $ (3,463) $ — $ — $ — Total Insurance $ — $ (3,463) $ (3,463) $ — $ — $ — Total Liabilities $ 10,278 $ (13,900) $ (3,622) $ — $ (317,299) $ (317,299) Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Net Realized Net Unrealized Gains (Losses) Total Net Realized Net Unrealized Total Assets Asset Management Credit $ 1,573 $ 15,543 $ 17,116 $ (42,878) $ 5,458 $ (37,420) Investments of Consolidated CFEs 44,954 173,775 218,729 (127,175) (424,918) (552,093) Real Assets 566 18,448 19,014 153 (17,882) (17,729) Equity Method - Other 368,931 (71,179) 297,752 (82,671) 271,243 188,572 Other Investments 16,581 17,627 34,208 (60,241) 52,755 (7,486) Total Asset Management $ 432,605 $ 154,214 $ 586,819 $ (312,812) $ (113,344) $ (426,156) Insurance Mortgage and other loan receivables $ — $ 9,443 $ 9,443 $ — $ — $ — Other investments — 353,112 353,112 — — — Total Insurance $ — $ 362,555 $ 362,555 $ — $ — $ — Total Assets $ 432,605 $ 516,769 $ 949,374 $ (312,812) $ (113,344) $ (426,156) Liabilities Asset Management Debt Obligations of Consolidated CFEs $ 9,740 $ (82,107) $ (72,367) $ — $ 337,634 $ 337,634 Total Asset Management $ 9,740 $ (82,107) $ (72,367) $ — $ 337,634 $ 337,634 Insurance Policy liabilities $ — $ (89,184) $ (89,184) $ — $ — $ — Total Insurance $ — $ (89,184) $ (89,184) $ — $ — $ — Total Liabilities $ 9,740 $ (171,291) $ (161,551) $ — $ 337,634 $ 337,634 |
INSURANCE INTANGIBLES, UNEARN_2
INSURANCE INTANGIBLES, UNEARNED REVENUE RESERVES AND UNEARNED FRONT-END LOADS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Changes to Deferred Policy Acquisition Costs | The following reflects the changes to the deferred policy acquisition costs ("DAC") asset: Nine Months Ended September 30, 2021 Balance, as of GA Acquisition Date $ — Acquisition/reinsurance 51,322 Deferrals 259,203 Amortized to expense during the period (1) (13,016) Adjustment for unrealized investment losses (gains) during the period 4,907 Balance, as of end of period $ 302,416 (1) These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations. |
Changes to Value of Business Acquired Asset | The following reflects the changes to the value of business acquired ("VOBA") asset: Nine Months Ended September 30, 2021 Balance, as of GA Acquisition Date $ 1,024,520 Amortized to expense during the period (1) (47,866) Balance, as of end of period $ 976,654 (1) These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations. |
Changes to Value of Business Acquired Liability | The following reflects the changes to the negative VOBA liability: Nine Months Ended September 30, 2021 Balance, as of Acquisition Date $ 1,273,414 Amortized to expense during the period (1) (118,291) Balance, as of end of period $ 1,155,123 (1) These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations. |
Changes to Unearned Revenue Reserve | The following reflects the changes to the unearned revenue reserve ("URR") and unearned front-end load ("UFEL): Nine Months Ended September 30, 2021 Balance, as of GA Acquisition Date $ — Deferrals 41,000 Amortized to expense during the period (1) (1,302) Adjustment for unrealized investment losses during the period (4,100) Balance, as of end of period $ 35,598 (1) These amounts are reported within policy fees in the consolidated statements of operatio ns. |
REINSURANCE (Tables)
REINSURANCE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Effects of Reinsurance Agreements | The effects of all reinsurance agreements on the consolidated statement of financial condition were as follows: September 30, 2021 Policy liabilities: Direct $ 65,847,071 Assumed 58,764,838 Total policy liabilities 124,611,909 Ceded (1) (25,248,798) Net policy liabilities $ 99,363,111 (1) Reported within reinsurance recoverable within the consolidated statement of financial condition. The effects of reinsurance on the consolidated statements of operations were as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Premiums: Direct $ 28,509 $ 74,959 Assumed (1) 1,908,614 3,778,810 Ceded (962,220) (2,154,857) Net premiums $ 974,903 $ 1,698,912 _________________ (1) Includes related party balances of $0 thousand and $8.7 million for the three and nine months ended September 30, 2021, respectively. Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Policy fees: Direct $ 233,029 $ 614,910 Assumed (1) 77,694 210,411 Ceded (342) (995) Net policy fees $ 310,381 $ 824,326 _________________ (1) Includes related party balances of $0 thousand and $6.2 million for the three and nine months ended September 30, 2021, respectively. Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Policy benefits and claims: Direct $ 554,134 $ 1,996,642 Assumed (1) 2,254,670 3,987,189 Ceded (1,111,758) (2,390,268) Net policy benefits and claims $ 1,697,046 $ 3,593,563 _________________ (1) Includes related party balances of $0 thousand and $76.2 million for the three and nine months ended September 30, 2021, respectively. |
Reinsurance Recoverable and Funds Withheld Receivable at Interest by Credit Quality Indicator | The following shows the amortized cost basis of Global Atlantic’s reinsurance recoverable and funds withheld receivable at interest by credit quality indicator and any associated credit enhancements Global Atlantic has obtained to mitigate counterparty credit risk: As of September 30, 2021 A.M. Best Rating (1) Reinsurance recoverable and funds withheld receivable at interest (2) Credit enhancements (3) Net reinsurance credit exposure A++ $ 7,267 $ — $ 7,267 A+ 1,937,673 — 1,937,673 A 2,777,536 — 2,777,536 A- 5,740,269 5,304,491 435,778 B++ 33,421 — 33,421 B+ 2,307 — 2,307 B 10,425 — 10,425 B- 4,213 — 4,213 Not rated (4) 17,717,883 18,320,143 — Total $ 28,230,994 $ 23,624,634 $ 5,208,620 _________________ (1) Ratings are periodically updated (at least annually) as A.M. Best issues new ratings. (2) At amortized cost, excluding any associated embedded derivative assets and liabilities (3) Includes funds withheld payable at interest and deferred intangible reinsurance assets and liabilities. (4) Includes $17.7 billion associated with cessions to Ivy Re Limited, a Bermuda insurance company and a subsidiary of an unaffiliated investment vehicle that participates in qualifying reinsurance transactions sourced by Global Atlantic. |
NET INCOME (LOSS) ATTRIBUTABL_2
NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF COMMON STOCK (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted Net Income (Loss) attributable to KKR & Co. per share of common stock | For the three and nine months ended September 30, 2021 and 2020, basic and diluted Net Income (Loss) attributable to KKR & Co. Inc. per share of common stock were calculated as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Net Income (Loss) Available to KKR & Co. Inc. $ 1,131,354 $ 1,047,685 $ 4,053,271 $ 457,448 (+) Series C Mandatory Convertible Preferred Dividend (if dilutive) 17,250 8,817 51,750 — Net Income (Loss) Available to KKR & Co. Inc. $ 1,148,604 $ 1,056,502 $ 4,105,021 $ 457,448 Basic Net Income (Loss) Per Share of Common Stock Weighted Average Shares of Common Stock Outstanding - Basic 583,030,506 562,425,576 580,742,033 560,124,947 Net Income (Loss) Attributable to KKR & Co. Inc. $ 1.94 $ 1.86 $ 6.98 $ 0.82 Diluted Net Income (Loss) Per Share of Common Stock Weighted Average Shares of Common Stock Outstanding - Basic 583,030,506 562,425,576 580,742,033 560,124,947 Incremental Common Shares: Assumed vesting of dilutive equity awards 27,562,994 9,954,502 22,055,422 9,786,034 Assumed conversion of Series C Mandatory Convertible Preferred Stock 26,822,600 16,736,309 26,822,600 — Weighted Average Shares of Common Stock Outstanding - Diluted 637,416,100 589,116,387 629,620,055 569,910,981 Net Income (Loss) Attributable to KKR & Co. Inc. $ 1.80 $ 1.79 $ 6.52 $ 0.80 |
Schedule of KKR Holdings shares excluded from the calculation of diluted Net Income (Loss) attributable to KKR & Co. L.P. per share of Common Stock - Diluted | Three Months Ended Nine Months Ended 2021 2020 2021 2020 Weighted Average KKR Holdings Units 271,027,751 282,692,900 272,674,225 285,757,397 |
OTHER ASSETS AND ACCRUED EXPE_2
OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | |
Schedule of other assets | Other Assets consist of the following: September 30, 2021 December 31, 2020 Asset Management Unsettled Investment Sales (1) $ 500,507 $ 197,635 Receivables 39,789 75,697 Due from Broker (2) 291,775 644,028 Deferred Tax Assets, net (See Note 17) 91,959 83,822 Interest Receivable 191,085 145,532 Fixed Assets, net (3) 813,488 760,606 Foreign Exchange Contracts and Options (4) 427,929 250,398 Goodwill (5) 83,500 83,500 Derivative Assets 1,747 7,839 Prepaid Taxes 91,295 77,041 Prepaid Expenses 33,720 26,366 Operating Lease Right of Use Assets (6) 224,855 190,758 Deferred Financing Costs 18,243 22,810 Other 144,438 99,304 Total Asset Management $ 2,954,330 $ 2,665,336 Insurance Unsettled Investment Sales (1) $ 2,272,772 $ — Deferred Tax Assets, net 779,889 — Derivative Assets 1,117,953 — Accrued Investment Income 825,124 — Goodwill 497,053 — Intangible Assets and Deferred Sales Inducements (7) 298,235 — Operating Lease Right of Use Assets (6) 162,435 — Other 123,431 — Premiums and Other Account Receivables 66,328 — Current Income Tax Recoverable 5,151 — Total Insurance $ 6,148,371 $ — Total Other Assets $ 9,102,701 $ 2,665,336 (1) Represents amounts due from third parties for investments sold for which cash settlement has not occurred. (2) Represents amounts held at clearing brokers resulting from securities transactions. (3) Net of accumulated depreciation and amortization of $130.1 million and $151.3 million as of September 30, 2021 and December 31, 2020, respectively. Depreciation and amortization expense of $11.3 million and $4.6 million for the three months ended September 30, 2021 and 2020, respectively, and $33.6 million and $14.2 million for the nine months ended September 30, 2021 and 2020, respectively, are included in General, Administrative and Other in the accompanying consolidated statements of operations. (4) Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign currency denominated investments. Such instruments are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. See Note 4 "Net Gains (Losses) from Investment Activities - Asset Management" for the net changes in fair value associated with these instruments. (5) As of September 30, 2021, the carrying value of goodwill is recorded and assessed for impairment at the reporting unit. (6) For Asset Management, non-cancelable operating leases consist of leases for office space in North America, Europe, Asia and Australia. KKR is the lessee under the terms of the operating leases. The operating lease cost was $11.9 million and $13.9 million for the three months ended September 30, 2021 and 2020, respectively, and $37.1 million and $39.7 million for the nine months ended September 30, 2021 and 2020, respectively. For Insurance, non-cancelable operating leases consist of leases for office space and renewable energy forward power purchase agreements in the U.S. For the three and nine months ended September 30, 2021 the operating lease costs were $3.9 million and $10.5 million, respectively. Insurance lease right-of-use assets are reported net of $21.1 million in deferred rent and lease incentives. (7) The definite life intangible assets are amortized by using the straight-line method over the useful life of the assets which is an average of 17 years. The indefinite life intangible assets are not subject to amortization. The amortization expense of definite life intangible assets was $4.4 million and $11.8 million for the three and nine months ended September 30, 2021, respectively. |
Schedule of accounts payable, accrued expenses and other liabilities | Accrued Expenses and Other Liabilities consist of the following: September 30, 2021 December 31, 2020 Asset Management Amounts Payable to Carry Pool (1) $ 3,562,686 $ 1,916,669 Unsettled Investment Purchases (2) 1,382,929 850,714 Securities Sold Short (3) 262,151 281,826 Derivative Liabilities 37,798 126,950 Accrued Compensation and Benefits 847,283 150,883 Interest Payable 159,129 182,044 Foreign Exchange Contracts and Options (4) 444,713 551,728 Accounts Payable and Accrued Expenses 161,952 130,661 Taxes Payable 28,979 88,040 Uncertain Tax Positions 76,643 76,643 Unfunded Revolver Commitments 50,910 46,340 Operating Lease Liabilities (5) 227,624 191,564 Deferred Tax Liabilities, net (See Note 17) 1,091,098 199,425 Other Liabilities 580,844 464,326 Total Asset Management $ 8,914,739 $ 5,257,813 Insurance Unsettled Investment Purchases (2) $ 1,930,044 $ — Collateral on Derivative Instruments 967,632 Accrued Expenses 542,510 — Securities Sold Under Agreements to Repurchase 317,938 — Derivative Liabilities 174,786 — Operating Lease Liabilities (5) 181,302 — Accrued Employee Related Expenses 189,471 — Tax Payable to Former Parent Company 73,608 — Interest Payable 36,086 — Accounts and Commissions Payable 19,798 — Other Tax Related Liabilities 9,787 — Total Insurance $ 4,442,962 $ — Total Accrued Expenses and Other Liabilities $ 13,357,701 $ 5,257,813 (1) Represents the amount of carried interest payable to current and former KKR employees with respect to KKR's investment funds and co-investment vehicles that provide for carried interest. (2) Represents amounts owed to third parties for investment purchases for which cash settlement has not occurred. (3) Represents the obligations of KKR to deliver a specified security at a future point in time. Such securities are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. See Note 4 "Net Gains (Losses) from Investment Activities - Asset Management" for the net changes in fair value associated with these instruments. (4) Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign currency denominated investments. Such instruments are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. See Note 4 "Net Gains (Losses) from Investment Activities- Asset Management" for the net changes in fair value associated with these instruments. (5) For Asset Management, operating leases have remaining lease terms that range from approximately 1 year to 14 years, some of which include options to extend the leases for up to 3 years. The weighted average remaining lease terms were 9.1 years and 9.8 years as of September 30, 2021 and December 31, 2020, respectively. The weighted average discount rates were 1.2% and 1.2% as of September 30, 2021 and December 31, 2020, respectively. For Insurance, operating leases for office space have remaining lease terms that range from approximately 1 year to 12 years, some of which include options to extend the leases for up to 10 years. The weighted average remaining lease terms was 8.0 years as of September 30, 2021. The weighted average discount rates was 2.9% as of September 30, 2021. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of maximum exposure to loss, before allocations to the carry pool and noncontrolling interests, if any, for VIEs | As of September 30, 2021 and December 31, 2020, the maximum exposure to loss, before allocations to the carry pool and noncontrolling interests, if any, for those VIEs in which KKR is determined not to be the primary beneficiary but in which it has a variable interest is as follows: September 30, 2021 December 31, 2020 Investments - Asset Management $ 11,091,844 $ 6,460,430 Due from (to) Affiliates, net 830,982 586,595 Maximum Exposure to Loss - Asset Management $ 11,922,826 $ 7,047,025 Other Investment in Partnership - Insurance $ 184,492 $ — Investment in Renewable Partnerships - Insurance 365,443 — Maximum Exposure to Loss- Insurance $ 549,935 $ — Total Maximum Exposure to Loss $ 12,472,761 $ 7,047,025 |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings | KKR's Asset Management debt obligations consisted of the following: September 30, 2021 December 31, 2020 Financing Available Borrowing Outstanding Fair Value Financing Available Borrowing Outstanding Fair Value Revolving Credit Facilities: Corporate Credit Agreement $ 1,000,000 $ — $ — $ 1,000,000 $ — $ — KCM Credit Agreement 728,593 — — 705,014 — — KCM 364-Day Revolving Credit Agreement 750,000 — — 750,000 — — Notes Issued: (1) KKR ¥25 billion (or $224.0 million) 0.509% Notes Due 2023 (4) — 223,556 223,384 — 241,331 241,580 KKR ¥5 billion (or $44.8 million) 0.764% Notes Due 2025 (4) — 44,404 44,789 — 47,919 48,554 KKR €650 million (or $756.7 million) 1.625% Notes Due 2029 (5) — 749,389 809,635 — 790,157 870,647 KKR $750 million 3.750% Notes Due 2029 (4) — 743,111 832,290 — 742,196 874,658 KKR ¥10.3 billion (or $92.3 million) 1.595% Notes Due 2038 (4) — 91,270 95,229 — 98,640 104,004 KKR $500 million 5.500% Notes Due 2043 (6) (4) — 491,065 659,885 — 492,513 666,885 KKR $1 billion 5.125% Notes Due 2044 (6) (4) — 951,301 1,249,501 — 991,471 1,307,220 KKR $500 million 3.625% Notes Due 2050 (4) — 492,419 536,120 — 492,123 556,095 KKR $750 million 3.500% Notes Due 2050 (6) (4) — 735,783 787,515 — 735,161 830,280 KKR $500 million 4.625% Notes Due 2061 (5) — 485,955 518,000 — — — KFN $500 million 5.500% Notes Due 2032 (2) — 494,903 490,670 — 494,540 502,992 KFN $120 million 5.200% Notes Due 2033 (2) — 118,623 115,341 — 118,533 118,300 KFN $70 million 5.400% Notes Due 2033 (2) — 68,934 68,455 — 68,866 70,267 KFN Issued Junior Subordinated Notes (3) (2) — 235,802 180,732 — 234,808 165,627 2,478,593 5,926,515 6,611,546 2,455,014 5,548,258 6,357,109 Other Debt Obligations (6) 8,787,351 33,062,029 33,097,029 5,621,883 27,875,338 27,889,438 $ 11,265,944 $ 38,988,544 $ 39,708,575 $ 8,076,897 $ 33,423,596 $ 34,246,547 (1) Borrowing outstanding includes: (i) unamortized note discount (net of premium), as applicable and (ii) unamortized debt issuance costs, as applicable. Financing costs related to the issuance of the notes have been deducted from the note liability and are being amortized over the life of the notes. (2) These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments. (3) KKR consolidates KFN and reports KFN's outstanding $258.5 million aggregate principal amount of junior subordinated notes. The weighted average interest rate is 2.6% and 2.7% and the weighted average years to maturity is 15.0 years and 15.8 years as of September 30, 2021 and December 31, 2020, respectively. (4) The notes are classified as Level II within the fair value hierarchy and fair value is determined by third party broker quotes. (5) The notes are classified as Level I within the fair value hierarchy and fair value is determined by quoted prices in active markets since the debt is publicly listed. (6) As of September 30, 2021, the borrowing outstanding reflects the elimination for the portion of these debt obligations that are held by Global Atlantic. Global Atlantic's debt obligations consisted of the following: September 30, 2021 Financing Available Borrowing Outstanding Fair Value (3) Revolving Credit Facilities: Global Atlantic revolving credit facility, due May 2023 $ 1,000,000 $ — $ — Notes Issued and Others: Global Atlantic senior notes, due October 2029 500,000 548,600 Global Atlantic senior notes, due June 2031 650,000 658,320 Global Atlantic subordinated debentures, due October 2046 (1) 250,000 250,000 Global Atlantic subordinated debentures, due July 2051 750,000 775,350 2,150,000 $ 2,232,270 Purchase accounting adjustments (2) 51,875 Debt issuance costs, net of accumulated amortization (18,934) Fair value loss (gain) of hedged debt obligations, recognized in earnings (20,350) $ 2,162,591 (1) On October 1, 2021, subsequent to the end of the quarter, GA FinCo redeemed the full principal amount of its then outstanding $250 million GA 2046 Subordinated Debentures. (2) The amortization of the purchase accounting adjustments was $825 thousand and $4.0 million for the three and nine months ended September 30, 2021, respectively. (3) These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments. |
Schedule of other debt obligations | Other Asset Management Debt Obligations As of September 30, 2021, other debt obligations consisted of the following: Financing Available Borrowing Fair Value Weighted Weighted Average Remaining Maturity in Years Financing Facilities of Consolidated Funds and Other (1) $ 8,787,351 $ 13,092,873 $ 13,127,873 2.8% 4.0 Debt Obligations of Consolidated CLOs — 19,969,156 19,969,156 (2) 10.5 $ 8,787,351 $ 33,062,029 $ 33,097,029 (1) Includes borrowings collateralized by fund investments, fund co-investments and other assets held by levered investment vehicles of $1.7 billion. (2) The senior notes of the consolidated CLOs had a weighted average interest rate of 1.7%. The subordinated notes of the consolidated CLOs do not have contractual interest rates but instead receive a pro rata amount of the net distributions from the excess cash flows of the respective CLO vehicle. Accordingly, weighted average borrowing rates for the subordinated notes are based on cash distributions during the period, if any. |
EQUITY BASED COMPENSATION (Tabl
EQUITY BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of expense associated with equity based compensation | The following table summarizes the expense associated with equity-based compensation for the three and nine months ended September 30, 2021 and 2020, respectively. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 KKR Equity Incentive Plan Awards (1) $ 73,363 $ 42,488 $ 199,646 $ 133,424 KKR Holdings Awards 8,713 21,759 35,238 63,358 Total $ 82,076 $ 64,247 $ 234,884 $ 196,782 (1) Includes $10.9 million and $11.4 million of equity based compensation related to our insurance business for the three and nine months ended September 30, 2021. The following table summarizes the expense associated with Global Atlantic equity-based compensation for the three and nine months ended September 30, 2021. Three Months Ended Nine Months Ended 2021 2020 2021 2020 Global Atlantic Book Value and Other Awards $ 16,999 $ — $ 35,672 $ — KKR Equity Incentive Plan Awards 10,854 — 11,378 — Total $ 27,853 $ — $ 47,050 $ — |
Schedule of unrecognized expense of equity incentive plan awards expected to be recognized | As of September 30, 2021, there was approximately $381.9 million of total estimated unrecognized expense related to unvested Service-Vesting Awards. That cost is expected to be recognized as follows: Year Unrecognized Expense Remainder of 2021 $ 31.6 2022 118.5 2023 91.6 2024 68.3 2025 58.1 2026 13.8 Total $ 381.9 As of September 30, 2021, there was approximately $321.5 million of total estimated unrecognized expense related to these unvested Market Condition awards. That cost is expected to be recognized as follows: Year Unrecognized Expense Remainder of 2021 $ 15.1 2022 62.5 2023 67.2 2024 72.4 2025 77.4 2026 26.9 Total $ 321.5 |
Schedule of unvested awards granted under equity incentive plan | A summary of the status of unvested Service-Vesting Awards granted under the Equity Incentive Plans from January 1, 2021 through September 30, 2021 is presented below: Shares Weighted Balance, January 1, 2021 23,866,696 $ 28.28 Granted 862,206 46.14 Vested (5,826,257) 23.05 Forfeitures (393,731) 29.12 Balance, September 30, 2021 18,508,914 $ 30.75 A summary of the status of unvested Market Condition awards granted under the Equity Incentive Plans from January 1, 2021 through September 30, 2021 is presented below: Shares Weighted Balance, January 1, 2021 16,875,000 $ 21.07 Granted 2,600,000 35.02 Vested — — Forfeitures — — Balance, September 30, 2021 19,475,000 $ 22.93 |
Schedule of remaining vesting tranches of awards granted under the equity incentive plan | A summary of the remaining vesting tranches of awards granted under the Equity Incentive Plans is presented below: Vesting Date Shares October 1, 2021 3,084,758 April 1, 2022 3,755,974 October 1, 2022 1,731,067 April 1, 2023 3,051,901 October 1, 2023 472,249 April 1, 2024 2,448,822 October 1, 2024 204,313 April 1, 2025 1,879,243 October 1, 2025 158,430 April 1, 2026 1,722,157 18,508,914 |
Schedule of vesting condition by market price and vesting percentage | The number of Market Condition awards that will vest will depend upon the market price of KKR common stock reaching and maintaining a 20 day average closing price based on the vesting schedules provided below on or prior to May 1, 2026, subject to the employee's continued service to May 1, 2026, subject to exceptions. For any price targets not achieved, that portion of the unvested awards will be automatically canceled and forfeited. These awards are subject to additional transfer restrictions and minimum retained ownership requirements after vesting. Each recipient received awards with market price-based vesting conditions based on either Type 1 or Type 2, not both. Vesting Condition Type 1 Vesting Condition Type 2 Stock Price Vesting % Stock Price Vesting % $ 45.00 25.0 % $ 45.00 16.7 % $ 50.00 50.0 % $ 50.00 33.4 % $ 55.00 75.0 % $ 55.00 50.0 % $ 60.00 100.0 % $ 60.00 66.8 % $ 65.00 83.5 % $ 70.00 100.0 % |
Summary of significant assumptions used to estimate grant date fair value of Market Condition Awards | Below is a summary of the grant date fair value based on the Monte-Carlo simulation valuation model. Vesting Condition Weighted Range Type 1 22.56 $22.56 - $22.56 Type 2 23.16 $19.87 - $40.09 Below is a summary of the significant assumptions used to estimate the grant date fair value of these Market Condition Awards: Significant Assumptions Weighted Range Closing KKR share price as of valuation date $39.22 $37.93 - $50.35 Risk Free Rate 0.44% 0.41% - 0.92% Volatility 28.04% 28.00% - 30.00% Dividend Yield 1.49% 1.15% - 1.53% Expected Cost of Equity 10.67% 9.13% - 10.76% |
Schedule of unrecognized compensation expense | As of September 30, 2021, there was approximately $34.6 million of estimated unrecognized expense related to unvested KKR Holdings awards. That cost is expected to be recognized as follows: Year Unrecognized Expense Remainder of 2021 $ 8.7 2022 25.9 Total $ 34.6 The following table presents Global Atlantic’s unrecognized compensation expense and the expected weighted average period over which these expenses will be recognized as of September 30, 2021: September 30, 2021 Expense Weighted average period (years) GA Book Value Awards $ 80,130 2.55 Unrecognized compensation expense, as of end of period $ 80,130 |
Schedule of unvested holding awards granted | A summary of the status of unvested awards granted under the KKR Holdings Plan from January 1, 2021 through September 30, 2021 is presented below: Units Weighted Balance, January 1, 2021 10,240,000 $ 14.33 Granted — — Vested (2,905,000) 11.16 Forfeitures — — Balance, September 30, 2021 7,335,000 $ 15.58 Book value awards ($ in thousands) Outstanding amount as of beginning of period $ — Pre-acquisition awards converted to book-value awards on February 1, 2021 89,000 Granted 57,213 Forfeited (5,508) Impact of change in book value on outstanding awards 6,597 Vested and issued (31,086) Outstanding amount as of end of period $ 116,216 |
Schedule of remaining vesting tranches of holding awards granted | A summary of the remaining vesting tranches of awards granted under the KKR Holdings Plan is presented below: Vesting Date Units October 1, 2021 3,425,000 October 1, 2022 3,910,000 7,335,000 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of due from and to affiliates | Due from Affiliates consists of: September 30, 2021 December 31, 2020 Amounts due from portfolio companies $ 208,320 $ 164,113 Amounts due from unconsolidated investment funds 892,860 707,758 Amounts due from related entities 1,694 1,123 Due from Affiliates $ 1,102,874 $ 872,994 Due to Affiliates consists of: September 30, 2021 December 31, 2020 Amounts due to KKR Holdings - tax receivable agreement $ 237,825 $ 204,014 Amounts due to unconsolidated investment funds 61,878 121,163 Due to Affiliates $ 299,703 $ 325,177 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Information Regarding Segment Results and Reconciliations | The following tables set forth information regarding KKR's segment results: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Management Fees (1) $ 559,016 $ 369,442 $ 1,478,878 $ 1,042,634 Transaction and Monitoring Fees, Net 249,670 201,086 645,108 380,415 Fee Related Performance Revenues 9,897 10,181 34,760 27,869 Fee Related Compensation (184,224) (170,220) (485,760) (342,417) Other Operating Expenses (104,772) (86,472) (309,483) (247,046) Fee Related Earnings 529,587 324,017 1,363,503 861,455 Realized Performance Income 432,784 224,020 1,222,403 934,018 Realized Performance Income Compensation (274,955) (157,885) (797,965) (599,753) Realized Investment Income (2) 447,565 260,415 1,277,701 495,904 Realized Investment Income Compensation (67,142) (56,803) (191,663) (85,646) Asset Management Segment Operating Earnings 1,067,839 593,764 2,873,979 1,605,978 Net Investment Income (1) (2) 771,982 — 1,977,383 — Net Cost of Insurance (436,415) — (1,076,566) — General, Administrative and Other (139,489) — (338,325) — Pre-tax Insurance Operating Earnings 196,078 — 562,492 — Income Taxes (9,046) — (63,148) — Net Income Attributable to Noncontrolling Interest (72,043) — (193,570) — Insurance Segment Operating Earnings 114,989 — 305,774 — Total Segment Operating Earnings $ 1,182,828 $ 593,764 $ 3,179,753 $ 1,605,978 (1) Includes intersegment management fees of $46.7 million and $108.5 million for the three and nine months ended September 30, 2021. (2) Includes intersegment interest expense and income of $10.8 million and $11.9 million for the three and nine months ended September 30, 2021. As of September 30, 2021 September 30, 2020 Segment Assets: - Asset Management $ 31,853,573 $ 25,249,013 - Insurance 164,436,876 — Total Segment Assets $ 196,290,449 $ 25,249,013 Three Months Ended Nine Months Ended Noncash expenses excluded from September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Equity Based Compensation and Other - Asset Management $ 62,510 $ 42,488 $ 188,269 $ 133,424 - Insurance 40,086 — 64,061 — Total Non-cash expenses $ 102,596 $ 42,488 $ 252,330 $ 133,424 Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Total GAAP Revenues $ 4,483,365 $ 1,895,238 $ 12,182,552 $ 2,225,727 Impact of Consolidation and Other 134,524 85,393 392,883 278,898 Asset Management Adjustments: Capital Allocation-Based Income (GAAP) (1,526,667) (1,331,898) (5,736,707) (888,342) Realized Carried Interest 413,114 217,978 1,183,826 924,974 Realized Investment Income 447,565 260,415 1,277,701 495,904 Capstone Fees (25,178) (17,429) (66,286) (55,542) Expense Reimbursements (34,857) (44,553) (122,642) (100,779) Insurance Adjustments: Premiums (974,903) — (1,698,912) — Policy Fees (310,381) — (824,326) — Other Income (31,938) — (82,160) — Investment Gains and Losses (156,909) — 83,153 — Derivative Gains and Losses 53,179 — 47,151 — Total Segment Revenues (1) $ 2,470,914 $ 1,065,144 $ 6,636,233 $ 2,880,840 (1) Total Segment Revenues is comprised of (i) Management Fees, (ii) Transaction and Monitoring Fees, Net, (iii) Fee Related Performance Revenues, (iv) Realized Performance Income, (v) Realized Investment Income, and (vi) Net Investment Income. Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Income (Loss) Before Tax (GAAP) $ 3,660,927 $ 3,333,676 $ 12,621,574 $ 902,473 Impact of Consolidation and Other (1,472,312) (1,203,808) (4,985,859) 196,297 Interest Expense 63,446 54,458 185,100 152,676 Equity-based compensation - KKR Holdings 8,764 21,802 35,734 63,596 Asset Management Adjustments: Unrealized Carried Interest (911,156) (995,376) (3,872,150) 186,537 Net Unrealized Gains (Losses) (598,304) (1,088,901) (2,890,326) 18,049 Unrealized Carried Interest Compensation 397,449 418,728 1,667,447 (57,771) Strategic Corporate Transaction-Related Charges 7,362 10,697 17,497 10,697 Equity-based compensation 44,488 40,801 138,196 128,399 Equity-based compensation - Performance based 18,022 1,687 50,073 5,025 Insurance Adjustments: Net (Gains) Losses from Investments and Derivatives (75,241) — 183,842 — Strategic Corporate Transaction-Related Charges 3,931 — 15,947 — Equity-based and Other Compensation 40,086 — 64,061 — Amortization of Acquired Intangibles 4,412 — 11,765 — Income Taxes (9,046) — (63,148) — Total Segment Operating Earnings $ 1,182,828 $ 593,764 $ 3,179,753 $ 1,605,978 As of September 30, 2021 September 30, 2020 Total GAAP Assets $ 265,799,650 $ 70,655,333 Impact of Consolidation and Other (65,502,921) (43,250,461) Carry Pool Reclassifications (3,562,686) (1,393,381) Other Reclassifications (443,594) (762,478) Total Segment Assets $ 196,290,449 $ 25,249,013 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accelerated share repurchases | The following table presents KKR & Co. Inc. common stock that has been repurchased or equity awards retired under the repurchase program: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Shares of common stock repurchased — — 2,667,995 10,209,673 Equity awards for common stock retired — — 2,366,447 1,728,914 |
