Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS



	Page No.
Report of Independent Registered Public Accounting Firm	156
Consolidated Statements of Financial Condition as of December 31, 2025 and 2024	159
Consolidated Statements of Operations for the Years Ended December 31, 2025, 2024, and 2023	163
Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2025, 2024, and 2023	165
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2025, 2024, and 2023	166
Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024, and 2023	169
Notes to Consolidated Financial Statements	172

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of KKR & Co. Inc.:

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated statement of financial condition of KKR & Co. Inc. and its subsidiaries

(the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive

income (loss), changes in equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the

related notes and the schedules listed in the Index at Item 15 (collectively referred to as the "financial statements"). We also

have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in

Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway

Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of

the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three

years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United

States of America. Also, in our opinion, the Company maintained, in all material respects, effective internal control over

financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013)

issued by COSO.

Basis for Opinions

The Company’s management is responsible for these financial statements, for maintaining effective internal control over

financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the

accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion

on these financial statements and an opinion on the Company’s internal control over financial reporting based on our audits.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and

are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the

applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and

perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement,

whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material

respects.

Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the

financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures

included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits

also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating

the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining

an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing

and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included

performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a

reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the

reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally

accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures

that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and

dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to

permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and

expenditures of the company are being made only in accordance with authorizations of management and directors of the

company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or

disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become

inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may

deteriorate.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial

statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts

or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex

judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements,

taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the

critical audit matters or on the accounts or disclosures to which they relate.

Fair Value—Level III Investments—Refer to Notes 2, 7, and 9 to the financial statements

Critical Audit Matter Description

The Company sponsors or manages investment funds, investment vehicles and accounts (“investment funds”) that have

certain investments measured at fair value using unobservable pricing inputs and are classified as Level III Investments in the

fair value hierarchy. These Level III investments have limited observable market activity and the inputs used in the

determination of fair value require significant management judgment or estimation.

In addition, the Company recognizes carried interest from investment funds based on cumulative fund performance to

date. At the end of each reporting period, the Company calculates the carried interest that would be due to the Company

from each investment fund, pursuant to the investment fund agreement. The change in the fair value of the underlying Level

III Investments held by the investment funds is a significant input into the determination of carried interest for each reporting

period. As the fair value of underlying investments varies between reporting periods, the Company adjusts the amounts

recorded as carried interest. Accrued but unpaid carried interest as of the reporting date is reflected in investments in the

consolidated statements of financial condition.

We identified certain Level III Investments as a critical audit matter because of the unobservable pricing inputs

Management used to estimate fair value.

Performing audit procedures to evaluate the appropriateness of these inputs used by Management required a high

degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists who

possess significant investment valuation expertise.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the unobservable pricing inputs used by Management to estimate the fair values of Level

III Investments included the following, among others:

We involved more senior, more experienced audit team members to perform audit procedures.
We tested the effectiveness of controls over the determination of the fair value of Level III Investments.
With the assistance of our fair value specialists, we evaluated Management’s process for Level III Investments

valuation, including their determination of the unobservable pricing inputs used to estimate fair value.

We assessed the consistency by which Management applied its process.
We evaluated the Company’s historical ability to accurately estimate fair value of Level III Investments by comparing

previous estimates of fair value to subsequent market transactions with third parties.

Policy Liabilities — Valuation of Policy Liabilities Associated with the Fixed-Indexed Annuity Product — Refer to Notes 2,

9,10, and 17 to the financial statements

Critical Audit Matter Description

The Company’s products include the fixed-indexed annuity product, which contains equity indexed features that are

considered embedded derivatives and are required to be measured at fair value. In addition, certain fixed-indexed annuity

contracts are issued with guarantees, which are considered Market Risk Benefits (“MRBs”).

Management applies significant judgment in selecting assumptions used to estimate the value of embedded derivative

liabilities and MRBs associated with the fixed-indexed annuity product. Changes in market conditions or variations in certain

assumptions could result in significant fluctuations in these estimates. Principal assumptions include surrender, withdrawal,

benefit utilization, mortality, option budgets, future index credits, equity market return, interest rates, and nonperformance

risk assumptions.

We identified the valuation of embedded derivative liabilities, and MRBs associated with the fixed-indexed annuity

product as a critical audit matter because of the inherent management judgment required in selecting assumptions.

Performing audit procedures to evaluate the judgments made and the reasonableness of assumptions and models used

in the valuations required a high degree of auditor judgment and an increased extent of auditor effort. The audit effort

included the use of professionals with specialized skill and knowledge, including our valuation, modeling, and actuarial

specialists, to assist in performing these procedures and evaluating the audit evidence obtained from these procedures.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the valuation of embedded derivative liabilities and MRBs associated with the fixed-

indexed annuity product included the following, among others:

We involved more senior, more experienced audit team members to perform audit procedures.
We tested the effectiveness of controls over the assumptions, including controls over the underlying data used in the

valuation of these liabilities.

With the assistance of our valuation, modeling, and actuarial specialists, we:

◦Evaluated the methods and judgments applied by Management in the determination of principal

assumptions used in the valuation of embedded derivative liabilities and MRBs associated with the fixed-

indexed annuity product.

◦Evaluated the results of underlying experience studies, capital market projections, and judgments applied by

Management in setting the assumptions.

◦Developed an independent estimate of embedded derivative liabilities and MRBs associated with the fixed-

indexed annuity production on a sample basis and evaluated differences.

/s/ Deloitte & Touche LLP

New York, New York

February 27, 2026

We have served as the Company's auditor since 2006.


KKR & CO. INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Amounts in Thousands, Except Share and Per Share Data)
	December 31, 2025	December 31, 2024
Assets
Asset Management and Strategic Holdings
Cash and Cash Equivalents	$9,380,874	$8,535,048
Restricted Cash and Cash Equivalents	48,033	138,948
Investments	127,948,305	106,453,051
Due from Affiliates	2,307,701	1,856,045
Other Assets	6,294,381	5,534,286
	145,979,294	122,517,378
Insurance
Cash and Cash Equivalents	$7,511,273	$6,343,445
Restricted Cash and Cash Equivalents	211,610	350,512
Investments	192,009,748	170,144,744
Reinsurance Recoverable	48,022,605	45,270,625
Insurance Intangible Assets	5,905,228	5,198,943
Other Assets	6,662,911	6,292,704
Separate Account Assets	3,841,403	3,981,060
	264,164,778	237,582,033
Total Assets	$410,144,072	$360,099,411

Liabilities and Equity
Asset Management and Strategic Holdings
Debt Obligations	$49,117,744	$45,933,920
Due to Affiliates	442,362	524,516
Accrued Expenses and Other Liabilities	14,348,335	11,448,503
	63,908,441	57,906,939
Insurance
Policy Liabilities (market risk benefit liabilities: $1,349,774 and $1,002,236, as of December 31, 2025 and December 31, 2024, respectively.)	$205,558,727	$185,205,366
Debt Obligations	3,820,407	3,713,336
Funds Withheld Payable at Interest	46,822,744	43,961,910
Accrued Expenses and Other Liabilities	3,341,695	2,186,962
Reinsurance Liabilities	1,218,744	1,159,146
Separate Account Liabilities	3,841,403	3,981,060
	264,603,720	240,207,780
Total Liabilities	328,512,161	298,114,719


KKR & CO. INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (CONTINUED)
(Amounts in Thousands, Except Share and Per Share Data)
	December 31, 2025	December 31, 2024
Commitments and Contingencies (See Note 24)

Redeemable Noncontrolling Interests (See Note 23)	$2,710,242	$1,585,177

Stockholders' Equity
Series D Mandatory Convertible Preferred Stock, $0.01 par value. 51,750,000 and 0 shares, issued and outstanding as of December 31, 2025 and December 31, 2024, respectively.	2,543,404	—
Series I Preferred Stock, $0.01 par value. 1 share authorized, 1 share issued and outstanding as of December 31, 2025 and December 31, 2024.	—	—
Common Stock, $0.01 par value. 3,500,000,000 shares authorized, 891,451,844 and 888,232,174 shares, issued and outstanding as of December 31, 2025 and December 31, 2024, respectively.	8,914	8,882
Additional Paid-In Capital	19,041,497	18,406,718
Retained Earnings	13,884,438	12,282,513
Accumulated Other Comprehensive Income (Loss) ("AOCI")	(4,575,692)	(7,046,545)
Total KKR & Co. Inc. Stockholders' Equity	30,902,561	23,651,568
Noncontrolling Interests (See Note 22)	48,019,108	36,747,947
Total Equity	78,921,669	60,399,515
Total Liabilities and Equity	$410,144,072	$360,099,411

See notes to financial statements.

KKR & CO. INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (CONTINUED)

(Amounts in Thousands)

The following presents the portion of the consolidated balances provided in the consolidated statements of financial

condition attributable to consolidated variable interest entities ("VIEs"). As of December 31, 2025 and December 31, 2024,

KKR's consolidated VIEs consist primarily of (i) certain collateralized financing entities ("CFEs") including those CFEs holding

collateralized loan obligations ("CLOs"), (ii) certain investment funds, and (iii) certain VIEs formed by Global Atlantic. The

noteholders, creditors, and equity holders of these VIEs have no recourse to the assets of any other KKR entity.

With respect to consolidated CFEs and certain investment funds, the following assets may only be used to settle

obligations of these consolidated VIEs and the following liabilities are only the obligations of these consolidated VIEs and not

generally to KKR. Additionally, KKR has no right to the benefits from, nor does KKR bear the risks associated with, the assets

held by these VIEs beyond KKR's beneficial interest therein and any income generated from the VIEs. There are neither explicit

arrangements nor does KKR hold implicit variable interests that would require KKR to provide any material ongoing financial

support to the consolidated VIEs, beyond amounts previously committed to them, if any.

With respect to certain other VIEs consolidated by Global Atlantic, Global Atlantic has formed certain VIEs to either (i)

hold investments, including fixed maturity securities, consumer and other loans, renewable energy, transportation, and real

estate, or (ii) to conduct certain reinsurance activities with third party commitments. These VIEs issue beneficial interests

primarily to Global Atlantic’s insurance companies.


	December 31, 2025
	Consolidated CFEs	Consolidated Funds and Other Investment Vehicles	Other VIEs	Total
Assets
Asset Management and Strategic Holdings
Cash and Cash Equivalents	$2,726,050	$1,435,888	$—	$4,161,938
Restricted Cash and Cash Equivalents	—	48,033	—	48,033
Investments	30,673,565	77,327,933	—	108,001,498
Other Assets	858,433	345,779	—	1,204,212
	34,258,048	79,157,633	—	113,415,681
Insurance
Cash and Cash Equivalents	—	—	1,381,836	1,381,836
Investments	—	—	31,201,795	31,201,795
Other Assets	—	—	788,325	788,325
	—	—	33,371,956	33,371,956
Total Assets	$34,258,048	$79,157,633	$33,371,956	$146,787,637

Liabilities
Asset Management and Strategic Holdings
Debt Obligations	$30,227,885	$6,664,740	$—	$36,892,625
Accrued Expenses and Other Liabilities	2,068,666	1,007,545	—	3,076,211
	32,296,551	7,672,285	—	39,968,836
Insurance
Debt Obligations	—	—	197,400	197,400
Accrued Expenses and Other Liabilities	—	—	566,466	566,466
	—	—	763,866	763,866
Total Liabilities	$32,296,551	$7,672,285	$763,866	$40,732,702

KKR & CO. INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (CONTINUED)

(Amounts in Thousands)


	December 31, 2024
	Consolidated CFEs	Consolidated Funds and Other Investment Vehicles	Other VIEs	Total
Assets
Asset Management and Strategic Holdings
Cash and Cash Equivalents	$2,945,010	$1,319,779	$—	$4,264,789
Restricted Cash and Cash Equivalents	—	115,467	—	115,467
Investments	27,488,538	60,366,652	—	87,855,190
Other Assets	333,653	601,547	—	935,200
	30,767,201	62,403,445	—	93,170,646
Insurance
Cash and Cash Equivalents	—	—	853,240	853,240
Investments	—	—	27,649,919	27,649,919
Other Assets	—	—	763,982	763,982
	—	—	29,267,141	29,267,141
Total Assets	$30,767,201	$62,403,445	$29,267,141	$122,437,787

Liabilities
Asset Management and Strategic Holdings
Debt Obligations	$27,150,809	$7,555,057	$—	$34,705,866
Accrued Expenses and Other Liabilities	2,244,253	231,411	—	2,475,664
	29,395,062	7,786,468	—	37,181,530
Insurance
Debt Obligations	—	—	70,400	70,400
Accrued Expenses and Other Liabilities	—	—	495,814	495,814
	—	—	566,214	566,214
Total Liabilities	$29,395,062	$7,786,468	$566,214	$37,747,744

See notes to financial statements.


KKR & CO. INC. CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands, Except Share and Per Share Data)
	Years Ended December 31,
	2025	2024	2023
Revenues
Asset Management and Strategic Holdings
Fees and Other	$4,064,273	$3,653,962	$2,963,869
Capital Allocation-Based Income (Loss)	3,771,235	3,558,284	2,843,437
	7,835,508	7,212,246	5,807,306
Insurance
Net Premiums	3,397,186	7,898,834	1,975,675
Policy Fees	1,350,814	1,377,686	1,260,249
Net Investment Income	7,665,106	6,574,608	5,514,902
Net Investment-Related Gains (Losses)	(1,041,070)	(1,423,086)	(235,262)
Other Income	256,763	238,410	176,442
	11,628,799	14,666,452	8,692,006
Total Revenues	19,464,307	21,878,698	14,499,312

Expenses
Asset Management and Strategic Holdings
Compensation and Benefits	4,710,394	4,330,967	3,012,687
Occupancy and Related Charges	135,941	117,111	93,391
General, Administrative and Other	1,479,796	1,311,676	1,056,899
	6,326,131	5,759,754	4,162,977
Insurance
Net Policy Benefits and Claims (including market risk benefit (gain) loss of $312,446, $(147,790) and $224,380, respectively; remeasurement (gain) loss on policy liabilities: $(82,691), $(74,645) and $15,497, respectively.)	10,731,153	13,293,282	6,362,257
Amortization of Policy Acquisition Costs	309,319	174,163	87,275
Interest Expense	294,969	271,769	173,883
Insurance Expenses	594,724	741,796	825,998
General, Administrative and Other	756,019	745,096	746,215
	12,686,184	15,226,106	8,195,628
Total Expenses	19,012,315	20,985,860	12,358,605

Investment Income (Loss) - Asset Management and Strategic Holdings
Net Gains (Losses) from Investment Activities	4,801,453	3,442,853	3,025,383
Dividend Income	1,440,790	1,100,361	791,160
Interest Income	3,181,871	3,458,526	3,369,447
Interest Expense	(2,776,946)	(3,034,145)	(2,772,088)
Total Investment Income (Loss)	6,647,168	4,967,595	4,413,902

Income (Loss) Before Taxes	7,099,160	5,860,433	6,554,609

Income Tax Expense (Benefit)	953,748	954,396	1,197,523


KKR & CO. INC. CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(Amounts in Thousands, Except Share and Per Share Data)
	Years Ended December 31,
	2025	2024	2023

Net Income (Loss)	6,145,412	4,906,037	5,357,086
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests	155,103	73,149	(5,405)
Net Income (Loss) Attributable to Noncontrolling Interests	3,619,846	1,756,643	1,630,230
Net Income (Loss) Attributable to KKR & Co. Inc.	2,370,463	3,076,245	3,732,261

Series C Mandatory Convertible Preferred Stock Dividends	—	—	51,747
Series D Mandatory Convertible Preferred Stock Dividends	118,596	—	—

Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders	$2,251,867	$3,076,245	$3,680,514

Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock
Basic	$2.51	$3.47	$4.24
Diluted	$2.34	$3.28	$4.09
Weighted Average Shares of Common Stock Outstanding
Basic	890,342,060	887,021,433	867,496,813
Diluted	955,756,926	938,904,600	911,787,433

See notes to financial statements.

KKR & CO. INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Amounts in Thousands)


	Years Ended December 31,
	2025	2024	2023
Net Income (Loss)	$6,145,412	$4,906,037	$5,357,086

Other Comprehensive Income (Loss), Net of Tax:

Unrealized Gains (Losses) on Available-For-Sale Securities and Other	2,724,284	(189,277)	2,085,499

Net effect of changes in discount rates and instrument-specific credit risk on policy liabilities	(454,362)	187,472	(491,239)

Foreign Currency Translation Adjustments	188,949	(257,028)	(100,032)

Comprehensive Income (Loss)	8,604,283	4,647,204	6,851,314

Comprehensive Income (Loss) Attributable to Redeemable Noncontrolling Interests	155,103	73,149	(5,405)
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	3,621,208	1,762,937	2,218,645

Comprehensive Income (Loss) Attributable to KKR & Co. Inc.	$4,827,972	$2,811,118	$4,638,074

See notes to financial statements.


KKR & CO. INC. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Amounts in Thousands, Except Share and Per Share Data)

	Year Ended December 31, 2025
	Amounts	Shares
Series D Mandatory Convertible Preferred Stock
Beginning of Period	$—	—
Issuance of Series D Mandatory Convertible Preferred Stock (net of issuance costs)	2,543,404	51,750,000
End of Period	2,543,404	51,750,000
Series I Preferred Stock
Beginning of Period	—	1
End of Period	—	1
Common Stock
Beginning of Period	8,882	888,232,174
Net Delivery of Common Stock (Equity Incentive Plan)	28	2,850,321
Repurchases of Common Stock	—	(36,411)
Clawback of Transfer Restricted Shares	—	(2,505)
Exchange of KKR Restricted Holdings Units	4	400,207
Private Placement Share Issuance	—	8,058
End of Period	8,914	891,451,844
Additional Paid-In Capital
Beginning of Period	18,406,718
Net Delivery of Common Stock (Equity Incentive Plan)	(126,309)
Repurchases of Common Stock	(3,362)
Equity-Based Compensation (Non-Cash Contribution)	314,996
Change in KKR & Co. Inc.'s Ownership Interest (See Note 22)	437,272
Tax Effects of Changes in Ownership and Other	12,182
End of Period	19,041,497
Retained Earnings
Beginning of Period	12,282,513
Net Income (Loss) Attributable to KKR & Co. Inc.	2,370,463
Series D Mandatory Convertible Preferred Stock Dividends ($2.2917 per share)	(118,596)
Common Stock Dividends ($0.730 per share)	(649,942)
End of Period	13,884,438
Accumulated Other Comprehensive Income (Loss) (net of tax)
Beginning of Period	(7,046,545)
Other Comprehensive Income (Loss)	2,457,509
Change in KKR & Co. Inc.'s Ownership Interest (See Note 22)	13,344
End of Period	(4,575,692)
Total KKR & Co. Inc. Stockholders' Equity	30,902,561
Noncontrolling Interests (See Note 22)	48,019,108
Total Equity	$78,921,669

Redeemable Noncontrolling Interests (See Note 23)	$2,710,242


KKR & CO. INC. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED) (Amounts in Thousands, Except Share and Per Share Data)



	Year Ended December 31, 2024
	Amounts	Shares
Series I Preferred Stock
Beginning of Period	$—	1
End of Period	—	1
Common Stock
Beginning of Period	8,850	885,005,588
Net Delivery of Common Stock (Equity Incentive Plan)	32	3,158,533
Private Placement Share Issuance	—	5,379
Exchange of KKR Restricted Holdings Units	—	72,399
Clawback of Transfer Restricted Shares	—	(9,725)
End of Period	8,882	888,232,174
Additional Paid-In Capital
Beginning of Period	17,549,157
Net Delivery of Common Stock (Equity Incentive Plan)	(125,039)
Compensation Modification	226,011
Compensation Modification - Issuance of Holdings III Units	(53,623)
2024 GA Acquisition - Issuance of Holdings III Units (See Note 1)	(40,789)
Equity-Based Compensation (Non-Cash Contribution)	314,144
Change in KKR & Co. Inc.'s Ownership Interest - 2024 GA Acquisition	128,194
Change in KKR & Co. Inc.'s Ownership Interest (See Note 22)	402,381
Tax Effects of Changes in Ownership and Other	6,282
End of Period	18,406,718
Retained Earnings
Beginning of Period	9,818,336
Net Income (Loss) Attributable to KKR & Co. Inc.	3,076,245
Common Stock Dividends ($0.690 per share)	(612,068)
End of Period	12,282,513
Accumulated Other Comprehensive Income (Loss) (net of tax)
Beginning of Period	(4,517,649)
Other Comprehensive Income (Loss)	(265,127)
Change in KKR & Co. Inc.'s Ownership Interest - 2024 GA Acquisition	(2,297,494)
Change in KKR & Co. Inc.'s Ownership Interest (See Note 22)	33,725
End of Period	(7,046,545)
Total KKR & Co. Inc. Stockholders' Equity	23,651,568
Noncontrolling Interests (See Note 22)	36,747,947
Total Equity	$60,399,515

Redeemable Noncontrolling Interests (See Note 23)	$1,585,177


KKR & CO. INC. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED) (Amounts in Thousands, Except Share and Per Share Data)
	Years Ended December 31, 2023
	Amounts	Shares
Series C Mandatory Convertible Preferred Stock
Beginning of Period	$1,115,792	22,999,974
Conversion of Series C Mandatory Convertible Preferred Stock	(1,115,792)	(22,999,974)
End of Period	—	—
Series I Preferred Stock
Beginning of Period	—	1
End of Period	—	1
Common Stock
Beginning of Period	8,611	861,110,478
Clawback of Transfer Restricted Shares	—	(25,045)
Net Delivery of Common Stock (Equity Incentive Plan)	24	2,405,399
Conversion of Series C Mandatory Convertible Preferred Stock	269	26,909,918
Repurchases of Common Stock	(54)	(5,395,162)
End of Period	8,850	885,005,588
Additional Paid-In Capital
Beginning of Period (as previously reported for the prior period)	16,190,407
Adoption of New Accounting Standard	93,650
Beginning of Period (as revised for the prior period)	16,284,057
Conversion of Series C Mandatory Convertible Preferred Stock	1,115,523
Excise Tax on Repurchases of Common Stock	(1,349)
Net Delivery of Common Stock (Equity Incentive Plan)	(41,697)
Repurchases of Common Stock	(289,790)
Equity-Based Compensation (Non-Cash Contribution)	197,414
Change in KKR & Co. Inc.'s Ownership Interest (See Note 22)	278,529
Tax Effects of Changes in Ownership and Other	6,470
End of Period	17,549,157
Retained Earnings
Beginning of Period (as previously reported for the prior period)	6,315,711
Adoption of New Accounting Standard	385,396
Beginning of Period (as revised for the prior period)	6,701,107
Net Income (Loss) Attributable to KKR & Co. Inc.	3,732,261
Series C Mandatory Convertible Preferred Stock Dividends ($2.25 per share)	(51,747)
Common Stock Dividends ($0.650 per share)	(563,285)
End of Period	9,818,336
Accumulated Other Comprehensive Income (Loss) (net of tax)
Beginning of Period (as previously reported for the prior period)	(5,901,701)
Adoption of New Accounting Standard	599,901
Beginning of Period (as revised for the prior period)	(5,301,800)
Other Comprehensive Income (Loss)	905,813
Change in KKR & Co. Inc.'s Ownership Interest (See Note 22)	(121,662)
End of Period	(4,517,649)
Total KKR & Co. Inc. Stockholders' Equity	22,858,694
Noncontrolling Interests (See Note 22)	34,904,791
Total Equity	$57,763,485

Redeemable Noncontrolling Interests (See Note 23)	$615,427

See notes to financial statements.


KKR & CO. INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in Thousands)
	Years Ended December 31,
	2025	2024	2023
Operating Activities
Net Income (Loss)	$6,145,412	$4,906,037	$5,357,086
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Equity-Based Compensation	722,109	746,443	618,469
Net Realized (Gains) Losses – Asset Management and Strategic Holdings	(202,864)	(246,832)	776,473
Change in Unrealized (Gains) Losses – Asset Management and Strategic Holdings	(4,598,589)	(3,196,021)	(3,801,856)
Capital Allocation-Based (Income) Loss – Asset Management and Strategic Holdings	(3,771,235)	(3,558,284)	(2,843,437)
Net Investment and Policy Liability-Related (Gains) Losses – Insurance	3,271,826	3,250,375	2,556,183
Net Accretion and Amortization	(162,529)	(119,315)	68,302
Interest Credited to Policyholder Account Balances (net of Policy Fees) – Insurance	4,990,209	4,163,392	2,799,758
Other Non-Cash Amounts	443,671	312,801	101,539
Cash Flows Due to Changes in Operating Assets and Liabilities:
Reinsurance Transactions and Acquisitions, Net of Cash Provided – Insurance	920,305	1,025,695	840,173
Change in Premiums, Notes Receivable and Reinsurance Recoverable, Net of Reinsurance Premiums Payable – Insurance	408,542	565,782	1,060,972
Change in Deferred Policy Acquisition Costs – Insurance	(1,062,606)	(840,725)	(534,534)
Change in Policy Liabilities and Accruals, Net – Insurance	1,779,872	(466,584)	(717,795)
Change in Consolidation	(145)	77,255	(354,121)
Change in Due from / to Affiliates	(509,941)	(345,994)	402,465
Change in Other Assets	(729,731)	(1,048,738)	188,691
Change in Accrued Expenses and Other Liabilities	2,039,396	2,122,421	542,820
Investments Purchased – Asset Management and Strategic Holdings	(42,904,105)	(46,367,200)	(37,342,125)
Proceeds from Investments – Asset Management and Strategic Holdings	33,698,163	45,669,370	28,787,125
Net Cash Provided (Used) by Operating Activities	477,760	6,649,878	(1,493,812)

Investing Activities
Acquisitions, Net	(146,273)	—	—
Purchases of Fixed Assets	(160,765)	(141,536)	(108,393)
Investments Purchased – Insurance	(92,789,768)	(75,817,739)	(29,488,315)
Proceeds from Investments – Insurance	76,815,000	56,877,137	25,654,308
Other Investing Activities, Net	9	34,714	59,464
Net Cash Provided (Used) by Investing Activities	(16,281,797)	(19,047,424)	(3,882,936)


KKR & CO. INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(Amounts in Thousands)
	Years Ended December 31,
	2025	2024	2023
Financing Activities
Series C Mandatory Convertible Preferred Stock Dividends	—	—	(51,747)
Series D Mandatory Convertible Preferred Stock Dividends	(118,596)	—	—
Common Stock Dividends	(649,942)	(612,068)	(563,285)
Distributions to Redeemable Noncontrolling Interests	(72,284)	(23,763)	(2,845)
Contributions from Redeemable Noncontrolling Interests	1,068,632	922,127	499,433
Distributions to Noncontrolling Interests	(6,081,746)	(8,191,990)	(6,956,724)
Contributions from Noncontrolling Interests	11,355,197	7,432,325	12,871,585
Issuance of Series D Mandatory Convertible Preferred Stock (net of issuance costs)	2,543,404	—	—
2024 GA Acquisition - Cash consideration	—	(2,622,230)	—
Net Delivery of Common Stock (Equity Incentive Plan)	(126,281)	(125,007)	(41,673)
Repurchases of Common Stock	(3,362)	—	(289,844)
Proceeds from Debt Obligations	27,074,568	29,136,875	16,383,154
Repayment of Debt Obligations	(25,122,912)	(25,677,318)	(12,763,783)
Financing Costs Paid	(51,248)	(20,078)	(14,781)
Additions to Contractholder Deposit Funds – Insurance	28,507,218	28,488,402	19,314,716
Withdrawals from Contractholder Deposit Funds – Insurance	(21,483,334)	(20,568,558)	(17,385,952)
Reinsurance Transactions, Net of Cash Provided – Insurance	193,622	47,821	1,223,564
Other Financing Activity, Net	399,370	(1,110,208)	552,270
Net Cash Provided (Used) by Financing Activities	17,432,306	7,076,330	12,774,088

Effect of exchange rate changes on cash, cash equivalents and restricted cash	155,568	(118,951)	25,410

Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash	$1,783,837	$(5,440,167)	$7,422,750
Cash, Cash Equivalents and Restricted Cash, Beginning of Period	15,367,953	20,808,120	13,385,370
Cash, Cash Equivalents and Restricted Cash, End of Period	$17,151,790	$15,367,953	$20,808,120


KKR & CO. INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(Amounts in Thousands)
	Years Ended December 31,
	2025	2024	2023

Cash, Cash Equivalents and Restricted Cash are comprised of the following:

Beginning of the Period
Asset Management and Strategic Holdings
Cash and Cash Equivalents	$8,535,048	$8,393,892	$6,705,325
Restricted Cash and Cash Equivalents	138,948	116,599	253,431
Total Asset Management and Strategic Holdings	8,673,996	8,510,491	6,958,756
Insurance
Cash and Cash Equivalents	$6,343,445	$11,954,675	$6,118,231
Restricted Cash and Cash Equivalents	350,512	342,954	308,383
Total Insurance	6,693,957	12,297,629	6,426,614

Cash, Cash Equivalents and Restricted Cash, Beginning of Period	$15,367,953	$20,808,120	$13,385,370

End of the Period
Asset Management and Strategic Holdings
Cash and Cash Equivalents	$9,380,874	$8,535,048	$8,393,892
Restricted Cash and Cash Equivalents	48,033	138,948	116,599
Total Asset Management and Strategic Holdings	9,428,907	8,673,996	8,510,491
Insurance
Cash and Cash Equivalents	$7,511,273	$6,343,445	$11,954,675
Restricted Cash and Cash Equivalents	211,610	350,512	342,954
Total Insurance	7,722,883	6,693,957	12,297,629

Cash, Cash Equivalents and Restricted Cash, End of Period	$17,151,790	$15,367,953	$20,808,120


Supplemental Disclosures of Cash Flow Information
Payments for Interest	$2,661,394	$2,937,009	$2,691,086
Payments for Income Taxes, Net of Refunds	$1,209,216	$781,552	$981,425
Payments for Operating Lease Liabilities	$67,884	$66,468	$58,715

Supplemental Disclosures of Non-Cash Investing and Financing Activities
Non-Cash Contribution from Noncontrolling Interests	$28,613	$34,392	$—
Non-Cash Distribution to Noncontrolling Interests	$—	$—	$(1,344,792)
Non-Cash Distribution to Redeemable Noncontrolling Interests	$(26,386)	$—	$—
Non-Cash Repayment of Debt Obligations	$(100,000)	$—	$—
Debt Obligations - Net Gains (Losses), Translation and Other	$(1,626,436)	$541,429	$(1,048,308)
Investments Acquired through Reinsurance Agreements	$2,479,839	$11,393,248	$10,772,318
Contractholder Deposit Funds Acquired through Reinsurance Agreements	$2,674,738	$2,047,850	$8,461,031

Change in Consolidation
Investments - Asset Management and Strategic Holdings	$2,391,477	$(81,971)	$(8,675,404)
Investments - Insurance	$—	$—	$(93,545)
Other Assets	$(2,147)	$12,084	$(216,543)
Debt Obligations	$—	$(1,063,374)	$85,005
Accrued Expenses and Other Liabilities	$(19)	$5,952	$(294,379)
Noncontrolling Interests	$2,391,392	$1,163,105	$(8,461,491)
Redeemable Noncontrolling Interests	$—	$—	$(27,821)

See notes to financial statements.