Schedule of calculation of noncontrolling interests | The following tables present the calculation of total noncontrolling interests: Three Months Ended September 30, 2021 Noncontrolling Interests in Consolidated Entities and Other Noncontrolling Interests Held by KKR Holdings Total Noncontrolling Interests Balance at the beginning of the period $ 28,402,888 $ 7,935,515 $ 36,338,403 Net income (loss) attributable to noncontrolling interests (1) 1,452,730 670,839 2,123,569 Other comprehensive income (loss), net of tax (2) (54,640) (31,904) (86,544) Exchange of KKR Holdings Units to Common Stock (3) — — — Equity-based and other non-cash compensation 32,255 8,764 41,019 Capital contributions 3,658,497 — 3,658,497 Capital distributions (1,981,504) (49,844) (2,031,348) Changes in consolidation (12,352) — (12,352) Balance at the end of the period $ 31,497,874 $ 8,533,370 $ 40,031,244 Nine Months Ended September 30, 2021 Noncontrolling Interests in Consolidated Entities and Other Noncontrolling Interests Held by KKR Holdings Total Noncontrolling Interests Balance at the beginning of the period $ 20,570,716 $ 6,512,382 $ 27,083,098 Net income (loss) attributable to noncontrolling interests (1) 4,889,401 2,425,961 7,315,362 Other comprehensive income (loss), net of tax (2) (132,351) (77,377) (209,728) Exchange of KKR Holdings Units to Common Stock (3) — (122,065) (122,065) Equity-based and other non-cash compensation 71,993 35,734 107,727 Capital contributions 9,721,024 25 9,721,049 Capital distributions (3,734,474) (241,290) (3,975,764) Impact of Acquisition (4) 190,405 — 190,405 Changes in consolidation (78,840) — (78,840) Balance at the end of the period $ 31,497,874 $ 8,533,370 $ 40,031,244 Three Months Ended September 30, 2020 Noncontrolling Interests in Consolidated Entities and Other Noncontrolling Interests Held by KKR Holdings Total Noncontrolling Interests Balance at the beginning of the period $ 14,217,950 $ 5,221,844 $ 19,439,794 Net income (loss) attributable to noncontrolling interests (1) 1,217,728 691,730 1,909,458 Other comprehensive income (loss), net of tax (2) 2,121 7,121 9,242 Exchange of KKR Holdings Units to Common Stock (3) — (140,794) (140,794) Equity-based and other non-cash compensation — 21,802 21,802 Capital contributions 3,486,352 25 3,486,377 Capital distributions (2,531,637) (85,652) (2,617,289) Transfer of Oil and Gas Interests (See Note 2) — (23,358) (23,358) Changes in consolidation (239,258) — (239,258) Balance at the end of the period $ 16,153,256 $ 5,692,718 $ 21,845,974 Nine Months Ended September 30, 2020 Noncontrolling Interests in Consolidated Entities and Other Noncontrolling Interests Held by KKR Holdings Total Noncontrolling Interests Balance at the beginning of the period $ 13,966,250 $ 5,728,634 $ 19,694,884 Net income (loss) attributable to noncontrolling interests (1) (95,721) 301,946 206,225 Other comprehensive income (loss), net of tax (2) (5,053) 249 (4,804) Exchange of KKR Holdings Units to Common Stock (3) — (221,548) (221,548) Equity-based and other non-cash compensation — 63,596 63,596 Capital contributions 5,796,607 73 5,796,680 Capital distributions (3,247,739) (164,319) (3,412,058) Transfer of interests under common control (5) (21,830) 7,445 (14,385) Transfer of Oil and Gas Interests (See Note 2) — (23,358) (23,358) Changes in consolidation (239,258) — (239,258) Balance at the end of the period $ 16,153,256 $ 5,692,718 $ 21,845,974 (1) Refer to the table below for calculation of net income (loss) attributable to noncontrolling interests held by KKR Holdings. (2) With respect to noncontrolling interests held by KKR Holdings, calculated on a pro rata basis based on the weighted average KKR Group Partnership Units held by KKR Holdings during the reporting period. (3) Calculated based on the proportion of KKR Holdings units exchanged for KKR & Co. Inc. common stock. The exchange agreement with KKR Holdings provides for the exchange of KKR Group Partnership Units held by KKR Holdings for KKR & Co. Inc. common stock. (4) Represents other noncontrolling interests at the GA Acquisition Date. See Note 3. |
Schedule of net income (loss) attributable to noncontrolling interests held by KKR Holdings | The following table presents net income (loss) attributable to noncontrolling interests held by KKR Holdings: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net income (loss) $ 3,281,645 $ 2,974,301 $ 11,459,886 $ 697,513 (-) Net income (loss) attributable to Redeemable Noncontrolling Interests 1,519 — 2,856 — (-) Net income (loss) attributable to Noncontrolling Interests in consolidated entities and other 1,452,730 1,217,728 4,889,401 (95,721) (-) Series A and B Preferred Stock Dividends 7,953 8,341 36,647 25,023 (-) Series C Mandatory Convertible Preferred Stock Dividends 17,250 — 51,750 — (+) Income tax expense (benefit) attributable to KKR & Co. Inc. 311,745 319,717 1,104,628 159,855 Net income (loss) attributable to KKR & Co. Inc. $ 2,113,938 $ 2,067,949 $ 7,583,860 $ 928,066 Net income (loss) attributable to Noncontrolling Interests held by KKR Holdings $ 670,839 $ 691,730 $ 2,425,961 $ 301,946 |
ORGANIZATION - Narrative (Detai
ORGANIZATION - Narrative (Details) - USD ($) $ in Thousands | Feb. 01, 2021 | Aug. 14, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Issuance of Series C Mandatory Convertible Preferred Stock (net of issuance costs) | $ 0 | $ 1,115,792 | ||
Senior Notes Due 2050 | Senior Notes | ||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Issuance of debt | $ 750,000 | |||
Interest rate, stated percentage | 3.50% | |||
Series C Mandatory Convertible Preferred Stock | ||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Issuance of Series C Mandatory Convertible Preferred Stock (net of issuance costs) | $ 1,150,000 | |||
Preferred stock dividend rate (as a percentage) | 6.00% | 6.00% | ||
KKR Group Partnership | ||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Percentage of economic interest held by parent entity | 68.20% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basis of Presentation (Details) - segment | 6 Months Ended | 9 Months Ended |
Jun. 30, 2021 | Sep. 30, 2021 | |
Accounting Policies [Abstract] | ||
Number of reportable segments | 1 | 2 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Principles of Consolidation (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Mar. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment | $ 1,200 | |
KKR Acquisition holdings I Corp. | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment | $ 20 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value Measurement (Details) | 9 Months Ended |
Sep. 30, 2021methodology | |
Fair Value Measurements | |
Number of valuation methodologies used to determine fair value of investments (in methodologies) | 2 |
Maximum | |
Fair Value Measurements | |
Weighting percentage of methodology used to determine fair value of investments (up to 100%) | 100.00% |
Minimum | Illiquidity Discount | |
Fair Value Measurements | |
Private equity, measurement input | 0.05 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Intangible Assets (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Definite lived intangible assets, useful life | 15 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Definite lived intangible assets, useful life | 19 years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fixed Assets, Depreciation and Amortization (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Minimum | Other Fixed Assets | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment | 3 years |
Maximum | Owner Occupied Real Estate | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment | 40 years |
Maximum | Other Fixed Assets | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fees and Commissions [Line Items] | ||||
Total Revenues | $ 4,483,365 | $ 1,895,238 | $ 12,182,552 | $ 2,225,727 |
Asset Management | ||||
Fees and Commissions [Line Items] | ||||
Fees and Other | 718,968 | 563,340 | 1,887,805 | 1,337,385 |
Carried Interest | 1,216,433 | 1,077,932 | 4,553,527 | 626,338 |
General Partner Capital Interest | 310,234 | 253,966 | 1,183,180 | 262,004 |
Total Capital Allocation-Based Income (Loss) | 1,526,667 | 1,331,898 | 5,736,707 | 888,342 |
Total Revenues | 2,245,635 | 1,895,238 | 7,624,512 | 2,225,727 |
Management Fees | Asset Management | ||||
Fees and Commissions [Line Items] | ||||
Fees and Other | 349,249 | 254,467 | 931,624 | 696,892 |
Fee Credits | Asset Management | ||||
Fees and Commissions [Line Items] | ||||
Fees and Other | (164,720) | (89,487) | (322,402) | (185,746) |
Transaction Fees | Asset Management | ||||
Fees and Commissions [Line Items] | ||||
Fees and Other | 437,619 | 300,805 | 978,399 | 561,259 |
Monitoring Fees | Asset Management | ||||
Fees and Commissions [Line Items] | ||||
Fees and Other | 29,823 | 28,824 | 98,164 | 86,875 |
Incentive Fees | Asset Management | ||||
Fees and Commissions [Line Items] | ||||
Fees and Other | 6,962 | 63 | 13,092 | 731 |
Expense Reimbursements | Asset Management | ||||
Fees and Commissions [Line Items] | ||||
Fees and Other | 34,857 | 44,553 | 122,642 | 100,779 |
Oil and Gas Revenue | Asset Management | ||||
Fees and Commissions [Line Items] | ||||
Fees and Other | 0 | 6,687 | 0 | 21,054 |
Consulting Fees | Asset Management | ||||
Fees and Commissions [Line Items] | ||||
Fees and Other | $ 25,178 | $ 17,428 | $ 66,286 | $ 55,541 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Management Fees (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue, Major Customer [Line Items] | |
Incentive fee, payment period | 90 days |
Minimum | |
Revenue, Major Customer [Line Items] | |
Fee Credits as a percentage of monitoring and transaction fees net of fund-related expenses | 80.00% |
Maximum | |
Revenue, Major Customer [Line Items] | |
Fee Credits as a percentage of monitoring and transaction fees net of fund-related expenses | 100.00% |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Compensation and Benefits (Details) | 1 Months Ended | 9 Months Ended |
Feb. 28, 2021 | Sep. 30, 2021 | |
Current Investment Funds For Which No/De Minimis Amounts Of Carried Interest Was Accrued And All Future Funds | ||
Equity Based Payments | ||
Percent allocated to carry pool | 65.00% | |
All Other Funds, Option One | ||
Equity Based Payments | ||
Percent allocated to carry pool | 40.00% | |
All Other Funds, Option Two | ||
Equity Based Payments | ||
Percent allocated to carry pool | 43.00% | |
Minimum | KKR Equity Incentive Plan Awards | ||
Equity Based Payments | ||
Vesting period (in years) | 3 years | |
Maximum | KKR Equity Incentive Plan Awards | ||
Equity Based Payments | ||
Vesting period (in years) | 5 years |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Insurance, Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loan receivables | $ 19,262,522 | $ 19,262,522 | ||
Allowance for credit losses | 369,424 | 369,424 | $ 297,926 | $ 120,259 |
Writeoff of allowance | (2,112) | $ 3,162 | ||
Solar Energy System | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Investment, useful life | 35 years | |||
Aircrafts | Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Investment, useful life | 25 years | |||
Railcars | Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Investment, useful life | 45 years | |||
Real Estate | Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Investment, useful life | 30 years | |||
Financial Asset Acquired with Credit Deterioration | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loan receivables | 3,700,000 | $ 3,700,000 | ||
Allowance for credit losses | $ 120,300 | 120,300 | ||
Writeoff of allowance | $ 183,600 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Policy Liabilities (Details) | 9 Months Ended |
Sep. 30, 2021scenario | |
Policyholder Account Balance [Line Items] | |
Benefit rider payout period | 6 years |
Number of risk neutral scenarios | 1,000 |
Minimum | |
Policyholder Account Balance [Line Items] | |
Rider benefit calculation, account value multiplier | 1 |
Maximum | |
Policyholder Account Balance [Line Items] | |
Rider benefit calculation, account value multiplier | 2 |
ACQUISITION OF GLOBAL ATLANTI_2
ACQUISITION OF GLOBAL ATLANTIC - Additional Information (Details) - Global Atlantic $ in Thousands | Feb. 01, 2021USD ($)licensestate | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2021USD ($) |
Business Acquisition [Line Items] | ||||
Equity interest acquired | 61.10% | 61.50% | ||
Purchase price | $ 4,738,694 | |||
Adjustment to consideration transferred | $ 58,000 | |||
Goodwill | $ 497,053 | |||
Adjustment to distribution agreements | 50,000 | |||
Adjustment to policy liabilities | 63,000 | |||
Adjustment to investments | 25,000 | |||
Adjustment to goodwill | 46,000 | |||
Revenues since acquisition date | $ 2,200,000 | $ 4,500,000 | ||
Net loss since acquisition date | $ 185,800 | $ 239,700 | ||
KKR | ||||
Business Acquisition [Line Items] | ||||
Adjustment to consideration transferred | 55,000 | |||
GA Co-Investors | ||||
Business Acquisition [Line Items] | ||||
Adjustment to consideration transferred | $ 3,000 | |||
Licensing Agreements | ||||
Business Acquisition [Line Items] | ||||
Number of insurance licenses | license | 52 | |||
Number of states encompassing insurance licenses | state | 50 | |||
Minimum | Unlevered Discount Rate | ||||
Business Acquisition [Line Items] | ||||
Policy liabilities, measurement input | 0.11 | |||
Maximum | Unlevered Discount Rate | ||||
Business Acquisition [Line Items] | ||||
Policy liabilities, measurement input | 0.15 |
ACQUISITION OF GLOBAL ATLANTI_3
ACQUISITION OF GLOBAL ATLANTIC - Purchase Price (Details) - Global Atlantic $ in Thousands | Feb. 01, 2021USD ($) |
Business Acquisition [Line Items] | |
Cash consideration paid by KKR | $ 2,914,455 |
GA Co-Investors and GA Rollover Investors | 1,824,239 |
Purchase price | $ 4,738,694 |
ACQUISITION OF GLOBAL ATLANTI_4
ACQUISITION OF GLOBAL ATLANTIC - Assets Acquired, Liabilities Assumed and Resulting Goodwill (Details) - Global Atlantic $ in Thousands | Feb. 01, 2021USD ($) |
Business Acquisition [Line Items] | |
Cash Consideration paid by KKR | $ 2,914,455 |
Settlement of pre-existing relationships | (60,200) |
Total Consideration Transferred | 4,678,494 |
Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: | |
Cash, Cash Equivalents and Restricted Cash | 3,358,772 |
Investments | 99,544,755 |
Reinsurance Recoverable | 15,753,030 |
Insurance Intangible Assets | 1,024,520 |
Other Assets(3) | 3,325,652 |
Separate Account Assets | 5,371,060 |
Policy Liabilities | (100,374,765) |
Debt Obligations | (1,450,920) |
Funds Withheld Payable at Interest | (13,800,969) |
Accrued Expenses and Other Liabilities | (2,735,811) |
Reinsurance Liabilities | (180,573) |
Separate Account Liabilities | (5,371,060) |
Total Identifiable Net Assets | 4,463,691 |
Goodwill | 497,053 |
Deferred tax assets | 1,000,000 |
GA Co-Investors | |
Business Acquisition [Line Items] | |
Cash Consideration paid by KKR | 978,296 |
GA Rollover Investors | |
Business Acquisition [Line Items] | |
Cash Consideration paid by KKR | 845,943 |
Redeemable Noncontrolling Interest | |
Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: | |
Redeemable non-controlling interests | (91,845) |
Other Non-controlling interests | |
Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: | |
Other Noncontrolling interests | $ (190,405) |
ACQUISITION OF GLOBAL ATLANTI_5
ACQUISITION OF GLOBAL ATLANTIC - Intangible Assets Acquired (Details) - Global Atlantic - USD ($) $ in Thousands | Feb. 01, 2021 | Sep. 30, 2021 | Sep. 30, 2021 |
Business Acquisition [Line Items] | |||
Finite-lived intangible liabilities | $ (1,273,414) | ||
Finite-lived intangible assets (liabilities) | (248,894) | ||
State Insurance Licenses | 10,000 | ||
Total Identifiable Other Intangible Assets (included within Other Assets) | $ 310,000 | ||
Average Useful Life | 22 years 2 months 12 days | ||
Revenues since acquisition date | $ 2,200,000 | $ 4,500,000 | |
VOBA | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 1,024,520 | ||
Average Useful Life | 28 years 7 months 6 days | ||
VODA | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 250,000 | ||
VODA | Minimum | |||
Business Acquisition [Line Items] | |||
Average Useful Life | 16 years | ||
VODA | Maximum | |||
Business Acquisition [Line Items] | |||
Average Useful Life | 21 years | ||
Trade Names | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 50,000 | ||
Trade Names | Minimum | |||
Business Acquisition [Line Items] | |||
Average Useful Life | 15 years | ||
Trade Names | Maximum | |||
Business Acquisition [Line Items] | |||
Average Useful Life | 18 years |
ACQUISITION OF GLOBAL ATLANTI_6
ACQUISITION OF GLOBAL ATLANTIC - Pro Forma Financial Information (Details) - Global Atlantic - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Business Acquisition [Line Items] | ||||
Total Revenues | $ 4,483,365 | $ 3,275,305 | $ 12,696,730 | $ 5,606,280 |
Net Income Attributable to KKR & Co. Inc. Common Stockholders | $ 1,131,354 | $ 1,102,762 | $ 4,147,132 | $ 601,752 |
NET GAINS (LOSSES) FROM INVES_3
NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES - ASSET MANAGEMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Gain (Loss) on Securities [Line Items] | ||||
Net Realized Gains (Losses) | $ 609,631 | $ 548,567 | $ 1,532,956 | $ 281,378 |
Net Unrealized Gains (Losses) | 1,507,016 | 1,736,035 | 6,499,944 | (460,411) |
Total | 2,116,647 | 2,284,602 | 8,032,900 | (179,033) |
Private Equity | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net Realized Gains (Losses) | 296,410 | 660,216 | 1,322,179 | 721,009 |
Net Unrealized Gains (Losses) | 647,448 | 930,918 | 3,479,827 | 735,245 |
Total | 943,858 | 1,591,134 | 4,802,006 | 1,456,254 |
Credit | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net Realized Gains (Losses) | 74,945 | (70,391) | 130,191 | (118,851) |
Net Unrealized Gains (Losses) | (117,354) | 385,850 | (11,864) | (422,537) |
Total | (42,409) | 315,459 | 118,327 | (541,388) |
Investments of Consolidated CFEs | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net Realized Gains (Losses) | 23,198 | (33,373) | 44,954 | (127,175) |
Net Unrealized Gains (Losses) | (15,013) | 425,660 | 173,775 | (424,918) |
Total | 8,185 | 392,287 | 218,729 | (552,093) |
Real Assets | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net Realized Gains (Losses) | 61,807 | (22,040) | 148,581 | 36,027 |
Net Unrealized Gains (Losses) | 575,891 | 273,639 | 1,243,725 | (257,589) |
Total | 637,698 | 251,599 | 1,392,306 | (221,562) |
Equity Method - Other | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net Realized Gains (Losses) | 311,420 | (20,899) | 410,491 | (166,178) |
Net Unrealized Gains (Losses) | (137,281) | 456,563 | 305,085 | 410,371 |
Total | 174,139 | 435,664 | 715,576 | 244,193 |
Other Investments | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net Realized Gains (Losses) | (118,844) | (13,630) | (354,349) | (267,166) |
Net Unrealized Gains (Losses) | 199,961 | 71,438 | 908,906 | (330,621) |
Total | 81,117 | 57,808 | 554,557 | (597,787) |
Foreign Exchange Forward Contracts and Options | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net Realized Gains (Losses) | (2,777) | 15,281 | (29,727) | 134,427 |
Net Unrealized Gains (Losses) | 323,916 | (295,687) | 282,030 | (196,095) |
Total | 321,139 | (280,406) | 252,303 | (61,668) |
Securities Sold Short | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net Realized Gains (Losses) | (21,031) | 34,461 | 36,517 | 60,502 |
Net Unrealized Gains (Losses) | 2,579 | (119,780) | 21,313 | (168,220) |
Total | (18,452) | (85,319) | 57,830 | (107,718) |
Other Derivatives | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net Realized Gains (Losses) | (17,687) | (10,291) | (125,376) | (9,481) |
Net Unrealized Gains (Losses) | 6,577 | (46,522) | 83,805 | (91,044) |
Total | (11,110) | (56,813) | (41,571) | (100,525) |
Debt Obligations and Other | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net Realized Gains (Losses) | 2,190 | 9,233 | (50,505) | 18,264 |
Net Unrealized Gains (Losses) | 20,292 | (346,044) | 13,342 | 284,997 |
Total | $ 22,482 | $ (336,811) | $ (37,163) | $ 303,261 |
NET INVESTMENT INCOME - INSUR_3
NET INVESTMENT INCOME - INSURANCE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Net Investment Income [Line Items] | ||
Gross investment income | $ 895,137 | $ 2,229,596 |
Net Investment Income | 758,381 | 1,919,659 |
Investment management and administration | ||
Net Investment Income [Line Items] | ||
Investment expenses | 88,789 | 190,458 |
Transportation and renewable energy asset depreciation and maintenance | ||
Net Investment Income [Line Items] | ||
Investment expenses | 47,331 | 117,749 |
Derivative Collateral And Repurchase Agreements | ||
Net Investment Income [Line Items] | ||
Investment expenses | 636 | 1,730 |
Fixed maturity securities – interest and other income | ||
Net Investment Income [Line Items] | ||
Gross investment income | 632,314 | 1,512,377 |
Mortgage and other loan receivables | ||
Net Investment Income [Line Items] | ||
Gross investment income | 247,917 | 617,334 |
Investments in transportation and other leased assets | ||
Net Investment Income [Line Items] | ||
Gross investment income | 56,317 | 146,004 |
Short-term and other investment income | ||
Net Investment Income [Line Items] | ||
Gross investment income | 23,285 | 41,349 |
Policy loans | ||
Net Investment Income [Line Items] | ||
Gross investment income | 3,203 | 22,138 |
Investments in real estate | ||
Net Investment Income [Line Items] | ||
Gross investment income | 4,501 | 10,028 |
Investments in renewable energy | ||
Net Investment Income [Line Items] | ||
Gross investment income | 62,468 | 96,400 |
Equity securities – dividends and other income | ||
Net Investment Income [Line Items] | ||
Gross investment income | 764 | 23 |
Income from (to) funds withheld at interest | ||
Net Investment Income [Line Items] | ||
Gross investment income | $ (135,632) | $ (216,057) |
NET INVESTMENT GAINS (LOSSES)_3
NET INVESTMENT GAINS (LOSSES) - INSURANCE - Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net Investment Income [Line Items] | ||||
Allowance for credit losses on mortgage and other loan receivables | $ (69,386) | $ (250,690) | ||
Total | 2,116,647 | $ 2,284,602 | 8,032,900 | $ (179,033) |
Insurance | ||||
Net Investment Income [Line Items] | ||||
Equity securities and other investments | 359,101 | 431,728 | ||
Derivatives | 40,792 | 70,098 | ||
Trading fixed maturity securities | (141,683) | (197,047) | ||
Allowance for credit losses on mortgage and other loan receivables | (69,386) | (250,690) | ||
AFS fixed maturity securities | (15,231) | (88,233) | ||
Allowance for losses on AFS fixed maturity securities | (3,809) | 21,287 | ||
Allowance for loan commitment losses provision | (3,677) | (15,372) | ||
Mortgage and other loans receivables | (2,905) | 15,527 | ||
Funds withheld receivable at interest | (1,075) | 45,685 | ||
Total | $ 162,127 | $ 0 | $ 32,983 | $ 0 |
NET INVESTMENT GAINS (LOSSES)_4
NET INVESTMENT GAINS (LOSSES) - INSURANCE - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance, as of beginning of period | $ 91,646 | $ 120,895 |
Initial impairments for credit losses recognized on securities not previously impaired | 19,921 | 47,530 |
Initial credit loss allowance recognized on PCD securities | 1,576 | 7,204 |
Accretion of initial credit loss allowance on PCD securities | 1,879 | 2,200 |
Reductions due to sales (or maturities, pay downs or prepayments) during the period of securities previously identified as credit impaired | (2,510) | (12,612) |
Net additions / reductions for securities previously impaired | (16,112) | (68,817) |
Balance, as of end of period | 96,400 | 96,400 |
Corporate | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance, as of beginning of period | 0 | 0 |
Initial impairments for credit losses recognized on securities not previously impaired | 0 | 0 |
Initial credit loss allowance recognized on PCD securities | 0 | 0 |
Accretion of initial credit loss allowance on PCD securities | 0 | 0 |
Reductions due to sales (or maturities, pay downs or prepayments) during the period of securities previously identified as credit impaired | 0 | 0 |
Net additions / reductions for securities previously impaired | 0 | 0 |
Balance, as of end of period | 0 | 0 |
Structured | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Balance, as of beginning of period | 91,646 | 120,895 |
Initial impairments for credit losses recognized on securities not previously impaired | 19,921 | 47,530 |
Initial credit loss allowance recognized on PCD securities | 1,576 | 7,204 |
Accretion of initial credit loss allowance on PCD securities | 1,879 | 2,200 |
Reductions due to sales (or maturities, pay downs or prepayments) during the period of securities previously identified as credit impaired | (2,510) | (12,612) |
Net additions / reductions for securities previously impaired | (16,112) | (68,817) |
Balance, as of end of period | $ 96,400 | $ 96,400 |
NET INVESTMENT GAINS (LOSSES)_5
NET INVESTMENT GAINS (LOSSES) - INSURANCE - Allowance for Credit Losses, Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 297,926 | $ 120,259 |
Net provision (release) | 69,386 | 250,690 |
Loans purchased with credit deterioration | 0 | 1,637 |
Charge-offs | 2,112 | (3,162) |
Balance, end of period | 369,424 | 369,424 |
Commercial mortgage loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 58,255 | 58,203 |
Net provision (release) | 17,750 | 17,802 |
Loans purchased with credit deterioration | 0 | 0 |
Charge-offs | 0 | 0 |
Balance, end of period | 76,005 | 76,005 |
Residential mortgage loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 76,536 | 62,056 |
Net provision (release) | (2,793) | 10,888 |
Loans purchased with credit deterioration | 0 | 799 |
Charge-offs | (3,162) | (3,162) |
Balance, end of period | 70,581 | 70,581 |
Consumer and other loan receivables | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 163,135 | 0 |
Net provision (release) | 54,429 | 222,000 |
Loans purchased with credit deterioration | 0 | 838 |
Charge-offs | 5,274 | 0 |
Balance, end of period | $ 222,838 | $ 222,838 |
NET INVESTMENT GAINS (LOSSES)_6
NET INVESTMENT GAINS (LOSSES) - INSURANCE - Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
AFS fixed maturity securities: | ||
Proceeds from voluntary sales | $ 7,440,645 | $ 12,766,887 |
Gross gains | 16,816 | 38,061 |
Gross losses | $ (30,086) | $ (103,190) |
INVESTMENTS - Summary of Invest
INVESTMENTS - Summary of Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Investments [Line Items] | |||
Total investments | $ 211,123,140 | $ 69,274,715 | |
Amortized cost, available-for-sale securities | 68,126,771 | ||
Allowance for credit losses | 96,400 | $ 91,646 | 120,895 |
Asset Management | |||
Schedule of Investments [Line Items] | |||
Total investments | 89,908,570 | 69,274,715 | |
Insurance | |||
Schedule of Investments [Line Items] | |||
Total investments | 121,214,570 | 0 | |
Private Equity | Asset Management | |||
Schedule of Investments [Line Items] | |||
Total investments | 25,568,516 | 20,470,123 | |
Credit | Asset Management | |||
Schedule of Investments [Line Items] | |||
Total investments | 12,448,414 | 11,203,905 | |
Investments of Consolidated CFEs | Asset Management | |||
Schedule of Investments [Line Items] | |||
Total investments | 20,696,676 | 17,706,976 | |
Real Assets | Asset Management | |||
Schedule of Investments [Line Items] | |||
Total investments | 11,684,296 | 6,096,618 | |
Equity Method - Other | Asset Management | |||
Schedule of Investments [Line Items] | |||
Total investments | 4,573,679 | 4,471,441 | |
Equity Method - Capital Allocation-Based Income | Asset Management | |||
Schedule of Investments [Line Items] | |||
Total investments | 11,091,844 | 6,460,430 | |
Other investments | Asset Management | |||
Schedule of Investments [Line Items] | |||
Total investments | 3,845,145 | 2,865,222 | |
Other investments | Insurance | |||
Schedule of Investments [Line Items] | |||
Total investments | 7,627,490 | 0 | |
Fixed maturity securities, available-for-sale, at fair value | Insurance | |||
Schedule of Investments [Line Items] | |||
Total investments | 67,689,846 | 0 | |
Amortized cost, available-for-sale securities | 68,100,000 | ||
Allowance for credit losses | 96,400 | ||
Mortgage and other loan receivables | Insurance | |||
Schedule of Investments [Line Items] | |||
Total investments | 25,367,116 | 0 | |
Fixed maturity securities, trading, at fair value | Insurance | |||
Schedule of Investments [Line Items] | |||
Total investments | 16,660,328 | 0 | |
Amortized cost, trading securities | 16,800,000 | ||
Income from (to) funds withheld at interest | Insurance | |||
Schedule of Investments [Line Items] | |||
Total investments | 3,066,481 | 0 | |
Policy loans | Insurance | |||
Schedule of Investments [Line Items] | |||
Total investments | 765,931 | 0 | |
Equity securities at fair value | Insurance | |||
Schedule of Investments [Line Items] | |||
Total investments | $ 37,378 | $ 0 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) $ in Thousands | Sep. 30, 2021USD ($)security | Dec. 31, 2020 |
Schedule of Investments [Line Items] | ||
Gross unrealized losses on AFS fixed maturity securities | $ 886,958 | |
Securities in unrealized loss position | security | 4,210 | |
Mortgage loans 90 days past due or in process of foreclosure | $ 197,700 | |
Loans that were delinquent more than 120 days or in default | 4,000 | |
Equity method investment | 1,200,000 | |
Equity method investment, maximum exposure to loss | 22,700 | |
Investment in common stock | 7,627,490 | |
FABN outstanding | 2,900,000 | |
FABN remaining capacity | 7,100,000 | |
Repurchase agreements, notional value | 317,900 | |
Repurchase agreements, fair value | 329,963 | |
Repurchase agreements, amortized cost | 331,400 | |
State And Governmental Authorities | ||
Schedule of Investments [Line Items] | ||
Investment in common stock | 183,600 | |
Investments, amortized cost | 180,500 | |
Investment, Fair Value Option | ||
Schedule of Investments [Line Items] | ||
Investment in common stock | 476,800 | |
Mortgage loans | ||
Schedule of Investments [Line Items] | ||
Mortgage loans, non-income producing | $ 197,700 | |
Loans granted forbearance due to COVID-19 | 1.00% | |
Consumer loans | ||
Schedule of Investments [Line Items] | ||
Loans granted forbearance due to COVID-19 | 1.00% | |
Residential mortgage loans | ||
Schedule of Investments [Line Items] | ||
Weighted average loan-to-value ratio | 73.00% | |
Below Investment Grade | ||
Schedule of Investments [Line Items] | ||
Gross unrealized losses on AFS fixed maturity securities | $ 5,800 | |
Gross unrealized losses on AFS fixed maturity securities, single largest loss | $ 6,500 | |
Investments | Investment Concentration Risk | ||
Schedule of Investments [Line Items] | ||
Threshold percentage of total investments (greater than) | 5.00% | 5.00% |
INVESTMENTS - AFS Fixed Maturit
INVESTMENTS - AFS Fixed Maturity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | |||
Cost or amortized cost | $ 68,223,171 | ||
Allowance for Credit Losses | (96,400) | $ (91,646) | $ (120,895) |
Gross unrealized gains | 450,033 | ||
Gross unrealized losses | (886,958) | ||
Fair value | 67,689,846 | ||
U.S. government and agencies | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost or amortized cost | 1,030,859 | ||
Allowance for Credit Losses | 0 | ||
Gross unrealized gains | 14 | ||
Gross unrealized losses | (11,860) | ||
Fair value | 1,019,013 | ||
U.S. state, municipal and political subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost or amortized cost | 5,136,682 | ||
Allowance for Credit Losses | 0 | ||
Gross unrealized gains | 29,493 | ||
Gross unrealized losses | (61,090) | ||
Fair value | 5,105,085 | ||
Corporate | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost or amortized cost | 41,280,338 | ||
Allowance for Credit Losses | 0 | $ 0 | $ 0 |
Gross unrealized gains | 205,390 | ||
Gross unrealized losses | (689,688) | ||
Fair value | 40,796,040 | ||
RMBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost or amortized cost | 8,074,429 | ||
Allowance for Credit Losses | (71,565) | ||
Gross unrealized gains | 146,277 | ||
Gross unrealized losses | (70,457) | ||
Fair value | 8,078,684 | ||
CMBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost or amortized cost | 3,981,119 | ||
Allowance for Credit Losses | 0 | ||
Gross unrealized gains | 28,830 | ||
Gross unrealized losses | (16,578) | ||
Fair value | 3,993,371 | ||
CBOs | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost or amortized cost | 3,171,138 | ||
Allowance for Credit Losses | (17,187) | ||
Gross unrealized gains | 9,711 | ||
Gross unrealized losses | (17,132) | ||
Fair value | 3,146,530 | ||