KKR & CO. INC.

NOTES TO FINANCIAL STATEMENTS

(All Amounts in Thousands, Except Share and Per Share Data, and Except Where Noted)

1. ORGANIZATION

KKR & Co. Inc. (NYSE: KKR), through its subsidiaries (collectively, "KKR"), is a leading global investment firm that offers

alternative asset management as well as 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 insurance

companies and other subsidiaries, "Global Atlantic").

KKR & Co. Inc. is the parent company of KKR Group Co. Inc., which in turn owns 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. As of December 31, 2025, KKR & Co. Inc. held indirectly approximately

98.9% of the KKR Group Partnership Units. The remaining balance is held indirectly by KKR current and former employees

through restricted holdings units representing an ownership interest in KKR Group Partnership Units, which may be

exchanged for shares of common stock of KKR & Co. Inc. ("exchangeable securities"). As limited partner interests, these KKR

Group Partnership Units are non-voting and do not entitle anyone other than KKR to manage its business and affairs. KKR

Group Partnership also has outstanding limited partner interests that provide for a carry pool provided by KKR Associates

Holdings L.P. ("Associates Holdings") and outstanding preferred units with economic terms that mirror the KKR & Co. Inc.

6.25% Series D Mandatory Convertible Preferred Stock (the “Series D Mandatory Convertible Preferred Stock”).

KKR’s insurance business is operated by Global Atlantic, in which KKR acquired a majority controlling interest on February

1, 2021 and of which KKR acquired all the remaining equity interests in Global Atlantic on January 2, 2024 (the “2024 GA

Acquisition”).

In this report, references to "KKR," refer to KKR & Co. Inc. and its subsidiaries, including Global Atlantic, unless the context

requires otherwise, especially in sections where "KKR" is intended to refer to the asset management and strategic holdings

businesses only. References to our "funds," "vehicles" or "investment vehicles" refer to a wide array of investment funds,

vehicles, and accounts that are advised, managed or sponsored by one or more subsidiaries of KKR, including collateralized

loan obligations ("CLOs"), certain operating companies and business development companies ("BDCs"), unless the context

requires otherwise.

Reorganization Agreement

On October 8, 2021, KKR entered into a Reorganization Agreement (the "Reorganization Agreement") with KKR Holdings

L.P. ("KKR Holdings"), KKR Management LLP (which holds the sole outstanding share of Series I preferred stock), Associates

Holdings, and the other parties thereto. Pursuant to the Reorganization Agreement, the parties agreed to undertake a series

of integrated transactions to effect a number of transformative structural and governance changes, some of which were

completed on May 31, 2022, and other changes to be completed in the future. On May 31, 2022, KKR completed the merger

transactions ("Reorganization Mergers") contemplated by the Reorganization Agreement pursuant to which KKR acquired KKR

Holdings (which changed its name to KKR Group Holdings L.P.) and all of the KKR Group Partnership Units held by it.

Pursuant to the Reorganization Agreement, the following transactions will occur in the future on the Sunset Date (as

defined below):

i.the control of KKR & Co. Inc. by KKR Management LLP and the Series I Preferred Stock held by it will be eliminated,

ii.the voting rights for all common stock of KKR & Co. Inc., including with respect to the election of directors, will be

established on a one vote per share basis, and

iii.KKR will acquire control of Associates Holdings, the entity providing for the allocation of carry proceeds to KKR

employees, also known as the carry pool.

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 LLP in its sole discretion). In addition, KKR Management LLP agreed not

to transfer its ownership of the sole share of Series I Preferred Stock, and, the changes to occur effective on the Sunset Date

are unconditional commitments of the parties to the Reorganization Agreement.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements (referred to hereafter as the "financial statements") have been

prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Certain prior

period amounts in the accompanying notes have been reclassified to conform to the current period’s presentation, including the

realignment of prior period investment categories to the current year investment category presentation within Notes 4, 7, 9,

and 10.

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, Global Atlantic’s

insurance companies, and certain other entities including CFEs. References to Global Atlantic hereafter includes the insurance

companies of Global Atlantic, which are consolidated by KKR starting on February 1, 2021 (the "2021 GA Acquisition Date").

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, which manages the operations of the Strategic Holdings segment (see Note 21

"Segment Reporting"), 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 & Co. Inc. (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.

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.

In the ordinary course of business, KKR’s Asset Management business, Strategic Holdings business, and Insurance business

enter into transactions with each other, which may include transactions pursuant to their investment management agreements

and certain financing arrangements. The borrowings from these financing arrangements are non-recourse to KKR beyond the

assets designated to support such borrowings. All of the investment management and financing arrangements amongst KKR

businesses are eliminated in consolidation.

All intercompany transactions and balances have been eliminated.

SIGNIFICANT ACCOUNTING POLICIES – OVERALL

Use of Estimates and Risks and Uncertainties

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 recognition and disclosure of contingent assets and

liabilities at the date of the financial statements and the reported amounts of revenues, expenses, investment income (loss),

and income taxes 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, including market risk

benefits, (vi) the valuation of embedded derivatives in policy liabilities and funds withheld, and (vii) the determination of the

allowance for loan losses.

Certain events particular to each industry and country or region in which the portfolio companies conduct their operations,

as well as general market, economic, political and geopolitical, regulatory, and natural disasters and catastrophes, including

public health crises, may have a significant negative impact on KKR’s investments and profitability. Such events are beyond KKR’s

control, and the likelihood that they may occur and the effect on KKR's use of estimates cannot be predicted. 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, 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.

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. Most of KKR's investment funds are categorized as VIEs.

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 (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.

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.

Global Atlantic has formed certain VIEs to hold investments, including investments in real assets, 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.

For certain consolidated renewable energy partnerships consolidated by Global Atlantic's insurance companies, Global

Atlantic uses a hypothetical liquidation at book value ("HLBV") method 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 noncontrolling 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.

Noncontrolling Interests

Noncontrolling interests in consolidated entities of KKR represent the non-redeemable ownership interests that are held

primarily by:

(i)third party fund investors in KKR's consolidated funds and certain other entities;

(ii)third parties in KKR's Capital Markets business line;

(iii)certain current and former employees who hold exchangeable securities; and

(iv)third-party investors in certain of Global Atlantic's consolidated entities.

For further details see Note 22 "Equity."

Cash and Cash Equivalents

Generally KKR considers all liquid short‑term investments with original maturities of three months 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. 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.

For certain investments where the fair value is not readily determinable, net asset value (“NAV”) is applied as a practical

expedient.

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. 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. 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.

KKR seeks to take a uniform approach across each asset class with respect to liquidity considerations for its investment

valuations, including considering if factors exist that could make it more challenging to monetize the investment, such as (i) the

nature of KKR's governance rights, (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 more likely that the

price a portfolio company is sold or publicly offered in the near term may need to reflect factors such as these, and others,

relating to the liquidity of an investment. 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’s

valuation methodologies take into account impacts to valuations relating to liquidity, and during the time KKR holds the

investment, the impact of liquidity considerations on an investment’s valuation may be increased or decreased, from time to

time, based on changes to these factors. The impact of liquidity considerations on an investment is based on the facts and

circumstances of each individual investment. Accordingly, liquidity considerations ultimately considered by a market participant

upon the realization of any investment may be higher or lower than that implied by KKR in its valuations.

Real Asset Investments: Real asset investments primarily consist of infrastructure and real estate investments and are

generally 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. Key Inputs used in

these methodologies can include inputs such as the weighted average cost of capital and assumed inputs used to calculate

terminal values, including capitalization rates, and exit EBITDA multiples. Certain real asset investments are valued by KKR based

on ranges of valuations determined by independent valuation firms.

Credit Investments: Credit investments, including certain fixed-income and structured securities, 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: 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 generally

valued as the difference between the fair value of the underlying assets and the carrying value of the host contract at the

balance sheet date.

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 policy liabilities, insurance embedded derivatives, and market risk benefits: Certain insurance policy liabilities that

are 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.

Insurance embedded derivative liabilities are related to our fixed-indexed annuity, variable annuity and indexed universal

life products, which contain equity-indexed features. These 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 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.

Market risk benefits include certain contract features on fixed annuity and variable annuity products. These features include

minimum guarantees to policyholders, such as guaranteed minimum death benefits (GMDBs), guaranteed minimum withdrawal

benefits (GMWBs), and long-term care benefits (which are capped at the return of account value plus one or two times the

account value). Market risk benefits are measured at fair value using a non-option and option valuation approach based on

current net amounts at risk, market data, experience, and other factors.

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

that would have been used had an active market for the financial instruments existed, and it is reasonably possible that the

difference could be material.

Business Combinations

KKR accounts for business combinations using the acquisition method of accounting, under which the purchase price of the

acquisition is allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the

acquisition date.

Goodwill and Indefinite-Lived 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 and Intangible Assets are recorded in Other

Assets in the accompanying consolidated statements of financial condition.

In accordance with GAAP, KKR has the option to either (i) perform a quantitative impairment test or (ii) first perform a

qualitative assessment (commonly known as "step zero") 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

and 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, on an annual basis, or, when an event occurs or circumstances change that would more likely than not

reduce the fair value of a reporting unit below its carrying amount.

Goodwill recorded as a result of the acquisition of Global Atlantic has been allocated to the insurance segment, and

goodwill recorded as a result of the acquisitions of KJR Management ("KJRM") and Healthcare Royalty Management, LLC has

been allocated to the asset management segment.

During the third quarter of 2025, KKR performed its annual impairment analysis for the goodwill recorded at the asset

management, strategic holdings and insurance reporting units.

KKR elected to perform step zero for the purposes of its impairment analysis for the goodwill recorded at its reporting units.

Based upon these assessments, no goodwill impairment charges were recorded. 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.

KKR tests indefinite-lived intangible assets for impairment at the aggregate level of management contracts. 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 is less than its carrying amount, in which case, the quantitative test would be

performed.

Additionally, during the third quarter of 2025 KKR performed its annual impairment analysis on investment management

contracts recorded at KKR’s asset management business, which were determined to have indefinite useful lives and are not

subject to amortization. KKR elected to perform a qualitative assessment for the purposes of its impairment analysis. Based

upon this assessment, no impairment charges were recorded. Factors considered in the qualitative assessment included

macroeconomic conditions, industry and market considerations, cost factors, and current and projected financial performance.

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 40 years, and 3 to 7 years for other

fixed assets.

Foreign Currency

Consolidated entities that have a functional currency that differs from KKR's reporting currency are (i) KKR's investment

management and capital markets companies located outside the United States and (ii) 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

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."

Equity-based Compensation

In addition to the cash-based compensation and carry pool allocations, employees may receive equity awards. Most of

these awards are subject to service-based vesting typically over a three to five-year period from the date of grant, while in

certain cases vesting is subject to the achievement of market conditions or business performance conditions. Certain of these

awards are subject to transfer restrictions and minimum retained ownership requirements. KKR considers both historical

volatility and implied volatility in estimating expected volatility. All these awards are equity-classified and the related expense is

recognized in Compensation and Benefits.

The total tax benefit recognized in the consolidated statements of operations for equity based compensation for the years

ended December 31, 2025, 2024, and 2023 was $124 million, $127 million and $51 million, respectively, and was recognized as

an income tax benefit in the consolidated statements of operations.

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 recorded net of income taxes and 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 other (iii) net effect of changes in discount rates and instrument-specific credit risk on policy liabilities and (iv)

foreign currency translation.

The tax benefit (expense) related to items of other comprehensive income was $(546) million, $(30) million, and $(339)

million for the years ended December 31, 2025, 2024, and 2023, respectively.

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 corporate 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 subsidiaries of Global Atlantic, 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 consolidated statements 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.

Net Income (Loss) attributable to KKR & Co. Inc. per share of common stock

Net Income (Loss) attributable to KKR per share of common stock (Basic) is computed by dividing earnings (losses)

attributable to KKR common stockholders by the weighted average number of common shares outstanding for the period. Net

Income (Loss) attributable to KKR per share of common stock (Diluted) reflects the assumed conversion of all dilutive securities.

For further information on net income (loss) per common share, see Note 13 "Net Income (Loss) Attributable to

KKR & Co. Inc. per Share of Common Stock."

SIGNIFICANT ACCOUNTING POLICIES – ASSET MANAGEMENT AND STRATEGIC HOLDINGS

The significant accounting policies applicable to KKR’s asset management and strategic holdings businesses are described

below.

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) infrastructure assets, (ii) real estate, principally residential and

commercial real estate assets and businesses, and (iii) energy related assets, principally oil and natural gas properties.

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.

Fair Value Option

For certain investments and other financial instruments, KKR has elected the fair value option. Such election is irrevocable

until the occurrence of certain qualifying events as defined in ASC 825, when KKR has, in addition to the ability to elect or the

option to cease applying the fair value option to an eligible item to which it was previously applied 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 December 31, 2025, 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).

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.

Derivative instruments

Freestanding derivatives are instruments that KKR's asset management business 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.

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.

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 (i) identify the contract(s) with a customer, (ii) identify the performance

obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance

obligations in the contract, and (v) 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 Fixed Consideration	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 measuremen t 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
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 20 "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 generally determined quarterly based on an annual rate and are generally based upon

a percentage of the capital committed, capital invested or net asset value during the investment period, if applicable.

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. Revenue recognized for the investment management services provided is generally determined at the end of the period

because these management fees are payable on a regular basis (typically quarterly) and the uncertainty for that period is

resolved.

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, net income (loss) attributable to KKR and KKR’s stockholder’s equity would be unchanged, if such

investment funds and other vehicles were not consolidated.

Management fee calculations based on committed capital or invested capital are mechanical in nature and therefore do not

require the use of significant estimates or judgments. Management fee calculations based on net asset value, total assets, or

investment fair value depend on the fair value of the underlying investments within the investment vehicle.

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 20 "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 Equity, Real Assets, and Credit and Liquid Strategies 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 Equity, Real Assets, and Credit and Liquid Strategies 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, net income (loss) attributable to KKR would be unchanged if such investment funds and other vehicles

were not consolidated.

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.

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 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 segment (i) management fees and other fee revenues (including incentive fees), (ii)

realized performance income 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 segment fee revenues, realized performance income, 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.

Carry Pool Allocation

With respect to our funds that provide for carried interest, KKR allocates a portion of the realized and unrealized carried

interest that KKR earns to Associates Holdings, which is referred to as the carry pool, from which KKR's asset management

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 Associates Holdings and KKR, and KKR does not exercise discretion on

whether to make an allocation to the carry pool upon a realization event. KKR refers to the portion of carried interest that KKR

allocates to the carry pool as the carry pool percentage.

As of December 31, 2023, the carry pool percentage was fixed at 40%, 43% or 65% by investment fund, depending on the

fund’s vintage. For funds that closed after December 31, 2020 but before December 31, 2023, the carry pool percentage was

fixed at 65%. For funds that closed after June 30, 2017 but before December 31, 2020, the carry pool percentage was fixed at

43%, and the carry pool percentage was fixed at 40% for older funds that contributed to KKR's carry pool. Effective January 2,

2024, KKR applies a carry pool percentage of up to 80% for all funds.

This increase to the carry pool percentage was approved by a majority of KKR's independent directors, and the carry pool

percentage may not be increased above 80% without the further approval of a majority of KKR's independent directors. For

funds that closed after December 31, 2023, the carry pool percentage is fixed at 80%. For funds that closed prior to December

31, 2023, the carry pool percentage is calculated at a fixed percentage of 40%, 43% or 65% (depending on the fund’s vintage) for

carried interest realized up to a high water mark, which was established based on the unrealized carried interest balance that

existed on January 2, 2024, plus an additional percentage amount up to 80% based on a formulaic allocation, only if the

unrealized carried interest balance at any period end exceeds the high water mark. This imposes a limitation of the carry pool

allocation for such funds based on the amount of cumulative unrealized carried interest income earned subsequent to

December 31, 2023.

For funds that closed before December 31, 2023, if the cumulative carried interest subsequent to December 31, 2023 is not

sufficient to fund this formulaic allocation, the allocation of carried interest reverts to the carry pool percentage in effect before

this modification. As such, upon modification of the carry pool percentage effective on January 2, 2024, the cumulative

unrealized carried interest was not sufficient to fund the additional formulaic allocation percentage in excess of the pre-existing

40%, 43% and 65% carry pool percentages, and therefore no incremental expense was recognized as of such date. The carry

pool percentage applicable for all funds that closed prior to December 31, 2023 will not be less than their applicable carry pool

percentages of 40%, 43% or 65% prior to December 31, 2023, and will not be more than 80%. The intent of this modification is

that for all funds that closed prior to January 2, 2024, upon the final liquidation of each fund, realized carried interest distributed

will equal the historical fund carry pool allocations up to the high water mark and only distributions of realized carried interest

in excess of the high water mark will be distributed at 80 percent if and only if the unrealized carried interest balance at any

period end exceeds the high water mark. Under no circumstance would a distribution of carried interest exceed 80% of the total

allocable carried interest at any time.

KKR accounts for the carry pool as a compensatory profit-sharing arrangement in Accrued Expenses and Other Liabilities

within the accompanying consolidated statements of financial condition in conjunction with the related carried interest income

and it is recorded as compensation expense. The liability that is recorded in each period reflects the legal entitlement of

Associates Holdings at each point in time should the total unrealized carried interest be realized at the value recorded at each

reporting date. 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.

Profit Sharing Plan

KKR provides certain profit sharing programs for KKR employees. In particular, KKR provides a 401(k) plan for eligible

employees in the United States. For certain employees who are participants in the 401(k) plan, KKR may, in its discretion,

contribute an amount after the end of the plan year through its profit sharing program.

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, 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 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.

v.Interest expense, which is recognized as incurred.

SIGNIFICANT ACCOUNTING POLICIES – INSURANCE

The significant accounting policies applicable to KKR’s insurance business, which is conducted by Global Atlantic, are

described below.

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; asset-backed securities (“ABS”) and other structured

securities, (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.

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 generally recorded on a trade-date basis and 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-related 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 when KKR acquired a majority

controlling interest in Global Atlantic on February 1, 2021 (the "2021 GA 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 generally 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 ("AOCI") in the consolidated statements of financial condition. Realized

investment gains and losses are recognized on a first-in first-out ("FIFO") basis and are reported in net investment-related gains

(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 generally recorded on a trade-date basis and are carried at fair value, with realized

and unrealized gains and losses reported in net investment-related gains (losses) in the consolidated statements of operations.

Interest income from these securities is reported in net investment income. Trading securities, which are primarily used to

match asset and liability accounting, back funds withheld payable at interest where the investment performance is ceded to

reinsurers under the terms of the respective reinsurance agreements.

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-related gains (losses) in the consolidated statements of operations.

Mortgage and Other Loan Receivables

Global Atlantic purchases and originates mortgage and other loan receivables, and the majority of these loans are carried at

cost, less the allowance for credit losses and as adjusted for amortization/accretion of premiums/discounts. Loan premiums or

discounts are amortized or accreted using the effective yield method. The allowance for credit losses is established either by a

charge to net investment-related 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 2021 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.

Global Atlantic has elected the fair value option for certain mortgage and other loan receivables, when purchased or

originated. Changes in the fair value of these mortgage and other loan receivables are reported in net investment related gains

(losses) in the consolidated statements of operations.

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 for loans carried at amortized cost 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.

Real Assets and Other Investments

Real assets consist primarily of investments in real estate assets, transportation assets, energy-related assets (principally

renewable energy properties), and infrastructure assets. Other investments include equity securities, limited partnership

interests, investments in Federal Home Loan Bank ("FHLB") common stock, and other interests.

Real assets and other investments in the consolidated statements of financial condition include 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. 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-related gains (losses) in

the consolidated statements of operations. Distributions from investment partnerships that apply equity method accounting are

classified as either investing or operating activities within the consolidated statements of cash flows based on the nature of the

distributions.

Global Atlantic consolidates investment partnerships and other entities when it has a controlling financial interest. 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 real assets are Global Atlantic’s investments in renewable energy entities, including partnerships and limited

liability companies. Respective investments are consolidated when Global Atlantic has a controlling financial interest, 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 noncontrolling 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 HLBV which is a balance sheet oriented approach to the equity method of accounting and to the recognition of

noncontrolling 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.

The income, net of the depreciation and other expenses associated with consolidated real assets is reported in net

investment income in the consolidated statements of operations. Income on real assets is generally earned from the lease of the

assets or, in the case of energy-related assets, from the contracted sale of the energy generated. Real assets carried at

depreciated cost, excluding land, are depreciated on a straight-line basis over their estimated useful lives. As appropriate,

depreciation is recognized to the estimated salvage value of the respective asset.

Global Atlantic has certain investments in real estate held in consolidated investment companies that account for such real

estate at fair value under investment company accounting, and this specialized accounting is retained in consolidation. Changes

in the fair value of real estate in consolidated investment companies are recognized in net investment-related gains (losses) in

the consolidated statements of operations.

Investments in equity securities are carried at fair value, with changes recognized in net investment related gains (losses) in

the consolidated statements of operations. Investments in FHLB common stock are accounted at cost.

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, equity market risk

and foreign exchange risk. Where certain criteria are met, some of these hedging arrangements may achieve hedge accounting.

Derivative instruments are 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-related 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

when the hedged item affects earnings, in the same line item where the hedged item is reported. For derivative instruments

designated as net investment hedges, changes in fair value are recognized in accumulated other comprehensive income (loss) in

the consolidated statements of financial condition, consistent with the translation adjustment for the hedged investment.

Derivative receivables and payables with a counterparty that are subject to an International Swaps and Derivatives

Association Master Agreement ("ISDA") or other similar agreement that provides a legal right of setoff, are presented at their

net amounts. Where the legal right of setoff exists, Global Atlantic also offsets the fair value of cash collateral received or posted

under an ISDA, or other similar agreement with a counterparty, against the related derivative balances as appropriate.

Investment Credit Losses and Impairment

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. Considerations relevant to the

evaluation of credit losses may include the severity of any loss position, as well as changes in market interest rates, changes in

business climate, management changes, litigation, government actions, and other similar factors that may impact an issuer’s

ability to meet current and future principal and interest obligations. Indicators of credit impairment may also include changes in

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.

For AFS fixed maturity securities in an unrealized loss position, 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-related 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-related 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.

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.

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-related

gains (losses) 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.

Mortgage and Other Loan Receivables

Global Atlantic updates its estimate of the expected credit losses on its investments in mortgage and other loan receivables

carried at amortized cost each quarter. For loans that share similar risk characteristics, expected credit losses are measured on a

pool basis. For loans that do not share similar risk characteristics, expected credit losses are measured individually. Loans

subject to individual evaluation include those loans that are collateral dependent, where the borrower is experiencing financial

difficulty. For these collateral dependent loans, expected credit losses are measured as the difference between the fair value of

the collateral (less costs to sell, where the collateral is to be sold) and the amortized cost basis of the loan.

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.

Real Assets and 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 real assets carried at depreciated cost 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.

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. DAC is estimated using a group approach, instead of on an

individual contract level. DAC groups, or cohorts, are by product type and issue year and consistent with the groups used in

estimating the associated insurance liability. 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 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 statements of financial condition as the associated reserves.

For limited-payment products (e.g., payout annuities), gross premiums received in excess of net premiums are deferred at

initial recognition as a deferred profit liability (“DPL”). DPL is measured using assumptions consistent with those used in the

measurement of the liability for future policy benefits, including discount rate, mortality, lapses, and expenses. DPL is recorded

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 recorded in policy

liabilities in the consolidated statements of financial condition.

Amortization

DAC is amortized on a constant level basis for the grouped contracts over the expected economic life of the related

contracts. Global Atlantic amortizes DAC for all products on a constant level basis based on policy count, except for DAC for

traditional life products that are amortized on a constant level basis based on face amount. The constant level bases used for

amortization are projected using mortality and lapse assumptions that are based on Global Atlantic's experience, industry data,

and other factors and are consistent with those used for the liability for future policy benefits. If those projected assumptions

change in future periods, they will be reflected in the cohort level amortization basis at that time. Unexpected lapses, due to

higher mortality and lapse experience than expected, are recognized in the current period as a reduction of the capitalized

balances.

Amortization of DAC is included in amortization of policy acquisition costs in the consolidated statements of operations.

VOBA is generally amortized using the same methodology and assumptions used to amortize DAC.

DPL is amortized and recognized in proportion to insurance in-force for life insurance contracts and expected future benefit

payments for annuity contracts. Interest is accreted on the balance of the DPL using the discount rate determined at contract

issuance. Global Atlantic reviews and updates its estimates of cash flows for the DPL at the same time as the estimates of cash

flows for the liability for future policy benefits. When cash flows are updated, the updated estimates are used to recalculate the

DPL at contract issuance. The recalculated DPL as of the beginning of the current reporting period is compared to the carrying

amount of the DPL as of the beginning of the current reporting period, and any difference is recognized as either a charge or

credit to net policy benefits and claims.

UFEL is amortized consistent with the amortization of DAC on preneed contracts.

The key assumptions used in the calculation of the amortization of these balances are reviewed quarterly and updated if

actual experience or other evidence suggests that current assumptions should be revised. In addition, Global Atlantic formally

reviews assumptions annually as part of the assumptions review process. The effects of changes in assumptions are recorded in

net income in the period in which the changes are made.

Internal Replacements

An internal replacement is a modification in product benefits, features, rights, or coverages that occurs by the legal

extinguishment of one contract and the issuance of another contract (a contract exchange), or by amendment, endorsement, or

rider to a contract, or by the election of a benefit, feature, right, or coverage within a contract. If the modification does not

substantially change the contract, the unchanged contract is viewed as a prospective revision and the unamortized DAC is

adjusted prospectively. As such, unamortized DAC and other associated balances from the unchanged contract are retained and

acquisition costs incurred to modify the contract are not deferred but expensed as incurred. Other balances associated with the

unchanged contract, such as any liability for future policyholder benefit or market risk benefits, should similarly be accounted

for as if the unchanged contract is a continuation of the original contract. If an internal replacement represents a substantial

change, the original contract is considered to be extinguished and any related DAC or other policy balances are charged or

credited to income, and any new deferrable costs associated with the replacement contract are deferred.

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: (i)

such separate accounts are legally recognized; (ii) assets supporting the contract liabilities are legally insulated from Global

Atlantic’s general account liabilities; (iii) investments are directed by the contract owner or participant; and (iv) all investment

performance, net of contract fees and assessments, is passed through to the contract owner.

Separate account assets consist principally of mutual funds at fair value. The investment income and gains and losses of

these accounts generally accrue to the contractholders and therefore, are not included in Global Atlantic’s net income.

However, Global Atlantic’s net income reflects fees assessed and earned on fund values of these contracts which are presented

as a component of policy fees in the consolidated statements of operations. Realized investment gains and losses related to

separate accounts that meet the conditions for separate account reporting accrue to and are borne by the contractholder.

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 fixed-indexed annuities, variable annuities, universal life with

secondary guarantees, indexed universal life and preneed policies.

Annuity Contracts

Fixed Indexed Annuities ("FIA")

Policy liabilities 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 “effective yield method.” All future host balances are determined as: (i) the initial host balance; (ii) plus interest; (iii)

less applicable policyholder benefits. The interest rate used in the prior roll forward is re-determined on each valuation date,

per the effective 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.

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

ceding commission paid between a ceding and assuming reinsurance company) is established at inception and amortized under

the effective yield method.

Global Atlantic issues registered index-linked annuity ("RILA") contracts, which are similar to FIAs in offering the

policyholder the opportunity to participate in the performance of a market index, subject to a cap or adjusted for a participation

rate. In contrast to the FIA, the RILA enables policyholders to earn higher returns but with the risk of loss to principal and related

earnings. In particular, if performance of the market indices is negative, the policyholder may potentially absorb losses, subject

to downside protection in the form of either a "buffer" or a "floor" specified in the contract. A "buffer" is protection from

downside performance up to a certain percentage, typically 10 percent, with uncapped losses thereafter. A "floor" is protection

from downside performance in excess of the "floor," e.g., if the floor is 10% then the policyholder absorbs losses up to 10% but

not in excess.

The RILA is accounted for similar to the FIA. The RILA host contract is calculated at the inception of the contract as the value

of the initial premium minus the value of the index option, which is an embedded derivative. That initial host value is then

accreted to the guaranteed surrender value at the end of the surrender charge period. The RILA index option, which is an

embedded derivative, is required to be measured at fair value. Fair value represents the policyholders’ expected participation in

future increases in the relevant index and is calculated as the excess cash flows from the indexed crediting feature above the

guaranteed cash flows. The excess cash flows are based on the option budget methodology whereby the indexed account is

projected to grow by the option budget. A key difference from a standard FIA product is that the RILA policyholder can lose

principal on this investment. Therefore, it is possible that the embedded derivative can become negative. The option budget will

be calculated depending on the product type and strategy. The growth in the indexed account will be projected based on the

value of the options dependent upon the strategy and associated hedge construction. 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.

Variable Annuities

Global Atlantic issues and assumes variable annuity contracts for which the liabilities 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. Variable annuity contracts may have certain guarantees that are accounted

for as market risk benefits, which are discussed in more detail below.

Funding Agreements

Global Atlantic issues funding agreements to certain unaffiliated special purpose entities that have issued debt securities for

which payment of interest and principal is secured by such funding agreements. Global Atlantic also has similar obligations to

Federal Home Loan Banks. Global Atlantic’s funding agreements are considered investment type contracts and liabilities are net

deposits plus accrued and unpaid interest. 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 operations.

Interest-Sensitive Life Products

For universal life policies, the base policy reserve is 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: (i) the fair value of the embedded derivative; and (ii) 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 “effective yield method.” All future host balances are determined as: (i) the initial

host balance; (ii) plus interest; (iii) less applicable policyholder benefits. The interest rate used in the prior roll forward is re-

determined on each valuation date, per the effective yield method.

Preneed Policies

Preneed insurance contracts that feature death benefits with variable growth rates are accounted for as universal life-type

contracts, which requires that the retrospective deposit method be used. This includes contracts where Global Atlantic has the

discretion to adjust death benefit growth rates up or down, or where death benefit growth rates are tied to inflation as

measured by the U.S. Consumer Price Index. The retrospective deposit 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. In addition to the account balance, Global Atlantic

establishes an additional reserve for expected future discretionary benefits which is reflected as policy liabilities in KKR's

consolidated statements of financial condition.

Preneed insurance contracts without a discretionary death benefit growth rate have death benefits which are fixed and

guaranteed. For these contracts, Global Atlantic recognizes a liability for future policy benefits.