CLOs | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost or amortized cost | 3,024,860 | ||
Allowance for Credit Losses | (665) | ||
Gross unrealized gains | 8,845 | ||
Gross unrealized losses | (2,468) | ||
Fair value | 3,030,572 | ||
All other structured securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost or amortized cost | 2,523,746 | ||
Allowance for Credit Losses | (6,983) | ||
Gross unrealized gains | 21,473 | ||
Gross unrealized losses | (17,685) | ||
Fair value | $ 2,520,551 |
INVESTMENTS - Maturity Distribu
INVESTMENTS - Maturity Distribution for AFS Fixed Maturity Securities (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Cost or amortized cost (net of allowance) | |
Due in one year or less | $ 829,405 |
Due after one year through five years | 9,801,829 |
Due after five years through ten years | 11,800,470 |
Due after ten years | 25,016,175 |
Subtotal | 47,447,879 |
Cost or amortized cost | 68,126,771 |
Fair value | |
Due in one year or less | 824,765 |
Due after one year through five years | 9,766,497 |
Due after five years through ten years | 11,704,970 |
Due after ten years | 24,623,906 |
Subtotal | 46,920,138 |
Fair value | 67,689,846 |
RMBS | |
Cost or amortized cost (net of allowance) | |
Without single maturity date | 8,002,864 |
Fair value | |
Without single maturity date | 8,078,684 |
Fair value | 8,078,684 |
CMBS | |
Cost or amortized cost (net of allowance) | |
Without single maturity date | 3,981,119 |
Fair value | |
Without single maturity date | 3,993,371 |
Fair value | 3,993,371 |
CBOs | |
Cost or amortized cost (net of allowance) | |
Without single maturity date | 3,153,951 |
Fair value | |
Without single maturity date | 3,146,530 |
Fair value | 3,146,530 |
CLOs | |
Cost or amortized cost (net of allowance) | |
Without single maturity date | 3,024,195 |
Fair value | |
Without single maturity date | 3,030,572 |
Fair value | 3,030,572 |
All other structured securities | |
Cost or amortized cost (net of allowance) | |
Without single maturity date | 2,516,763 |
Fair value | |
Without single maturity date | 2,520,551 |
Fair value | $ 2,520,551 |
INVESTMENTS - Purchased Credit
INVESTMENTS - Purchased Credit Deteriorated Securities (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Equity Method Investments and Joint Ventures [Abstract] | |
Purchase price of PCD securities acquired during the current period | $ 1,726,900 |
Allowance for credit losses at acquisition | 128,099 |
Discount (premium) attributable to other factors | 308,053 |
Par value | $ 2,163,052 |
INVESTMENTS - AFS in Continuous
INVESTMENTS - AFS in Continuous Unrealized Loss Position (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Less than 12 months, Fair value | $ 43,436,850 |
Less than 12 months, Unrealized losses | (886,958) |
12 months or more, Fair value | 0 |
12 months or more, Unrealized losses | 0 |
Total, Fair value | 43,436,850 |
Total, Unrealized losses | (886,958) |
U.S. government and agencies | |
Debt Securities, Available-for-sale [Line Items] | |
Less than 12 months, Fair value | 982,449 |
Less than 12 months, Unrealized losses | (11,860) |
12 months or more, Fair value | 0 |
12 months or more, Unrealized losses | 0 |
Total, Fair value | 982,449 |
Total, Unrealized losses | (11,860) |
U.S. state, municipal and political subdivisions | |
Debt Securities, Available-for-sale [Line Items] | |
Less than 12 months, Fair value | 3,212,070 |
Less than 12 months, Unrealized losses | (61,090) |
12 months or more, Fair value | 0 |
12 months or more, Unrealized losses | 0 |
Total, Fair value | 3,212,070 |
Total, Unrealized losses | (61,090) |
Corporate | |
Debt Securities, Available-for-sale [Line Items] | |
Less than 12 months, Fair value | 31,334,306 |
Less than 12 months, Unrealized losses | (689,688) |
12 months or more, Fair value | 0 |
12 months or more, Unrealized losses | 0 |
Total, Fair value | 31,334,306 |
Total, Unrealized losses | (689,688) |
RMBS | |
Debt Securities, Available-for-sale [Line Items] | |
Less than 12 months, Fair value | 2,612,695 |
Less than 12 months, Unrealized losses | (70,457) |
12 months or more, Fair value | 0 |
12 months or more, Unrealized losses | 0 |
Total, Fair value | 2,612,695 |
Total, Unrealized losses | (70,457) |
CBOs | |
Debt Securities, Available-for-sale [Line Items] | |
Less than 12 months, Fair value | 1,421,081 |
Less than 12 months, Unrealized losses | (17,132) |
12 months or more, Fair value | 0 |
12 months or more, Unrealized losses | 0 |
Total, Fair value | 1,421,081 |
Total, Unrealized losses | (17,132) |
CMBS | |
Debt Securities, Available-for-sale [Line Items] | |
Less than 12 months, Fair value | 1,912,047 |
Less than 12 months, Unrealized losses | (16,578) |
12 months or more, Fair value | 0 |
12 months or more, Unrealized losses | 0 |
Total, Fair value | 1,912,047 |
Total, Unrealized losses | (16,578) |
CLOs | |
Debt Securities, Available-for-sale [Line Items] | |
Less than 12 months, Fair value | 680,755 |
Less than 12 months, Unrealized losses | (2,468) |
12 months or more, Fair value | 0 |
12 months or more, Unrealized losses | 0 |
Total, Fair value | 680,755 |
Total, Unrealized losses | (2,468) |
All other structured securities | |
Debt Securities, Available-for-sale [Line Items] | |
Less than 12 months, Fair value | 1,281,447 |
Less than 12 months, Unrealized losses | (17,685) |
12 months or more, Fair value | 0 |
12 months or more, Unrealized losses | 0 |
Total, Fair value | 1,281,447 |
Total, Unrealized losses | $ (17,685) |
INVESTMENTS - Mortgage and Othe
INVESTMENTS - Mortgage and Other Loans Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage and other loan receivables | $ 19,262,522 | ||
Allowance for credit losses | (369,424) | $ (297,926) | $ (120,259) |
Commercial mortgage loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage and other loan receivables | 11,901,653 | ||
Commercial mortgage loan, fair value option | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage and other loan receivables | 840,400 | ||
Total mortgage and other loan receivables, net of allowance for loan losses | 820,600 | ||
Residential mortgage loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage and other loan receivables | 7,360,869 | ||
Consumer loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage and other loan receivables | 5,284,524 | ||
Other loan receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage and other loan receivables | 1,189,494 | ||
Renewable energy loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage and other loan receivables | 559,300 | ||
Related party loans, fair value option | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage and other loan receivables | 448,100 | ||
Total mortgage and other loan receivables, net of allowance for loan losses | 448,100 | ||
Mortgage and other loan receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage and other loan receivables | 25,736,540 | ||
Allowance for credit losses | (369,424) | ||
Total mortgage and other loan receivables, net of allowance for loan losses | $ 25,367,116 |
INVESTMENTS - Maturity of Resid
INVESTMENTS - Maturity of Residential and Commercial Loans (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Remainder of 2021 | $ 463,617 |
2022 | 1,581,247 |
2023 | 1,426,000 |
2024 | 2,101,747 |
2025 | 986,113 |
2026 | 2,622,976 |
2027 and thereafter | 10,080,822 |
Total | 19,262,522 |
Residential | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Remainder of 2021 | 94,988 |
2022 | 528,800 |
2023 | 233,336 |
2024 | 500,069 |
2025 | 17,776 |
2026 | 373,710 |
2027 and thereafter | 5,612,190 |
Total | 7,360,869 |
Commercial | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Remainder of 2021 | 368,629 |
2022 | 1,052,447 |
2023 | 1,192,664 |
2024 | 1,601,678 |
2025 | 968,337 |
2026 | 2,249,266 |
2027 and thereafter | 4,468,632 |
Total | $ 11,901,653 |
INVESTMENTS - Mortgage Loan Por
INVESTMENTS - Mortgage Loan Portfolio (Details) - Mortgage loans $ in Thousands | Sep. 30, 2021USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | $ 19,262,522 |
Residential | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | 7,360,869 |
Office building | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | 3,778,950 |
Apartment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | 4,922,659 |
Industrial | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | 1,825,749 |
Retail | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | 837,294 |
Other property types | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | 336,116 |
Warehouse | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | 200,885 |
Pacific | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | 5,624,981 |
West South Central | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | 2,506,058 |
South Atlantic | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | 4,302,812 |
Middle Atlantic | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | 2,630,050 |
East North Central | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | 526,895 |
Mountain | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | 1,585,458 |
New England | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | 795,352 |
East South Central | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | 920,981 |
West North Central | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | 336,134 |
Other regions | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Mortgage loans | $ 33,801 |
INVESTMENTS - PCD Loans (Detail
INVESTMENTS - PCD Loans (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Equity Method Investments and Joint Ventures [Abstract] | |
Purchase price of PCD loans acquired during the current period | $ 4,231,426 |
Allowance for credit losses at acquisition | 121,895 |
Discount (premium) attributable to other factors | (136,174) |
Par value | $ 4,217,147 |
INVESTMENTS - Receivables By Cr
INVESTMENTS - Receivables By Credit Quality Indicator (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | $ 7,238,993 |
2020 | 2,623,089 |
2019 | 2,511,225 |
2018 | 1,813,023 |
2017 | 984,066 |
Prior | 4,092,126 |
Total | 19,262,522 |
Commercial mortgage loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 4,386,351 |
2020 | 1,124,617 |
2019 | 1,938,622 |
2018 | 1,535,710 |
2017 | 914,729 |
Prior | 2,001,624 |
Total | 11,901,653 |
Commercial mortgage loans | Current | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 4,386,351 |
2020 | 1,124,617 |
2019 | 1,938,622 |
2018 | 1,535,710 |
2017 | 914,729 |
Prior | 2,001,624 |
Total | 11,901,653 |
Commercial mortgage loans | 30 to 59 days past due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 0 |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
Prior | 0 |
Total | 0 |
Commercial mortgage loans | 60 to 89 days past due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 0 |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
Prior | 0 |
Total | 0 |
Commercial mortgage loans | Over 90 days past due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 0 |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
Prior | 0 |
Total | 0 |
Residential mortgage loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 2,852,642 |
2020 | 1,498,472 |
2019 | 572,603 |
2018 | 277,313 |
2017 | 69,337 |
Prior | 2,090,502 |
Total | 7,360,869 |
Residential mortgage loans | Current | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 2,835,053 |
2020 | 1,485,965 |
2019 | 552,473 |
2018 | 275,733 |
2017 | 68,705 |
Prior | 1,809,831 |
Total | 7,027,760 |
Residential mortgage loans | 30 to 59 days past due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 17,589 |
2020 | 3,722 |
2019 | 8,439 |
2018 | 118 |
2017 | 632 |
Prior | 76,456 |
Total | 106,956 |
Residential mortgage loans | 60 to 89 days past due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 0 |
2020 | 96 |
2019 | 1,025 |
2018 | 0 |
2017 | 0 |
Prior | 27,322 |
Total | 28,443 |
Residential mortgage loans | Over 90 days past due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 0 |
2020 | 8,689 |
2019 | 10,666 |
2018 | 1,462 |
2017 | 0 |
Prior | 176,893 |
Total | 197,710 |
Consumer loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | 5,284,524 |
Consumer loans | Current | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | 5,237,492 |
Consumer loans | 30 to 59 days past due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | 25,894 |
Consumer loans | 60 to 89 days past due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | 12,683 |
Consumer loans | Over 90 days past due | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Total | $ 8,455 |
INVESTMENTS - Loan-To-Value (De
INVESTMENTS - Loan-To-Value (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | $ 7,238,993 |
2020 | 2,623,089 |
2019 | 2,511,225 |
2018 | 1,813,023 |
2017 | 984,066 |
Total | 19,262,522 |
Commercial mortgage loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 4,386,351 |
2020 | 1,124,617 |
2019 | 1,938,622 |
2018 | 1,535,710 |
2017 | 914,729 |
2016 | 432,744 |
Prior | 1,568,880 |
Total | 11,901,653 |
Carrying value loan-to-value 70% and less | Commercial mortgage loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 3,138,534 |
2020 | 959,254 |
2019 | 1,801,925 |
2018 | 1,468,119 |
2017 | 850,772 |
2016 | 430,192 |
Prior | 1,553,614 |
Total | 10,202,410 |
Carrying value loan-to-value 71% - 90% | Commercial mortgage loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 1,247,817 |
2020 | 130,440 |
2019 | 136,697 |
2018 | 67,591 |
2017 | 63,957 |
2016 | 2,552 |
Prior | 15,266 |
Total | 1,664,320 |
Carrying value loan-to-value over 90% | Commercial mortgage loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2021 | 0 |
2020 | 34,923 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Total | $ 34,923 |
INVESTMENTS - Other Investments
INVESTMENTS - Other Investments (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Schedule of Investments [Line Items] | |
Investment in common stock | $ 7,627,490 |
Investments in renewable energy | |
Schedule of Investments [Line Items] | |
Investment in common stock | 3,976,960 |
Accumulated depreciation | 140,300 |
Investments in renewable energy | Affiliated Entity | |
Schedule of Investments [Line Items] | |
Investment in common stock | 335,000 |
Investments in transportation and other leased assets | |
Schedule of Investments [Line Items] | |
Investment in common stock | 2,205,946 |
Accumulated depreciation | 74,800 |
Other investment partnerships | |
Schedule of Investments [Line Items] | |
Investment in common stock | 189,720 |
Investments in real estate | |
Schedule of Investments [Line Items] | |
Investment in common stock | 1,089,912 |
FHLB common stock and other investments | |
Schedule of Investments [Line Items] | |
Investment in common stock | $ 164,952 |
INVESTMENTS - FHLB (Details)
INVESTMENTS - FHLB (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Schedule of Investments [Line Items] | |
Investment in common stock | $ 7,627,490 |
Investment in FHLB | |
Schedule of Investments [Line Items] | |
Investment in common stock | 131,910 |
Funding agreements issued to FHLB member banks | 2,571,298 |
Collateral | 4,102,911 |
FHLB Indianapolis | Investment in FHLB | |
Schedule of Investments [Line Items] | |
Investment in common stock | 74,790 |
Funding agreements issued to FHLB member banks | 1,623,147 |
Collateral | 2,520,502 |
FHLB Des Moines | Investment in FHLB | |
Schedule of Investments [Line Items] | |
Investment in common stock | 34,600 |
Funding agreements issued to FHLB member banks | 620,293 |
Collateral | 1,025,735 |
FHLB Boston | Investment in FHLB | |
Schedule of Investments [Line Items] | |
Investment in common stock | 22,520 |
Funding agreements issued to FHLB member banks | 327,858 |
Collateral | $ 556,674 |
INVESTMENTS - Repurchase Agreem
INVESTMENTS - Repurchase Agreements (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Schedule of Investments [Line Items] | |
Total | $ 329,963 |
Corporate Securities | |
Schedule of Investments [Line Items] | |
Total | 329,963 |
Overnight | |
Schedule of Investments [Line Items] | |
Total | 0 |
Overnight | Corporate Securities | |
Schedule of Investments [Line Items] | |
Total | 0 |
Less than 30 days | |
Schedule of Investments [Line Items] | |
Total | 0 |
Less than 30 days | Corporate Securities | |
Schedule of Investments [Line Items] | |
Total | 0 |
30 - 90 Days | |
Schedule of Investments [Line Items] | |
Total | 0 |
30 - 90 Days | Corporate Securities | |
Schedule of Investments [Line Items] | |
Total | 0 |
Greater than 90 days | |
Schedule of Investments [Line Items] | |
Total | 329,963 |
Greater than 90 days | Corporate Securities | |
Schedule of Investments [Line Items] | |
Total | $ 329,963 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Restricted cash held with open derivative transactions with exchange brokers | $ 196,000 | $ 196,000 |
Interest Rate Swap | Debt And Lease Obligation | Global Atlantic Senior Notes Due 2029 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying value of derivative liability | 476,200 | 476,200 |
Interest Rate Swap | Debt And Lease Obligation | Global Atlantic Senior Notes due 2031 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying value of derivative liability | 646,000 | 646,000 |
Interest Rate Swap | Policy loans | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying value of derivative liability | 1,100,000 | 1,100,000 |
Interest Rate Swap | Interest Expense | Global Atlantic Senior Notes Due 2029 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value hedge adjustment | (16,400) | (16,400) |
Gain (loss) on derivative | 4,000 | 16,400 |
Interest Rate Swap | Interest Expense | Global Atlantic Senior Notes due 2031 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value hedge adjustment | (4,000) | (4,000) |
Gain (loss) on derivative | 7,000 | 4,000 |
Interest Rate Swap | Policy Benefits and Claims | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value hedge adjustment | (6,000) | (6,000) |
Gain (loss) on derivative | (1,300) | 6,000 |
Bond Forward | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cumulative gain on derivative | 2,100 | |
Securities purchased | 1,600,000 | |
Foreign Exchange Future | Gain (Loss) on Investments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (loss) on derivative | (12,100) | (13,800) |
Foreign Exchange Contracts and Options | Gain (Loss) on Investments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (loss) on derivative | (766) | (399) |
Amortized to net investment gains | $ 593 | $ 1,200 |
DERIVATIVES - Derivative Assets
DERIVATIVES - Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative assets | ||
Fair value derivative assets, including embedded derivative | $ 1,628,122 | $ 258,237 |
Derivative liabilities | ||
Fair value derivative liabilities, including embedded derivative | 2,763,269 | 678,678 |
Asset Management | ||
Derivative assets | ||
Gross amount recognized | 429,676 | 258,237 |
Derivative liabilities | ||
Gross amount recognized | 482,511 | 678,678 |
Fair value derivative liabilities | 37,798 | 126,950 |
Asset Management | Foreign Exchange Contracts and Options, and Foreign currency contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional value | 9,615,615 | 9,837,178 |
Derivative assets | ||
Gross amount recognized | 427,929 | 250,398 |
Derivative liabilities | ||
Gross amount recognized | 444,713 | 551,728 |
Asset Management | Other Derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional value | 628,150 | 802,988 |
Derivative assets | ||
Gross amount recognized | 1,747 | 7,839 |
Derivative liabilities | ||
Gross amount recognized | 37,798 | 126,950 |
Insurance | ||
Derivative assets | ||
Gross amount recognized | 1,239,051 | |
Impact of netting | (121,098) | |
Fair value derivative assets | 1,117,953 | |
Embedded derivative | 0 | |
Fair value derivative assets, including embedded derivative | 1,198,446 | |
Derivative liabilities | ||
Gross amount recognized | 295,884 | |
Impact of netting | (121,098) | |
Fair value derivative liabilities | 174,786 | $ 0 |
Embedded derivative | 2,142,727 | |
Fair value derivative liabilities, including embedded derivative | 2,280,758 | |
Insurance | Embedded derivative – indexed universal life products | ||
Derivative assets | ||
Embedded derivative | 0 | |
Derivative liabilities | ||
Embedded derivative | 490,013 | |
Insurance | Embedded derivative – annuity products | ||
Derivative assets | ||
Embedded derivative | 0 | |
Derivative liabilities | ||
Embedded derivative | 1,652,714 | |
Insurance | Embedded derivative – funds withheld at interest | ||
Derivative assets | ||
Embedded derivative | 80,493 | |
Derivative liabilities | ||
Embedded derivative | (36,755) | |
Insurance | Foreign Exchange Contracts and Options, and Foreign currency contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional value | 929,803 | |
Derivative assets | ||
Gross amount recognized | 22,644 | |
Derivative liabilities | ||
Gross amount recognized | 1,161 | |
Insurance | Equity market contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional value | 30,956,133 | |
Derivative assets | ||
Gross amount recognized | 1,053,680 | |
Derivative liabilities | ||
Gross amount recognized | 158,446 | |
Insurance | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional value | 16,859,214 | |
Derivative assets | ||
Gross amount recognized | 162,727 | |
Derivative liabilities | ||
Gross amount recognized | 134,677 | |
Insurance | Credit risk contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional value | 60,000 | |
Derivative assets | ||
Gross amount recognized | 0 | |
Derivative liabilities | ||
Gross amount recognized | $ 1,600 |
DERIVATIVES - Derivative Gains
DERIVATIVES - Derivative Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative contracts not designated as hedges | Asset Management | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gains (losses) | $ 310,029 | $ (337,219) | $ 210,732 | $ (162,193) |
Derivative contracts not designated as hedges | Asset Management | Foreign Exchange Contracts and Options, and Foreign currency contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gains (losses) | 321,139 | (280,406) | 252,303 | (61,668) |
Derivative contracts not designated as hedges | Asset Management | Other Derivatives | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gains (losses) | (11,110) | (56,813) | (41,571) | (100,525) |
Derivative contracts not designated as hedges | Insurance | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gains (losses) | 45,568 | 0 | 70,773 | 0 |
Derivative contracts not designated as hedges | Insurance | Embedded derivatives | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gains (losses) | 93,970 | 0 | 117,248 | 0 |
Derivative contracts not designated as hedges | Insurance | Equity market contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gains (losses) | (25,854) | 0 | 275,035 | 0 |
Derivative contracts not designated as hedges | Insurance | Equity future contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gains (losses) | 1,783 | 0 | (171,982) | 0 |
Derivative contracts not designated as hedges | Insurance | Interest rate contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gains (losses) | (24,135) | 0 | (149,274) | 0 |
Derivative contracts not designated as hedges | Insurance | Credit risk contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gains (losses) | (196) | 0 | (254) | 0 |
Derivative contracts designated as hedges | Insurance | Gain (Loss) on Investments | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gains (losses) | (4,776) | 0 | (675) | 0 |
Derivative contracts designated as hedges | Insurance | Policy Benefits and Claims | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gains (losses) | 74 | 0 | (6,552) | |
Derivative contracts designated as hedges | Insurance | Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gains (losses) | (7,923) | 0 | (14,307) | 0 |
Derivative contracts designated as hedges | Insurance | Foreign Exchange Contracts and Options | Gain (Loss) on Investments | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gains (losses) | (4,776) | 0 | (675) | 0 |
Derivative contracts designated as hedges | Insurance | Interest rate swap | Policy Benefits and Claims | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gains (losses) | 74 | 0 | (6,552) | 0 |
Derivative contracts designated as hedges | Insurance | Interest rate swap | Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative gains (losses) | $ (7,923) | $ 0 | $ (14,307) | $ 0 |
DERIVATIVES - Offsetting Assets
DERIVATIVES - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative assets (excluding embedded derivatives) | ||
Collateral (received) / pledged | $ (967,632) | |
Net amount after collateral | 150,321 | |
Derivative liabilities (excluding embedded derivatives) | ||
Collateral (received) / pledged | 0 | |
Net amount after collateral | 174,786 | |
Insurance | ||
Derivative assets (excluding embedded derivatives) | ||
Gross amount recognized | 1,239,051 | |
Gross amounts offset in the statement of financial position | (121,098) | |
Derivative assets | 1,117,953 | |
Derivative liabilities (excluding embedded derivatives) | ||
Gross amount recognized | 295,884 | |
Gross amounts offset in the statement of financial position | (121,098) | |
Derivative instruments payable | $ 174,786 | $ 0 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets, at fair value: | ||
AFS fixed maturity securities | $ 67,689,846 | |
Other investments | 7,627,490 | |
Asset Management | ||
Liabilities, at fair value | ||
Derivative instruments payable | 37,798 | $ 126,950 |
Insurance | ||
Assets, at fair value: | ||
Derivative assets | 1,117,953 | |
Impact of netting | (121,098) | |
Reinsurance Recoverable | 25,233,883 | 0 |
Separate account assets | 5,445,170 | 0 |
Liabilities, at fair value | ||
Derivative instruments payable | 174,786 | 0 |
Impact of netting | (121,098) | |
Funds withheld payable at interest | 261,669 | 0 |
Embedded derivative | 2,142,727 | |
Insurance | Embedded derivative – indexed universal life products | ||
Liabilities, at fair value | ||
Embedded derivative | 490,013 | |
Insurance | Embedded derivative – annuity products | ||
Liabilities, at fair value | ||
Embedded derivative | 1,652,714 | |
U.S. government and agencies | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 1,019,013 | |
U.S. state, municipal and political subdivisions | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 5,105,085 | |
Corporate | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 40,796,040 | |
Level III | Asset Management | ||
Liabilities, at fair value | ||
Unfunded Revolver Commitments | 50,910 | |
Level III | Insurance | ||
Assets, at fair value: | ||
Funds withheld receivable at interest | 80,493 | |
Reinsurance Recoverable | 1,325,487 | |
Liabilities, at fair value | ||
Policy liabilities | 544,829 | |
Closed block policy liabilities | 1,374,913 | |
Funds withheld payable at interest | (36,755) | |
Level III | Insurance | Embedded derivative – indexed universal life products | ||
Liabilities, at fair value | ||
Embedded derivative | 490,013 | |
Level III | Insurance | Embedded derivative – annuity products | ||
Liabilities, at fair value | ||
Embedded derivative | 1,652,714 | |
Level III | Corporate | Insurance | ||
Assets, at fair value: | ||
Trading fixed maturity securities | 1,627,371 | |
Level III | Structured securities | Insurance | ||
Assets, at fair value: | ||
Trading fixed maturity securities | 159,372 | |
Fair value measured on recurring basis | ||
Assets, at fair value: | ||
Total Assets at Fair Value | 170,428,066 | 60,108,701 |
Liabilities, at fair value | ||
Total Liabilities at Fair Value | 24,965,228 | 18,379,584 |
Fair value measured on recurring basis | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 75,558,029 | 59,850,464 |
Total Assets at Fair Value | 75,987,705 | 60,108,701 |
Liabilities, at fair value | ||
Securities Sold Short | 262,151 | 281,826 |
Unfunded Revolver Commitments | 50,910 | 46,340 |
Total Liabilities at Fair Value | 20,764,728 | 18,379,584 |
Fair value measured on recurring basis | Insurance | ||
Assets, at fair value: | ||
Derivative assets | 1,117,953 | |
Impact of netting | (121,098) | |
AFS fixed maturity securities | 67,689,846 | |
Trading fixed maturity securities | 16,660,328 | |
Equity securities | 37,378 | |
Mortgage and other loan receivables | 1,288,478 | |
Other investments | 795,228 | |
Funds withheld receivable at interest | 80,493 | |
Reinsurance Recoverable | 1,325,487 | |
Separate account assets | 5,445,170 | |
Total Assets at Fair Value | 94,440,361 | |
Liabilities, at fair value | ||
Derivative instruments payable | 174,786 | |
Impact of netting | (121,098) | |
Total Liabilities at Fair Value | 4,200,500 | |
Policy liabilities | 544,829 | |
Closed block policy liabilities | 1,374,913 | |
Funds withheld payable at interest | (36,755) | |
Reinsurance liabilities | 0 | |
Fair value measured on recurring basis | Insurance | Embedded derivative – indexed universal life products | ||
Liabilities, at fair value | ||
Embedded derivative | 490,013 | |
Fair value measured on recurring basis | Insurance | Embedded derivative – annuity products | ||
Liabilities, at fair value | ||
Embedded derivative | 1,652,714 | |
Fair value measured on recurring basis | U.S. government and agencies | Insurance | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 1,019,013 | |
Trading fixed maturity securities | 275,561 | |
Fair value measured on recurring basis | U.S. state, municipal and political subdivisions | Insurance | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 5,105,085 | |
Trading fixed maturity securities | 1,029,943 | |
Fair value measured on recurring basis | Corporate | Insurance | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 40,796,040 | |
Trading fixed maturity securities | 12,617,929 | |
Fair value measured on recurring basis | Structured securities | Insurance | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 20,769,708 | |
Trading fixed maturity securities | 2,736,895 | |
Fair value measured on recurring basis | Debt Obligations of Consolidated CFEs | Asset Management | ||
Liabilities, at fair value | ||
Debt Obligations of Consolidated CFEs | 19,969,156 | 17,372,740 |
Fair value measured on recurring basis | Foreign Exchange Contracts and Options | Asset Management | ||
Assets, at fair value: | ||
Derivative assets | 427,929 | |
Total Assets at Fair Value | 250,398 | |
Liabilities, at fair value | ||
Derivative instruments payable | 444,713 | 551,728 |
Fair value measured on recurring basis | Other Derivatives | Asset Management | ||
Assets, at fair value: | ||
Derivative assets | 1,747 | 7,839 |
Liabilities, at fair value | ||
Derivative instruments payable | 37,798 | 126,950 |
Fair value measured on recurring basis | Equity market contracts | Insurance | ||
Assets, at fair value: | ||
Derivative assets | 1,053,680 | |
Liabilities, at fair value | ||
Derivative instruments payable | 158,446 | |
Fair value measured on recurring basis | Interest rate contracts | Insurance | ||
Assets, at fair value: | ||
Derivative assets | 162,727 | |
Liabilities, at fair value | ||
Derivative instruments payable | 134,677 | |
Fair value measured on recurring basis | Foreign currency contracts | Insurance | ||
Assets, at fair value: | ||
Derivative assets | 22,644 | |
Liabilities, at fair value | ||
Derivative instruments payable | 1,161 | |
Fair value measured on recurring basis | Credit contracts | Insurance | ||
Liabilities, at fair value | ||
Derivative instruments payable | 1,600 | |
Fair value measured on recurring basis | Private Equity | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 25,568,516 | 20,470,123 |
Fair value measured on recurring basis | Credit | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 12,448,414 | 11,203,905 |
Fair value measured on recurring basis | Investments of Consolidated CFEs | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 20,696,676 | 17,706,976 |
Fair value measured on recurring basis | Real Assets | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 11,684,296 | 6,096,618 |
Fair value measured on recurring basis | Equity Method - Other | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 1,314,982 | 1,507,620 |
Fair value measured on recurring basis | Other Investments | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 3,845,145 | 2,865,222 |
Fair value measured on recurring basis | Level I | ||
Assets, at fair value: | ||
Total Assets at Fair Value | 9,327,712 | 3,679,307 |
Liabilities, at fair value | ||
Total Liabilities at Fair Value | 307,355 | 358,756 |
Fair value measured on recurring basis | Level I | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 3,037,113 | 3,678,865 |
Total Assets at Fair Value | 3,037,113 | 3,679,307 |
Liabilities, at fair value | ||
Securities Sold Short | 262,151 | 281,826 |
Unfunded Revolver Commitments | 0 | 0 |