Traditional and Limited Payment Contracts

Liability for Future Policy Benefits

A liability for future policy benefits, which is the present value of estimated future policy benefits to be paid to or on behalf

of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from

policyholders, is accrued as premium revenue is recognized. The liability is estimated using current assumptions that include

mortality, morbidity, lapses, and expenses. These current assumptions are based on judgments that consider Global Atlantic’s

historical experience, industry data, and other factors.

For nonparticipating traditional and limited-payment contracts, contracts are grouped into cohorts by contract type and

issue year. The liability is adjusted for differences between actual and expected experience. With the exception of the expense

assumption, Global Atlantic reviews its historical and future cash flow assumptions quarterly and updates the net premium ratio

used to calculate the liability each time the assumptions are changed. Global Atlantic has elected to use expense assumptions

that are locked in at contract inception and are not subsequently reviewed or updated.

Each quarter, Global Atlantic updates its estimate of cash flows expected over the entire life of a group of contracts using

actual historical experience and current future cash flow assumptions. These updated cash flows are discounted using the

discount rate or curve on the original contract issue date to calculate the revised net premiums and net premium ratio, which

are used to derive an updated liability for future policy benefits. This amount is then compared to the carrying amount of the

liability before the updating of cash flow assumptions to determine the current period change in liability estimate. This current

period change in the liability is the liability remeasurement gain or loss and is presented parenthetically as a separate

component of benefit expense in the consolidated statements of operations.

For nonparticipating traditional and limited-payment contracts, the discount rate assumption is a spot rate yield curve that

is derived based on upper medium grade (low credit risk) fixed-income instruments with similar duration to the liability. Global

Atlantic uses one or more external indices of corporate credit issues as its proxy for these instruments. The discount rate

assumption is updated quarterly and used to remeasure the liability at the reporting date, with the resulting change in the

discount rate reflected in other comprehensive income. For liability cash flows between two market observable points on the

yield curve, Global Atlantic interpolates the effective yield by holding the marginal rates constant. For liability cash flows that

are projected beyond the last market-observable point on the yield curve, Global Atlantic uses the last market-observable yield

level.

Payout Annuities

Payout annuities include single premium immediate annuities, annuitizations of deferred annuities, pension risk transfer

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 investment contracts. 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

expense assumptions. Any gross premiums received in excess of the net premium is the DPL and is recognized separately in

income in a constant relationship with the discounted amount of the insurance in-force or expected future benefit payments.

These 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.

Whole and Term Life

Global Atlantic has established liabilities for amounts payable under insurance policies, including whole life insurance and

term life insurance policies. These policies provide death benefits in exchange for a guaranteed level premium for a specified

period of time and, in the case of whole life, a guaranteed minimum cash surrender value. 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. Current assumptions are used in the establishment of liabilities for future policyholder benefits including mortality,

policy lapse, renewal, investment returns, inflation, expenses and other contingent events as appropriate for the respective

product. Each quarter, Global Atlantic updates its estimate of cash flows using actual historical experience and current future

cash flow assumptions. These updated cash flows are discounted using the discount rate or curve on the original contract issue

date to calculate the revised net premiums and net premium ratio, which are used to derive an updated liability for future policy

benefits. This amount is then compared to the carrying amount of the liability before the updating of cash flow assumptions to

determine the current period change in liability estimate. This current period change in the liability is the liability

remeasurement gain or loss and is presented parenthetically as a separate component of benefit expense in the consolidated

statements of operations.

Policy liabilities for participating whole life insurance policies are equal to the aggregate of: (i) net level premium reserves

for death and endowment policyholder benefits (calculated based upon the non-forfeiture interest rate, and mortality rated

guarantee in calculating the cash surrender values described in such contracts); and (ii) the liability for terminal dividends.

Long-Term Care

Long-term care policies are purchased by individuals to pay for specified personal care costs, typically in the later stage of

life at the onset of a loss of ability to perform certain basic activities of daily living. Policyholders pay ongoing premiums to keep

the policy in force and receive benefits in the event their health becomes impaired. Global Atlantic has established liabilities for

future policyholder benefits payable under its long-term care policies reinsured. Liabilities for long-term care benefits 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, morbidity

(claim incidence and continuation), lapse, and future interest rates.

Long-term care insurance risks assumed by Global Atlantic have been retroceded to a third-party reinsurer in exchange for

fixed cash flows. Net of this reinsurance, the long-term care block has the economic profile of a period certain annuity.

Product Guarantees

Market Risk Benefits

Market risk benefits are contracts or contract features that both provide protection to the policyholder from other-than-

nominal capital market risk and expose Global Atlantic to other-than-nominal capital market risk.

Market risk benefits include certain contract features on fixed annuity and variable annuity products. These features include

minimum guarantees to policyholders, such as guaranteed minimum death benefits (“GMDBs”), guaranteed minimum

withdrawal benefits (“GMWBs”), and long-term care benefits (which are capped at the return of account value plus one or two

times the account value). Market risk benefits are measured at fair value using a non-option and option valuation approach

based on current net amounts at risk, market data, experience, and other factors. Changes in fair value are recognized in net

income each period with the exception of the portion of the change in fair value due to a change in the instrument-specific

credit risk, which is recognized in other comprehensive income.

Additional Liability for Annuitization, Death, or Other Insurance Benefits

Global Atlantic establishes additional liabilities for contracts or contract features that provide for potential benefits in

addition to the account balance but are not market risk benefits or embedded derivatives. These benefits include annuitization

benefits and death or other insurance benefits (e.g., universal life secondary guarantees). For these benefits, the liability is the

sum of the current benefit ratio multiplied by cumulative assessments and accreted interest, less excess payments.

In particular, Global Atlantic holds additional liabilities for universal life products with secondary guarantees, sometimes

referred to as no-lapse guarantees. 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. For annuitization benefits, the benefit ratio is the present value of expected

annuitization payments to be made less the accrued account balance at the expected annuitization date divided by the present

value of expected assessments during the accumulation phase of the contract, discounted at the contract rate. Expected

annuitization payments and related incremental claim adjustment expenses, expected assessments, and expected excess

payments are calculated using discount rate, mortality, lapse, and expense assumptions.

Global Atlantic recognizes a shadow reserve adjustment for the additional insurance liabilities when unrealized gains and

losses are included in the investment margin while calculating the present value of expected assessments for the benefit ratios.

Shadow reserve adjustments are recognized in other comprehensive income.

For additional liabilities for death or other insurance benefits, the discount rate assumption is based on the contract rate at

inception. The mortality, lapse, and expense assumptions are based on Global Atlantic’s experience, industry data, and other

factors. Assumptions are reviewed and updated, if necessary, at least annually. When those assumptions are updated, the

benefit ratio and the liability are remeasured, with the resulting gain or loss reflected in total benefits expense.

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

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.

The closed block liabilities are measured at fair value, which comprises the fair value of the closed block assets plus the

present value of projected expenses including commissions and the cost of capital charges associated with the closed blocks. In

calculating the present value, Global Atlantic used a discount rate based on current U.S. Treasury rates, with a risk margin to

reflect uncertainties in the closed block liability and a provision for Global Atlantic’s instrument-specific credit risk.

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

these 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. Generally, Global Atlantic amortizes cost of reinsurance based on policy count or

effective yield method, retrospectively calculated based on actual and projected future cash flows. Cost of reinsurance assets

and liabilities are reported in insurance intangibles and policy liabilities in the consolidated statements of financial condition,

respectively. 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 credit losses by considering credit ratings

for each reinsurer, historical insurance industry specific default rate factors, rights of offset, expected recovery rates upon

default and the impact of other terms specific to the reinsurance arrangement.

For funds withheld and modified coinsurance agreements, Global Atlantic has the right to receive or obligation to pay the

total return on assets supporting the funds withheld receivable at interest or funds withheld payable at interest. This indirectly

exposes Global Atlantic to the credit risk of the underlying assets. As a result, funds withheld coinsurance and modified

coinsurance agreements are viewed as total return swaps and accounted for as embedded derivatives. Embedded derivatives

are required to be separated from the host contracts and measured at fair value with changes in fair value recognized in net

income. Generally, the embedded derivative is measured as the difference between the fair value of the underlying assets and

the carrying value of the host contract at the balance sheet date. The fair value of the embedded derivative is included in the

funds withheld receivable at interest or the funds withheld payable at interest on the consolidated statements of financial

condition. Changes in the fair value of the embedded derivative are reported in operating activities on the consolidated

statements of cash flows.

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 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.

Global Atlantic primarily earns revenues from premiums, policy fees, income from investments, and other administration,

management, and distribution fees. For the year ended December 31, 2025, Global Atlantic’s revenue was sourced in its entirety

from the Americas (100%), based on the geographic region of the reporting subsidiary company. Due to a large block

reinsurance transaction during the year ended December 31, 2024, Global Atlantic recognized more than 10% of KKR's total

consolidated revenues with one reinsurance counterparty in the period. Predominantly all of Global Atlantic’s fixed assets are

located in the United States.

Other Income

Other income is primarily comprised of expense allowances on ceded reinsurance, administration fees, management fees

and distribution fees.

Insurance Expenses

Insurance expenses are primarily comprised of commissions expense, premium taxes, amortization of acquired distribution

and trade name intangibles, and other expenses related to insurance products and reinsurance transactions.

General, Administrative and Other Expenses

General, administrative and other expenses are primarily comprised of employee compensation and benefit expenses,

administrative and professional services and other operating expenses.

Incentive and Other Deferred Compensation

Global Atlantic measured compensation cost for certain legacy deferred or cash-based compensation plans that were in

place prior to 2024 using an intrinsic value method, beginning on the date of grant, and remeasured the value at each reporting

period until the awards are settled. Accrued compensation expense is recognized 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.

Adoption of New Accounting Pronouncements

Scope Application of Profits Interest and Similar Awards

In March 2024, the FASB issued ASU 2024–01, “Compensation—Stock Compensation (Topic 718): Scope Application of

Profits Interest and Similar Awards” (“ASU 2024–01”). ASU 2024–01 amends the guidance in Accounting Standard Codification

718 (“ASC 718”) by adding an illustrative example to demonstrate and clarify how to apply the scope guidance to determine

whether profits interests and similar awards should be accounted for as a share-based payment arrangement under ASC 718 or

another standard. KKR adopted this accounting standard effective for the year ended December 31, 2025, and its adoption did

not have a material impact on KKR’s consolidated financial statements.

Income Tax Disclosure Improvements

In December 2023, the FASB issued ASU 2023–09, "Income Taxes (Topic 740): Improvements to Income Tax

Disclosures" ("ASU 2023–09"). ASU 2023–09 intends to enhance the transparency and decision usefulness of income tax

disclosures, requiring disaggregated information about an entity’s effective tax rate reconciliation as well as income taxes paid.

KKR adopted this accounting standard effective for the year ended December 31, 2025 on a prospective basis and its adoption

did not have a material impact on KKR's consolidated financial statements. Refer to Note 18 "Income Taxes" for the expanded

disclosures.

Future Application of Accounting Standards

Expense Disaggregation Disclosures

In November 2024, the FASB issued ASU 2024–03, “Income Statement—Reporting Comprehensive Income—Expense

Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024–03”). ASU 2024–03

requires a public business entity to provide disaggregated disclosures of certain categories of expenses on an annual and interim

basis including employee compensation, depreciation, and intangible asset amortization for each income statement expense

line item that contains those expenses. The update will be effective for annual periods beginning after December 15, 2026 and

interim periods beginning after December 15, 2027. KKR is currently evaluating the impact of adopting this guidance on its

consolidated financial statements and disclosures.

Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity

In May 2025, the FASB issued ASU 2025–03, “Business Combinations (Topic 805) and Consolidation (Topic 810):

Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity” (“ASU 2025–03”). ASU 2025–03 requires an

entity involved in an acquisition transaction effected primarily by exchanging equity interests when the legal acquiree is a

variable interest entity (“VIE”) that meets the definition of a business to consider certain factors to determine which entity is the

accounting acquirer. The update will be effective for annual periods and interim periods in annual reporting periods beginning

after December 15, 2026. KKR does not expect the adoption to have a material impact on its consolidated financial statements

or disclosures.

Measurement of Credit Losses for Accounts Receivable and Contract Assets

In July 2025, the FASB issued ASU 2025–05, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit

Losses for Accounts Receivable and Contract Assets” (“ASU 2025–05”). ASU 2025–05 simplifies the application of the current

expected credit loss model for current accounts receivable and current contract assets under ASC 606. The update will be

effective for annual periods and interim periods in annual reporting periods beginning after December 15, 2025. Early adoption

is permitted. KKR is currently evaluating the impact of adopting this guidance on its consolidated financial statements and

disclosures.

Targeted Improvements to the Accounting for Internal-Use Software

In September 2025, the FASB issued ASU 2025–06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic

350-40): Targeted Improvements to the Accounting for Internal-Use Software” (“ASU 2025–06”). ASU 2025–06 eliminates

accounting consideration of software project development stages; requires capitalizing software costs when (i) management has

authorized and committed to funding the project and (ii) it is ‘probable’ the project will be completed and the software used to

perform its intended function (the ‘probable-to-complete’ threshold). ASU 2025–06 also enhances the guidance around the

‘probable-to-complete’ threshold. The update will be effective for annual periods and interim periods in annual reporting

periods beginning after December 15, 2027. KKR is currently evaluating the impact of adopting this guidance on its consolidated

financial statements and disclosures.

Financial Instruments—Credit Losses (Topic 326): Purchased Loans

In November 2025, the FASB issued ASU 2025-08, Financial Instruments - Credit Losses (Topic 326) - Purchased Loans. ASU

2025-08 expands the population of purchased financial assets subject to the gross-up approach in Topic 326. As a result of this

update, loans (excluding credit cards) acquired without credit deterioration and deemed “seasoned” as defined in the ASU will

follow the gross-up approach at acquisition and the initial allowance for credit losses is added to the purchase price to

determine the amortized cost basis of the loans. The update is effective for fiscal years beginning after December 15, 2026,

including interim periods within those fiscal years, and is to be applied prospectively to loans acquired on or after adoption;

early adoption is permitted. KKR is currently evaluating the impact of adopting this guidance on its consolidated financial

statements and disclosures.

3. REVENUES – ASSET MANAGEMENT AND STRATEGIC HOLDINGS

For the years ended December 31, 2025, 2024, and 2023 respectively, Asset Management and Strategic Holdings

revenues consisted of the following:


	Years Ended December 31,
	2025	2024	2023
Management Fees	$2,496,783	$1,994,089	$1,843,144
Fee Credits	(712,433)	(696,091)	(297,936)
Transaction Fees	1,762,336	1,857,317	1,075,204
Monitoring Fees	210,886	187,538	138,339
Incentive Fees	27,742	47,430	29,117
Expense Reimbursements	165,397	152,726	75,687
Consulting Fees	113,562	110,953	100,314
Total Fees and Other	4,064,273	3,653,962	2,963,869

Carried Interest	3,492,171	3,243,495	2,304,623
General Partner Capital Interest	279,064	314,789	538,814
Total Capital Allocation-Based Income (Loss)	3,771,235	3,558,284	2,843,437

Total Revenues	$7,835,508	$7,212,246	$5,807,306

KKR earns management fees, incentive fees, and capital allocation-based income (loss) from investment funds, CLOs, and

other vehicles whose primary focus is making investments in specified geographical locations and KKR also earns transaction,

monitoring, and consulting fees from portfolio companies located in varying geographies. For the years ended December 31,

2025, 2024, and 2023, over 10% of KKR's total Asset Management and Strategic Holdings consolidated revenues were earned

in the United States.