Total Liabilities at Fair Value | 262,151 | 358,756 |
Fair value measured on recurring basis | Level I | Insurance | ||
Assets, at fair value: | ||
Derivative assets | 68,464 | |
Impact of netting | (31,559) | |
AFS fixed maturity securities | 740,317 | |
Trading fixed maturity securities | 28,133 | |
Equity securities | 8,515 | |
Mortgage and other loan receivables | 0 | |
Other investments | 0 | |
Funds withheld receivable at interest | 0 | |
Reinsurance Recoverable | 0 | |
Separate account assets | 5,445,170 | |
Total Assets at Fair Value | 6,290,599 | |
Liabilities, at fair value | ||
Derivative instruments payable | 45,204 | |
Impact of netting | (31,559) | |
Total Liabilities at Fair Value | 45,204 | |
Policy liabilities | 0 | |
Closed block policy liabilities | 0 | |
Funds withheld payable at interest | 0 | |
Reinsurance liabilities | 0 | |
Fair value measured on recurring basis | Level I | Insurance | Embedded derivative – indexed universal life products | ||
Liabilities, at fair value | ||
Embedded derivative | 0 | |
Fair value measured on recurring basis | Level I | Insurance | Embedded derivative – annuity products | ||
Liabilities, at fair value | ||
Embedded derivative | 0 | |
Fair value measured on recurring basis | Level I | U.S. government and agencies | Insurance | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 740,317 | |
Trading fixed maturity securities | 28,133 | |
Fair value measured on recurring basis | Level I | U.S. state, municipal and political subdivisions | Insurance | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 0 | |
Trading fixed maturity securities | 0 | |
Fair value measured on recurring basis | Level I | Corporate | Insurance | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 0 | |
Trading fixed maturity securities | 0 | |
Fair value measured on recurring basis | Level I | Structured securities | Insurance | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 0 | |
Trading fixed maturity securities | 0 | |
Fair value measured on recurring basis | Level I | Debt Obligations of Consolidated CFEs | Asset Management | ||
Liabilities, at fair value | ||
Debt Obligations of Consolidated CFEs | 0 | 0 |
Fair value measured on recurring basis | Level I | Foreign Exchange Contracts and Options | Asset Management | ||
Assets, at fair value: | ||
Derivative assets | 0 | 0 |
Liabilities, at fair value | ||
Derivative instruments payable | 0 | 0 |
Fair value measured on recurring basis | Level I | Other Derivatives | Asset Management | ||
Assets, at fair value: | ||
Derivative assets | 0 | 442 |
Liabilities, at fair value | ||
Derivative instruments payable | 0 | 76,930 |
Fair value measured on recurring basis | Level I | Equity market contracts | Insurance | ||
Assets, at fair value: | ||
Derivative assets | 85,333 | |
Liabilities, at fair value | ||
Derivative instruments payable | 17,897 | |
Fair value measured on recurring basis | Level I | Interest rate contracts | Insurance | ||
Assets, at fair value: | ||
Derivative assets | 14,690 | |
Liabilities, at fair value | ||
Derivative instruments payable | 58,866 | |
Fair value measured on recurring basis | Level I | Foreign currency contracts | Insurance | ||
Assets, at fair value: | ||
Derivative assets | 0 | |
Liabilities, at fair value | ||
Derivative instruments payable | 0 | |
Fair value measured on recurring basis | Level I | Credit contracts | Insurance | ||
Liabilities, at fair value | ||
Derivative instruments payable | 0 | |
Fair value measured on recurring basis | Level I | Private Equity | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 2,520,158 | 2,758,396 |
Fair value measured on recurring basis | Level I | Credit | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 0 | 0 |
Fair value measured on recurring basis | Level I | Investments of Consolidated CFEs | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 0 | 0 |
Fair value measured on recurring basis | Level I | Real Assets | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 0 | 0 |
Fair value measured on recurring basis | Level I | Equity Method - Other | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 10,027 | 485,988 |
Fair value measured on recurring basis | Level I | Other Investments | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 506,928 | 434,481 |
Fair value measured on recurring basis | Level II | ||
Assets, at fair value: | ||
Total Assets at Fair Value | 103,319,978 | 22,734,040 |
Liabilities, at fair value | ||
Total Liabilities at Fair Value | 20,581,249 | 17,974,488 |
Fair value measured on recurring basis | Level II | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 24,764,387 | 22,482,913 |
Total Assets at Fair Value | 25,194,020 | 22,734,040 |
Liabilities, at fair value | ||
Securities Sold Short | 0 | 0 |
Unfunded Revolver Commitments | 0 | 0 |
Total Liabilities at Fair Value | 20,451,667 | 17,974,488 |
Fair value measured on recurring basis | Level II | Insurance | ||
Assets, at fair value: | ||
Derivative assets | 1,049,489 | |
Impact of netting | (89,539) | |
AFS fixed maturity securities | 61,910,239 | |
Trading fixed maturity securities | 15,166,230 | |
Equity securities | 0 | |
Mortgage and other loan receivables | 0 | |
Other investments | 0 | |
Funds withheld receivable at interest | 0 | |
Reinsurance Recoverable | 0 | |
Separate account assets | 0 | |
Total Assets at Fair Value | 78,125,958 | |
Liabilities, at fair value | ||
Derivative instruments payable | 129,582 | |
Impact of netting | (89,539) | |
Total Liabilities at Fair Value | 129,582 | |
Policy liabilities | 0 | |
Closed block policy liabilities | 0 | |
Funds withheld payable at interest | 0 | |
Reinsurance liabilities | 0 | |
Fair value measured on recurring basis | Level II | Insurance | Embedded derivative – indexed universal life products | ||
Liabilities, at fair value | ||
Embedded derivative | 0 | |
Fair value measured on recurring basis | Level II | Insurance | Embedded derivative – annuity products | ||
Liabilities, at fair value | ||
Embedded derivative | 0 | |
Fair value measured on recurring basis | Level II | U.S. government and agencies | Insurance | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 278,696 | |
Trading fixed maturity securities | 247,428 | |
Fair value measured on recurring basis | Level II | U.S. state, municipal and political subdivisions | Insurance | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 5,105,085 | |
Trading fixed maturity securities | 1,029,943 | |
Fair value measured on recurring basis | Level II | Corporate | Insurance | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 35,953,737 | |
Trading fixed maturity securities | 11,232,964 | |
Fair value measured on recurring basis | Level II | Structured securities | Insurance | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 20,572,721 | |
Trading fixed maturity securities | 2,655,895 | |
Fair value measured on recurring basis | Level II | Debt Obligations of Consolidated CFEs | Asset Management | ||
Liabilities, at fair value | ||
Debt Obligations of Consolidated CFEs | 19,969,156 | 17,372,740 |
Fair value measured on recurring basis | Level II | Foreign Exchange Contracts and Options | Asset Management | ||
Assets, at fair value: | ||
Derivative assets | 427,929 | 250,398 |
Liabilities, at fair value | ||
Derivative instruments payable | 444,713 | 551,728 |
Fair value measured on recurring basis | Level II | Other Derivatives | Asset Management | ||
Assets, at fair value: | ||
Derivative assets | 1,704 | 729 |
Liabilities, at fair value | ||
Derivative instruments payable | 37,798 | 50,020 |
Fair value measured on recurring basis | Level II | Equity market contracts | Insurance | ||
Assets, at fair value: | ||
Derivative assets | 968,347 | |
Liabilities, at fair value | ||
Derivative instruments payable | 140,549 | |
Fair value measured on recurring basis | Level II | Interest rate contracts | Insurance | ||
Assets, at fair value: | ||
Derivative assets | 148,037 | |
Liabilities, at fair value | ||
Derivative instruments payable | 75,811 | |
Fair value measured on recurring basis | Level II | Foreign currency contracts | Insurance | ||
Assets, at fair value: | ||
Derivative assets | 22,644 | |
Liabilities, at fair value | ||
Derivative instruments payable | 1,161 | |
Fair value measured on recurring basis | Level II | Credit contracts | Insurance | ||
Liabilities, at fair value | ||
Derivative instruments payable | 1,600 | |
Fair value measured on recurring basis | Level II | Private Equity | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 1,303,409 | 2,476,823 |
Fair value measured on recurring basis | Level II | Credit | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 2,247,803 | 2,031,057 |
Fair value measured on recurring basis | Level II | Investments of Consolidated CFEs | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 20,696,676 | 17,706,976 |
Fair value measured on recurring basis | Level II | Real Assets | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 51,112 | 172,043 |
Fair value measured on recurring basis | Level II | Equity Method - Other | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 296,087 | 7,254 |
Fair value measured on recurring basis | Level II | Other Investments | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 169,300 | 88,760 |
Fair value measured on recurring basis | Level III | ||
Assets, at fair value: | ||
Total Assets at Fair Value | 57,780,376 | 33,695,354 |
Liabilities, at fair value | ||
Total Liabilities at Fair Value | 4,076,624 | 46,340 |
Fair value measured on recurring basis | Level III | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 47,756,529 | 33,688,686 |
Total Assets at Fair Value | 47,756,572 | 33,695,354 |
Liabilities, at fair value | ||
Securities Sold Short | 0 | 0 |
Unfunded Revolver Commitments | 50,910 | 46,340 |
Total Liabilities at Fair Value | 50,910 | 46,340 |
Fair value measured on recurring basis | Level III | Insurance | ||
Assets, at fair value: | ||
Derivative assets | 0 | |
Impact of netting | 0 | |
AFS fixed maturity securities | 5,039,290 | |
Trading fixed maturity securities | 1,465,965 | |
Equity securities | 28,863 | |
Mortgage and other loan receivables | 1,288,478 | |
Other investments | 795,228 | |
Funds withheld receivable at interest | 80,493 | |
Reinsurance Recoverable | 1,325,487 | |
Separate account assets | 0 | |
Total Assets at Fair Value | 10,023,804 | |
Liabilities, at fair value | ||
Derivative instruments payable | 0 | |
Impact of netting | 0 | |
Total Liabilities at Fair Value | 4,025,714 | |
Policy liabilities | 544,829 | |
Closed block policy liabilities | 1,374,913 | |
Funds withheld payable at interest | (36,755) | |
Reinsurance liabilities | 0 | |
Fair value measured on recurring basis | Level III | Insurance | Embedded derivative – indexed universal life products | ||
Liabilities, at fair value | ||
Embedded derivative | 490,013 | |
Fair value measured on recurring basis | Level III | Insurance | Embedded derivative – annuity products | ||
Liabilities, at fair value | ||
Embedded derivative | 1,652,714 | |
Fair value measured on recurring basis | Level III | Insurance | Amounts due from unconsolidated investment funds | ||
Assets, at fair value: | ||
Mortgage and other loan receivables | 448,100 | |
Fair value measured on recurring basis | Level III | U.S. government and agencies | Insurance | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 0 | |
Trading fixed maturity securities | 0 | |
Fair value measured on recurring basis | Level III | U.S. state, municipal and political subdivisions | Insurance | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 0 | |
Trading fixed maturity securities | 0 | |
Fair value measured on recurring basis | Level III | Corporate | Insurance | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 4,842,303 | |
Trading fixed maturity securities | 1,384,965 | |
Fair value measured on recurring basis | Level III | Structured securities | Insurance | ||
Assets, at fair value: | ||
AFS fixed maturity securities | 196,987 | |
Trading fixed maturity securities | 81,000 | |
Fair value measured on recurring basis | Level III | Debt Obligations of Consolidated CFEs | Asset Management | ||
Liabilities, at fair value | ||
Debt Obligations of Consolidated CFEs | 0 | 0 |
Fair value measured on recurring basis | Level III | Foreign Exchange Contracts and Options | Asset Management | ||
Assets, at fair value: | ||
Derivative assets | 0 | 0 |
Liabilities, at fair value | ||
Derivative instruments payable | 0 | 0 |
Fair value measured on recurring basis | Level III | Other Derivatives | Asset Management | ||
Assets, at fair value: | ||
Derivative assets | 43 | 6,668 |
Liabilities, at fair value | ||
Derivative instruments payable | 0 | 0 |
Fair value measured on recurring basis | Level III | Equity market contracts | Insurance | ||
Assets, at fair value: | ||
Derivative assets | 0 | |
Liabilities, at fair value | ||
Derivative instruments payable | 0 | |
Fair value measured on recurring basis | Level III | Interest rate contracts | Insurance | ||
Assets, at fair value: | ||
Derivative assets | 0 | |
Liabilities, at fair value | ||
Derivative instruments payable | 0 | |
Fair value measured on recurring basis | Level III | Foreign currency contracts | Insurance | ||
Assets, at fair value: | ||
Derivative assets | 0 | |
Liabilities, at fair value | ||
Derivative instruments payable | 0 | |
Fair value measured on recurring basis | Level III | Credit contracts | Insurance | ||
Liabilities, at fair value | ||
Derivative instruments payable | 0 | |
Fair value measured on recurring basis | Level III | Private Equity | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 21,744,949 | 15,234,904 |
Fair value measured on recurring basis | Level III | Credit | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 10,200,611 | 9,172,848 |
Fair value measured on recurring basis | Level III | Investments of Consolidated CFEs | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 0 | 0 |
Fair value measured on recurring basis | Level III | Real Assets | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 11,633,184 | 5,924,575 |
Fair value measured on recurring basis | Level III | Equity Method - Other | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 1,008,868 | 1,014,378 |
Fair value measured on recurring basis | Level III | Other Investments | Asset Management | ||
Assets, at fair value: | ||
Total Investments | 3,168,917 | $ 2,341,981 |
Fair value measured on recurring basis | Fair Value Measured at Net Asset Value Per Share | Real Estate and Private Equity Funds | Insurance | ||
Assets, at fair value: | ||
Other investments | $ 102,500 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in Level III Assets (Details) - Level III - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | $ 50,118,087 | |||
Transfers In / (Out) - Changes in Consolidation | (174,658) | |||
Transfers In | 80,146 | |||
Transfers Out | (104,954) | |||
Net Purchases/Issuances/Sales/Settlements | 5,587,936 | $ 9,672,621 | ||
Net Unrealized and Realized Gains (Losses) | 2,244,284 | |||
Change in OCI | 29,535 | |||
Balance, End of Period | 57,780,376 | 57,780,376 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 1,702,061 | |||
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 10,727 | |||
Asset Management | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 41,713,681 | $ 26,098,891 | 33,695,354 | $ 26,489,991 |
Transfers In / (Out) - Changes in Consolidation | (174,658) | (18,814) | (178,558) | (18,814) |
Transfers In | 0 | 334,346 | 108,736 | 334,346 |
Transfers Out | (75,554) | (79,263) | (641,987) | (193,033) |
Net Purchases/Issuances/Sales/Settlements | 4,453,235 | 1,242,025 | 7,399,696 | 2,750,850 |
Net Unrealized and Realized Gains (Losses) | 1,832,059 | 2,032,087 | 7,366,164 | 265,505 |
Change in OCI | 7,809 | 21,586 | 7,167 | 2,013 |
Balance, End of Period | 47,756,572 | 29,630,858 | 47,756,572 | 29,630,858 |
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 1,726,527 | 1,837,537 | 7,240,953 | 48,056 |
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 7,809 | 21,586 | 7,167 | 2,013 |
Insurance | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 8,404,406 | 5,826,467 | ||
Transfers In / (Out) - Changes in Consolidation | 0 | 0 | ||
Transfers In | 80,146 | 113,333 | ||
Transfers Out | (29,400) | (38,610) | ||
Net Purchases/Issuances/Sales/Settlements | 1,134,701 | 2,272,925 | ||
Net Unrealized and Realized Gains (Losses) | 412,225 | 1,847,911 | ||
Change in OCI | 21,726 | 1,778 | ||
Balance, End of Period | 10,023,804 | 10,023,804 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | (24,466) | 45,560 | ||
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 2,918 | (7,795) | ||
AFS Fixed Maturity Securities | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 39,521,821 | |||
Transfers In / (Out) - Changes in Consolidation | (178,558) | |||
Transfers In | 222,069 | |||
Transfers Out | (680,597) | |||
Net Purchases/Issuances/Sales/Settlements | 9,672,621 | |||
Net Unrealized and Realized Gains (Losses) | 9,214,075 | |||
Change in OCI | 8,945 | |||
Balance, End of Period | 57,780,376 | 57,780,376 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 7,286,513 | |||
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | (628) | |||
AFS Fixed Maturity Securities | Insurance | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 4,194,110 | 3,702,548 | ||
Transfers In / (Out) - Changes in Consolidation | 0 | 0 | ||
Transfers In | 64,402 | 92,586 | ||
Transfers Out | (29,400) | (38,610) | ||
Net Purchases/Issuances/Sales/Settlements | 788,452 | 1,280,988 | ||
Net Unrealized and Realized Gains (Losses) | 0 | 0 | ||
Change in OCI | 21,726 | 1,778 | ||
Balance, End of Period | 5,039,290 | 5,039,290 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 2,918 | (7,795) | ||
AFS Fixed Maturity Securities | Insurance | Corporate Securities | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 4,018,174 | 3,504,578 | ||
Transfers In / (Out) - Changes in Consolidation | 0 | 0 | ||
Transfers In | 48,093 | 76,277 | ||
Transfers Out | (29,400) | (38,610) | ||
Net Purchases/Issuances/Sales/Settlements | 785,992 | 1,298,035 | ||
Net Unrealized and Realized Gains (Losses) | 0 | 0 | ||
Change in OCI | 19,444 | 2,023 | ||
Balance, End of Period | 4,842,303 | 4,842,303 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 1,236 | (9,447) | ||
AFS Fixed Maturity Securities | Insurance | Structured securities | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 175,936 | 197,970 | ||
Transfers In / (Out) - Changes in Consolidation | 0 | 0 | ||
Transfers In | 16,309 | 16,309 | ||
Transfers Out | 0 | 0 | ||
Net Purchases/Issuances/Sales/Settlements | 2,460 | (17,047) | ||
Net Unrealized and Realized Gains (Losses) | 0 | 0 | ||
Change in OCI | 2,282 | (245) | ||
Balance, End of Period | 196,987 | 196,987 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 1,682 | 1,652 | ||
Trading Fixed Maturity Securities | Insurance | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 1,030,296 | 691,311 | ||
Transfers In / (Out) - Changes in Consolidation | 0 | 0 | ||
Transfers In | 15,744 | 15,744 | ||
Transfers Out | 0 | 0 | ||
Net Purchases/Issuances/Sales/Settlements | 412,857 | 755,235 | ||
Net Unrealized and Realized Gains (Losses) | 7,068 | 3,675 | ||
Change in OCI | 0 | 0 | ||
Balance, End of Period | 1,465,965 | 1,465,965 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 6,057 | 1,941 | ||
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Trading Fixed Maturity Securities | Insurance | Corporate Securities | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 1,009,357 | 676,650 | ||
Transfers In / (Out) - Changes in Consolidation | 0 | 0 | ||
Transfers In | 0 | 0 | ||
Transfers Out | 0 | 0 | ||
Net Purchases/Issuances/Sales/Settlements | 368,624 | 705,027 | ||
Net Unrealized and Realized Gains (Losses) | 6,984 | 3,288 | ||
Change in OCI | 0 | 0 | ||
Balance, End of Period | 1,384,965 | 1,384,965 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 4,926 | 604 | ||
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Trading Fixed Maturity Securities | Insurance | Structured securities | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 20,939 | 14,661 | ||
Transfers In / (Out) - Changes in Consolidation | 0 | 0 | ||
Transfers In | 15,744 | 15,744 | ||
Transfers Out | 0 | 0 | ||
Net Purchases/Issuances/Sales/Settlements | 44,233 | 50,208 | ||
Net Unrealized and Realized Gains (Losses) | 84 | 387 | ||
Change in OCI | 0 | 0 | ||
Balance, End of Period | 81,000 | 81,000 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 1,131 | 1,337 | ||
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Equity securities at fair value | Insurance | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 97,029 | 66,660 | ||
Transfers In / (Out) - Changes in Consolidation | 0 | 0 | ||
Transfers In | 0 | 0 | ||
Transfers Out | 0 | 0 | ||
Net Purchases/Issuances/Sales/Settlements | (90,855) | (90,855) | ||
Net Unrealized and Realized Gains (Losses) | 22,689 | 53,058 | ||
Change in OCI | 0 | 0 | ||
Balance, End of Period | 28,863 | 28,863 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | (10,074) | 20,295 | ||
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Mortgage and other loan receivables | Insurance | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 1,224,789 | 928,673 | ||
Transfers In / (Out) - Changes in Consolidation | 0 | 0 | ||
Transfers In | 0 | 0 | ||
Transfers Out | 0 | 0 | ||
Net Purchases/Issuances/Sales/Settlements | 58,303 | 348,098 | ||
Net Unrealized and Realized Gains (Losses) | 5,386 | 11,707 | ||
Change in OCI | 0 | 0 | ||
Balance, End of Period | 1,288,478 | 1,288,478 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 2,047 | 9,814 | ||
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Other investments | Insurance | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 491,635 | 437,275 | ||
Transfers In / (Out) - Changes in Consolidation | 0 | 0 | ||
Transfers In | 0 | 5,003 | ||
Transfers Out | 0 | 0 | ||
Net Purchases/Issuances/Sales/Settlements | (33,619) | (20,693) | ||
Net Unrealized and Realized Gains (Losses) | 337,212 | 373,643 | ||
Change in OCI | 0 | 0 | ||
Balance, End of Period | 795,228 | 795,228 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | (22,496) | 13,510 | ||
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Income from (to) funds withheld at interest | Insurance | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 78,450 | 0 | ||
Transfers In / (Out) - Changes in Consolidation | 0 | 0 | ||
Transfers In | 0 | 0 | ||
Transfers Out | 0 | 0 | ||
Net Purchases/Issuances/Sales/Settlements | (437) | 152 | ||
Net Unrealized and Realized Gains (Losses) | 2,480 | 80,341 | ||
Change in OCI | 0 | 0 | ||
Balance, End of Period | 80,493 | 80,493 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Reinsurance recoverable | Insurance | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 1,288,097 | 0 | ||
Transfers In / (Out) - Changes in Consolidation | 0 | 0 | ||
Transfers In | 0 | 0 | ||
Transfers Out | 0 | 0 | ||
Net Purchases/Issuances/Sales/Settlements | 0 | 0 | ||
Net Unrealized and Realized Gains (Losses) | 37,390 | 1,325,487 | ||
Change in OCI | 0 | 0 | ||
Balance, End of Period | 1,325,487 | 1,325,487 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Private Equity | Investments | Asset Management | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 19,023,638 | 10,810,113 | 15,234,904 | 9,871,682 |
Transfers In / (Out) - Changes in Consolidation | 0 | 0 | 0 | 0 |
Transfers In | 0 | 0 | 5,034 | 0 |
Transfers Out | (75,554) | (18,315) | (504,112) | (18,315) |
Net Purchases/Issuances/Sales/Settlements | 1,636,915 | 420,025 | 1,853,614 | 1,071,229 |
Net Unrealized and Realized Gains (Losses) | 1,159,950 | 1,415,156 | 5,155,509 | 1,702,383 |
Change in OCI | 0 | 0 | 0 | 0 |
Balance, End of Period | 21,744,949 | 12,626,979 | 21,744,949 | 12,626,979 |
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 1,094,045 | 1,180,782 | 5,011,447 | 1,466,074 |
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | 0 | 0 |
Credit | Investments | Asset Management | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 9,931,511 | 8,721,478 | 9,172,848 | 9,217,759 |
Transfers In / (Out) - Changes in Consolidation | 0 | 231,872 | (1,021) | 231,872 |
Transfers In | 0 | 0 | 86,135 | 0 |
Transfers Out | 0 | 0 | 0 | 0 |
Net Purchases/Issuances/Sales/Settlements | 317,956 | (359,847) | 875,871 | 36,767 |
Net Unrealized and Realized Gains (Losses) | (56,665) | 108,889 | 59,611 | (764,433) |
Change in OCI | 7,809 | 21,586 | 7,167 | 2,013 |
Balance, End of Period | 10,200,611 | 8,723,978 | 10,200,611 | 8,723,978 |
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | (15,427) | 127,060 | 134,588 | (733,768) |
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 7,809 | 21,586 | 7,167 | 2,013 |
Real Assets | Investments | Asset Management | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 8,717,571 | 3,223,540 | 5,924,575 | 3,567,944 |
Transfers In / (Out) - Changes in Consolidation | (174,658) | (230,163) | (174,658) | (230,163) |
Transfers In | 0 | 197,972 | 17,567 | 197,972 |
Transfers Out | 0 | 0 | 0 | (113,770) |
Net Purchases/Issuances/Sales/Settlements | 2,454,477 | 991,283 | 4,503,849 | 1,240,108 |
Net Unrealized and Realized Gains (Losses) | 635,794 | 257,473 | 1,361,851 | (221,986) |
Change in OCI | 0 | 0 | 0 | 0 |
Balance, End of Period | 11,633,184 | 4,440,105 | 11,633,184 | 4,440,105 |
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 609,092 | 280,582 | 1,293,618 | (247,961) |
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | 0 | 0 |
Equity Method - Other | Investments | Asset Management | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 1,067,844 | 1,622,885 | 1,014,378 | 1,656,045 |
Transfers In / (Out) - Changes in Consolidation | 0 | (20,523) | 0 | (20,523) |
Transfers In | 0 | 136,374 | 0 | 136,374 |
Transfers Out | 0 | (58,475) | (22,601) | (58,475) |
Net Purchases/Issuances/Sales/Settlements | (75,143) | 76,437 | (237,737) | 158,437 |
Net Unrealized and Realized Gains (Losses) | 16,167 | 176,161 | 254,828 | 61,001 |
Change in OCI | 0 | 0 | 0 | 0 |
Balance, End of Period | 1,008,868 | 1,932,859 | 1,008,868 | 1,932,859 |
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | (22,455) | 175,898 | 215,103 | 60,926 |
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | 0 | 0 |
Other Investments | Investments | Asset Management | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 2,971,242 | 1,694,797 | 2,341,981 | 2,154,755 |
Transfers In / (Out) - Changes in Consolidation | 0 | 0 | (2,879) | 0 |
Transfers In | 0 | 0 | 0 | 0 |
Transfers Out | 0 | (2,473) | (115,274) | (2,473) |
Net Purchases/Issuances/Sales/Settlements | 105,878 | 110,101 | 380,337 | 240,681 |
Net Unrealized and Realized Gains (Losses) | 91,797 | 91,904 | 564,752 | (498,634) |
Change in OCI | 0 | 0 | 0 | 0 |
Balance, End of Period | 3,168,917 | 1,894,329 | 3,168,917 | 1,894,329 |
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 76,256 | 90,711 | 616,584 | (484,905) |
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | 0 | 0 |
Other Derivatives | Investments | Asset Management | ||||
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 1,875 | 26,078 | 6,668 | 21,806 |
Transfers In / (Out) - Changes in Consolidation | 0 | 0 | 0 | 0 |
Transfers In | 0 | 0 | 0 | 0 |
Transfers Out | 0 | 0 | 0 | 0 |
Net Purchases/Issuances/Sales/Settlements | 13,152 | 4,026 | 23,762 | 3,628 |
Net Unrealized and Realized Gains (Losses) | (14,984) | (17,496) | (30,387) | (12,826) |
Change in OCI | 0 | 0 | 0 | 0 |
Balance, End of Period | 43 | 12,608 | 43 | 12,608 |
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | (14,984) | (17,496) | (30,387) | (12,310) |
Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | $ 0 | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Break
FAIR VALUE MEASUREMENTS - Breakout of Asset Net Purchases/Issuances/Sales/Settlements (Details) - Level III - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | $ 9,590,045 | $ 18,057,529 | ||
Issuances | (437) | 152 | ||
Sales | (2,637,383) | (5,452,673) | ||
Settlements | (1,364,289) | (2,932,387) | ||
Net Purchases/Issuances/Sales/Settlements | 5,587,936 | 9,672,621 | ||
Asset Management | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 6,925,000 | $ 2,743,517 | 12,799,434 | $ 5,721,147 |
Issuances | 0 | 0 | ||
Sales | (2,473,890) | (1,510,847) | (5,239,294) | (2,947,492) |
Settlements | 2,125 | 9,355 | (160,444) | (22,805) |
Net Purchases/Issuances/Sales/Settlements | 4,453,235 | 1,242,025 | 7,399,696 | 2,750,850 |
Insurance | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 2,665,045 | 5,258,095 | ||
Issuances | (437) | 152 | ||
Sales | (163,493) | (213,379) | ||
Settlements | (1,366,414) | (2,771,943) | ||
Net Purchases/Issuances/Sales/Settlements | 1,134,701 | 2,272,925 | ||
Investments | Private Equity | Asset Management | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 1,768,420 | 1,266,063 | 2,147,332 | 1,950,875 |
Issuances | 0 | 0 | ||
Sales | (131,505) | (846,038) | (293,718) | (879,646) |
Settlements | 0 | 0 | 0 | 0 |
Net Purchases/Issuances/Sales/Settlements | 1,636,915 | 420,025 | 1,853,614 | 1,071,229 |
Investments | Credit | Asset Management | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 1,895,171 | 272,854 | 4,476,350 | 1,792,397 |
Issuances | 0 | 0 | ||
Sales | (1,579,340) | (642,056) | (3,440,035) | (1,732,825) |
Settlements | 2,125 | 9,355 | (160,444) | (22,805) |
Net Purchases/Issuances/Sales/Settlements | 317,956 | (359,847) | 875,871 | 36,767 |
Investments | Real Assets | Asset Management | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 2,983,593 | 994,130 | 5,541,325 | 1,502,382 |
Issuances | 0 | 0 | ||
Sales | (529,116) | (2,847) | (1,037,476) | (262,274) |
Settlements | 0 | 0 | 0 | 0 |
Net Purchases/Issuances/Sales/Settlements | 2,454,477 | 991,283 | 4,503,849 | 1,240,108 |
Investments | Equity Method - Other | Asset Management | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 7,201 | 79,079 | 21,800 | 161,147 |
Issuances | 0 | 0 | ||
Sales | (82,344) | (2,642) | (259,537) | (2,710) |
Settlements | 0 | 0 | 0 | 0 |
Net Purchases/Issuances/Sales/Settlements | (75,143) | 76,437 | (237,737) | 158,437 |
Investments | Other Investments | Asset Management | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 257,463 | 127,365 | 588,865 | 309,358 |
Issuances | 0 | 0 | ||
Sales | (151,585) | (17,264) | (208,528) | (68,677) |
Settlements | 0 | 0 | 0 | 0 |
Net Purchases/Issuances/Sales/Settlements | 105,878 | 110,101 | 380,337 | 240,681 |
Investments | Other Derivatives | Asset Management | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 13,152 | 4,026 | 23,762 | 4,988 |
Issuances | 0 | 0 | ||
Sales | 0 | 0 | 0 | (1,360) |
Settlements | 0 | 0 | 0 | 0 |
Net Purchases/Issuances/Sales/Settlements | 13,152 | $ 4,026 | 23,762 | $ 3,628 |
AFS Fixed Maturity Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net Purchases/Issuances/Sales/Settlements | 9,672,621 | |||
AFS Fixed Maturity Securities | Insurance | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 2,159,446 | 4,076,433 | ||
Issuances | 0 | 0 | ||
Sales | (13,846) | (48,073) | ||
Settlements | (1,357,148) | (2,747,372) | ||
Net Purchases/Issuances/Sales/Settlements | 788,452 | 1,280,988 | ||
AFS Fixed Maturity Securities | Insurance | Corporate Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 2,155,228 | 4,072,144 | ||
Issuances | 0 | 0 | ||
Sales | (13,846) | (48,073) | ||
Settlements | (1,355,390) | (2,726,036) | ||
Net Purchases/Issuances/Sales/Settlements | 785,992 | 1,298,035 | ||
AFS Fixed Maturity Securities | Insurance | Structured securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 4,218 | 4,289 | ||
Issuances | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | (1,758) | (21,336) | ||
Net Purchases/Issuances/Sales/Settlements | 2,460 | (17,047) | ||
Fixed maturity securities, trading, at fair value | Insurance | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 415,082 | 763,181 | ||
Issuances | 0 | 0 | ||
Sales | (623) | (623) | ||
Settlements | (1,602) | (7,323) | ||
Net Purchases/Issuances/Sales/Settlements | 412,857 | 755,235 | ||
Fixed maturity securities, trading, at fair value | Insurance | Corporate Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 370,488 | 710,446 | ||
Issuances | 0 | 0 | ||
Sales | (623) | (623) | ||
Settlements | (1,241) | (4,796) | ||
Net Purchases/Issuances/Sales/Settlements | 368,624 | 705,027 | ||
Fixed maturity securities, trading, at fair value | Insurance | Structured securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 44,594 | 52,735 | ||
Issuances | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | (361) | (2,527) | ||
Net Purchases/Issuances/Sales/Settlements | 44,233 | 50,208 | ||
Mortgage and other loan receivables | Insurance | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 65,517 | 380,555 | ||
Issuances | 0 | 0 | ||
Sales | (6,541) | (22,200) | ||
Settlements | (673) | (10,257) | ||
Net Purchases/Issuances/Sales/Settlements | 58,303 | 348,098 | ||
Other investments | Insurance | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 25,000 | 37,926 | ||
Issuances | 0 | 0 | ||
Sales | (58,619) | (58,619) | ||
Settlements | 0 | 0 | ||
Net Purchases/Issuances/Sales/Settlements | (33,619) | (20,693) | ||
Income from (to) funds withheld at interest | Insurance | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 0 | 0 | ||
Issuances | (437) | 152 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Net Purchases/Issuances/Sales/Settlements | (437) | 152 | ||
Equity securities at fair value | Insurance | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases | 0 | 0 | ||
Issuances | 0 | 0 | ||
Sales | (83,864) | (83,864) | ||
Settlements | (6,991) | (6,991) | ||
Net Purchases/Issuances/Sales/Settlements | $ (90,855) | $ (90,855) |
FAIR VALUE MEASUREMENTS - Cha_2
FAIR VALUE MEASUREMENTS - Changes in Level III Liabilities (Details) - Level III - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair value, liabilities measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | $ 4,001,661 | $ 3,550,463 | ||
Transfers In / (Out) Due to Changes in Consolidation | 0 | 0 | ||
Transfers In | 0 | 0 | ||
Transfers Out | 0 | 0 | ||
Net Purchases/Sales/Settlements/Issuances | 82,034 | 208,262 | ||
Net Unrealized and Realized Gains (Losses) | (7,781) | 316,527 | ||
Change in OCI | 710 | 1,372 | ||
Balance, End of Period | 4,076,624 | 4,076,624 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 10,860 | 3,942 | ||
Asset Management | ||||
Fair value, liabilities measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 40,050 | $ 70,148 | 46,340 | $ 75,842 |
Transfers In / (Out) Due to Changes in Consolidation | 0 | 0 | 0 | 0 |
Transfers In | 0 | 0 | 0 | 0 |
Transfers Out | 0 | 0 | 0 | 0 |
Net Purchases/Sales/Settlements/Issuances | 0 | 0 | 628 | (2,464) |
Net Unrealized and Realized Gains (Losses) | 10,860 | (14,063) | 3,942 | (17,293) |
Change in OCI | 0 | 0 | 0 | 0 |
Balance, End of Period | 50,910 | 56,085 | 50,910 | 56,085 |
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 10,860 | (14,063) | 3,942 | (17,293) |
Insurance | ||||
Fair value, liabilities measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 3,961,611 | 3,504,123 | ||
Transfers In / (Out) Due to Changes in Consolidation | 0 | 0 | ||
Transfers In | 0 | 0 | ||
Transfers Out | 0 | 0 | ||
Net Purchases/Sales/Settlements/Issuances | 82,034 | 207,634 | ||
Net Unrealized and Realized Gains (Losses) | (18,641) | 312,585 | ||
Change in OCI | 710 | 1,372 | ||
Balance, End of Period | 4,025,714 | 4,025,714 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Unfunded Revolver Commitments | Asset Management | ||||
Fair value, liabilities measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 40,050 | 70,148 | 46,340 | 75,842 |
Transfers In / (Out) Due to Changes in Consolidation | 0 | 0 | 0 | 0 |
Transfers In | 0 | 0 | 0 | 0 |
Transfers Out | 0 | 0 | 0 | 0 |
Net Purchases/Sales/Settlements/Issuances | 0 | 0 | 628 | (2,464) |
Net Unrealized and Realized Gains (Losses) | 10,860 | (14,063) | 3,942 | (17,293) |
Change in OCI | 0 | 0 | 0 | 0 |
Balance, End of Period | 50,910 | 56,085 | 50,910 | 56,085 |
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 10,860 | $ (14,063) | 3,942 | $ (17,293) |
Policy liabilities | Insurance | ||||
Fair value, liabilities measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 548,377 | 637,800 | ||
Transfers In / (Out) Due to Changes in Consolidation | 0 | 0 | ||
Transfers In | 0 | 0 | ||
Transfers Out | 0 | 0 | ||
Net Purchases/Sales/Settlements/Issuances | 0 | 0 | ||
Net Unrealized and Realized Gains (Losses) | (3,548) | (92,971) | ||
Change in OCI | 0 | 0 | ||
Balance, End of Period | 544,829 | 544,829 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Closed block policy liabilities | Insurance | ||||
Fair value, liabilities measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 1,341,262 | 1,395,746 | ||
Transfers In / (Out) Due to Changes in Consolidation | 0 | 0 | ||
Transfers In | 0 | 0 | ||
Transfers Out | 0 | 0 | ||
Net Purchases/Sales/Settlements/Issuances | 0 | 0 | ||
Net Unrealized and Realized Gains (Losses) | 32,941 | (22,205) | ||
Change in OCI | 710 | 1,372 | ||
Balance, End of Period | 1,374,913 | 1,374,913 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Funds withheld payable at interest | Insurance | ||||
Fair value, liabilities measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 55,172 | 59,230 | ||
Transfers In / (Out) Due to Changes in Consolidation | 0 | 0 | ||
Transfers In | 0 | 0 | ||
Transfers Out | 0 | 0 | ||
Net Purchases/Sales/Settlements/Issuances | 0 | 0 | ||
Net Unrealized and Realized Gains (Losses) | (91,927) | (95,985) | ||
Change in OCI | 0 | 0 | ||
Balance, End of Period | (36,755) | (36,755) | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Embedded derivative | Insurance | Embedded derivative – indexed universal life products | ||||
Fair value, liabilities measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 495,353 | 386,746 | ||
Transfers In / (Out) Due to Changes in Consolidation | 0 | 0 | ||
Transfers In | 0 | 0 | ||
Transfers Out | 0 | 0 | ||
Net Purchases/Sales/Settlements/Issuances | 108 | (393) | ||
Net Unrealized and Realized Gains (Losses) | (5,448) | 103,660 | ||
Change in OCI | 0 | 0 | ||
Balance, End of Period | 490,013 | 490,013 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | 0 | 0 | ||
Embedded derivative | Insurance | Embedded derivative – annuity products | ||||
Fair value, liabilities measured on recurring basis, level 3 fair-value category reconciliation | ||||
Balance, Beg. of Period | 1,521,447 | 1,024,601 | ||
Transfers In / (Out) Due to Changes in Consolidation | 0 | 0 | ||
Transfers In | 0 | 0 | ||
Transfers Out | 0 | 0 | ||
Net Purchases/Sales/Settlements/Issuances | 81,926 | 208,027 | ||
Net Unrealized and Realized Gains (Losses) | 49,341 | 420,086 | ||
Change in OCI | 0 | 0 | ||
Balance, End of Period | 1,652,714 | 1,652,714 | ||
Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Bre_2
FAIR VALUE MEASUREMENTS - Breakout of Liability Issuances and Settlements (Details) - Level III - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Liabilities | ||||
Issuances | $ 98,020 | $ 235,366 | ||
Settlements | (15,986) | (27,104) | ||
Net settlements/Issuances | 82,034 | 208,262 | ||
Asset Management | ||||
Liabilities | ||||
Issuances | 11,319 | $ 0 | 12,486 | $ 0 |
Settlements | (11,319) | 0 | (11,858) | (2,464) |
Net settlements/Issuances | 0 | 0 | 628 | (2,464) |
Asset Management | Unfunded Revolver Commitments | ||||
Liabilities | ||||
Issuances | 11,319 | 0 | 12,486 | 0 |
Settlements | (11,319) | 0 | (11,858) | (2,464) |
Net settlements/Issuances | 0 | $ 0 | 628 | $ (2,464) |
Insurance | ||||
Liabilities | ||||
Issuances | 86,701 | 222,880 | ||
Settlements | (4,667) | (15,246) | ||
Net settlements/Issuances | 82,034 | 207,634 | ||
Insurance | Policy liabilities | ||||
Liabilities | ||||
Net settlements/Issuances | 0 | 0 | ||
Insurance | Closed block policy liabilities | ||||
Liabilities | ||||
Net settlements/Issuances | 0 | 0 | ||
Insurance | Funds withheld payable at interest | ||||
Liabilities | ||||
Net settlements/Issuances | 0 | 0 | ||
Insurance | Embedded derivative | Embedded derivative – indexed universal life products | ||||
Liabilities | ||||
Issuances | 4,775 | 14,853 | ||
Settlements | (4,667) | (15,246) | ||
Net settlements/Issuances | 108 | (393) | ||
Insurance | Embedded derivative | Embedded derivative – annuity products | ||||
Liabilities | ||||
Issuances | 81,926 | 208,027 | ||
Settlements | 0 | 0 | ||
Net settlements/Issuances | $ 81,926 | $ 208,027 |
FAIR VALUE MEASUREMENTS - Valua
FAIR VALUE MEASUREMENTS - Valuation Methodologies and Significant Unobservable Inputs (Details) | 9 Months Ended | |
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Insurance | ||
Level III Assets | ||
Reinsurance recoverable, fair value | $ 25,233,883,000 | $ 0 |
Level III Liabilities | ||
Funds withheld payable at interest | 261,669,000 | $ 0 |
Embedded derivative, fair value | 2,142,727,000 | |
Insurance | Embedded derivative – indexed universal life products | ||
Level III Liabilities | ||
Embedded derivative, fair value | 490,013,000 | |
Insurance | Embedded derivative – annuity products | ||
Level III Liabilities | ||
Embedded derivative, fair value | $ 1,652,714,000 | |
Illiquidity Discount | Minimum | ||
Level III Assets | ||
Private equity, measurement input | 0.05 | |
Yield | Yield Analysis | Asset Management | Weighted Average | ||
Level III Liabilities | ||
Unfunded revolving commitments, measurement input | 0.052 | |
Level III | Asset Management | ||
Level III Assets | ||
Private equity, fair value | $ 21,744,949,000 | |
Credit, fair value | 10,200,611,000 | |
Real assets, fair value | 11,633,184,000 | |
Equity method - other, fair value | 1,008,868,000 | |
Other investments, fair value | 3,168,917,000 | |
Level III Liabilities | ||
Unfunded revolving commitments, fair value | 50,910,000 | |
Level III | Insurance | ||
Level III Assets | ||
Other investments, fair value | 455,387,000 | |
Funds withheld receivables at interest | 80,493,000 | |
Reinsurance recoverable, fair value | 1,325,487,000 | |
Level III Liabilities | ||
Policy liabilities, fair value | 544,829,000 | |
Closed block policy liabilities, fair value | 1,374,913,000 | |
Funds withheld payable at interest | (36,755,000) | |
Level III | Insurance | Embedded derivative – indexed universal life products | ||
Level III Liabilities | ||
Embedded derivative, fair value | 490,013,000 | |
Level III | Insurance | Embedded derivative – annuity products | ||
Level III Liabilities | ||
Embedded derivative, fair value | $ 1,652,714,000 | |
Level III | Nonperformance Risk | Insurance | Minimum | ||
Level III Liabilities | ||
Closed block policy liabilities, measurement input | 0.0026 | |
Level III | Nonperformance Risk | Insurance | Maximum | ||
Level III Liabilities | ||
Closed block policy liabilities, measurement input | 0.0111 | |
Level III | Illiquidity Discount | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Equity method - other, measurement input | 0.081 | |
Other investments, measurement input | 0.097 | |
Level III | Illiquidity Discount | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Equity method - other, measurement input | 0.050 | |
Other investments, measurement input | 0.063 | |
Level III | Illiquidity Discount | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Equity method - other, measurement input | 0.100 | |
Other investments, measurement input | 0.200 | |
Level III | Weight Ascribed to Market Comparables | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Equity method - other, measurement input | 0.341 | |
Other investments, measurement input | 0.225 | |
Level III | Weight Ascribed to Market Comparables | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Equity method - other, measurement input | 0 | |
Other investments, measurement input | 0 | |
Level III | Weight Ascribed to Market Comparables | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Equity method - other, measurement input | 0.750 | |
Other investments, measurement input | 1 | |
Level III | Weight Ascribed to Discounted Cash Flow | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Equity method - other, measurement input | 0.265 | |
Other investments, measurement input | 0.395 | |
Level III | Weight Ascribed to Discounted Cash Flow | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Equity method - other, measurement input | 0 | |
Other investments, measurement input | 0 | |
Level III | Weight Ascribed to Discounted Cash Flow | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Equity method - other, measurement input | 0.500 | |
Other investments, measurement input | 1 | |
Level III | Weight Ascribed to Transaction Price | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Equity method - other, measurement input | 0.394 | |
Other investments, measurement input | 0.380 | |
Level III | Weight Ascribed to Transaction Price | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Equity method - other, measurement input | 0 | |
Other investments, measurement input | 0 | |
Level III | Weight Ascribed to Transaction Price | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Equity method - other, measurement input | 1 | |
Other investments, measurement input | 1 | |
Level III | Enterprise Value/LTM EBITDA Multiple | Market comparables | Asset Management | Weighted Average | ||
Level III Assets | ||
Equity method - other, measurement input | 11.5 | |
Other investments, measurement input | 13.7 | |
Level III | Enterprise Value/LTM EBITDA Multiple | Market comparables | Asset Management | Minimum | ||
Level III Assets | ||
Equity method - other, measurement input | 11 | |
Other investments, measurement input | 1.1 | |
Level III | Enterprise Value/LTM EBITDA Multiple | Market comparables | Asset Management | Maximum | ||
Level III Assets | ||
Equity method - other, measurement input | 26.9 | |
Other investments, measurement input | 30.5 | |
Level III | Enterprise Value/Forward EBITDA Multiple | Market comparables | Asset Management | Weighted Average | ||
Level III Assets | ||
Equity method - other, measurement input | 11.8 | |
Other investments, measurement input | 13.2 | |
Level III | Enterprise Value/Forward EBITDA Multiple | Market comparables | Asset Management | Minimum | ||
Level III Assets | ||
Equity method - other, measurement input | 4.1 | |
Other investments, measurement input | 0.9 | |
Level III | Enterprise Value/Forward EBITDA Multiple | Market comparables | Asset Management | Maximum | ||
Level III Assets | ||
Equity method - other, measurement input | 19.5 | |
Other investments, measurement input | 17.1 | |
Level III | Weighted Average Cost of Capital | Discounted cash flow | Asset Management | Weighted Average | ||
Level III Assets | ||
Equity method - other, measurement input | 0.105 | |
Other investments, measurement input | 0.118 | |
Level III | Weighted Average Cost of Capital | Discounted cash flow | Asset Management | Minimum | ||
Level III Assets | ||
Equity method - other, measurement input | 0.058 | |
Other investments, measurement input | 0.076 | |
Level III | Weighted Average Cost of Capital | Discounted cash flow | Asset Management | Maximum | ||
Level III Assets | ||
Equity method - other, measurement input | 0.160 | |
Other investments, measurement input | 0.250 | |
Level III | Enterprise Value/LTM EBITDA Exit Multiple | Discounted cash flow | Asset Management | Weighted Average | ||
Level III Assets | ||
Equity method - other, measurement input | 11 | |
Other investments, measurement input | 10 | |
Level III | Enterprise Value/LTM EBITDA Exit Multiple | Discounted cash flow | Asset Management | Minimum | ||
Level III Assets | ||
Equity method - other, measurement input | 6 | |
Other investments, measurement input | 5.1 | |
Level III | Enterprise Value/LTM EBITDA Exit Multiple | Discounted cash flow | Asset Management | Maximum | ||
Level III Assets | ||
Equity method - other, measurement input | 15 | |
Other investments, measurement input | 11 | |
Level III | Yield | Discounted cash flow | Insurance | ||
Level III Assets | ||
Other investments, measurement input | 0.000800 | |
Level III | Yield | Yield Analysis | Asset Management | Weighted Average | ||
Level III Assets | ||
Credit, measurement input | 0.053 | |
Level III | Yield | Yield Analysis | Asset Management | Minimum | ||
Level III Assets | ||
Credit, measurement input | 0.043 | |
Level III Liabilities | ||
Unfunded revolving commitments, measurement input | 0.039 | |
Level III | Yield | Yield Analysis | Asset Management | Maximum | ||
Level III Assets | ||
Credit, measurement input | 0.257 | |
Level III Liabilities | ||
Unfunded revolving commitments, measurement input | 0.069 | |
Level III | Net Leverage | Yield Analysis | Asset Management | Weighted Average | ||
Level III Assets | ||
Credit, measurement input | 5.1 | |
Level III | Net Leverage | Yield Analysis | Asset Management | Minimum | ||
Level III Assets | ||
Credit, measurement input | 0.3 | |
Level III | Net Leverage | Yield Analysis | Asset Management | Maximum | ||
Level III Assets | ||
Credit, measurement input | 15.2 | |
Level III | EBITDA Multiple | Yield Analysis | Asset Management | Weighted Average | ||
Level III Assets | ||
Credit, measurement input | 11.5 | |
Level III | EBITDA Multiple | Yield Analysis | Asset Management | Minimum | ||
Level III Assets | ||
Credit, measurement input | 1.1 | |
Level III | EBITDA Multiple | Yield Analysis | Asset Management | Maximum | ||
Level III Assets | ||
Credit, measurement input | 37.8 | |
Level III | Current Capitalization Rate | Direct capitalization | Insurance | Weighted Average | ||
Level III Assets | ||
Other investments, measurement input | 0.0552 | |
Level III | Current Capitalization Rate | Direct capitalization | Insurance | Minimum | ||
Level III Assets | ||
Other investments, measurement input | 0.0495 | |
Level III | Current Capitalization Rate | Direct capitalization | Insurance | Maximum | ||
Level III Assets | ||
Other investments, measurement input | 0.0609 | |
Level III | Vacancy rate | Direct capitalization | Insurance | ||
Level III Assets | ||
Other investments, measurement input | 0.0500 | |
Level III | Duration/Weighted Average Life | Discounted cash flow | Insurance | Weighted Average | ||
Level III Assets | ||
Funds withheld receivable at interest, measurement input, term | 10 years 5 months 4 days | |
Level III Liabilities | ||
Funds withheld receivable at interest, measurement input, term | 10 years 7 months 6 days | |
Level III | Duration/Weighted Average Life | Discounted cash flow | Insurance | Minimum | ||
Level III Assets | ||
Funds withheld receivable at interest, measurement input, term | 0 years | |
Level III Liabilities | ||
Funds withheld receivable at interest, measurement input, term | 0 years | |
Level III | Duration/Weighted Average Life | Discounted cash flow | Insurance | Maximum | ||
Level III Assets | ||
Funds withheld receivable at interest, measurement input, term | 23 years 2 months 12 days | |
Level III Liabilities | ||
Funds withheld receivable at interest, measurement input, term | 20 years 1 month 6 days | |
Level III | Contractholder Persistency | Discounted cash flow | Insurance | Weighted Average | ||
Level III Assets | ||
Funds withheld receivable at interest, measurement input | 0.0613 | |
Level III Liabilities | ||
Funds withheld receivable at interest, measurement input | 0.0613 | |
Level III | Contractholder Persistency | Discounted cash flow | Insurance | Minimum | ||
Level III Assets | ||
Funds withheld receivable at interest, measurement input | 0.0350 | |
Level III Liabilities | ||
Funds withheld receivable at interest, measurement input | 0.0350 | |
Level III | Contractholder Persistency | Discounted cash flow | Insurance | Maximum | ||
Level III Assets | ||
Funds withheld receivable at interest, measurement input | 0.1620 | |
Level III Liabilities | ||
Funds withheld receivable at interest, measurement input | 0.1620 | |
Level III | Nonperformance Risk | Discounted cash flow | Insurance | Minimum | ||
Level III Assets | ||
Funds withheld receivable at interest, measurement input | 0.0026 | |
Level III Liabilities | ||
Funds withheld receivable at interest, measurement input | 0.0026 | |
Level III | Nonperformance Risk | Discounted cash flow | Insurance | Maximum | ||
Level III Assets | ||
Funds withheld receivable at interest, measurement input | 0.0111 | |
Level III Liabilities | ||
Funds withheld receivable at interest, measurement input | 0.0111 | |
Level III | Nonperformance Risk | Future costs for options used to hedge the contract obligations | Insurance | Minimum | Embedded derivative – indexed universal life products | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0026 | |
Level III | Nonperformance Risk | Future costs for options used to hedge the contract obligations | Insurance | Minimum | Variable annuity | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0026 | |
Level III | Nonperformance Risk | Future costs for options used to hedge the contract obligations | Insurance | Maximum | Embedded derivative – indexed universal life products | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0111 | |
Level III | Nonperformance Risk | Future costs for options used to hedge the contract obligations | Insurance | Maximum | Variable annuity | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0111 | |
Level III | Expense assumption | Present value of expenses paid from the open block plus the cost of capital held in support of the liabilities. | Insurance | Minimum | ||
Level III Assets | ||
Reinsurance recoverable, measurement input, expense per policy | $ 10.40 | |
Level III Liabilities | ||
Closed block liabilities, measurement input, value | 10.40 | |
Level III | Expense assumption | Present value of expenses paid from the open block plus the cost of capital held in support of the liabilities. | Insurance | Maximum | ||
Level III Assets | ||
Reinsurance recoverable, measurement input, expense per policy | 78 | |
Level III Liabilities | ||
Closed block liabilities, measurement input, value | $ 78 | |
Level III | Expense risk margin | Unobservable inputs are a market participant’s view of the expenses, a risk margin on the uncertainty of the level of expenses and a cost of capital on the capital held in support of the liabilities. | Insurance | ||
Level III Assets | ||
Reinsurance recoverable, measurement input | 0.0942 | |
Level III Liabilities | ||
Closed block policy liabilities, measurement input | 0.0942 | |
Level III | Cost of capital | Unobservable inputs are a market participant’s view of the expenses, a risk margin on the uncertainty of the level of expenses and a cost of capital on the capital held in support of the liabilities. | Insurance | Minimum | ||
Level III Assets | ||
Reinsurance recoverable, measurement input | 0.0369 | |
Level III Liabilities | ||
Closed block policy liabilities, measurement input | 0.0369 | |
Level III | Cost of capital | Unobservable inputs are a market participant’s view of the expenses, a risk margin on the uncertainty of the level of expenses and a cost of capital on the capital held in support of the liabilities. | Insurance | Maximum | ||
Level III Assets | ||
Reinsurance recoverable, measurement input | 0.1385 | |
Level III Liabilities | ||
Closed block policy liabilities, measurement input | 0.1385 | |
Level III | Mortality Rate | Discounted cash flow | Insurance | ||
Level III Assets | ||
Reinsurance recoverable, measurement input | 0.0255 | |
Level III Liabilities | ||
Closed block policy liabilities, measurement input | 0.0255 | |
Level III | Mortality Rate | Policyholder behavior is also a significant unobservable input, including surrender and mortality. | Insurance | Minimum | ||
Level III Liabilities | ||
Policy liabilities, measurement input | 0.0375 | |
Level III | Mortality Rate | Policyholder behavior is also a significant unobservable input, including surrender and mortality. | Insurance | Maximum | ||
Level III Liabilities | ||
Policy liabilities, measurement input | 0.0829 | |
Level III | Mortality Rate | Policy persistency is a significant unobservable input. | Insurance | Embedded derivative – indexed universal life products | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0068 | |
Level III | Mortality Rate | Future costs for options used to hedge the contract obligations | Insurance | Weighted Average | Embedded derivative – annuity products | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0210 | |
Level III | Mortality Rate | Policyholder behavior is a significant unobservable input, including utilization and lapse. | Insurance | Weighted Average | Embedded derivative – annuity products | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0195 | |
Level III | Mortality Rate | Policyholder behavior is a significant unobservable input, including utilization and lapse. | Insurance | Minimum | Variable annuity | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0133 | |
Level III | Mortality Rate | Policyholder behavior is a significant unobservable input, including utilization and lapse. | Insurance | Maximum | Variable annuity | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0757 | |
Level III | Surrender Rate | Discounted cash flow | Insurance | ||
Level III Assets | ||
Reinsurance recoverable, measurement input | 0.0533 | |
Level III Liabilities | ||
Closed block policy liabilities, measurement input | 0.0533 | |
Level III | Surrender Rate | Policyholder behavior is also a significant unobservable input, including surrender and mortality. | Insurance | Minimum | ||
Level III Liabilities | ||
Policy liabilities, measurement input | 0.0315 | |
Level III | Surrender Rate | Policyholder behavior is also a significant unobservable input, including surrender and mortality. | Insurance | Maximum | ||
Level III Liabilities | ||
Policy liabilities, measurement input | 0.0692 | |
Level III | Surrender Rate | Policyholder behavior is a significant unobservable input, including utilization and lapse. | Insurance | Weighted Average | Embedded derivative – annuity products | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0985 | |
Level III | Surrender Rate | Policyholder behavior is a significant unobservable input, including utilization and lapse. | Insurance | Minimum | Variable annuity | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0363 | |
Level III | Surrender Rate | Policyholder behavior is a significant unobservable input, including utilization and lapse. | Insurance | Maximum | Variable annuity | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.4190 | |
Level III | Risk Margin Rate | Present value of best estimate liability cash flows. Unobservable inputs include a market participant view of the risk margin included in the discount rate which reflects the variability of the cash flows. | Insurance | Minimum | ||
Level III Liabilities | ||
Policy liabilities, measurement input | 0.0026 | |
Level III | Risk Margin Rate | Present value of best estimate liability cash flows. Unobservable inputs include a market participant view of the risk margin included in the discount rate which reflects the variability of the cash flows. | Insurance | Maximum | ||
Level III Liabilities | ||
Policy liabilities, measurement input | 0.0145 | |
Level III | Lapse Rate | Policy persistency is a significant unobservable input. | Insurance | Embedded derivative – indexed universal life products | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0371 | |
Level III | Option Budge Assumption | Future costs for options used to hedge the contract obligations | Insurance | Embedded derivative – indexed universal life products | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0360 | |
Level III | Option Budge Assumption | Future costs for options used to hedge the contract obligations | Insurance | Weighted Average | Embedded derivative – annuity products | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0160 | |
Level III | Utilization | Policyholder behavior is a significant unobservable input, including utilization and lapse. | Insurance | Weighted Average | Embedded derivative – annuity products | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0370 | |
Level III | Utilization | Policyholder behavior is a significant unobservable input, including utilization and lapse. | Insurance | Weighted Average | Variable annuity | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0419 | |
Level III | Utilization | Policyholder behavior is a significant unobservable input, including utilization and lapse. | Insurance | Minimum | Variable annuity | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.0227 | |
Level III | Utilization | Policyholder behavior is a significant unobservable input, including utilization and lapse. | Insurance | Maximum | Variable annuity | ||
Level III Liabilities | ||
Embedded derivative, measurement input | 0.3256 | |
Level III | Private Equity | Asset Management | ||
Level III Assets | ||
Private equity, fair value | $ 18,865,051,000 | |
Level III | Private Equity | Illiquidity Discount | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Private equity, measurement input | 0.068 | |
Level III | Private Equity | Illiquidity Discount | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Private equity, measurement input | 0.050 | |
Level III | Private Equity | Illiquidity Discount | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Private equity, measurement input | 0.150 | |
Level III | Private Equity | Weight Ascribed to Market Comparables | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Private equity, measurement input | 0.257 | |
Level III | Private Equity | Weight Ascribed to Market Comparables | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Private equity, measurement input | 0 | |
Level III | Private Equity | Weight Ascribed to Market Comparables | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Private equity, measurement input | 0.750 | |
Level III | Private Equity | Weight Ascribed to Discounted Cash Flow | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Private equity, measurement input | 0.548 | |
Level III | Private Equity | Weight Ascribed to Discounted Cash Flow | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Private equity, measurement input | 0 | |
Level III | Private Equity | Weight Ascribed to Discounted Cash Flow | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Private equity, measurement input | 1 | |
Level III | Private Equity | Weight Ascribed to Transaction Price | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Private equity, measurement input | 0.195 | |
Level III | Private Equity | Weight Ascribed to Transaction Price | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Private equity, measurement input | 0 | |
Level III | Private Equity | Weight Ascribed to Transaction Price | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Private equity, measurement input | 1 | |
Level III | Private Equity | Enterprise Value/LTM EBITDA Multiple | Market comparables | Asset Management | Weighted Average | ||
Level III Assets | ||
Private equity, measurement input | 17.6 | |
Level III | Private Equity | Enterprise Value/LTM EBITDA Multiple | Market comparables | Asset Management | Minimum | ||
Level III Assets | ||
Private equity, measurement input | 9.5 | |
Level III | Private Equity | Enterprise Value/LTM EBITDA Multiple | Market comparables | Asset Management | Maximum | ||
Level III Assets | ||
Private equity, measurement input | 26.8 | |
Level III | Private Equity | Enterprise Value/Forward EBITDA Multiple | Market comparables | Asset Management | Weighted Average | ||
Level III Assets | ||
Private equity, measurement input | 14.9 | |
Level III | Private Equity | Enterprise Value/Forward EBITDA Multiple | Market comparables | Asset Management | Minimum | ||
Level III Assets | ||
Private equity, measurement input | 8 | |
Level III | Private Equity | Enterprise Value/Forward EBITDA Multiple | Market comparables | Asset Management | Maximum | ||
Level III Assets | ||
Private equity, measurement input | 20 | |
Level III | Private Equity | Weighted Average Cost of Capital | Discounted cash flow | Asset Management | Weighted Average | ||
Level III Assets | ||
Private equity, measurement input | 0.094 | |
Level III | Private Equity | Weighted Average Cost of Capital | Discounted cash flow | Asset Management | Minimum | ||
Level III Assets | ||
Private equity, measurement input | 0.035 | |
Level III | Private Equity | Weighted Average Cost of Capital | Discounted cash flow | Asset Management | Maximum | ||
Level III Assets | ||
Private equity, measurement input | 0.152 | |
Level III | Private Equity | Enterprise Value/LTM EBITDA Exit Multiple | Discounted cash flow | Asset Management | Weighted Average | ||
Level III Assets | ||
Private equity, measurement input | 13.4 | |
Level III | Private Equity | Enterprise Value/LTM EBITDA Exit Multiple | Discounted cash flow | Asset Management | Minimum | ||
Level III Assets | ||
Private equity, measurement input | 6 | |
Level III | Private Equity | Enterprise Value/LTM EBITDA Exit Multiple | Discounted cash flow | Asset Management | Maximum | ||
Level III Assets | ||
Private equity, measurement input | 18 | |
Level III | Growth Equity | Asset Management | ||
Level III Assets | ||
Private equity, fair value | $ 2,879,898,000 | |
Level III | Growth Equity | Illiquidity Discount | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Private equity, measurement input | 0.097 | |