For the year ended December 31, 2025, $2.5 billion, $0.8 billion, and $0.7 billion of total fees and other were generated in

the Americas, Europe/Middle East, and Asia-Pacific, respectively. For the year ended December 31, 2024, $2.2 billion,

$0.8 billion, and $0.7 billion of total fees and other were generated in the Americas, Europe/Middle East, and Asia-Pacific,

respectively. For the year ended December 31, 2023, $1.8 billion, $0.6 billion, and $0.6 billion of total fees and other were

generated in the Americas, Europe/Middle East, and Asia-Pacific, respectively. The determination of the geographic region

was based on the geographic focus of the associated investment vehicle or where the portfolio company is headquartered.

For the year ended December 31, 2025, $2.1 billion, $0.5 billion, and $1.1 billion of total capital allocation-based income

(loss) were generated in the Americas, Europe/Middle East, and Asia-Pacific, respectively. For the year ended December 31,

2024, $2.2 billion, $0.4 billion, and $0.9 billion of total capital allocation-based income (loss) were generated in the Americas,

Europe/Middle East, and Asia-Pacific, respectively. For the year ended December 31, 2023, $1.5 billion, $0.4 billion, and

$0.9 billion of total capital allocation-based income (loss) were generated in the Americas, Europe/Middle East, and Asia-

Pacific, respectively. The determination of the geographic region was based on the geographic focus of the associated

investment vehicle.

For the year ended December 31, 2025, none of KKR’s flagship private equity funds contributed more than 10% of KKR's

total Asset Management and Strategic Holdings consolidated revenues. For the year ended December 31, 2024, revenues

from one of KKR’s flagship private equity funds contributed more than 10% of KKR's total Asset Management and Strategic

Holdings revenues representing approximately $0.9 billion. For the year ended December 31, 2023, revenues from one of

KKR’s flagship private equity funds contributed more than 10% of KKR's total Asset Management and Strategic Holdings

revenues representing approximately $1.0 billion.

4**.** NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES – ASSET MANAGEMENT AND

STRATEGIC HOLDINGS

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:


	For the Year Ended December 31, 2025
	Net Realized Gains (Losses)	Net Unrealized Gains (Losses)	Total
Private Equity (1)	$946,561	$4,486,110	$5,432,671
Credit (1)	(82,478)	147,396	64,918
Investments of Consolidated CFEs (1)	(249,941)	(408,109)	(658,050)
Real Assets (1)	(252,578)	479,747	227,169
Other Investments (1)	(161,270)	897,117	735,847
Foreign Exchange Forward Contracts and Options (2)	16,445	(1,243,285)	(1,226,840)
Securities Sold Short (2)	(1,979)	(15,606)	(17,585)
Other Derivatives (2)	(25,057)	(8,636)	(33,693)
Debt Obligations and Other (3)	13,161	263,855	277,016
Net Gains (Losses) From Investment Activities (4)	$202,864	$4,598,589	$4,801,453

	For the Year Ended December 31, 2024
	Net Realized Gains (Losses)	Net Unrealized Gains (Losses)	Total
Private Equity (1)	$599,116	$1,813,189	$2,412,305
Credit (1)	(509,718)	280,719	(228,999)
Investments of Consolidated CFEs (1)	(61,580)	84,799	23,219
Real Assets (1)	282,562	(178,476)	104,086
Other Investments (1)	(180,000)	574,160	394,160
Foreign Exchange Forward Contracts and Options (2)	171,330	549,055	720,385
Securities Sold Short (2)	(31,912)	13,633	(18,279)
Other Derivatives (2)	(40,055)	16,332	(23,723)
Debt Obligations and Other (3)	17,089	42,610	59,699
Net Gains (Losses) From Investment Activities (4)	$246,832	$3,196,021	$3,442,853

	For the Year Ended December 31, 2023
	Net Realized Gains (Losses)	Net Unrealized Gains (Losses)	Total
Private Equity (1)	$(84,687)	$3,224,948	$3,140,261
Credit (1)	(304,667)	489,733	185,066
Investments of Consolidated CFEs (1)	(104,196)	1,019,063	914,867
Real Assets (1)	(307,806)	7,071	(300,735)
Other Investments (1)	(249,697)	516,491	266,794
Foreign Exchange Forward Contracts and Options (2)	155,784	(312,408)	(156,624)
Securities Sold Short (2)	4,780	(12,872)	(8,092)
Other Derivatives (2)	11,120	2,383	13,503
Debt Obligations and Other (3)	102,896	(1,132,553)	(1,029,657)
Net Gains (Losses) From Investment Activities (4)	$(776,473)	$3,801,856	$3,025,383

(1)See Note 7 "Investments."

(2)See Note 8 "Derivatives" and Note 14 "Other Assets and Accrued Expenses and Other Liabilities."

(3)See Note 16 “Debt Obligations.”

(4)As of December 31, 2025, 2024, and 2023, net gains from Equity Method Investments were $1,298.1 million, $1,016.1 million, and $913.7 million.

5. NET INVESTMENT INCOME – INSURANCE

Net investment income for Global Atlantic is comprised primarily of (i) interest income, including amortization of

premiums and accretion of discounts, (ii) dividend income from common and preferred stock, (iii) earnings from investments

accounted for under equity method accounting, and (iv) lease income on real assets.

The components of net investment income were as follows:


	Years Ended December 31,
	2025	2024	2023
Fixed Maturity Securities	$6,232,430	$5,597,124	$4,450,917
Mortgage and Other Loan Receivables	3,114,831	2,681,876	1,958,875
Real Assets	1,056,739	815,612	625,707
Short-Term and Other Investment Income	607,458	513,276	309,861
Income Assumed from Funds Withheld Receivable at Interest	74,331	81,335	94,658
Policy Loans	80,855	84,320	37,460
Income Ceded to Funds Withheld Payable at Interest	(2,573,680)	(2,391,926)	(1,363,704)
Total Investment Income (Losses)	8,592,964	7,381,617	6,113,774
Less Investment Expenses:
Investment Management and Administration	577,383	498,733	352,042
Real Asset Depreciation and Maintenance	250,813	204,934	198,385
Interest Expense on Derivative Collateral and Repurchase Agreements	99,662	103,342	48,445
Net Investment Income	$7,665,106	$6,574,608	$5,514,902

6. NET INVESTMENT-RELATED GAINS (LOSSES) – INSURANCE

Net investment-related gains (losses) from insurance operations primarily consist of (i) realized gains (losses) from the

disposal of investments, (ii) unrealized gains (losses) from investments held for trading, equity securities, real estate

investments accounted for under investment company accounting, and investments with fair value remeasurements

recognized in earnings as a result of the election of a fair-value option, (iii) unrealized gains (losses) on funds withheld

receivable and payable at interest, (iv) unrealized gains (losses) from derivatives (excluding certain derivatives designated as

hedge accounting instruments), and (v) allowances for credit losses, and other impairments of investments.

Net investment-related gains (losses) were as follows:


	Years Ended December 31,
	2025	2024	2023
Realized Gains (Losses) on Available-For-Sale Fixed Maturity Securities	$(1,788,912)	$(567,985)	$(64,140)
Credit Loss Allowances on Available-For-Sale Securities	(137,731)	(115,367)	(168,899)
Credit Loss Allowances on Mortgage and Other Loan Receivables	(126,428)	(305,770)	(210,704)
Credit Loss Allowances on Unfunded Commitments	(12,928)	30,639	6,321
Impairment of Available-for-Sale Fixed Maturity Securities Due to Intent to Sell	—	—	(26,741)
Unrealized Gains (Losses) on Fixed Maturity Securities Classified as Trading	486,831	(735,209)	1,031,227
Unrealized Gains (Losses) on Other Investments Recognized Under the Fair-Value Option and Equity Investments	92,162	9,560	(23,540)
Unrealized Gains (Losses) on Real Assets	71,982	(167,873)	(202,671)
Realized Gains on Real Assets	14,386	11,418	71,158
Net Gains (Losses) on Derivative Instruments	202,273	419,927	(680,717)
Realized Gains (Losses) on Funds Withheld at Interest Payable Portfolio	117,327	126,422	25,427
Realized Gains (Losses) on Funds Withheld at Interest Receivable Portfolio	(89,113)	(62,493)	(9,193)
Foreign Exchange Gains (Losses) on Non-USD Denominated Investments	221,125	(68,632)	16,355
Other Realized Gains (Losses)	(92,044)	2,277	855
Net Investment-Related Gains (Losses)	$(1,041,070)	$(1,423,086)	$(235,262)

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 fixed maturity securities held by

Global Atlantic:


	Year Ended December 31, 2025			Year Ended December 31, 2024
	Corporate	Structured	Total	Corporate	Structured	Total
Balance, as of Beginning of Period	$99,616	$175,706	$275,322	$49,008	$219,704	$268,712
Initial Credit Loss Allowance Recognized on Securities with No Previously Recognized Allowance	70,410	21,587	91,997	106,038	2,805	108,843
Accretion of Initial Credit Loss Allowance on PCD Securities	—	804	804	—	611	611
Reductions Due to Sales (or Maturities, Pay Downs or Prepayments) During the Period of Securities with a Previously Recognized Credit Loss Allowance	(1,053)	(35,871)	(36,924)	(1,089)	(19,377)	(20,466)
Net Additions / Reductions for Securities with a Previously Recognized Credit Loss Allowance	28,155	17,579	45,734	22,184	(15,660)	6,524
Balances Charged Off	(88,269)	—	(88,269)	(76,525)	(12,377)	(88,902)
Recoveries of credit losses previously written-off	—	—	—	—	—	—
Balance, as of End of Period	$108,859	$179,805	$288,664	$99,616	$175,706	$275,322


	Year Ended December 31, 2023
	Corporate	Structured	Total
Balance, as of Beginning of Period	$1,298	$127,034	$128,332
Initial Credit Loss Allowance Recognized on Securities with No Previously Recognized Allowance	68,166	75,623	143,789
Accretion of Initial Credit Loss Allowance on PCD Securities	—	1,191	1,191
Reductions Due to Sales (or Maturities, Pay Downs or Prepayments) During the Period of Securities with a Previously Recognized Credit Loss Allowance	(2,843)	(13,220)	(16,063)
Net Additions / Reductions for Securities with a Previously Recognized Credit Loss Allowance	(3,966)	29,076	25,110
Balances Charged Off	(13,647)	—	(13,647)
Balance, as of End of Period	$49,008	$219,704	$268,712

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:


	Year Ended December 31, 2025				Year Ended December 31, 2024
	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	$326,057	$107,245	$181,106	$614,408	$319,631	$107,204	$175,608	$602,443
Net Provision (Release)	93,013	(27,893)	61,308	126,428	164,254	5,157	136,359	305,770
Charge-Offs	(11,620)	(7,850)	(137,067)	(156,537)	(163,478)	(5,116)	(153,984)	(322,578)
Recoveries of Amounts Previously Charged-Off	—	—	24,195	24,195	5,650	—	23,123	28,773
Balance, as of End of Period	$407,450	$71,502	$129,542	$608,494	$326,057	$107,245	$181,106	$614,408


	Year Ended December 31, 2023
	Commercial Mortgage Loans	Residential Mortgage Loans	Consumer and Other Loan Receivables	Total
Balance, as of Beginning of Period	$227,315	$125,825	$207,088	$560,228
Net Provision (Release)	113,932	(10,445)	107,217	210,704
Charge-offs	(21,616)	(8,176)	(160,465)	(190,257)
Recoveries of amounts previously charged-off	—	—	21,768	21,768
Balance, as of End of Period	$319,631	$107,204	$175,608	$602,443

Proceeds and Gross Gains and Losses from Voluntary Sales

The proceeds from voluntary sales and the gross gains and losses on those sales of available-for-sale ("AFS") fixed

maturity securities were as follows:


	Years Ended December 31,
	2025	2024	2023
AFS Fixed Maturity Securities:
Proceeds from Voluntary Sales	$33,443,328	$19,370,239	$6,687,271
Gross Gains	$168,988	$112,264	$62,452
Gross Losses	$(1,865,376)	$(643,899)	$(120,799)

7. INVESTMENTS

Investments consist of the following:


	December 31, 2025	December 31, 2024
Asset Management and Strategic Holdings
Private Equity	$55,128,824	$39,306,523
Credit	7,530,644	8,094,474
Investments of Consolidated CFEs	30,673,565	27,488,538
Real Assets	15,291,313	14,532,426
Equity Method - Capital Allocation-Based Income	11,842,627	9,798,370
Other Investments	7,481,332	7,232,720
Investments – Asset Management and Strategic Holdings (7)	$127,948,305	$106,453,051

Insurance
Fixed Maturity Securities, Available-For-Sale, at Fair Value (1)	$90,587,056	$76,259,956
Mortgage and Other Loan Receivables	53,638,617	52,751,077
Fixed Maturity Securities, Trading, at Fair Value (2)	25,233,959	21,419,241
Real Assets (3)(4)	15,030,980	14,078,498
Other Investments (4)(5)	3,542,920	1,475,156
Funds Withheld Receivable at Interest	2,324,346	2,537,858
Policy Loans	1,651,870	1,622,958
Investments – Insurance (6)	$192,009,748	$170,144,744

Total Investments	$319,958,053	$276,597,795

(1)Amortized cost of $96.7 billion and $85.6 billion, net of credit loss allowances of $288.7 million and $275.3 million as of December 31, 2025 and

December 31, 2024, respectively.

(2)Amortized cost of $27.2 billion and $23.8 billion as of December 31, 2025 and December 31, 2024, respectively. Trading fixed maturity securities are

primarily held to back funds withheld payable at interest. The investment performance on these investments is ceded to third-party reinsurers.

(3)Net of accumulated depreciation of $782.2 million and $623.1 million as of December 31, 2025 and December 31, 2024, respectively.

(4)Real assets of $1.1 billion and $1.0 billion as of December 31, 2025 and December 31, 2024, respectively, and other investments of $855.0 million and

$682.9 million as of December 31, 2025 and December 31, 2024, respectively, are accounted for using the equity method of accounting. 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 real assets and other investments for which the fair value option has been elected was $730.7 million and $436.3 million, respectively,

as of December 31, 2025, and the carrying amount of these investments was $471.5 million and $4.8 million, respectively, as of December 31, 2024.

Global Atlantic's maximum exposure to loss related to equity method investments, including those which fair value has been elected, is limited to the

carrying value of these investments plus unfunded commitments of $447.2 million and $23.0 million as of December 31, 2025 and December 31, 2024,

respectively.

(5)Other investments include equity securities, limited partnership interests, investments in FHLB common stock, and other interests.

(6)From time to time, Global Atlantic makes investments with counterparties that are managed by or are affiliates of KKR. As of December 31, 2025 and

December 31, 2024, the carrying value reflects the elimination for the portion of applicable investments that are held in Asset Management and Strategic

Holdings consolidated investment vehicles and other entities.

(7)As of December 31, 2025 and December 31, 2024, investments of $11.5 billion and $8.3 billion, respectively, were accounted for using the equity method

of accounting.

As of December 31, 2025 and 2024, there were no investments which represented greater than 5% of total investments.

Equity Method

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. During the years ended December 31, 2025, 2024, and 2023, there were no impairment charges related to equity

method investments.

Summarized Financial Information

KKR evaluates each of its equity method investments to determine if any are significant as defined in the regulations

promulgated by the U.S. Securities and Exchange Commission (the "SEC"). As of and for the years ended December 31, 2025,

2024, and 2023, no individual equity method investment held by KKR met the significance criteria. As such, KKR is not required

to present separate financial statements for any of its equity method investments.