Level III | Growth Equity | Illiquidity Discount | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Private equity, measurement input | 0.050 | |
Level III | Growth Equity | Illiquidity Discount | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Private equity, measurement input | 0.250 | |
Level III | Growth Equity | Weight Ascribed to Market Comparables | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Private equity, measurement input | 0.312 | |
Level III | Growth Equity | Weight Ascribed to Market Comparables | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Private equity, measurement input | 0 | |
Level III | Growth Equity | Weight Ascribed to Market Comparables | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Private equity, measurement input | 1 | |
Level III | Growth Equity | Weight Ascribed to Discounted Cash Flow | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Private equity, measurement input | 0.020 | |
Level III | Growth Equity | Weight Ascribed to Discounted Cash Flow | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Private equity, measurement input | 0 | |
Level III | Growth Equity | Weight Ascribed to Discounted Cash Flow | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Private equity, measurement input | 0.500 | |
Level III | Growth Equity | Weight Ascribed to Milestones | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Private equity, measurement input | 0.668 | |
Level III | Growth Equity | Weight Ascribed to Milestones | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Private equity, measurement input | 0 | |
Level III | Growth Equity | Weight Ascribed to Milestones | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Private equity, measurement input | 1 | |
Level III | Growth Equity | Base | Scenario Weighting | Asset Management | Weighted Average | ||
Level III Assets | ||
Private equity, measurement input | 0.739 | |
Level III | Growth Equity | Base | Scenario Weighting | Asset Management | Minimum | ||
Level III Assets | ||
Private equity, measurement input | 0.500 | |
Level III | Growth Equity | Base | Scenario Weighting | Asset Management | Maximum | ||
Level III Assets | ||
Private equity, measurement input | 0.750 | |
Level III | Growth Equity | Downside | Scenario Weighting | Asset Management | Weighted Average | ||
Level III Assets | ||
Private equity, measurement input | 0.075 | |
Level III | Growth Equity | Downside | Scenario Weighting | Asset Management | Minimum | ||
Level III Assets | ||
Private equity, measurement input | 0.010 | |
Level III | Growth Equity | Downside | Scenario Weighting | Asset Management | Maximum | ||
Level III Assets | ||
Private equity, measurement input | 0.250 | |
Level III | Growth Equity | Upside | Scenario Weighting | Asset Management | Weighted Average | ||
Level III Assets | ||
Private equity, measurement input | 0.186 | |
Level III | Growth Equity | Upside | Scenario Weighting | Asset Management | Minimum | ||
Level III Assets | ||
Private equity, measurement input | 0 | |
Level III | Growth Equity | Upside | Scenario Weighting | Asset Management | Maximum | ||
Level III Assets | ||
Private equity, measurement input | 0.350 | |
Level III | Energy | Asset Management | ||
Level III Assets | ||
Real assets, fair value | $ 2,623,066,000 | |
Level III | Energy | Discounted cash flow | Liquids | ||
Level III Assets | ||
Revenue ratio of liquids | 85.00% | |
Level III | Energy | Discounted cash flow | Natural Gas | ||
Level III Assets | ||
Revenue ratio of natural gas | 15.00% | |
Level III | Energy | Weight Ascribed to Market Comparables | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 0.461 | |
Level III | Energy | Weight Ascribed to Market Comparables | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 0 | |
Level III | Energy | Weight Ascribed to Market Comparables | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 0.500 | |
Level III | Energy | Weight Ascribed to Discounted Cash Flow | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 0.539 | |
Level III | Energy | Weight Ascribed to Discounted Cash Flow | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 0.500 | |
Level III | Energy | Weight Ascribed to Discounted Cash Flow | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 1 | |
Level III | Energy | Enterprise Value/LTM EBITDA Multiple | Market comparables | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 6.1 | |
Level III | Energy | Enterprise Value/LTM EBITDA Multiple | Market comparables | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 5.9 | |
Level III | Energy | Enterprise Value/LTM EBITDA Multiple | Market comparables | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 6.2 | |
Level III | Energy | Enterprise Value/Forward EBITDA Multiple | Market comparables | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 4.5 | |
Level III | Energy | Enterprise Value/Forward EBITDA Multiple | Market comparables | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 4.1 | |
Level III | Energy | Enterprise Value/Forward EBITDA Multiple | Market comparables | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 8 | |
Level III | Energy | Weighted Average Cost of Capital | Discounted cash flow | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 0.114 | |
Level III | Energy | Weighted Average Cost of Capital | Discounted cash flow | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 0.103 | |
Level III | Energy | Weighted Average Cost of Capital | Discounted cash flow | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 0.147 | |
Level III | Energy | Average Price Per BOE | Discounted cash flow | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input, value | $ 41.71 | |
Level III | Energy | Average Price Per BOE | Discounted cash flow | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input, value | 39.43 | |
Level III | Energy | Average Price Per BOE | Discounted cash flow | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input, value | 44.74 | |
Level III | Infrastructure | Asset Management | ||
Level III Assets | ||
Real assets, fair value | $ 3,083,444,000 | |
Level III | Infrastructure | Illiquidity Discount | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 0.050 | |
Level III | Infrastructure | Illiquidity Discount | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 0.050 | |
Level III | Infrastructure | Illiquidity Discount | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 0.050 | |
Level III | Infrastructure | Weight Ascribed to Market Comparables | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 0.018 | |
Level III | Infrastructure | Weight Ascribed to Market Comparables | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 0 | |
Level III | Infrastructure | Weight Ascribed to Market Comparables | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 0.250 | |
Level III | Infrastructure | Weight Ascribed to Discounted Cash Flow | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 0.487 | |
Level III | Infrastructure | Weight Ascribed to Discounted Cash Flow | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 0 | |
Level III | Infrastructure | Weight Ascribed to Discounted Cash Flow | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 1 | |
Level III | Infrastructure | Weight Ascribed to Transaction Price | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 0.495 | |
Level III | Infrastructure | Weight Ascribed to Transaction Price | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 0 | |
Level III | Infrastructure | Weight Ascribed to Transaction Price | Inputs to market comparables, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 1 | |
Level III | Infrastructure | Enterprise Value/Forward EBITDA Multiple | Market comparables | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 11 | |
Level III | Infrastructure | Enterprise Value/Forward EBITDA Multiple | Market comparables | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 11 | |
Level III | Infrastructure | Enterprise Value/Forward EBITDA Multiple | Market comparables | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 11 | |
Level III | Infrastructure | Weighted Average Cost of Capital | Discounted cash flow | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 0.063 | |
Level III | Infrastructure | Weighted Average Cost of Capital | Discounted cash flow | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 0.048 | |
Level III | Infrastructure | Weighted Average Cost of Capital | Discounted cash flow | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 0.083 | |
Level III | Infrastructure | Enterprise Value/LTM EBITDA Exit Multiple | Discounted cash flow | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 12.2 | |
Level III | Infrastructure | Enterprise Value/LTM EBITDA Exit Multiple | Discounted cash flow | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 10 | |
Level III | Infrastructure | Enterprise Value/LTM EBITDA Exit Multiple | Discounted cash flow | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 13 | |
Level III | Real Estate | Asset Management | ||
Level III Assets | ||
Real assets, fair value | $ 5,926,674,000 | |
Level III | Real Estate | Weight Ascribed to Discounted Cash Flow | Inputs to direct income capitalization, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 0.702 | |
Level III | Real Estate | Weight Ascribed to Discounted Cash Flow | Inputs to direct income capitalization, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 0 | |
Level III | Real Estate | Weight Ascribed to Discounted Cash Flow | Inputs to direct income capitalization, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 1 | |
Level III | Real Estate | Weight Ascribed to Transaction Price | Inputs to direct income capitalization, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 0.070 | |
Level III | Real Estate | Weight Ascribed to Transaction Price | Inputs to direct income capitalization, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 0 | |
Level III | Real Estate | Weight Ascribed to Transaction Price | Inputs to direct income capitalization, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 1 | |
Level III | Real Estate | Weight Ascribed to Direct Income Capitalization | Inputs to direct income capitalization, discounted cash flow and transaction price | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 0.228 | |
Level III | Real Estate | Weight Ascribed to Direct Income Capitalization | Inputs to direct income capitalization, discounted cash flow and transaction price | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 0 | |
Level III | Real Estate | Weight Ascribed to Direct Income Capitalization | Inputs to direct income capitalization, discounted cash flow and transaction price | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 1 | |
Level III | Real Estate | Current Capitalization Rate | Direct income capitalization | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 0.051 | |
Level III | Real Estate | Current Capitalization Rate | Direct income capitalization | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 0.035 | |
Level III | Real Estate | Current Capitalization Rate | Direct income capitalization | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 0.081 | |
Level III | Real Estate | Unlevered Discount Rate | Discounted cash flow | Asset Management | Weighted Average | ||
Level III Assets | ||
Real assets, measurement input | 0.066 | |
Level III | Real Estate | Unlevered Discount Rate | Discounted cash flow | Asset Management | Minimum | ||
Level III Assets | ||
Real assets, measurement input | 0.053 | |
Level III | Real Estate | Unlevered Discount Rate | Discounted cash flow | Asset Management | Maximum | ||
Level III Assets | ||
Real assets, measurement input | 0.180 | |
Level III | Corporate Securities | Insurance | ||
Level III Assets | ||
Securities, fair value | $ 1,627,371,000 | |
Level III | Corporate Securities | Discount Spread | Discounted cash flow | Insurance | Weighted Average | ||
Level III Assets | ||
Securities, measurement input | 0.0211 | |
Level III | Corporate Securities | Discount Spread | Discounted cash flow | Insurance | Minimum | ||
Level III Assets | ||
Securities, measurement input | 0 | |
Level III | Corporate Securities | Discount Spread | Discounted cash flow | Insurance | Maximum | ||
Level III Assets | ||
Securities, measurement input | 0.0483 | |
Level III | Structured securities | Insurance | ||
Level III Assets | ||
Securities, fair value | $ 159,372,000 | |
Level III | Structured securities | Discount Spread | Discounted cash flow | Insurance | Weighted Average | ||
Level III Assets | ||
Securities, measurement input | 0.0285 | |
Level III | Structured securities | Discount Spread | Discounted cash flow | Insurance | Minimum | ||
Level III Assets | ||
Securities, measurement input | 0.0220 | |
Level III | Structured securities | Discount Spread | Discounted cash flow | Insurance | Maximum | ||
Level III Assets | ||
Securities, measurement input | 0.0615 | |
Level III | Structured securities | Constant Prepayment Rate | Discounted cash flow | Insurance | Weighted Average | ||
Level III Assets | ||
Securities, measurement input | 0.0732 | |
Level III | Structured securities | Constant Prepayment Rate | Discounted cash flow | Insurance | Minimum | ||
Level III Assets | ||
Securities, measurement input | 0.0500 | |
Level III | Structured securities | Constant Prepayment Rate | Discounted cash flow | Insurance | Maximum | ||
Level III Assets | ||
Securities, measurement input | 0.1500 | |
Level III | Structured securities | Constant Default Rate | Discounted cash flow | Insurance | Weighted Average | ||
Level III Assets | ||
Securities, measurement input | 0.0116 | |
Level III | Structured securities | Constant Default Rate | Discounted cash flow | Insurance | Minimum | ||
Level III Assets | ||
Securities, measurement input | 0.0100 | |
Level III | Structured securities | Constant Default Rate | Discounted cash flow | Insurance | Maximum | ||
Level III Assets | ||
Securities, measurement input | 0.0250 | |
Level III | Structured securities | Loss Severity | Discounted cash flow | Insurance | ||
Level III Assets | ||
Securities, measurement input | 100 |
FAIR VALUE MEASUREMENTS - Instr
FAIR VALUE MEASUREMENTS - Instruments Not Carried At Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Financial liabilities: | ||||
Securities Sold Under Agreements to Repurchase | $ 329,963 | |||
Insurance | ||||
Financial assets: | ||||
Cash and cash equivalents | 4,717,240 | $ 0 | $ 0 | $ 0 |
Restricted cash and cash equivalents | 398,572 | 0 | $ 0 | $ 0 |
Financial liabilities: | ||||
Funds withheld payable at interest | 261,669 | 0 | ||
Securities Sold Under Agreements to Repurchase | 317,938 | $ 0 | ||
Level III | Insurance | ||||
Financial assets: | ||||
Funds withheld receivables at interest | 80,493 | |||
Financial liabilities: | ||||
Policy liabilities | 544,829 | |||
Funds withheld payable at interest | (36,755) | |||
Carrying Value | Insurance | ||||
Financial assets: | ||||
Mortgage and other loan receivables | 24,078,587 | |||
Policy loans | 765,931 | |||
FHLB common stock and other investments | 833,519 | |||
Funds withheld receivables at interest | 2,985,988 | |||
Cash and cash equivalents | 4,717,240 | |||
Restricted cash and cash equivalents | 398,572 | |||
Total Assets at Fair Value | 33,779,837 | |||
Financial liabilities: | ||||
Policy liabilities | 29,989,672 | |||
Supplementary contracts without life contingencies | 30,513 | |||
Funding agreements | 2,571,298 | |||
Funds withheld payable at interest | 23,651,565 | |||
Debt obligations | 2,162,591 | |||
Securities Sold Under Agreements to Repurchase | 317,938 | |||
Total financial liabilities | 58,723,577 | |||
Fair Value | Insurance | ||||
Financial assets: | ||||
Mortgage and other loan receivables | 24,826,227 | |||
Policy loans | 751,674 | |||
FHLB common stock and other investments | 833,519 | |||
Funds withheld receivables at interest | 2,985,988 | |||
Cash and cash equivalents | 4,717,240 | |||
Restricted cash and cash equivalents | 398,572 | |||
Total Assets at Fair Value | 34,513,220 | |||
Financial liabilities: | ||||
Policy liabilities | 28,063,998 | |||
Supplementary contracts without life contingencies | 30,704 | |||
Funding agreements | 2,563,810 | |||
Funds withheld payable at interest | 23,651,565 | |||
Debt obligations | 2,244,861 | |||
Securities Sold Under Agreements to Repurchase | 317,938 | |||
Total financial liabilities | 56,872,876 | |||
Fair Value | Level I | Insurance | ||||
Financial assets: | ||||
Mortgage and other loan receivables | 0 | |||
Policy loans | 0 | |||
FHLB common stock and other investments | 0 | |||
Funds withheld receivables at interest | 0 | |||
Cash and cash equivalents | 4,717,240 | |||
Restricted cash and cash equivalents | 398,572 | |||
Total Assets at Fair Value | 5,115,812 | |||
Financial liabilities: | ||||
Policy liabilities | 0 | |||
Supplementary contracts without life contingencies | 0 | |||
Funding agreements | 0 | |||
Funds withheld payable at interest | 0 | |||
Debt obligations | 0 | |||
Securities Sold Under Agreements to Repurchase | 0 | |||
Total financial liabilities | 0 | |||
Fair Value | Level II | Insurance | ||||
Financial assets: | ||||
Mortgage and other loan receivables | 0 | |||
Policy loans | 0 | |||
FHLB common stock and other investments | 0 | |||
Funds withheld receivables at interest | 2,985,988 | |||
Cash and cash equivalents | 0 | |||
Restricted cash and cash equivalents | 0 | |||
Total Assets at Fair Value | 2,985,988 | |||
Financial liabilities: | ||||
Policy liabilities | 28,063,998 | |||
Supplementary contracts without life contingencies | 0 | |||
Funding agreements | 0 | |||
Funds withheld payable at interest | 23,651,565 | |||
Debt obligations | 0 | |||
Securities Sold Under Agreements to Repurchase | 317,938 | |||
Total financial liabilities | 52,033,501 | |||
Fair Value | Level III | Insurance | ||||
Financial assets: | ||||
Mortgage and other loan receivables | 24,826,227 | |||
Policy loans | 751,674 | |||
FHLB common stock and other investments | 833,519 | |||
Funds withheld receivables at interest | 0 | |||
Cash and cash equivalents | 0 | |||
Restricted cash and cash equivalents | 0 | |||
Total Assets at Fair Value | 26,411,420 | |||
Financial liabilities: | ||||
Policy liabilities | 0 | |||
Supplementary contracts without life contingencies | 30,704 | |||
Funding agreements | 2,563,810 | |||
Funds withheld payable at interest | 0 | |||
Debt obligations | 2,244,861 | |||
Securities Sold Under Agreements to Repurchase | 0 | |||
Total financial liabilities | $ 4,839,375 |
FAIR VALUE OPTION - Financial I
FAIR VALUE OPTION - Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | $ 32,471,556 | $ 25,552,357 |
Liabilities | 21,888,898 | 17,372,740 |
Asset Management | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 29,380,823 | 25,552,357 |
Liabilities | 19,969,156 | 17,372,740 |
Insurance | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 3,090,733 | 0 |
Liabilities | 1,919,742 | 0 |
Credit | Asset Management | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 6,986,251 | 5,958,958 |
Investments of Consolidated CFEs | Asset Management | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 20,696,676 | 17,706,976 |
Real Assets | Asset Management | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 185,117 | 177,240 |
Equity Method - Other | Asset Management | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 1,314,982 | 1,507,620 |
Other Investments | Asset Management | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 197,797 | 201,563 |
Other Investments | Insurance | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 476,768 | 0 |
Mortgage and other loan receivables | Insurance | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 1,288,478 | 0 |
Reinsurance recoverable | Insurance | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets | 1,325,487 | 0 |
Debt Obligations of Consolidated CFEs | Asset Management | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Liabilities | 19,969,156 | 17,372,740 |
Policy loans | Insurance | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Liabilities | $ 1,919,742 | $ 0 |
FAIR VALUE OPTION - Change in F
FAIR VALUE OPTION - Change in Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value, option, assets, net realized gains (losses) | $ 347,997 | $ (53,298) | $ 432,605 | $ (312,812) |
Fair value, option, liabilities, net realized gains (losses) | 10,278 | 0 | 9,740 | 0 |
Fair value, option, assets, net unrealized gains (losses) | 58,593 | 878,278 | 516,769 | (113,344) |
Fair value, option, liabilities, net unrealized gains (losses) | (13,900) | (317,299) | (171,291) | 337,634 |
Fair value, option, assets, total gains (losses) | 406,590 | 824,980 | 949,374 | (426,156) |
Fair value, option, liabilities, total gains (losses) | (3,622) | (317,299) | (161,551) | 337,634 |
Asset Management | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value, option, assets, net realized gains (losses) | 347,997 | (53,298) | 432,605 | (312,812) |
Fair value, option, liabilities, net realized gains (losses) | 10,278 | 0 | 9,740 | 0 |
Fair value, option, assets, net unrealized gains (losses) | (262,562) | 878,278 | 154,214 | (113,344) |
Fair value, option, liabilities, net unrealized gains (losses) | (10,437) | (317,299) | (82,107) | 337,634 |
Fair value, option, assets, total gains (losses) | 85,435 | 824,980 | 586,819 | (426,156) |
Fair value, option, liabilities, total gains (losses) | (159) | (317,299) | (72,367) | 337,634 |
Insurance | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value, option, assets, net realized gains (losses) | 0 | 0 | 0 | 0 |
Fair value, option, liabilities, net realized gains (losses) | 0 | 0 | 0 | 0 |
Fair value, option, assets, net unrealized gains (losses) | 321,155 | 0 | 362,555 | 0 |
Fair value, option, liabilities, net unrealized gains (losses) | (3,463) | 0 | (89,184) | 0 |
Fair value, option, assets, total gains (losses) | 321,155 | 0 | 362,555 | 0 |
Fair value, option, liabilities, total gains (losses) | (3,463) | 0 | (89,184) | 0 |
Credit | Asset Management | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value, option, assets, net realized gains (losses) | 19,414 | 6,105 | 1,573 | (42,878) |
Fair value, option, assets, net unrealized gains (losses) | 7,639 | 93,955 | 15,543 | 5,458 |
Fair value, option, assets, total gains (losses) | 27,053 | 100,060 | 17,116 | (37,420) |
Investments of Consolidated CFEs | Asset Management | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value, option, assets, net realized gains (losses) | 23,198 | (33,373) | 44,954 | (127,175) |
Fair value, option, assets, net unrealized gains (losses) | (15,013) | 425,660 | 173,775 | (424,918) |
Fair value, option, assets, total gains (losses) | 8,185 | 392,287 | 218,729 | (552,093) |
Real Assets | Asset Management | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value, option, assets, net realized gains (losses) | 391 | 0 | 566 | 153 |
Fair value, option, assets, net unrealized gains (losses) | 7,591 | 6,423 | 18,448 | (17,882) |
Fair value, option, assets, total gains (losses) | 7,982 | 6,423 | 19,014 | (17,729) |
Equity Method - Other | Asset Management | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value, option, assets, net realized gains (losses) | 293,819 | (26,079) | 368,931 | (82,671) |
Fair value, option, assets, net unrealized gains (losses) | (263,841) | 344,316 | (71,179) | 271,243 |
Fair value, option, assets, total gains (losses) | 29,978 | 318,237 | 297,752 | 188,572 |
Other Investments | Asset Management | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value, option, assets, net realized gains (losses) | 11,175 | 49 | 16,581 | (60,241) |
Fair value, option, assets, net unrealized gains (losses) | 1,062 | 7,924 | 17,627 | 52,755 |
Fair value, option, assets, total gains (losses) | 12,237 | 7,973 | 34,208 | (7,486) |
Other Investments | Insurance | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value, option, assets, net realized gains (losses) | 0 | 0 | 0 | 0 |
Fair value, option, assets, net unrealized gains (losses) | 317,542 | 0 | 353,112 | 0 |
Fair value, option, assets, total gains (losses) | 317,542 | 0 | 353,112 | 0 |
Mortgage and other loan receivables | Insurance | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value, option, assets, net realized gains (losses) | 0 | 0 | 0 | 0 |
Fair value, option, assets, net unrealized gains (losses) | 3,613 | 0 | 9,443 | 0 |
Fair value, option, assets, total gains (losses) | 3,613 | 0 | 9,443 | 0 |
Debt Obligations of Consolidated CFEs | Asset Management | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value, option, liabilities, net realized gains (losses) | 10,278 | 0 | 9,740 | 0 |
Fair value, option, liabilities, net unrealized gains (losses) | (10,437) | (317,299) | (82,107) | 337,634 |
Fair value, option, liabilities, total gains (losses) | (159) | (317,299) | (72,367) | 337,634 |
Policy loans | Insurance | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value, option, liabilities, net realized gains (losses) | 0 | 0 | 0 | 0 |
Fair value, option, liabilities, net unrealized gains (losses) | (3,463) | 0 | (89,184) | 0 |
Fair value, option, liabilities, total gains (losses) | $ (3,463) | $ 0 | $ (89,184) | $ 0 |
INSURANCE INTANGIBLES, UNEARN_3
INSURANCE INTANGIBLES, UNEARNED REVENUE RESERVES AND UNEARNED FRONT-END LOADS - Deferred Policy Acquisition Costs (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |
Balance, as of GA Acquisition Date | $ 0 |
Acquisition/reinsurance | 51,322 |
Deferrals | 259,203 |
Amortized to expense during the period | (13,016) |
Adjustment for unrealized investment losses (gains) during the period | 4,907 |
Balance, as of end of period | $ 302,416 |
INSURANCE INTANGIBLES, UNEARN_4
INSURANCE INTANGIBLES, UNEARNED REVENUE RESERVES AND UNEARNED FRONT-END LOADS - Value of Business Acquired Asset (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Movement in Present Value of Future Insurance Profits [Roll Forward] | |
Balance, as of GA Acquisition Date | $ 1,024,520 |
Amortized to expense during period | (47,866) |
Balance, as of end of period | $ 976,654 |
INSURANCE INTANGIBLES, UNEARN_5
INSURANCE INTANGIBLES, UNEARNED REVENUE RESERVES AND UNEARNED FRONT-END LOADS - Value of Business Acquired Liability (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Movement In Value Of Business Acquired Liability [Roll Forward] | |
Balance, as of Acquisition Date | $ 1,273,414 |
Amortized to expense during period | (118,291) |
Balance, as of end of period | $ 1,155,123 |
INSURANCE INTANGIBLES, UNEARN_6
INSURANCE INTANGIBLES, UNEARNED REVENUE RESERVES AND UNEARNED FRONT-END LOADS - Unearned Revenue Reserve (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Change In Contract With Customer, Asset And Liability [Roll Forward] | |
Balance, as of GA Acquisition Date | $ 0 |
Deferrals | 41,000 |
Amortized to expense during the period | (1,302) |
Adjustment for unrealized investment losses during the period | (4,100) |
Balance, as of end of period | $ 35,598 |
REINSURANCE - Effects of Reinsu
REINSURANCE - Effects of Reinsurance Agreements (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Policy liabilities: | |
Direct | $ 65,847,071 |
Assumed | 58,764,838 |
Total policy liabilities | 124,611,909 |
Ceded | (25,248,798) |
Net policy liabilities | $ 99,363,111 |
REINSURANCE - Credit Quality In
REINSURANCE - Credit Quality Indicator (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverable and funds withheld receivable at interest | $ 28,230,994 |
Credit enhancements | 23,624,634 |
Affiliated Entity | |
Ceded Credit Risk [Line Items] | |
Net reinsurance credit exposure | 5,208,620 |
A++ | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverable and funds withheld receivable at interest | 7,267 |
Credit enhancements | 0 |
Net reinsurance credit exposure | 7,267 |
A+ | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverable and funds withheld receivable at interest | 1,937,673 |
Credit enhancements | 0 |
Net reinsurance credit exposure | 1,937,673 |
A | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverable and funds withheld receivable at interest | 2,777,536 |
Credit enhancements | 0 |
Net reinsurance credit exposure | 2,777,536 |
A- | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverable and funds withheld receivable at interest | 5,740,269 |
Credit enhancements | 5,304,491 |
Net reinsurance credit exposure | 435,778 |
B++ | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverable and funds withheld receivable at interest | 33,421 |
Credit enhancements | 0 |
Net reinsurance credit exposure | 33,421 |
B+ | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverable and funds withheld receivable at interest | 2,307 |
Credit enhancements | 0 |
Net reinsurance credit exposure | 2,307 |
B | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverable and funds withheld receivable at interest | 10,425 |
Credit enhancements | 0 |
Net reinsurance credit exposure | 10,425 |
B- | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverable and funds withheld receivable at interest | 4,213 |
Credit enhancements | 0 |
Net reinsurance credit exposure | 4,213 |
Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverable and funds withheld receivable at interest | 17,717,883 |
Credit enhancements | 18,320,143 |
Net reinsurance credit exposure | 0 |
Not rated | Affiliated Entity | |
Ceded Credit Risk [Line Items] | |
Net reinsurance credit exposure | $ 17,700,000 |
REINSURANCE - Additional Inform
REINSURANCE - Additional Information (Details) $ in Millions | Sep. 30, 2021USD ($)counterparty |
Effects of Reinsurance [Line Items] | |
Funds withheld receivable at interest | $ 3,100 |
Number of counterparties | counterparty | 6 |
Collateral held on behalf of reinsurers | $ 23,400 |
Collateral held on our behalf by reinsurers | 1,300 |
Reinsurer collateral, minimum amount held by trusts | 54,400 |
Reinsurer collateral, reserves supported by trust assets | 55,200 |
Cash Held In Trust | |
Effects of Reinsurance [Line Items] | |
Restricted cash | $ 201.7 |
REINSURANCE - Effects of Rein_2
REINSURANCE - Effects of Reinsurance on Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Premiums: | ||
Direct | $ 28,509 | $ 74,959 |
Assumed | 1,908,614 | 3,778,810 |
Ceded | (962,220) | (2,154,857) |
Net Premiums | 974,903 | 1,698,912 |
Policy fees: | ||
Direct | 233,029 | 614,910 |
Assumed | 77,694 | 210,411 |
Ceded | (342) | (995) |
Net policy fees | 310,381 | 824,326 |
Policyholder Benefits and Claims Incurred [Abstract] | ||
Direct | 554,134 | 1,996,642 |
Assumed | 2,254,670 | 3,987,189 |
Ceded | (1,111,758) | (2,390,268) |
Net policy benefits and claims | 1,697,046 | 3,593,563 |
Related Party Transaction [Line Items] | ||
Assumed | 1,908,614 | 3,778,810 |
Assumed | 77,694 | 210,411 |
Assumed | 2,254,670 | 3,987,189 |
Direct | 233,029 | 614,910 |
Ceded | 342 | 995 |
Net policy fees | 310,381 | 824,326 |
Direct | 554,134 | 1,996,642 |
Ceded | 1,111,758 | 2,390,268 |
Net policy benefits and claims | 1,697,046 | 3,593,563 |
Affiliated Entity | ||
Premiums: | ||
Assumed | 0 | 8,700 |
Policy fees: | ||
Assumed | 0 | 6,200 |
Policyholder Benefits and Claims Incurred [Abstract] | ||
Assumed | 0 | 76,200 |
Related Party Transaction [Line Items] | ||
Assumed | 0 | 8,700 |
Assumed | 0 | 6,200 |
Assumed | $ 0 | $ 76,200 |
NET INCOME (LOSS) ATTRIBUTABL_3
NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF COMMON STOCK - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF COMMON STOCK | ||||
Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders | $ 1,131,354 | $ 1,056,502 | $ 4,053,271 | $ 466,265 |
Accumulated Series C Mandatory Convertible Preferred Dividend (if dilutive) | 17,250 | 8,817 | 51,750 | 0 |
Net Income (Loss) Available to KKR & Co. Inc. Common Stockholders - Diluted | 1,148,604 | 1,056,502 | 4,105,021 | 457,448 |
Common Stock | ||||
NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF COMMON STOCK | ||||
Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders | $ 1,131,354 | $ 1,047,685 | $ 4,053,271 | $ 457,448 |
Basic Net Income (Loss) Per Share of Common Stock | ||||
Weighted Average Shares of Common Stock Outstanding - Basic (in shares) | 583,030,506 | 562,425,576 | 580,742,033 | 560,124,947 |
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock - Basic (in dollars per share) | $ 1.94 | $ 1.86 | $ 6.98 | $ 0.82 |
Diluted Net Income (Loss) Per Share of Common Stock | ||||
Weighted Average Shares of Common Stock Outstanding - Basic (in shares) | 583,030,506 | 562,425,576 | 580,742,033 | 560,124,947 |
Incremental Common Shares: | ||||
Assumed vesting of dilutive equity awards (in shares) | 27,562,994 | 9,954,502 | 22,055,422 | 9,786,034 |
Weighted Average Shares of Common Stock Outstanding - Diluted (in shares) | 637,416,100 | 589,116,387 | 629,620,055 | 569,910,981 |
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock - Diluted (in dollars per share) | $ 1.80 | $ 1.79 | $ 6.52 | $ 0.80 |
Series C Mandatory Convertible Preferred Stock | ||||
Incremental Common Shares: | ||||
Assumed conversion of Series C Mandatory Convertible Preferred Stock (in shares) | 26,822,600 | 16,736,309 | 26,822,600 | 0 |
NET INCOME (LOSS) ATTRIBUTABL_4
NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF COMMON STOCK - Narrative (Details) - USD ($) $ in Thousands | Aug. 14, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Accumulated Series C Mandatory Convertible Preferred Dividend (if dilutive) | $ 17,250 | $ 8,817 | $ 51,750 | $ 0 | |
Weighted Average KKR Holding Units (in shares) | 271,027,751 | 282,692,900 | 272,674,225 | 285,757,397 | |
Series C Mandatory Convertible Preferred Stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Assumed conversion of Series C Mandatory Convertible Preferred Stock (in shares) | 26,822,600 | 16,736,309 | 26,822,600 | 0 | |
Consecutive trading days | 20 days | 20 days | |||
Trading days prior to period end | 21 days | 21 days | |||
Common Stock | Market Condition Awards | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Weighted Average KKR Holding Units (in shares) | 2,000,000 |
NET INCOME (LOSS) ATTRIBUTABL_5
NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF COMMON STOCK - Antidilutive Securities (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Weighted Average KKR Holding Units (in shares) | 271,027,751 | 282,692,900 | 272,674,225 | 285,757,397 |
OTHER ASSETS AND ACCRUED EXPE_3
OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES - Other Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Total Other Assets | $ 9,102,701 | $ 9,102,701 | $ 2,665,336 | ||
Asset Management | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Unsettled Investment Sales | 500,507 | 500,507 | 197,635 | ||
Receivables | 39,789 | 39,789 | 75,697 | ||
Due from Broker | 291,775 | 291,775 | 644,028 | ||
Deferred Tax Assets, net | 91,959 | 91,959 | 83,822 | ||
Interest Receivable | 191,085 | 191,085 | 145,532 | ||
Fixed Assets, net | 813,488 | 813,488 | 760,606 | ||
Foreign Exchange Contracts and Options | 427,929 | 427,929 | 250,398 | ||
Goodwill | 83,500 | 83,500 | 83,500 | ||
Derivative Assets | 1,747 | 1,747 | 7,839 | ||
Prepaid Taxes | 91,295 | 91,295 | 77,041 | ||
Prepaid Expenses | 33,720 | 33,720 | 26,366 | ||
Operating Lease Right of Use Assets | 224,855 | 224,855 | 190,758 | ||
Deferred Financing Costs | 18,243 | 18,243 | 22,810 | ||
Other | 144,438 | 144,438 | 99,304 | ||
Total Other Assets | 2,954,330 | 2,954,330 | 2,665,336 | ||
Accumulated depreciation and amortization of fixed assets | 130,100 | 130,100 | 151,300 | ||
Depreciation and amortization expense of fixed assets | 11,300 | $ 4,600 | 33,600 | $ 14,200 | |
Operating lease cost | 11,900 | $ 13,900 | 37,100 | $ 39,700 | |
Insurance | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||
Unsettled Investment Sales | 2,272,772 | 2,272,772 | 0 | ||
Deferred Tax Assets, net | 779,889 | 779,889 | 0 | ||
Goodwill | 497,053 | 497,053 | 0 | ||
Derivative Assets | 1,117,953 | 1,117,953 | 0 | ||
Accrued Investment Income | 825,124 | 825,124 | 0 | ||
Intangible assets and Deferred Sales Inducements | 298,235 | 298,235 | 0 | ||
Operating Lease Right of Use Assets | 162,435 | 162,435 | 0 | ||
Deferred Financing Costs | 18,934 | 18,934 | |||
Other | 123,431 | 123,431 | 0 | ||
Premiums and Other Account Receivables | 66,328 | 66,328 | 0 | ||
Current Income Tax Recoverable | 5,151 | 5,151 | 0 | ||
Total Other Assets | 6,148,371 | 6,148,371 | $ 0 | ||
Operating lease cost | 3,900 | 10,500 | |||
Deferred rent and lease incentives | 21,100 | $ 21,100 | |||
Definite lived intangible assets, useful life | 17 years | ||||
Amortization expense of definite lived intangible assets | $ 4,400 | $ 11,800 |
OTHER ASSETS AND ACCRUED EXPE_4
OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES - Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Securities Sold Under Agreements to Repurchase | $ 329,963 | |
Total Accrued Expenses and Other Liabilities | 13,357,701 | $ 5,257,813 |
Asset Management | ||
Lessee, Lease, Description [Line Items] | ||
Amounts Payable to Carry Pool | 3,562,686 | 1,916,669 |
Unsettled Investment Purchases | 1,382,929 | 850,714 |
Securities Sold Short | 262,151 | 281,826 |
Derivative Liabilities | 37,798 | 126,950 |
Accrued Compensation and Benefits | 847,283 | 150,883 |
Interest Payable | 159,129 | 182,044 |
Foreign Exchange Contracts and Options | 444,713 | 551,728 |
Accounts Payable and Accrued Expenses | 161,952 | 130,661 |
Taxes Payable | 28,979 | 88,040 |
Uncertain Tax Positions | 76,643 | 76,643 |
Unfunded Revolver Commitments | 50,910 | 46,340 |
Operating Lease Liabilities | 227,624 | 191,564 |
Deferred Tax Liabilities, net (See Note 17) | 1,091,098 | 199,425 |
Other Liabilities | 580,844 | 464,326 |
Total Accrued Expenses and Other Liabilities | $ 8,914,739 | $ 5,257,813 |
Operating lease, maximum extension term (in years) | 3 years | |
Operating lease, weighted average remaining lease term (in years) | 9 years 1 month 6 days | 9 years 9 months 18 days |
Operating lease, weighted average discount rate (as a percentage) | 1.20% | 1.20% |
Insurance | ||
Lessee, Lease, Description [Line Items] | ||
Unsettled Investment Purchases | $ 1,930,044 | $ 0 |
Derivative Liabilities | 174,786 | 0 |
Interest Payable | 36,086 | 0 |
Operating Lease Liabilities | 181,302 | 0 |
Collateral on Derivative Instruments | 967,632 | |
Accrued Expenses | 542,510 | 0 |
Securities Sold Under Agreements to Repurchase | 317,938 | 0 |
Accrued Employee Related Expenses | 189,471 | 0 |
Tax Payable to Former Parent Company | 73,608 | 0 |
Accounts and Commissions Payable | 19,798 | 0 |
Other Tax Related Liabilities | 9,787 | 0 |
Total Accrued Expenses and Other Liabilities | $ 4,442,962 | $ 0 |
Operating lease, weighted average remaining lease term (in years) | 8 years | |
Operating lease, weighted average discount rate (as a percentage) | 2.90% | |
Operating lease, optional extension period | 10 years | |
Minimum | Asset Management | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, remaining lease term | 1 year | |
Minimum | Insurance | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, remaining lease term | 1 year | |
Maximum | Asset Management | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, remaining lease term | 14 years | |
Maximum | Insurance | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, remaining lease term | 12 years |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) - Investments in Unconsolidated Investment Funds $ in Millions | Sep. 30, 2021USD ($) |
KKR | |
Variable Interest Entity [Line Items] | |
Commitment to unconsolidated investment funds | $ 3,900 |
Global Atlantic | |
Variable Interest Entity [Line Items] | |
Unfunded commitments | $ 25.3 |
VARIABLE INTEREST ENTITIES - Ma
VARIABLE INTEREST ENTITIES - Maximum Exposure to Loss (Details) - Investments in Unconsolidated CLO Vehicles - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | $ 12,472,761 | $ 7,047,025 |
Asset Management | ||
Variable Interest Entity [Line Items] | ||
Investments | 11,091,844 | 6,460,430 |
Due from (to) Affiliates, net | 830,982 | 586,595 |
Maximum Exposure to Loss | 11,922,826 | 7,047,025 |
Insurance | ||
Variable Interest Entity [Line Items] | ||
Investments | 184,492 | 0 |
Investment in Renewable Partnerships - Insurance | 365,443 | 0 |
Maximum Exposure to Loss | $ 549,935 | $ 0 |
DEBT OBLIGATIONS - KKR's Borrow
DEBT OBLIGATIONS - KKR's Borrowings (Details) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2021JPY (¥) | Sep. 30, 2021EUR (€) | Mar. 31, 2021USD ($) | |
Asset Management | |||||
Debt Instrument [Line Items] | |||||
Financing Available | $ 11,265,944,000 | $ 8,076,897,000 | |||
Borrowing Outstanding | 38,988,544,000 | 33,423,596,000 | |||
Fair Value | 39,708,575,000 | 34,246,547,000 | |||
Other Debt Obligations | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Financing Available | 8,787,351,000 | 5,621,883,000 | |||
Borrowing Outstanding | 33,062,029,000 | 27,875,338,000 | |||
Fair Value | 33,097,029,000 | 27,889,438,000 | |||
Financing Facilities of Consolidated Funds and Other (1) | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Financing Available | 8,787,351,000 | ||||
Borrowing Outstanding | 13,092,873,000 | ||||
Fair Value | $ 13,127,873,000 | ||||
Weighted average interest rate (percentage) | 2.80% | 2.80% | 2.80% | ||
Weighted average remaining maturity (in years) | 4 years | ||||
Secured Debt | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Financing Available | $ 8,787,351,000 | ||||
Borrowing Outstanding | 33,062,029,000 | ||||
Fair Value | 33,097,029,000 | ||||
Senior Notes | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Borrowing Outstanding | 5,926,515,000 | 5,548,258,000 | |||
Fair Value | 6,611,546,000 | 6,357,109,000 | |||
Senior Notes | KKR Issued 0.509% Notes Due 2023 | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Borrowing Outstanding | 223,556,000 | 241,331,000 | |||
Fair Value | 223,384,000 | 241,580,000 | |||
Aggregate principal amount | $ 224,000,000 | ¥ 25,000,000,000 | |||
Interest rate, stated percentage | 0.509% | 0.509% | 0.509% | ||
Senior Notes | KKR Issued 0.764% Notes Due 2025 | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Borrowing Outstanding | $ 44,404,000 | 47,919,000 | |||
Fair Value | 44,789,000 | 48,554,000 | |||
Aggregate principal amount | $ 44,800,000 | ¥ 5,000,000,000 | |||
Interest rate, stated percentage | 0.764% | 0.764% | 0.764% | ||
Senior Notes | KKR Issued 1.625% Notes Due 2029 | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Borrowing Outstanding | $ 749,389,000 | 790,157,000 | |||
Fair Value | 809,635,000 | 870,647,000 | |||
Aggregate principal amount | $ 756,700,000 | € 650,000,000 | |||
Interest rate, stated percentage | 1.625% | 1.625% | 1.625% | ||
Senior Notes | KKR Issued 3.750% Notes Due 2029 | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Borrowing Outstanding | $ 743,111,000 | 742,196,000 | |||
Fair Value | 832,290,000 | 874,658,000 | |||
Aggregate principal amount | $ 750,000,000 | ||||
Interest rate, stated percentage | 3.75% | 3.75% | 3.75% | ||
Senior Notes | KKR Issued 1.595% Notes Due 2038 | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Borrowing Outstanding | $ 91,270,000 | 98,640,000 | |||
Fair Value | 95,229,000 | 104,004,000 | |||
Aggregate principal amount | $ 92,300,000 | ¥ 10,300,000,000 | |||
Interest rate, stated percentage | 1.595% | 1.595% | 1.595% | ||
Senior Notes | KKR Issued 5.500% Notes Due 2043 | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Borrowing Outstanding | $ 491,065,000 | 492,513,000 | |||
Fair Value | 659,885,000 | 666,885,000 | |||
Aggregate principal amount | $ 500,000,000 | ||||
Interest rate, stated percentage | 5.50% | 5.50% | 5.50% | ||
Senior Notes | KKR Issued 5.125% Notes Due 2044 | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Borrowing Outstanding | $ 951,301,000 | 991,471,000 | |||
Fair Value | 1,249,501,000 | 1,307,220,000 | |||
Aggregate principal amount | $ 1,000,000,000 | ||||
Interest rate, stated percentage | 5.125% | 5.125% | 5.125% | ||
Senior Notes | KKR Issued 3.625% Notes Due 2050 | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Borrowing Outstanding | $ 492,419,000 | 492,123,000 | |||
Fair Value | 536,120,000 | 556,095,000 | |||
Aggregate principal amount | $ 500,000,000 | ||||
Interest rate, stated percentage | 3.625% | 3.625% | 3.625% | ||
Senior Notes | KKR Issued 3.500% Notes Due 2050 | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Borrowing Outstanding | $ 735,783,000 | 735,161,000 | |||
Fair Value | 787,515,000 | 830,280,000 | |||
Aggregate principal amount | $ 750,000,000 | ||||
Interest rate, stated percentage | 3.50% | 3.50% | 3.50% | ||
Senior Notes | KKR Issued 4.625% Notes Due 2061 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 500,000,000 | ||||
Interest rate, stated percentage | 4.625% | ||||
Senior Notes | KKR Issued 4.625% Notes Due 2061 | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Borrowing Outstanding | $ 485,955,000 | 0 | |||
Fair Value | 518,000,000 | 0 | |||
Aggregate principal amount | $ 500,000,000 | ||||
Interest rate, stated percentage | 4.625% | 4.625% | 4.625% | ||
Senior Notes | KFN Issued 5.500% Notes Due 2032 | KFN | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Borrowing Outstanding | $ 494,903,000 | 494,540,000 | |||
Fair Value | 490,670,000 | 502,992,000 | |||
Aggregate principal amount | $ 500,000,000 | ||||
Interest rate, stated percentage | 5.50% | 5.50% | 5.50% | ||
Senior Notes | KFN Issued 5.200% Notes Due 2033 | KFN | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Borrowing Outstanding | $ 118,623,000 | 118,533,000 | |||
Fair Value | 115,341,000 | 118,300,000 | |||
Aggregate principal amount | $ 120,000,000 | ||||
Interest rate, stated percentage | 5.20% | 5.20% | 5.20% | ||
Senior Notes | KFN Issued 5.400% Notes Due 2033 | KFN | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Borrowing Outstanding | $ 68,934,000 | 68,866,000 | |||
Fair Value | 68,455,000 | 70,267,000 | |||
Aggregate principal amount | $ 70,000,000 | ||||
Interest rate, stated percentage | 5.40% | 5.40% | 5.40% | ||
Senior Notes | KFN Issued Junior Subordinated Notes | KFN | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Borrowing Outstanding | $ 235,802,000 | 234,808,000 | |||
Fair Value | 180,732,000 | $ 165,627,000 | |||
Aggregate principal amount | $ 258,500,000 | ||||
Weighted average interest rate (percentage) | 2.60% | 2.70% | 2.60% | 2.60% | |
Weighted average remaining maturity (in years) | 15 years | 15 years 9 months 18 days | |||
Subordinated Notes | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate (percentage) | 1.70% | 1.70% | 1.70% | ||
Subordinated Notes | Secured Debt | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Financing Available | $ 0 | ||||
Borrowing Outstanding | 19,969,156,000 | ||||
Fair Value | $ 19,969,156,000 | ||||
Weighted average remaining maturity (in years) | 10 years 6 months | ||||
Revolving Credit Facility | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Financing Available | $ 2,478,593,000 | $ 2,455,014,000 | |||
Revolving Credit Facility | Corporate Credit Agreement | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Financing Available | 1,000,000,000 | 1,000,000,000 | |||
Borrowing Outstanding | 0 | 0 | |||
Fair Value | 0 | 0 | |||
Revolving Credit Facility | KCM Credit Agreement | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Financing Available | 728,593,000 | 705,014,000 | |||
Borrowing Outstanding | 0 | 0 | |||
Fair Value | 0 | 0 | |||
Revolving Credit Facility | KCM Short-term Credit Agreement | Asset Management | |||||
Debt Instrument [Line Items] | |||||
Financing Available | 750,000,000 | 750,000,000 | |||
Borrowing Outstanding | 0 | 0 | |||
Fair Value | $ 0 | $ 0 |
DEBT OBLIGATIONS - Asset Manage
DEBT OBLIGATIONS - Asset Management Revolving Credit Facilities (Details) - Revolving Credit Facility - KCM Short-term Credit Agreement | Apr. 09, 2021USD ($) |
Debt Instrument [Line Items] | |
Debt instrument, term | 364 days |
Line of credit facility, maximum borrowing capacity | $ 750,000,000 |
LIBOR | Minimum | Line of Credit | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 1.50% |
LIBOR | Maximum | Line of Credit | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 2.75% |
Base Rate | Minimum | Line of Credit | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 0.50% |
Base Rate | Maximum | Line of Credit | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 1.75% |
DEBT OBLIGATIONS - Asset Mana_2
DEBT OBLIGATIONS - Asset Management Notes Issuance and Redemptions (Details) - KKR Issued 4.625% Notes Due 2061 - Senior Notes | Mar. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 500,000,000 |
Interest rate, stated percentage | 4.625% |
Percentage of aggregate principal amount of debt outstanding, not less than | 25.00% |
Redemption price percentage | 100.00% |
Minimum redemption amount | $ 25,000,000 |
Tax redemption event, threshold days | 120 days |
Redemption, Rating Agency Event | |
Debt Instrument [Line Items] | |
Redemption price percentage | 102.00% |
Debt redemption, threshold days | 90 days |
DEBT OBLIGATIONS - Other Debt O
DEBT OBLIGATIONS - Other Debt Obligations (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | |||
Total Assets | $ 265,799,650 | $ 79,806,502 | $ 70,655,333 |
Asset Management | |||
Debt Instrument [Line Items] | |||
Financing Available | 11,265,944 | 8,076,897 | |
Borrowing Outstanding | 38,988,544 | 33,423,596 | |
Fair Value | 39,708,575 | 34,246,547 | |
Total Assets | 101,362,774 | 79,806,502 | |
Consolidated VIEs | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | 21,626,385 | ||
Total Assets | 88,242,476 | 51,790,764 | |
Consolidated VIEs | Asset Management | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | 25,947,530 | ||
Total Assets | 69,257,826 | ||
Consolidated VIEs | Consolidated CLOs | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | 17,372,740 | ||
Total Assets | 22,060,323 | $ 18,617,992 | |
Consolidated VIEs | Consolidated CLOs | Asset Management | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | 19,969,156 | ||
Total Assets | 22,060,323 | ||
Financing Facilities of Consolidated Funds and Other (1) | Asset Management | |||
Debt Instrument [Line Items] | |||
Financing Available | 8,787,351 | ||
Borrowing Outstanding | 13,092,873 | ||
Fair Value | $ 13,127,873 | ||
Weighted Average Interest Rate | 2.80% | ||
Weighted Average Remaining Maturity in Years | 4 years | ||
Debt Obligations of Consolidated CFEs | Asset Management | |||
Debt Instrument [Line Items] | |||
Financing Available | $ 8,787,351 | ||
Borrowing Outstanding | 33,062,029 | ||
Fair Value | $ 33,097,029 | ||
Debt Obligations of Consolidated CFEs | Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 1.70% | ||
Borrowings collateralized by fund investments | $ 1,700,000 | ||
Debt Obligations of Consolidated CFEs | Subordinated Notes | Asset Management | |||
Debt Instrument [Line Items] | |||
Financing Available | 0 | ||
Borrowing Outstanding | 19,969,156 | ||
Fair Value | $ 19,969,156 | ||
Weighted Average Remaining Maturity in Years | 10 years 6 months |
DEBT OBLIGATIONS - Global Atlan
DEBT OBLIGATIONS - Global Atlantic's Borrowings (Details) - Insurance $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($) | |
Debt Instrument [Line Items] | ||
Borrowings Outstanding, net | $ 2,150,000 | $ 2,150,000 |
Purchase Accounting Adjustments | 51,875 | 51,875 |
Debt issuance costs, net of accumulated amortization | (18,934) | (18,934) |
Fair value loss (gain) of hedged debt obligations, recognized in earnings | (20,350) | (20,350) |
Borrowing Outstanding, Gross | 2,162,591 | 2,162,591 |
Fair Value | 2,232,270 | 2,232,270 |
Amortization of purchase accounting adjustments | 825 | 4,000 |
Global Atlantic Revolving Credit Facility Due May 2023 | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Financing Available | 1,000,000 | 1,000,000 |
Borrowings Outstanding, net | 0 | 0 |
Fair Value | 0 | 0 |
Senior Notes | Global Atlantic Senior Notes Due 2029 | ||
Debt Instrument [Line Items] | ||
Borrowings Outstanding, net | 500,000 | 500,000 |
Fair Value | 548,600 | 548,600 |
Senior Notes | Global Atlantic Senior Notes due 2031 | ||
Debt Instrument [Line Items] | ||
Borrowings Outstanding, net | 650,000 | 650,000 |
Fair Value | 658,320 | 658,320 |
Subordinated Debt | Global Atlantic Subordinated Debentures Due 2046 | ||
Debt Instrument [Line Items] | ||
Borrowings Outstanding, net | 250,000 | 250,000 |
Fair Value | 250,000 | 250,000 |
Subordinated Debt | Global Atlantic Subordinated Debentures Due 2051 | ||
Debt Instrument [Line Items] | ||
Borrowings Outstanding, net | 750,000 | 750,000 |
Fair Value | $ 775,350 | $ 775,350 |
DEBT OBLIGATIONS - Narrative (D
DEBT OBLIGATIONS - Narrative (Details) - USD ($) | Aug. 04, 2021 | Jul. 06, 2021 | Jun. 18, 2021 | Jun. 17, 2021 | Oct. 05, 2016 | Sep. 30, 2021 | Oct. 07, 2019 | May 21, 2018 | May 20, 2018 | Dec. 31, 2011 |
Global Atlantic Credit Agreement | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | $ 650,000,000 | |||||||
Line of credit facility, additional borrowing capacity | 250,000,000 | |||||||||
Debt covenant, maximum consolidated debt to total capitalization percentage | 35.00% | |||||||||
Debt covenant, minimum consolidated net worth | 70.00% | |||||||||
Debt covenant, consolidated net worth calculation, percentage of net income | 50.00% | |||||||||
Borrowings outstanding | $ 218,600,000 | |||||||||
Global Atlantic Credit Agreement | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | $ 500,000,000 | $ 350,000,000 | |||||||
Repayments of lines of credit | $ 420,000,000 | |||||||||
Borrowings outstanding | $ 0 | |||||||||
Global Atlantic Credit Agreement | Minimum | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee percentage | 0.125% | 0.15% | ||||||||
Global Atlantic Credit Agreement | Maximum | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee percentage | 0.325% | 0.35% | ||||||||
Global Atlantic Credit Agreement | LIBOR | Minimum | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.125% | 1.125% | ||||||||
Global Atlantic Credit Agreement | LIBOR | Maximum | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.00% | 2.00% | ||||||||
Corporate Credit Agreement | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |||||||||
Line of credit facility, additional borrowing capacity | $ 500,000,000 | |||||||||
Senior Notes | Global Atlantic Senior Notes Due 2029 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||
Interest rate, stated percentage | 4.40% | |||||||||
Percent of holders that may declare principal due and payable upon event of default | 25.00% | |||||||||
Senior Notes | Global Atlantic Senior Notes Due 2029 | Redemption period one | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 100.00% | |||||||||
Senior Notes | Global Atlantic Senior Notes Due 2029 | Redemption period two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 100.00% | |||||||||
Senior Notes | Global Atlantic Senior Notes due 2031 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 650,000,000 | |||||||||
Interest rate, stated percentage | 3.125% | |||||||||
Senior Notes | Global Atlantic Senior Notes due 2031 | Redemption period one | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 100.00% | |||||||||
Senior Notes | Global Atlantic Senior Notes due 2031 | Redemption period two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 100.00% | |||||||||
Subordinated Debt | Global Atlantic Subordinated Debentures Due 2046 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 250,000,000 | |||||||||
Interest rate, stated percentage | 9.50% | |||||||||
U.S. Treasury securities maturity, period from Reset Date | 5 years | |||||||||
Reset interest rate, spread on yield on US Treasury securities | 8.38% | |||||||||
Subordinated Debt | Global Atlantic Subordinated Debentures Due 2051 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 750,000,000 | |||||||||
Interest rate, stated percentage | 4.70% | |||||||||
Subordinated Debt | Global Atlantic Subordinated Debentures Due 2051 | Redemption period one | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 100.00% | |||||||||
Subordinated Debt | Global Atlantic Subordinated Debentures Due 2051 | Redemption period two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 100.00% | |||||||||
Redemption upon occurrence of certain events, threshold days | 90 days | |||||||||
Subordinated Debt | Global Atlantic Subordinated Debentures Due 2051 | Redemption period three | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 102.00% | |||||||||
Redemption upon occurrence of certain events, threshold days | 90 days | |||||||||
Subordinated Debt | Global Atlantic Subordinated Debentures Due 2051 | Redemption period four | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 100.00% | |||||||||
Redemption upon occurrence of certain events, threshold days | 90 days | |||||||||
Subordinated Debt | Global Atlantic Subordinated Debentures Due 2051 | US Treasury Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 3.796% | |||||||||
Line of Credit | Corporate Credit Agreement | LIBOR | Minimum | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.565% | |||||||||
Line of Credit | Corporate Credit Agreement | LIBOR | Maximum | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.10% | |||||||||
Line of Credit | Corporate Credit Agreement | Base Rate | Minimum | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.06% | |||||||||
Line of Credit | Corporate Credit Agreement | Base Rate | Maximum | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.15% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 10.40% | 10.80% | 9.20% | 22.70% |
Deferred tax assets, valuation allowance | $ 22.7 | $ 22.7 |
EQUITY BASED COMPENSATION - Exp
EQUITY BASED COMPENSATION - Expense (Details) - Asset Management - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Expense associated with equity based compensation | ||||
Equity based expenses | $ 82,076 | $ 64,247 | $ 234,884 | $ 196,782 |
KKR Holdings Awards | ||||
Expense associated with equity based compensation | ||||
Equity based expenses | 8,713 | 21,759 | 35,238 | 63,358 |
KKR Equity Incentive Plans | ||||
Expense associated with equity based compensation | ||||
Equity based expenses | $ 73,363 | $ 42,488 | $ 199,646 | $ 133,424 |
EQUITY BASED COMPENSATION - Nar
EQUITY BASED COMPENSATION - Narrative (Details) | Jun. 24, 2021USD ($)shares | Mar. 01, 2021USD ($) | Feb. 28, 2021USD ($) | Feb. 01, 2021USD ($)paymentinstallment$ / sharesshares | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($)shares | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($)shares |
Equity Based Payments | ||||||||
Equity-based compensation costs capitalized | $ 0 | |||||||
Asset Management | ||||||||
Equity Based Payments | ||||||||
Equity-based compensation | $ 82,076,000 | $ 64,247,000 | 234,884,000 | $ 196,782,000 | ||||
Insurance | ||||||||
Equity Based Payments | ||||||||
Equity-based compensation | 27,853,000 | 0 | $ 47,050,000 | 0 | ||||
Market Condition Awards | ||||||||
Equity Based Payments | ||||||||
Equity-based compensation | 10,500,000 | |||||||
KKR Holdings Awards | Asset Management | ||||||||
Equity Based Payments | ||||||||
Portion of awards vested having one-year transfer restriction period (as a percent) | 50.00% | |||||||
Portion of awards vested having two-year transfer restriction period (as a percent) | 50.00% | |||||||
Equity-based compensation | 8,713,000 | 21,759,000 | $ 35,238,000 | 63,358,000 | ||||
KKR 2019 Equity Incentive Plan | ||||||||
Equity Based Payments | ||||||||
Total awards issuable as a percentage of diluted common stock outstanding | 15.00% | |||||||
KKR Equity Incentive Plans | Asset Management | ||||||||
Equity Based Payments | ||||||||
Equity-based compensation | 73,363,000 | 42,488,000 | $ 199,646,000 | 133,424,000 | ||||
KKR Equity Incentive Plans | Insurance | ||||||||
Equity Based Payments | ||||||||
Equity-based compensation | 10,900,000 | $ 11,400,000 | ||||||
KKR Equity Incentive Plans | Service-Vesting Awards | ||||||||
Equity Based Payments | ||||||||
Minimum retained ownership required to continuously hold common share equivalents to as percentage of cumulatively vested interests | 15.00% | |||||||
Forfeiture rate assumed (as a percent) | 7.00% | |||||||
Estimated unrecognized equity-based payment expense | 381,900,000 | $ 381,900,000 | ||||||
Grants in period (in shares) | shares | 862,206 | |||||||
KKR Equity Incentive Plans | Service-Vesting Awards | Asset Management | ||||||||
Equity Based Payments | ||||||||
Vesting period (in years) | 1 year 8 months 12 days | |||||||
KKR Equity Incentive Plans | Service-Vesting Awards | Minimum | ||||||||
Equity Based Payments | ||||||||
Vesting period (in years) | 3 years | |||||||
KKR Equity Incentive Plans | Service-Vesting Awards | Maximum | ||||||||
Equity Based Payments | ||||||||
Vesting period (in years) | 5 years | |||||||
KKR Equity Incentive Plans | Market Condition Awards | Asset Management | ||||||||
Equity Based Payments | ||||||||
Forfeiture rate assumed (as a percent) | 4.00% | |||||||
Estimated unrecognized equity-based payment expense | $ 321,500,000 | $ 321,500,000 | ||||||
Grants in period (in shares) | shares | 2,600,000 | |||||||
Performance condition days of average closing price based on vesting schedule | 20 days | |||||||
Number of shares that met vesting conditions (in shares) | shares | 17,500,000 | 17,500,000 | ||||||
Incentive shares granted (in shares) | shares | 19,500,000 | |||||||
KKR Equity Incentive Plans | Market Condition Awards | Vesting Condition Type 1 | Asset Management | ||||||||
Equity Based Payments | ||||||||
Fair value of award at grant date (in dollars per share) | $ / shares | $ 22.56 | $ 22.56 | ||||||
KKR Equity Incentive Plans | Market Condition Awards | Vesting Condition Type 2 | Asset Management | ||||||||
Equity Based Payments | ||||||||
Fair value of award at grant date (in dollars per share) | $ / shares | $ 23.16 | $ 23.16 | ||||||
KKR Equity Incentive Plans | Restricted Stock Units (RSUs) | Insurance | ||||||||
Equity Based Payments | ||||||||
Equity-based compensation | $ 10,854,000 | 0 | $ 11,378,000 | 0 | ||||
KKR Equity Incentive Plans | KKR Holdings | Asset Management | ||||||||
Equity Based Payments | ||||||||
Portion of awards vested having one-year transfer restriction period (as a percent) | 50.00% | |||||||
Portion of awards vested having two-year transfer restriction period (as a percent) | 50.00% | |||||||
KKR Equity Incentive Plans | KKR Holdings | Service-Vesting Awards | ||||||||
Equity Based Payments | ||||||||
Minimum transfer restriction period with respect to one-half awards vested (in years) | 1 year | |||||||
Minimum transfer restriction period with respect to remaining one-half awards vested (in years) | 2 years | |||||||
GA Plan | Insurance | ||||||||
Equity Based Payments | ||||||||
Estimated unrecognized equity-based payment expense | 80,130,000 | $ 80,130,000 | ||||||
GA Plan | KKR Holdings Awards | Insurance | ||||||||
Equity Based Payments | ||||||||
Equity-based compensation | 16,999,000 | $ 0 | 35,672,000 | $ 0 | ||||
GA Plan | Book-Value Awards | Insurance | ||||||||
Equity Based Payments | ||||||||
Vesting period (in years) | 3 years | 5 years | ||||||
Forfeiture rate assumed (as a percent) | 4.00% | 4.00% | ||||||
Estimated unrecognized equity-based payment expense | 80,130,000 | 80,130,000 | ||||||
Number of payments authorized to be received upon vesting | payment | 1 | |||||||
Book value used in payment calculation, number of shares (in shares) | shares | 1 | |||||||
Number of vesting installments | installment | 3 | |||||||
Pre-acquisition awards converted to book-value awards on February 1, 2021 | $ 89,000,000 | $ 89,000,000 | ||||||
Value of awards vested | $ 28,000,000 | |||||||
Cash payment to settle awards | $ 17,000,000 | |||||||
Aggregate initial value of shares granted | $ 32,000,000 | $ 23,000,000 | ||||||
GA Plan | Book-Value Awards | Insurance | April 1, 2023 | ||||||||
Equity Based Payments | ||||||||
Vesting percentage | 25.00% | |||||||
GA Plan | Book-Value Awards | Insurance | Annually on April 1 Each Subsequent Year | ||||||||
Equity Based Payments | ||||||||
Vesting percentage | 25.00% | |||||||
GA Plan | Restricted Stock | Insurance | ||||||||
Equity Based Payments | ||||||||
Shares converted (in shares) | shares | 3,020,017 | |||||||
Fair value of shares converted (in dollars per share) | $ / shares | $ 29.47 | |||||||
KKR Holdings Awards | KKR Group Partnership | KKR Holdings | Asset Management | ||||||||
Equity Based Payments | ||||||||
Percentage owned by KKR Holdings L.P. | 31.70% | 33.00% | ||||||
KKR Holdings Awards | KKR Holdings Awards | Asset Management | ||||||||
Equity Based Payments | ||||||||
Minimum transfer restriction period with respect to one-half awards vested (in years) | 1 year | |||||||
Minimum transfer restriction period with respect to remaining one-half awards vested (in years) | 2 years | |||||||
Minimum retained ownership required to continuously hold common share equivalents to as percentage of cumulatively vested interests | 25.00% | |||||||
Forfeiture rate assumed (as a percent) | 7.00% | |||||||
Estimated unrecognized equity-based payment expense | $ 34,600,000 | $ 34,600,000 | ||||||
Grants in period (in shares) | shares | 0 | |||||||
Common units conversion basis | 1 | |||||||
Number of common units owned in KKR Group Partnership Units (in shares) | shares | 271,027,751 | 278,781,478 | 271,027,751 | 278,781,478 | ||||
Percentage of outstanding units not granted (less than) | 1.30% | 1.30% | ||||||
Weighted average remaining vesting period over which unvested units are expected to vest (in years) | 6 months | |||||||