The following table shows summarized financial information relating to the statements of financial condition for all of

KKR's equity method investments assuming 100% ownership as of December 31, 2025 and 2024:


	December 31, 2025	December 31, 2024
Asset Management and Strategic Holdings
Total Assets	$242,349,408	$252,104,471
Total Liabilities	$26,349,147	$63,141,812
Total Equity	$216,000,261	$188,962,659

Insurance
Total Assets	$33,584,130	$18,317,590
Total Liabilities	$19,753,905	$10,321,725
Total Equity	$13,830,225	$7,995,865

The following table shows summarized financial information relating to the statements of operations for all of KKR's

equity method investments assuming 100% ownership for the years ended December 31, 2025, 2024, and 2023:


	For the Years Ended December 31,
	2025	2024	2023
Asset Management and Strategic Holdings
Investment Related Revenues	$11,607,301	$17,725,187	$17,454,663
Other Revenues	69,918	1,300,377	854,595
Investment Related Expenses	5,848,257	13,254,876	18,623,867
Other Expenses	1,056,439	1,997,379	422,050
Net Realized and Unrealized Gains (Losses) from Investments	12,709,447	20,646,085	15,795,029
	$17,481,970	$24,419,394	$15,058,370

Insurance
Revenues	$8,876,691	$2,555,196	$416,360
Expenses	8,299,589	2,610,301	482,056
	$577,102	$(55,105)	$(65,696)

Net Income (Loss)	$18,059,072	$24,364,289	$14,992,674

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 (1)(2)	Gross Unrealized		Fair Value
As of December 31, 2025		Gains	Losses
AFS Fixed Maturity Securities Portfolio by Type:
U.S. Government and Agencies	$525,418	$—	$973	$(115,321)	$411,070
U.S. State, Municipal and Political Subdivisions	3,171,012	—	4,681	(727,699)	2,447,994
Corporate	58,473,834	(108,859)	582,435	(5,443,107)	53,504,303
Residential Mortgage-Backed Securities, or “RMBS”	13,744,631	(115,766)	153,583	(233,783)	13,548,665
Commercial Mortgage-Backed Securities, or “CMBS”	8,277,196	(55,720)	71,001	(173,662)	8,118,815
CLOs	5,595,032	(2,660)	32,678	(18,993)	5,606,057
Asset-Backed Securities, or “ABSs”and Other Structured Securities	6,909,426	(5,659)	84,419	(38,034)	6,950,152
Total AFS Fixed Maturity Securities	$96,696,549	$(288,664)	$929,770	$(6,750,599)	$90,587,056

(1)Represents the cumulative amount of credit impairments that have been recognized in the consolidated statements of operations (as net investment

gains (losses)) or that were recognized as a gross-up of the purchase price of PCD securities. Amount excludes unrealized losses related to non-credit

impairment.

(2)Includes credit loss allowances on purchase-credit deteriorated fixed maturity securities of $(5.8) million.


	Cost or Amortized Cost	Allowance for Credit Losses (1)(2)	Gross Unrealized		Fair Value
As of December 31, 2024		Gains	Losses
AFS Fixed Maturity Securities Portfolio by Type:
U.S. Government and Agencies	$2,576,106	$—	$227	$(184,926)	$2,391,407
U.S. State, Municipal and Political Subdivisions	4,774,108	—	5,290	(1,009,937)	3,769,461
Corporate	48,862,650	(99,616)	119,998	(6,943,765)	41,939,267
RMBS	10,964,553	(115,810)	54,319	(624,040)	10,279,022
CMBS	8,387,194	(44,024)	28,702	(381,505)	7,990,367
CLOs	4,106,046	(6,620)	24,177	(22,265)	4,101,338
ABSs and other structured securities	5,942,199	(9,252)	23,255	(167,108)	5,789,094
Total AFS Fixed Maturity Securities	$85,612,856	$(275,322)	$255,968	$(9,333,546)	$76,259,956

(1)Represents the cumulative amount of credit impairments that have been recognized in the consolidated statements of operations (as net investment

gains (losses)) or that were recognized as a gross-up of the purchase price of PCD securities. Amount excludes unrealized losses related to non-credit

impairment.

(2)Includes credit loss allowances on purchase-credit deteriorated fixed maturity securities of $(9.2) million.

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. Structured securities are shown separately as they have periodic payments and are not due at a single

maturity.

The maturity distribution for AFS fixed maturity securities is as follows:


As of December 31, 2025	Cost or Amortized Cost (Net of Allowance)	Fair Value
Due in One Year or Less	$803,401	$793,191
Due After One Year Through Five Years	11,982,595	11,894,493
Due After Five Years Through Ten Years	15,283,985	15,448,054
Due After Ten Years	33,991,425	28,227,629
Subtotal	62,061,406	56,363,367
RMBS	13,628,864	13,548,665
CMBS	8,221,476	8,118,815
CLOs	5,592,372	5,606,057
ABSs and other structured securities	6,903,767	6,950,152
Total AFS Fixed Maturity Securities	$96,407,885	$90,587,056

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 December 31, 2025	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
AFS Fixed Maturity Securities Portfolio by Type:
U.S. Government and Agencies	$6,471	$(91)	$309,323	$(115,230)	$315,794	$(115,321)
U.S. State, Municipal and Political Subdivisions	63,324	(2,881)	2,218,719	(724,818)	2,282,043	(727,699)
Corporate	10,823,134	(318,232)	15,212,470	(5,124,875)	26,035,604	(5,443,107)
RMBS	924,438	(11,289)	2,394,460	(222,494)	3,318,898	(233,783)
CMBS	648,393	(8,421)	1,358,253	(165,241)	2,006,646	(173,662)
CLOs	445,694	(7,687)	175,420	(11,306)	621,114	(18,993)
ABSs and other structured securities	918,685	(8,027)	634,040	(30,007)	1,552,725	(38,034)
Total AFS Fixed Maturity Securities in a Continuous Loss Position	$13,830,139	$(356,628)	$22,302,685	$(6,393,971)	$36,132,824	$(6,750,599)


	Less Than 12 Months		12 Months or More		Total
As of December 31, 2024	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
AFS Fixed Maturity Securities Portfolio by Type:
U.S. Government and Agencies	$2,150,669	$(110,280)	$203,661	$(74,646)	$2,354,330	$(184,926)
U.S. State, Municipal and Political Subdivisions	251,191	(4,816)	3,305,469	(1,005,121)	3,556,660	(1,009,937)
Corporate	12,959,540	(457,706)	18,491,535	(6,486,059)	31,451,075	(6,943,765)
RMBS	2,436,204	(62,488)	3,998,635	(561,552)	6,434,839	(624,040)
CMBS	1,006,250	(4,683)	3,737,990	(376,822)	4,744,240	(381,505)
CLOs	274,025	(1,630)	293,008	(20,635)	567,033	(22,265)
ABSs and other structured securities	740,528	(5,662)	3,714,552	(161,446)	4,455,080	(167,108)
Total AFS Fixed Maturity Securities in a Continuous Loss Position	$19,818,407	$(647,265)	$33,744,850	$(8,686,281)	$53,563,257	$(9,333,546)

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 $279.7 million

and $557.4 million as of December 31, 2025 and 2024, respectively. The single largest unrealized loss on AFS fixed maturity

securities was $43.8 million and $54.4 million as of December 31, 2025 and 2024, respectively. Global Atlantic had 4,294 and

5,966 securities in an unrealized loss position as of December 31, 2025 and 2024, respectively.

As of December 31, 2025, AFS fixed maturity securities in an unrealized loss position for 12 months or more consisted of

2,810 fixed maturity securities. AFS fixed maturity securities in an unrealized loss position for 12 months or more with an

allowance for credit losses had a fair value and gross unrealized losses of $1.4 billion and $125.5 million, respectively, as of

December 31, 2025. These fixed maturity securities primarily relate to Corporate, RMBS, and U.S. state, municipal and

political subdivisions fixed maturity securities, which have depressed values due primarily to an increase in interest rates since

the purchase of these securities. Unrealized losses were not recognized in net income on these fixed maturity securities since

Global Atlantic neither intends to sell the securities nor does it believe that it is more likely than not that it will be required to

sell these securities before recovery of their cost or amortized cost basis. For securities with significant declines in value,

individual security level analysis was performed utilizing underlying collateral default expectations, market data, and industry

analyst reports.

Mortgage and Other Loan Receivables

Mortgage and other loan receivables consist of the following:


	December 31, 2025	December 31, 2024
Commercial Mortgage Loans(1)	$27,023,582	$25,263,148
Residential Mortgage Loans(1)	21,697,199	21,581,616
Consumer Loans(1)	3,927,619	4,848,208
Other Loan Receivables(1)(2)	1,598,711	1,672,513
Total Mortgage and Other Loan Receivables	$54,247,111	$53,365,485
Allowance for Credit Losses(3)	(608,494)	(614,408)
Total Mortgage and Other Loan Receivables, Net of Allowance for Credit Losses	$53,638,617	$52,751,077

(1)Includes $11.2 billion and $1.6 billion of loans carried at fair value using the fair value option as of December 31, 2025 and 2024, respectively. These loans

had unpaid principal balances of $11.3 billion and $1.8 billion as of December 31, 2025 and 2024, respectively.

(2)As of December 31, 2025, other loan receivables consisted primarily of business loans, warehouse facility loans backed by agricultural mortgages,

renewable energy development loans, loans collateralized by aircraft, and loans collateralized by residential mortgages, of $415.6 million, $368.5 million,

$347.2 million, $245.7 million, and $200.2 million, respectively. As of December 31, 2024, other loan receivables consisted primarily of renewable energy

development loans, warehouse facility loans backed by agricultural mortgages, loans collateralized by aircraft, and loans collateralized by residential

mortgages of $547.2 million, $503.0 million, $271.2 million, and $200.0 million, respectively.

(3)Includes credit loss allowances on purchase-credit deteriorated mortgage and other loan receivables of $(41.6) million and $(72.2) million as of December

31, 2025 and 2024, respectively.

The maturity distribution for residential and commercial mortgage loans was as follows as of December 31, 2025:


Years	Residential	Commercial	Total Mortgage Loans
2026	310,761	7,928,267	8,239,028
2027	502,096	8,745,648	9,247,744
2028	302,931	3,148,712	3,451,643
2029	7,694	2,011,718	2,019,412
2030	9,521	706,966	716,487
Thereafter	20,564,196	4,482,271	25,046,467
Total	$21,697,199	$27,023,582	$48,720,781

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.

Global Atlantic diversifies its mortgage loan portfolio 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	December 31, 2025		December 31, 2024
South Atlantic	$12,800,157	26.3%	$13,215,065	28.2%
Pacific	11,597,170	23.8%	11,739,093	25.1%
Middle Atlantic	6,366,894	13.1%	5,841,960	12.5%
West South Central	5,653,175	11.6%	5,395,952	11.5%
Mountain	4,070,774	8.4%	4,001,411	8.5%
International	2,647,870	5.4%	—	—%
New England	1,745,938	3.6%	1,679,335	3.6%
East North Central	1,500,393	3.1%	1,505,688	3.2%
East South Central	999,681	2.1%	986,070	2.1%
West North Central	429,716	0.9%	455,503	1.0%
Other Regions	909,013	1.7%	2,024,687	4.3%
Total by Geographic Region	$48,720,781	100.0%	$46,844,764	100.0%


Mortgage Loans – Carrying Value by Property Type	December 31, 2025		December 31, 2024
Residential	$21,697,199	44.5%	$21,581,616	46.1%
Multi-Family	13,168,408	27.0%	12,793,478	27.3%
Industrial	6,565,358	13.5%	6,357,311	13.6%
Office Building	4,677,864	9.6%	4,468,303	9.5%
Other Property Types	1,609,220	3.3%	804,743	1.7%
Retail	869,227	1.8%	504,812	1.1%
Warehouse	133,505	0.3%	334,501	0.7%
Total by Property Type	$48,720,781	100.0%	$46,844,764	100.0%

As of December 31, 2025 and 2024, Global Atlantic had $318.4 million and $406.9 million of mortgage loans that were 90

days or more past due or are in the process of foreclosure, respectively, and have been classified as non-income producing

(i.e., in a non-accrual status). Global Atlantic ceases accrual of interest on loans that are more than 90 days past due or are in

the process of foreclosure and recognizes income as cash is received.

Credit Quality Indicators

Mortgage and Consumer Loan Receivable Performance Status

The following table represents the portfolio of mortgage and consumer loan receivables by origination year and

performance status as of December 31, 2025 and 2024:


	By Year of Origination
Performance Status as of December 31, 2025	2025	2024	2023	2022	2021	Prior	Total
Commercial Mortgage Loans
Gross Charge-Offs for the Year Ended December 31, 2025	$—	$—	$—	$—	$(1,824)	$(9,796)	$(11,620)

Current	$3,850,935	$5,015,588	$3,215,016	$5,163,206	$5,910,951	$3,822,886	$26,978,582
30 to 59 Days Past Due	—	—	—	—	—	—	—
60 to 89 Days Past Due	—	—	—	—	—	—	—
90 Days or More Past Due or in Process of Foreclosure	—	—	—	—	—	45,000	45,000
Total Commercial Mortgage Loans	$3,850,935	$5,015,588	$3,215,016	$5,163,206	$5,910,951	$3,867,886	$27,023,582
Residential Mortgage Loans
Gross Charge-Offs for the Year Ended December 31, 2025	$—	$(1,110)	$(726)	$(1,327)	$(149)	$(4,538)	$(7,850)

Current	$4,976,510	$6,334,704	$2,981,373	$1,689,316	$3,628,245	$1,357,231	$20,967,379
30 to 59 Days Past Due	52,368	117,945	78,904	24,199	33,931	39,770	347,117
60 to 89 Days Past Due	16,725	41,610	17,482	5,624	11,971	15,877	109,289
90 Days or More Past Due or in Process of Foreclosure	7,953	112,116	47,811	30,481	42,242	32,811	273,414
Total Residential Mortgage Loans	$5,053,556	$6,606,375	$3,125,570	$1,749,620	$3,716,389	$1,445,689	$21,697,199
Consumer Loans
Gross Charge-Offs for the Year Ended December 31, 2025	$(120)	$(7,198)	$(14,431)	$(18,485)	$(55,133)	$(41,338)	$(136,705)

Current	$31,390	$355,050	$385,236	$617,583	$1,123,889	$1,311,315	$3,824,463
30 to 59 Days Past Due	150	3,493	3,993	4,870	15,929	16,500	44,935
60 to 89 Days Past Due	117	2,318	3,035	3,583	8,398	9,477	26,928
90 Days or More Past Due or in Process of Foreclosure	160	3,107	3,965	6,419	8,050	9,592	31,293
Total Consumer Loans	$31,817	$363,968	$396,229	$632,455	$1,156,266	$1,346,884	$3,927,619
Total Mortgage and Consumer Loan Receivables	$8,936,308	$11,985,931	$6,736,815	$7,545,281	$10,783,606	$6,660,459	$52,648,400


	By Year of Origination
Performance Status as of December 31, 2024	2024	2023	2022	2021	2020	Prior	Total
Commercial Mortgage Loans
Gross Charge-Offs for the Year Ended December 31, 2024	$—	$—	$(20,387)	$(80,798)	$(10,695)	$(51,598)	$(163,478)

Current	$4,626,771	$3,575,323	$6,012,774	$6,414,939	$559,931	$3,899,288	$25,089,026
30 to 59 Days Past Due	—	—	—	—	—	—	—
60 to 89 Days Past Due	—	—	—	—	—	42,335	42,335
90 Days or More Past Due or in Process of Foreclosure	—	—	—	96,787	—	35,000	131,787
Total Commercial Mortgage Loans	$4,626,771	$3,575,323	$6,012,774	$6,511,726	$559,931	$3,976,623	$25,263,148
Residential Mortgage Loans
Gross Charge-Offs for the Year Ended December 31, 2024	$(15)	$(7)	$(1,308)	$(2,565)	$(524)	$(697)	$(5,116)