KKR Holdings Awards | KKR Holdings Awards | Minimum | Asset Management | ||||||||
Equity Based Payments | ||||||||
Vesting period (in years) | 3 years | |||||||
KKR Holdings Awards | KKR Holdings Awards | Maximum | Asset Management | ||||||||
Equity Based Payments | ||||||||
Vesting period (in years) | 5 years | |||||||
GA Equity Incentive Plan | Service-Vesting Awards | ||||||||
Equity Based Payments | ||||||||
Vesting period (in years) | 5 years | |||||||
Forfeiture rate assumed (as a percent) | 0.00% | |||||||
Vesting percentage | 20.00% | |||||||
Incentive shares issued (in shares) | shares | 1,000 | |||||||
Incentive shares granted (in shares) | shares | 808 | |||||||
Equity-based compensation | $ 20,500,000 | $ 25,300,000 | ||||||
Aggregate value at grant date | $ 197,000,000 | |||||||
Intrinsic value of book value at grant date | 5,000,000 | |||||||
Fair value of market value and AUM at grant date | $ 192,000,000 |
EQUITY BASED COMPENSATION - Est
EQUITY BASED COMPENSATION - Estimated Unrecognized Expense (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
KKR Equity Incentive Plans | Service-Vesting Awards | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | $ 381,900 |
KKR Equity Incentive Plans | Service-Vesting Awards | Remainder of 2021 | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | 31,600 |
KKR Equity Incentive Plans | Service-Vesting Awards | 2022 | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | 118,500 |
KKR Equity Incentive Plans | Service-Vesting Awards | 2023 | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | 91,600 |
KKR Equity Incentive Plans | Service-Vesting Awards | 2024 | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | 68,300 |
KKR Equity Incentive Plans | Service-Vesting Awards | 2025 | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | 58,100 |
KKR Equity Incentive Plans | Service-Vesting Awards | 2026 | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | 13,800 |
KKR Equity Incentive Plans | Market Condition Awards | Asset Management | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | 321,500 |
KKR Equity Incentive Plans | Market Condition Awards | Remainder of 2021 | Asset Management | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | 15,100 |
KKR Equity Incentive Plans | Market Condition Awards | 2022 | Asset Management | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | 62,500 |
KKR Equity Incentive Plans | Market Condition Awards | 2023 | Asset Management | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | 67,200 |
KKR Equity Incentive Plans | Market Condition Awards | 2024 | Asset Management | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | 72,400 |
KKR Equity Incentive Plans | Market Condition Awards | 2025 | Asset Management | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | 77,400 |
KKR Equity Incentive Plans | Market Condition Awards | 2026 | Asset Management | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | 26,900 |
GA Plan | Insurance | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | $ 80,130 |
GA Plan | Book-Value Awards | |
Equity Based Payments | |
Weighted average period (years) | 2 years 6 months 18 days |
GA Plan | Book-Value Awards | Insurance | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | $ 80,130 |
KKR Holdings Awards | KKR Holdings Awards | Asset Management | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | 34,600 |
KKR Holdings Awards | KKR Holdings Awards | Remainder of 2021 | Asset Management | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | 8,700 |
KKR Holdings Awards | KKR Holdings Awards | 2022 | Asset Management | |
Equity Based Payments | |
Estimated unrecognized equity-based payment expense | $ 25,900 |
EQUITY BASED COMPENSATION - Awa
EQUITY BASED COMPENSATION - Awards Rollforward (Details) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
KKR Equity Incentive Plans | Asset Management | |
Shares | |
Balance at the end of the period (in shares) | 18,508,914 |
KKR Equity Incentive Plans | Service-Vesting Awards | |
Shares | |
Balance at the beginning of the period (in shares) | 23,866,696 |
Granted (in shares) | 862,206 |
Vested (in shares) | (5,826,257) |
Forfeitures (in shares) | (393,731) |
Balance at the end of the period (in shares) | 18,508,914 |
Weighted Average Grant Date Fair Value | |
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 28.28 |
Granted (in dollars per share) | $ / shares | 46.14 |
Vested (in dollars per share) | $ / shares | 23.05 |
Forfeitures (in dollars per share) | $ / shares | 29.12 |
Balance at the end of the period (in dollars per share) | $ / shares | $ 30.75 |
KKR Equity Incentive Plans | Market Condition Awards | Asset Management | |
Shares | |
Balance at the beginning of the period (in shares) | 16,875,000 |
Granted (in shares) | 2,600,000 |
Vested (in shares) | 0 |
Forfeitures (in shares) | 0 |
Balance at the end of the period (in shares) | 19,475,000 |
Weighted Average Grant Date Fair Value | |
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 21.07 |
Granted (in dollars per share) | $ / shares | 35.02 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeitures (in dollars per share) | $ / shares | 0 |
Balance at the end of the period (in dollars per share) | $ / shares | $ 22.93 |
KKR Holdings Awards | KKR Holdings Awards | Asset Management | |
Shares | |
Balance at the beginning of the period (in shares) | 10,240,000 |
Granted (in shares) | 0 |
Vested (in shares) | (2,905,000) |
Forfeitures (in shares) | 0 |
Balance at the end of the period (in shares) | 7,335,000 |
Weighted Average Grant Date Fair Value | |
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 14.33 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 11.16 |
Forfeitures (in dollars per share) | $ / shares | 0 |
Balance at the end of the period (in dollars per share) | $ / shares | $ 15.58 |
EQUITY BASED COMPENSATION - Rem
EQUITY BASED COMPENSATION - Remaining Vesting Tranches (Details) - Asset Management - shares | Sep. 30, 2021 | Dec. 31, 2020 |
KKR Equity Incentive Plans | ||
Equity Based Payments | ||
Principal units (in shares) | 18,508,914 | |
KKR Equity Incentive Plans | October 1, 2021 | ||
Equity Based Payments | ||
Principal units (in shares) | 3,084,758 | |
KKR Equity Incentive Plans | April 1, 2022 | ||
Equity Based Payments | ||
Principal units (in shares) | 3,755,974 | |
KKR Equity Incentive Plans | October 1, 2022 | ||
Equity Based Payments | ||
Principal units (in shares) | 1,731,067 | |
KKR Equity Incentive Plans | April 1, 2023 | ||
Equity Based Payments | ||
Principal units (in shares) | 3,051,901 | |
KKR Equity Incentive Plans | October 1, 2023 | ||
Equity Based Payments | ||
Principal units (in shares) | 472,249 | |
KKR Equity Incentive Plans | April 1, 2024 | ||
Equity Based Payments | ||
Principal units (in shares) | 2,448,822 | |
KKR Equity Incentive Plans | October 1, 2024 | ||
Equity Based Payments | ||
Principal units (in shares) | 204,313 | |
KKR Equity Incentive Plans | April 1, 2025 | ||
Equity Based Payments | ||
Principal units (in shares) | 1,879,243 | |
KKR Equity Incentive Plans | October 1, 2025 | ||
Equity Based Payments | ||
Principal units (in shares) | 158,430 | |
KKR Equity Incentive Plans | April 1, 2026 | ||
Equity Based Payments | ||
Principal units (in shares) | 1,722,157 | |
KKR Holdings Awards | KKR Holdings Awards | ||
Equity Based Payments | ||
Principal units (in shares) | 7,335,000 | 10,240,000 |
KKR Holdings Awards | KKR Holdings Awards | October 1, 2021 | ||
Equity Based Payments | ||
Principal units (in shares) | 3,425,000 | |
KKR Holdings Awards | KKR Holdings Awards | October 1, 2022 | ||
Equity Based Payments | ||
Principal units (in shares) | 3,910,000 |
EQUITY BASED COMPENSATION - Mar
EQUITY BASED COMPENSATION - Market Condition Awards Vesting Schedule (Details) - Market Condition Awards - Asset Management - KKR Equity Incentive Plans | 9 Months Ended |
Sep. 30, 2021$ / shares | |
$45.00 | Vesting Condition Type 1 | |
Equity Based Payments | |
Market Price (in dollars per share) | $ 45 |
Vesting % | 25.00% |
$45.00 | Vesting Condition Type 2 | |
Equity Based Payments | |
Market Price (in dollars per share) | $ 45 |
Vesting % | 16.70% |
$50.00 | Vesting Condition Type 1 | |
Equity Based Payments | |
Market Price (in dollars per share) | $ 50 |
Vesting % | 50.00% |
$50.00 | Vesting Condition Type 2 | |
Equity Based Payments | |
Market Price (in dollars per share) | $ 50 |
Vesting % | 33.40% |
$55.00 | Vesting Condition Type 1 | |
Equity Based Payments | |
Market Price (in dollars per share) | $ 55 |
Vesting % | 75.00% |
$55.00 | Vesting Condition Type 2 | |
Equity Based Payments | |
Market Price (in dollars per share) | $ 55 |
Vesting % | 50.00% |
$60.00 | Vesting Condition Type 1 | |
Equity Based Payments | |
Market Price (in dollars per share) | $ 60 |
Vesting % | 100.00% |
$60.00 | Vesting Condition Type 2 | |
Equity Based Payments | |
Market Price (in dollars per share) | $ 60 |
Vesting % | 66.80% |
$65.00 | Vesting Condition Type 2 | |
Equity Based Payments | |
Market Price (in dollars per share) | $ 65 |
Vesting % | 83.50% |
$70.00 | Vesting Condition Type 2 | |
Equity Based Payments | |
Market Price (in dollars per share) | $ 70 |
Vesting % | 100.00% |
EQUITY BASED COMPENSATION - Mon
EQUITY BASED COMPENSATION - Monte Carlo Assumptions (Details) - Market Condition Awards - KKR Equity Incentive Plans - Asset Management | Sep. 30, 2021$ / shares |
Vesting Condition Type 1 | |
Equity Based Payments | |
Fair value of award at grant date (in dollars per share) | $ 22.56 |
Vesting Condition Type 1 | Minimum | |
Equity Based Payments | |
Closing KKR share price as of valuation date (in dollars per share) | 22.56 |
Vesting Condition Type 1 | Maximum | |
Equity Based Payments | |
Closing KKR share price as of valuation date (in dollars per share) | 22.56 |
Vesting Condition Type 2 | |
Equity Based Payments | |
Fair value of award at grant date (in dollars per share) | 23.16 |
Vesting Condition Type 2 | Minimum | |
Equity Based Payments | |
Closing KKR share price as of valuation date (in dollars per share) | 19.87 |
Vesting Condition Type 2 | Maximum | |
Equity Based Payments | |
Closing KKR share price as of valuation date (in dollars per share) | $ 40.09 |
EQUITY BASED COMPENSATION - Ass
EQUITY BASED COMPENSATION - Assumptions Used to Estimate Fair Value (Details) - KKR Equity Incentive Plans - Market Condition Awards - Vesting Condition, Type One And Type Two - Asset Management | 9 Months Ended |
Sep. 30, 2021$ / shares | |
Equity Based Payments | |
Closing KKR share price as of valuation date (in dollars per share) | $ 39.22 |
Risk Free Rate | 0.44% |
Volatility | 28.04% |
Dividend Yield | 1.49% |
Expected Cost of Equity | 10.67% |
Minimum | |
Equity Based Payments | |
Closing KKR share price as of valuation date (in dollars per share) | $ 37.93 |
Risk Free Rate | 0.41% |
Volatility | 28.00% |
Dividend Yield | 1.15% |
Expected Cost of Equity | 9.13% |
Maximum | |
Equity Based Payments | |
Closing KKR share price as of valuation date (in dollars per share) | $ 50.35 |
Risk Free Rate | 0.92% |
Volatility | 30.00% |
Dividend Yield | 1.53% |
Expected Cost of Equity | 10.76% |
EQUITY BASED COMPENSATION - Boo
EQUITY BASED COMPENSATION - Book Value Awards Activity (Details) - Book-Value Awards - GA Plan - Insurance - USD ($) $ in Thousands | Feb. 01, 2021 | Sep. 30, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Outstanding amount as of beginning of period | $ 0 | |
Pre-acquisition awards converted to book-value awards on February 1, 2021 | $ 89,000 | 89,000 |
Granted | 57,213 | |
Forfeited | (5,508) | |
Impact of change in book value on outstanding awards | 6,597 | |
Vested and issued | (31,086) | |
Outstanding amount as of end of period | $ 116,216 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Due from Affiliates | $ 1,102,874 | $ 872,994 |
Due to Affiliates | 299,703 | 325,177 |
Amounts due from portfolio companies | ||
Related Party Transaction [Line Items] | ||
Due from Affiliates | 208,320 | 164,113 |
Amounts due from unconsolidated investment funds | ||
Related Party Transaction [Line Items] | ||
Due from Affiliates | 892,860 | 707,758 |
Due to Affiliates | 61,878 | 121,163 |
Amounts due from related entities | ||
Related Party Transaction [Line Items] | ||
Due from Affiliates | 1,694 | 1,123 |
Amounts due to KKR Holdings - tax receivable agreement | ||
Related Party Transaction [Line Items] | ||
Due to Affiliates | $ 237,825 | $ 204,014 |
SEGMENT REPORTING - Information
SEGMENT REPORTING - Information Regarding Segment Results (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021USD ($) | Jun. 30, 2021segment | Sep. 30, 2020USD ($) | Jun. 30, 2021segment | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | |||||||
Number of reportable segments | segment | 1 | 2 | |||||
Number of operating segments | segment | 1 | 2 | |||||
Income Tax (Expense) Benefit | $ (379,282) | $ (359,375) | $ (1,161,688) | $ (204,960) | |||
Net (Income) Attributable to Noncontrolling Interest | (2,123,569) | (1,909,458) | (7,315,362) | (206,225) | |||
Total Segment Operating Earnings | 1,182,828 | 593,764 | 3,179,753 | 1,605,978 | |||
Assets | 265,799,650 | 70,655,333 | 265,799,650 | 70,655,333 | $ 79,806,502 | ||
Total Non-cash expenses | 102,596 | 42,488 | 252,330 | 133,424 | |||
Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets | 196,290,449 | 25,249,013 | 196,290,449 | 25,249,013 | |||
Asset Management | |||||||
Segment Reporting Information [Line Items] | |||||||
Number of reportable segments | segment | 1 | ||||||
Number of operating segments | segment | 1 | ||||||
Revenue from contract with customer | 718,968 | 563,340 | 1,887,805 | 1,337,385 | |||
Compensation | (1,012,837) | (882,339) | (3,419,057) | (1,211,526) | |||
General, Administrative and Other | (203,977) | (194,039) | (608,270) | (491,327) | |||
Assets | 101,362,774 | 101,362,774 | 79,806,502 | ||||
Total Non-cash expenses | 62,510 | 42,488 | 188,269 | 133,424 | |||
Asset Management | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Other Operating Expenses | (104,772) | (86,472) | (309,483) | (247,046) | |||
Fee Related Earnings | 529,587 | 324,017 | 1,363,503 | 861,455 | |||
Total Segment Operating Earnings | 1,067,839 | 593,764 | 2,873,979 | 1,605,978 | |||
Assets | 31,853,573 | 31,853,573 | |||||
Asset Management | Management Fees | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from contract with customer | 559,016 | 369,442 | 1,478,878 | 1,042,634 | |||
Asset Management | Transaction and Monitoring Fees, Net | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from contract with customer | 249,670 | 201,086 | 645,108 | 380,415 | |||
Asset Management | Fee Related | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from contract with customer | 9,897 | 10,181 | 34,760 | 27,869 | |||
Compensation | (184,224) | (170,220) | (485,760) | (342,417) | |||
Asset Management | Performance | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from contract with customer | 432,784 | 224,020 | 1,222,403 | 934,018 | |||
Compensation | (274,955) | (157,885) | (797,965) | (599,753) | |||
Asset Management | Investment | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from contract with customer | (447,565) | (260,415) | (1,277,701) | (495,904) | |||
Asset Management | Investment | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from contract with customer | 447,565 | 260,415 | 1,277,701 | 495,904 | |||
Compensation | (67,142) | (56,803) | (191,663) | (85,646) | |||
Asset Management | Interest Income (Expense) | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from contract with customer | 10,800 | 11,900 | |||||
Insurance | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Cost of Insurance | (89,534) | 0 | (242,591) | 0 | |||
General, Administrative and Other | (158,873) | 0 | (371,656) | 0 | |||
Income Tax (Expense) Benefit | (9,046) | 0 | (63,148) | 0 | |||
Assets | 164,436,876 | 164,436,876 | $ 0 | ||||
Total Non-cash expenses | 40,086 | 0 | 64,061 | 0 | |||
Insurance | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Cost of Insurance | (436,415) | 0 | (1,076,566) | 0 | |||
General, Administrative and Other | (139,489) | 0 | (338,325) | 0 | |||
Pre-tax Insurance Operating Earnings | 196,078 | 0 | 562,492 | 0 | |||
Income Tax (Expense) Benefit | (9,046) | 0 | (63,148) | 0 | |||
Net (Income) Attributable to Noncontrolling Interest | (72,043) | 0 | (193,570) | 0 | |||
Total Segment Operating Earnings | 114,989 | 0 | 305,774 | 0 | |||
Assets | 0 | 0 | |||||
Insurance | Management Fees | Intersegment Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from contract with customer | 46,700 | 108,500 | |||||
Insurance | Investment | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue from contract with customer | $ 771,982 | $ 0 | $ 1,977,383 | $ 0 |
SEGMENT REPORTING - Reconciliat
SEGMENT REPORTING - Reconciliation to Total Segment Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 4,483,365 | $ 1,895,238 | $ 12,182,552 | $ 2,225,727 |
Impact of Consolidation and Other | 134,524 | 85,393 | 392,883 | 278,898 |
Net Premiums | (974,903) | (1,698,912) | ||
Asset Management And Insurance Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,470,914 | 1,065,144 | 6,636,233 | 2,880,840 |
Asset Management | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,245,635 | 1,895,238 | 7,624,512 | 2,225,727 |
Capital Allocation-Based Income | (1,526,667) | (1,331,898) | (5,736,707) | (888,342) |
Realized Carried Interest | 413,114 | 217,978 | 1,183,826 | 924,974 |
Revenue from contract with customer (expense reimbursements) | (718,968) | (563,340) | (1,887,805) | (1,337,385) |
Capstone Fees | (25,178) | (17,429) | (66,286) | (55,542) |
Asset Management | Investment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contract with customer (expense reimbursements) | 447,565 | 260,415 | 1,277,701 | 495,904 |
Asset Management | Expense Reimbursements | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contract with customer (expense reimbursements) | (34,857) | (44,553) | (122,642) | (100,779) |
Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,237,730 | 0 | 4,558,040 | 0 |
Net Premiums | (974,903) | 0 | (1,698,912) | 0 |
Policy Fees | (310,381) | 0 | (824,326) | 0 |
Other Income | (31,938) | 0 | (82,160) | 0 |
Investment Gains and Losses | (156,909) | 0 | 83,153 | 0 |
Derivative Gains and Losses | $ 53,179 | $ 0 | $ 47,151 | $ 0 |
SEGMENT REPORTING - Total Distr
SEGMENT REPORTING - Total Distributable Operating Earnings Reconciliation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Income (Loss) Before Tax (GAAP) | $ 3,660,927,000 | $ 3,333,676,000 | $ 12,621,574,000 | $ 902,473,000 |
Interest Expense | 278,166,000 | 223,709,000 | 794,978,000 | 725,245,000 |
Net Unrealized Gains (Losses) | 1,507,016,000 | 1,736,035,000 | 6,499,944,000 | (460,411,000) |
Equity-Based and Other Non-Cash Compensation | 296,323,000 | 196,644,000 | ||
Income Taxes | (379,282,000) | (359,375,000) | (1,161,688,000) | (204,960,000) |
Total Segment Operating Earnings | 1,182,828,000 | 593,764,000 | 3,179,753,000 | 1,605,978,000 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Impact of Consolidation and Other | (1,472,312,000) | (1,203,808,000) | (4,985,859,000) | 196,297,000 |
Interest Expense | 63,446,000 | 54,458,000 | 185,100,000 | 152,676,000 |
Equity-based compensation - KKR Holdings | 8,764,000 | 21,802,000 | 35,734,000 | 63,596,000 |
Asset Management | ||||
Segment Reporting Information [Line Items] | ||||
Equity-based compensation - KKR Holdings | 82,076,000 | 64,247,000 | 234,884,000 | 196,782,000 |
Unrealized Carried Interest | (911,156,000) | (995,376,000) | (3,872,150,000) | 186,537,000 |
Net Unrealized Gains (Losses) | (598,304,000) | (1,088,901,000) | (2,890,326,000) | 18,049,000 |
Unrealized Carried Interest Compensation | 397,449,000 | 418,728,000 | 1,667,447,000 | (57,771,000) |
Strategic Corporate Transaction-Related Charges | 7,362,000 | 10,697,000 | 17,497,000 | 10,697,000 |
Asset Management | Non-Performance Based Awards | ||||
Segment Reporting Information [Line Items] | ||||
Equity-Based and Other Non-Cash Compensation | 44,488,000 | 40,801,000 | 138,196,000 | 128,399,000 |
Asset Management | Performance Based Awards | ||||
Segment Reporting Information [Line Items] | ||||
Equity-Based and Other Non-Cash Compensation | 18,022,000 | 1,687,000 | 50,073,000 | 5,025,000 |
Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Equity-based compensation - KKR Holdings | 27,853,000 | 0 | 47,050,000 | 0 |
Strategic Corporate Transaction-Related Charges | 3,931,000 | 0 | 15,947,000 | 0 |
Equity-Based and Other Non-Cash Compensation | 40,086,000 | 0 | 64,061,000 | 0 |
Net (Gains) Losses from Investments and Derivatives | (75,241,000) | 0 | 183,842,000 | 0 |
Amortization of Acquired Intangibles | 4,412,000 | 0 | 11,765,000 | 0 |
Income Taxes | $ (9,046,000) | $ 0 | $ (63,148,000) | $ 0 |
SEGMENT REPORTING - Total Segme
SEGMENT REPORTING - Total Segment Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Segment Reporting Information [Line Items] | |||
Total Assets | $ 265,799,650 | $ 79,806,502 | $ 70,655,333 |
Impact of Consolidation and Other | (65,502,921) | (43,250,461) | |
Carry Pool Reclassifications | (3,562,686) | (1,393,381) | |
Other Reclassifications | (443,594) | (762,478) | |
Asset Management And Insurance Segments | |||
Segment Reporting Information [Line Items] | |||
Total Assets | $ 196,290,449 | $ 25,249,013 |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 15, 2021 | Jun. 15, 2021 | Feb. 01, 2021 | Aug. 14, 2020 | Sep. 30, 2021 | Dec. 31, 2015 | Oct. 29, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | ||||||||
Convertible preferred stock, shares issued upon conversion of one unit of stock (in shares) | 1 | |||||||
Percentage of carried interest received by general partners (up to) | 1.00% | |||||||
Subsequent Event | ||||||||
Class of Stock [Line Items] | ||||||||
Remaining amount available for repurchase | $ 160 | |||||||
Series I Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock redemption price (in dollars per share) | $ 0.01 | |||||||
Preferred stock, shares authorized (in shares) | 1 | 1 | ||||||
Series II Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock redemption price (in dollars per share) | $ 0.00 | |||||||
Preferred stock, shares authorized (in shares) | 499,999,999 | 499,999,999 | ||||||
Series A Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock redemption price (in dollars per share) | $ 25 | |||||||
Preferred stock, shares authorized (in shares) | 13,800,000 | |||||||
Preferred stock redemption amount | $ 350.8 | |||||||
Preferred stock redemption premium | $ 12 | |||||||
Series B Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock redemption price (in dollars per share) | $ 25 | |||||||
Preferred stock, shares authorized (in shares) | 6,200,000 | |||||||
Preferred stock redemption amount | $ 157.5 | |||||||
Preferred stock redemption premium | $ 5.4 | |||||||
Series C Mandatory Convertible Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock redemption price (in dollars per share) | $ 50 | |||||||
Preferred stock dividend rate (as a percentage) | 6.00% | 6.00% | ||||||
Stock issued (in shares) | 23,000,000 | |||||||
Aggregate liquidation preference | $ 1,150 | |||||||
Consecutive trading days | 20 days | 20 days | ||||||
Trading days prior to period end | 21 days | 21 days | ||||||
Minimum | Common Units | ||||||||
Class of Stock [Line Items] | ||||||||
Convertible preferred stock, shares issued upon conversion of one unit of stock (in shares) | 1.1662 | |||||||
Maximum | Common Units | ||||||||
Class of Stock [Line Items] | ||||||||
Convertible preferred stock, shares issued upon conversion of one unit of stock (in shares) | 1.4285 |
EQUITY - Repurchase Program (De
EQUITY - Repurchase Program (Details) - Common Stock - Share Repurchase Program - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Class of Stock [Line Items] | ||||
Stock repurchased (in shares) | 0 | 0 | 2,667,995 | 10,209,673 |
Stock retired (in shares) | 0 | 0 | 2,366,447 | 1,728,914 |
EQUITY - Noncontrolling Interes
EQUITY - Noncontrolling Interests Held by KKR Holdings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Noncontrolling Interests Held by KKR Holdings | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Net income (loss) attributable to noncontrolling interests | $ 670,839 | $ 691,730 | $ 2,425,961 | $ 301,946 |
Noncontrolling Interests | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Balance at the beginning of the period | 36,338,403 | 19,439,794 | 27,083,098 | 19,694,884 |
Net income (loss) attributable to noncontrolling interests | 2,123,569 | 1,909,458 | 7,315,362 | 206,225 |
Other comprehensive income (loss), net of tax | (86,544) | 9,242 | (209,728) | (4,804) |
Exchange of KKR Holdings Units to Common Stock | 0 | (140,794) | (122,065) | (221,548) |
Equity-based and other non-cash compensation | 41,019 | 21,802 | 107,727 | 63,596 |
Capital contributions | 3,658,497 | 3,486,377 | 9,721,049 | 5,796,680 |
Capital distributions | (2,031,348) | (2,617,289) | (3,975,764) | (3,412,058) |
Transfers of interest under common control | (14,385) | |||
Transfer of Oil and Gas Interests (See Note 2) | (23,358) | (23,358) | ||
Impact of Acquisition | 190,405 | |||
Changes in consolidation | (12,352) | (239,258) | (78,840) | (239,258) |
Balance at the end of the period | 40,031,244 | 21,845,974 | 40,031,244 | 21,845,974 |
Noncontrolling Interests | Noncontrolling Interests in Consolidated Entities and Other | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Balance at the beginning of the period | 28,402,888 | 14,217,950 | 20,570,716 | 13,966,250 |
Net income (loss) attributable to noncontrolling interests | 1,452,730 | 1,217,728 | 4,889,401 | (95,721) |
Other comprehensive income (loss), net of tax | (54,640) | 2,121 | (132,351) | (5,053) |
Exchange of KKR Holdings Units to Common Stock | 0 | 0 | 0 | 0 |
Equity-based and other non-cash compensation | 32,255 | 0 | 71,993 | 0 |
Capital contributions | 3,658,497 | 3,486,352 | 9,721,024 | 5,796,607 |
Capital distributions | (1,981,504) | (2,531,637) | (3,734,474) | (3,247,739) |
Transfers of interest under common control | (21,830) | |||
Transfer of Oil and Gas Interests (See Note 2) | 0 | 0 | ||
Impact of Acquisition | 190,405 | |||
Changes in consolidation | (12,352) | (239,258) | (78,840) | (239,258) |
Balance at the end of the period | 31,497,874 | 16,153,256 | 31,497,874 | 16,153,256 |
Noncontrolling Interests | Noncontrolling Interests Held by KKR Holdings | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Balance at the beginning of the period | 7,935,515 | 5,221,844 | 6,512,382 | 5,728,634 |
Net income (loss) attributable to noncontrolling interests | 670,839 | 691,730 | 2,425,961 | 301,946 |
Other comprehensive income (loss), net of tax | (31,904) | 7,121 | (77,377) | 249 |
Exchange of KKR Holdings Units to Common Stock | 0 | (140,794) | (122,065) | (221,548) |
Equity-based and other non-cash compensation | 8,764 | 21,802 | 35,734 | 63,596 |
Capital contributions | 0 | 25 | 25 | 73 |
Capital distributions | (49,844) | (85,652) | (241,290) | (164,319) |
Transfers of interest under common control | 7,445 | |||
Transfer of Oil and Gas Interests (See Note 2) | (23,358) | (23,358) | ||
Impact of Acquisition | 0 | |||
Changes in consolidation | 0 | 0 | 0 | 0 |
Balance at the end of the period | $ 8,533,370 | $ 5,692,718 | $ 8,533,370 | $ 5,692,718 |
EQUITY - Net Income (Loss) Attr
EQUITY - Net Income (Loss) Attributable To Noncontrolling Interests Held by KKR Holdings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Net income (loss) | $ 3,281,645 | $ 2,974,301 | $ 11,459,886 | $ 697,513 |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests | 1,519 | 0 | 2,856 | 0 |
Less Net income (loss) attributable to Noncontrolling Interests in consolidated entities and other | 1,452,730 | 1,217,728 | 4,889,401 | (95,721) |
Plus Income tax expense (benefit) attributable to KKR & Co. Inc. | 311,745 | 319,717 | 1,104,628 | 159,855 |
Net income (loss) attributable to KKR & Co. Inc. Common Stockholders and KKR Holdings | 2,113,938 | 2,067,949 | 7,583,860 | 928,066 |
Series A And Series B Preferred Stock | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Less Preferred Stock Dividends | 7,953 | 8,341 | 36,647 | 25,023 |
Series C Mandatory Convertible Preferred Stock | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Less Preferred Stock Dividends | 17,250 | 0 | 51,750 | 0 |
KKR Holdings | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Net income (loss) attributable to Noncontrolling Interests held by KKR Holdings | $ 670,839 | $ 691,730 | $ 2,425,961 | $ 301,946 |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTERESTS (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Redeemable Noncontrolling Interest [Line Items] | |
Redeemable non-controlling interests | $ 93,339 |
Global Atlantic | |
Redeemable Noncontrolling Interest [Line Items] | |
Redeemable non-controlling interests | 93,300 |
Estimated redemption value | $ 6,700 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Mar. 31, 2014 | Sep. 30, 2021 | Aug. 04, 2021 | May 21, 2018 | May 20, 2018 | Dec. 31, 2013 | |
Revolving Credit Facility | Global Atlantic Credit Agreement | |||||||
Other Commitments [Line Items] | |||||||
Borrowings outstanding | $ 218,600,000 | $ 218,600,000 | |||||
Total capacity of financing arrangements | $ 1,000,000,000 | $ 1,000,000,000 | $ 650,000,000 | ||||
KKR | |||||||
Other Commitments [Line Items] | |||||||
Private equity fund carried interest amount subject to clawback provision assuming liquidation at fair value | 78,000,000 | 78,000,000 | |||||
Liquidation value for clawback obligation | 0 | 0 | |||||
Clawback obligation amount if private equity vehicles liquidated at fair value | 2,400,000,000 | 2,400,000,000 | |||||
Amount entitled to seek for reimbursement | 1,000,000,000 | 1,000,000,000 | |||||
Global Atlantic | Unaffiliated Third Parties | |||||||
Other Commitments [Line Items] | |||||||
Total fees expensed | 3,500,000 | 11,900,000 | |||||
Total capacity of financing arrangements | 2,000,000,000 | 2,000,000,000 | |||||
Global Atlantic | Payment Guarantee | |||||||
Other Commitments [Line Items] | |||||||
Guarantor period | 25 years | ||||||
Payment obligation | 74,000,000 | 74,000,000 | $ 214,000,000 | ||||
Global Atlantic | Financial Standby Letter of Credit | |||||||
Other Commitments [Line Items] | |||||||
Contingent guarantee | 31,400,000 | 31,400,000 | |||||
Private and Public Markets Investment Funds | KKR | |||||||
Other Commitments [Line Items] | |||||||
Unfunded commitments | 10,949,000,000 | 10,949,000,000 | |||||
Certain Investment Vehicles | KKR | |||||||
Other Commitments [Line Items] | |||||||
Unfunded commitments | 116,000,000 | 116,000,000 | |||||
Capital Markets | KKR | |||||||
Other Commitments [Line Items] | |||||||
Unfunded commitments | 1,200,000,000 | 1,200,000,000 | |||||
Purchase or Funding of Investments | Global Atlantic | |||||||
Other Commitments [Line Items] | |||||||
Unfunded commitments | 1,600,000,000 | 1,600,000,000 | |||||
Commitment to Extend Credit | Global Atlantic | |||||||
Other Commitments [Line Items] | |||||||
Liability for current expected credit losses | 15,400,000 | 15,400,000 | |||||
Clawback Obligation Attributable to Certain and Former KKR Employees | KKR | |||||||
Other Commitments [Line Items] | |||||||
Private equity fund carried interest amount subject to clawback provision assuming liquidation at fair value | $ 32,000,000 | $ 32,000,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | Nov. 02, 2021 | Oct. 11, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Subsequent Events | ||||||
Dividend declared (in dollars per share) | $ 0.145 | $ 0.135 | $ 0.425 | $ 0.395 | ||
Series C Mandatory Convertible Preferred Stock | ||||||
Subsequent Events | ||||||
Preferred stock, dividends declared (in dollars per share) | $ 0.75 | $ 2.25 | ||||
Subsequent Event | ||||||
Subsequent Events | ||||||
Dividend declared (in dollars per share) | $ 0.145 | |||||
Subsequent Event | Limited Partner | ||||||
Subsequent Events | ||||||
Partners' capital, units, issued in reorganization (in shares) | 8,500,000 | |||||
Partners' capital, units reserved for future issuance (shares) | 1,150,000 | |||||
Partners' capital, forfeiture rate | 30.00% | |||||
Subsequent Event | Limited Partner | Tranche one | ||||||
Subsequent Events | ||||||
Partners' capital, accelerated vesting of outstanding units | 500,000 | |||||
Subsequent Event | Limited Partner | Tranche two | ||||||
Subsequent Events | ||||||
Partners' capital, accelerated vesting of outstanding units | 1,455,000 | |||||
Subsequent Event | Series C Mandatory Convertible Preferred Stock | ||||||
Subsequent Events | ||||||
Preferred stock, dividends declared (in dollars per share) | $ 0.75 |