Current	$8,277,782	$3,958,884	$1,948,869	$4,010,265	$1,192,287	$1,470,411	$20,858,498
30 to 59 Days Past Due	67,924	89,078	64,113	39,326	6,140	90,891	357,472
60 to 89 Days Past Due	20,388	24,336	10,303	11,554	325	23,597	90,503
90 Days or More Past Due or in Process of Foreclosure	9,550	42,672	36,404	64,990	9,235	112,292	275,143
Total Residential Mortgage Loans	$8,375,644	$4,114,970	$2,059,689	$4,126,135	$1,207,987	$1,697,191	$21,581,616
Consumer Loans
Gross Charge-Offs for the Year Ended December 31, 2024	$(1,345)	$(6,896)	$(22,614)	$(73,814)	$(19,872)	$(29,251)	$(153,792)

Current	$592,705	$454,890	$691,198	$1,394,197	$566,071	$1,050,090	$4,749,151
30 to 59 Days Past Due	860	2,444	3,433	22,069	4,090	14,816	47,712
60 to 89 Days Past Due	517	1,194	2,178	10,399	2,299	7,874	24,461
90 Days or More Past Due or in Process of Foreclosure	278	2,317	3,351	9,656	2,650	8,632	26,884
Total Consumer Loans	$594,360	$460,845	$700,160	$1,436,321	$575,110	$1,081,412	$4,848,208
Total Mortgage and Consumer Loan Receivables	$13,596,775	$8,151,138	$8,772,623	$12,074,182	$2,343,028	$6,755,226	$51,692,972

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 Global Atlantic's loan-to-value ratios for its commercial mortgage loans

as of December 31, 2025 and 2024:


Loan-to-Value as of December 31, 2025, 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
2025	$3,662,392	$188,543	$—	$3,850,935
2024	4,865,317	150,271	—	5,015,588
2023	3,215,016	—	—	3,215,016
2022	4,719,340	408,918	34,948	5,163,206
2021	4,427,697	1,285,014	198,240	5,910,951
2020	376,593	89,762	34,974	501,329
Prior	3,057,650	83,147	225,760	3,366,557
Total Commercial Mortgage Loans	$24,324,005	$2,205,655	$493,922	$27,023,582


Loan-to-Value as of December 31, 2024, 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
2024	$4,487,814	$138,957	$—	$4,626,771
2023	3,575,323	—	—	3,575,323
2022	5,646,922	365,852	—	6,012,774
2021	4,931,730	1,429,694	150,302	6,511,726
2020	433,377	91,524	35,030	559,931
2019	1,145,297	54,501	39,308	1,239,106
Prior	2,538,853	53,510	145,154	2,737,517
Total Commercial Mortgage Loans	$22,759,316	$2,134,038	$369,794	$25,263,148

Changing economic conditions and updated assumptions affect Global Atlantic's assessment of the collectibility of

commercial mortgage loans. Changing vacancies and rents are incorporated into the analysis that Global Atlantic performs to

measure the 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 Global Atlantic's residential mortgage loans was 64% and 63% as of

December 31, 2025 and 2024, respectively.

Loan Modifications

Global Atlantic may modify the terms of a loan when the borrower is experiencing financial difficulties, as a means to

optimize recovery of amounts due on the loan. Modifications may involve temporary relief, such as payment forbearance for

a short period of time (where interest continues to accrue) or may involve more substantive changes to a loan. Changes to the

terms of a loan, pursuant to a modification agreement, are factored into the analysis of the loan’s expected credit losses,

under the allowance model applicable to the loan.

For commercial mortgage loans, modifications for borrowers experiencing financial difficulty are tailored for individual

loans and may include interest rate relief, maturity extensions or, less frequently, principal forgiveness. For both residential

mortgage loans and consumer loans, the most common modifications for borrowers experiencing financial difficulty, aside

from insignificant delays in payment, typically involve deferral of missed payments to the end of the loan term, interest rate

relief, or maturity extensions.

The tables below present the carrying value of loans to borrowers experiencing financial difficulty, for which

modifications have been granted during the years ended December 31, 2025 and 2024:


Year Ended December 31, 2025 by Loan Type	Deferral of Amounts Due	Interest Rate Relief	Maturity Extension	Combination(1)	Total	Percentage of Total Carrying Value Outstanding
Commercial Mortgage Loans	$—	$190,313	$36,509	$68,859	$295,681	1.09%
Residential Mortgage Loans	2,623	—	—	2,602	5,225	0.02%
Consumer Loans	9,062	448	18,825	22,477	50,812	1.29%
Total(2)	$11,685	$190,761	$55,334	$93,938	$351,718

(1)Includes modifications involving a combination of deferral of amounts due, interest rate relief, or maturity extension.

(2)Excludes loans that were modified during the year, but were repaid in full by year end.


Year Ended December 31, 2024 by Loan Type	Deferral of Amounts Due	Interest Rate Relief	Maturity Extension	Combination(1)	Total	Percentage of Total Carrying Value Outstanding
Commercial Mortgage Loans	$—	$—	$—	$387,903	$387,903	1.54%
Residential Mortgage Loans	4,563	—	—	14,227	18,790	0.09%
Consumer Loans	2,795	901	29,865	50,963	84,524	1.74%
Total(2)	$7,358	$901	$29,865	$453,093	$491,217

(1)Includes modifications involving a combination of deferral of amounts due, interest rate relief, or maturity extension.

(2)Excludes loans that were modified during the year, but were repaid in full by year end.

All of the commercial mortgage loans that had a combination of modifications had both interest rate relief and maturity

extensions. For commercial mortgage loans granted interest rate relief, this relief generally involved either a change from a

floating rate or a decrease in fixed rate to a weighted average rate of 4.2% and 4.9% for the years ended December 31, 2025

and 2024, respectively. The maturity extensions for commercial mortgage loans added a weighted-average of 1.9 years and

2.9 years to the life of the loans, for the years ended December 31, 2025 and 2024, respectively. As of December 31, 2025,

Global Atlantic has commitments to lend additional funds of $16.9 million for the modified commercial mortgage loans

disclosed above.

The table below presents the performance status of the loans modified during the twelve months ended December 31,

2025:


Performance Status as of December 31, 2025 by Loan Type	Current	30-59 Days Past Due	60-89 Days Past Due	90 Days or More Past Due or in Process of Foreclosure	Total
Commercial Mortgage Loans	$295,681	$—	$—	$—	$295,681
Residential Mortgage Loans	3,557	441	—	1,227	5,225
Consumer Loans	35,953	8,091	3,798	2,970	50,812
Total(1)	$335,191	$8,532	$3,798	$4,197	$351,718

(1)Loans may have been modified more than once during the twelve months period; in this circumstance, the loan is only included once in this table.

Modified loans that were subsequently repaid are excluded.

Repurchase Agreement Transactions

As of December 31, 2025 and December 31, 2024, Global Atlantic participated in repurchase agreements with a notional

value of $663.8 million and $261.4 million, respectively. As collateral for these transactions, Global Atlantic typically posts AFS

fixed maturity securities and/or mortgage and other loan receivables, 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 carrying value of assets pledged for repurchase agreements by type of collateral and remaining contractual maturity

of the repurchase agreements as of December 31, 2025 and December 31, 2024 is presented in the following tables:


As of December 31, 2025	Overnight	<30 Days	30 - 90 Days	> 90 Days	Total
Residential Mortgage Loans	$—	$8,631	$312,404	$390,974	$712,009
Total Assets Pledged	$—	$8,631	$312,404	$390,974	$712,009


As of December 31, 2024	Overnight	<30 Days	30 - 90 Days	> 90 Days	Total
Residential Mortgage Loans	$—	$4,266	$71,170	$195,691	$271,127
Total Assets Pledged	$—	$4,266	$71,170	$195,691	$271,127

Other Pledges and Restrictions

Certain Global Atlantic subsidiaries are members of regional banks in the Federal Home Loan Banks ("FHLB") system and

such membership requires the members to own stock in these FHLBs. Global Atlantic owns an aggregate of $122.0 million and

$117.8 million (accounted for at cost basis) of stock in FHLBs as of December 31, 2025 and 2024, respectively. In addition,

Global Atlantic insurance company subsidiaries have entered into funding agreements with the FHLB, which require that

Global Atlantic pledge eligible assets, such as fixed maturity securities and mortgage loans, as collateral. Assets pledged as

collateral for these funding agreements had a carrying value of $7.1 billion and $4.6 billion as of December 31, 2025 and 2024,

respectively.

The capital stock of one of Global Atlantic’s equity method investments has been pledged as collateral security for the

due payment and performance of the debt obligations of the investee. Global Atlantic’s investment subject to this pledge had

a carrying value of $873.6 million and $834.4 million as of December 31, 2025 and 2024, respectively.

Insurance – Statutory Deposits

As of December 31, 2025 and 2024, the carrying value of the assets on deposit with various state and U.S. governmental

authorities were $145.1 million and $141.1 million, respectively.

8. DERIVATIVES

Asset Management and Strategic Holdings

KKR and certain of its consolidated funds have entered into derivative transactions as part of the overall risk management

for their 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.

Global Atlantic hedges interest rate and equity market risks associated with its insurance liabilities including fixed-indexed

annuities, indexed universal life policies, variable annuity policies, and variable universal life policies, among others. For fixed-

indexed annuities and indexed universal life policies, Global Atlantic generally seeks to use static hedges to offset the

exposure primarily created by changes in its embedded derivative balances. Global Atlantic generally purchases options which

replicate the crediting rate strategies, often in the form of call spreads. Call spreads are the purchase of a call option matched

by the sale of a different call option. For variable annuities and variable universal life policies, Global Atlantic generally seeks

to dynamically hedge its exposure to changes in the value of the guarantee it provides to policyholders. Doing so requires the

active trading of several financial instruments to respond to changes in market conditions. In addition, Global Atlantic enters

into inflation swaps to manage inflation risk associated with inflation-indexed preneed policies.

In the context of specific reinsurance transactions in the institutional channel or acquisitions, Global Atlantic may also

enter into hedges which are designed to limit short-term market risks to the economic value of the target assets. From time to

time, Global Atlantic also enters into hedges designed to mitigate interest rate and credit risk in investment income, interest

expense, and fair value of assets and liabilities. In addition, Global Atlantic enters into currency swaps and forwards to

manage any foreign exchange rate risks that may arise from investments and policy liabilities denominated in foreign

currencies.

Global Atlantic attempts to mitigate the risk of loss due to ineffectiveness under these derivative investments through a

regular monitoring process which evaluates the program’s effectiveness. Global Atlantic monitors its derivative activities by

reviewing portfolio activities and risk levels. Global Atlantic also oversees all derivative transactions to ensure that the types

of transactions entered into and the results obtained from those transactions are consistent with both Global Atlantic's risk

management strategy and its policies and procedures.

The restricted cash which was held in connection with open derivative transactions with exchange brokers was $49.9

million and $135.7 million as of December 31, 2025 and 2024, respectively.

Global Atlantic also has embedded derivatives related to reinsurance contracts that are accounted for on a modified

coinsurance and funds withheld basis. An embedded derivative exists because the arrangement exposes the reinsurer to

third-party credit risk. These embedded derivatives are included in funds withheld receivable and payable at interest in the

consolidated statements of financial condition.

Credit Risk

Global Atlantic may be exposed to credit-related losses in the event of nonperformance by its counterparties to

derivatives. Generally, the current credit exposure of Global Atlantic’s derivatives is limited to the positive fair value of

derivatives less any collateral received from the counterparty.

Global Atlantic manages the credit risk on its derivatives by entering into derivative transactions with highly rated

financial institutions and other creditworthy counterparties and, where feasible, by trading through central clearing

counterparties. Global Atlantic further manages its credit risk on derivatives via the use of master netting agreements, which

require the daily posting of collateral by the party in a liability position. Counterparty credit exposure and collateral values are

monitored regularly and measured against counterparty exposure limits. The provisions of derivative transactions may allow

for the termination and settlement of a transaction if there is a downgrade to Global Atlantic’s financial strength ratings

below a specified level.

The fair value and notional value of the derivative assets and liabilities were as follows:


As of December 31, 2025	Notional Value	Derivative Assets	Derivative Liabilities
Asset Management and Strategic Holdings
Foreign Exchange Contracts and Options	$24,638,928	$179,920	$1,034,543
Other Derivatives	395,000	9,905	—
Total Asset Management and Strategic Holdings	$25,033,928	$189,825	$1,034,543

Insurance
Derivatives Designated as Hedge Accounting Instruments:
Interest Rate Contracts	$13,455,830	$74,363	$317,096
Foreign Currency Contracts	6,074,755	27,045	112,226
Total Derivatives Designated as Hedge Accounting Instruments	$19,530,585	$101,408	$429,322
Derivatives Not Designated as Hedge Accounting Instruments:
Equity Market Contracts	$41,859,071	$2,676,076	$118,582
Interest Rate Contracts	17,525,214	310,503	322,404
Foreign Currency Contracts	4,325,825	31,860	223,470
Other Contracts	3,957	9,462	4,995
Total Derivatives Not Designated as Hedge Accounting Instruments	$63,714,067	$3,027,901	$669,451
Counterparty Netting(2)	—	(615,081)	(615,081)
Cash Collateral	—	(2,208,206)	(47,447)
Total Insurance(1)	$83,244,652	$306,022	$436,245

Fair Value Included Within Total Assets and Liabilities	$108,278,580	$495,847	$1,470,788

(1)Excludes embedded derivatives. The fair value of these embedded derivatives related to assets was $78.9 million and the fair value of these embedded

derivatives related to liabilities was $5.6 billion as of December 31, 2025.

(2)Represents netting of derivative exposures covered by qualifying master netting agreements.


As of December 31, 2024	Notional Value	Derivative Assets	Derivative Liabilities
Asset Management and Strategic Holdings
Foreign Exchange Contracts and Options	$19,452,993	$511,513	$131,339
Other Derivatives	455,500	8,444	—
Total Asset Management and Strategic Holdings	$19,908,493	$519,957	$131,339

Insurance
Derivatives Designated as Hedge Accounting Instruments:
Interest Rate Contracts	$15,490,742	$41,578	$511,118
Foreign Currency Contracts	2,541,093	66,774	28,878
Total Derivatives Designated as Hedge Accounting Instruments	$18,031,835	$108,352	$539,996
Derivatives Not Designated as Hedge Accounting Instruments:
Equity Market Contracts	$37,151,092	$1,921,164	$143,049
Interest Rate Contracts	29,211,430	206,222	561,452
Foreign Currency Contracts	2,887,035	108,929	54,679
Other Contracts	61,508	1,895	194
Total Derivatives Not Designated as Hedge Accounting Instruments	$69,311,065	$2,238,210	$759,374
Counterparty Netting(2)	—	(648,549)	(648,549)
Cash Collateral	—	(1,636,662)	(261,634)
Total Insurance(1)	$87,342,900	$61,351	$389,187

Fair Value Included Within Total Assets and Liabilities	$107,251,393	$581,308	$520,526

(1)Excludes embedded derivatives. The fair value of these embedded derivatives related to assets was $125.9 million and the fair value of these embedded

derivatives related to liabilities was $3.2 billion as of December 31, 2024.

(2)Represents netting of derivative exposures covered by qualifying master netting agreements.

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.

Fair Value Hedges

Global Atlantic has designated foreign exchange derivative contracts, including forwards and swaps, 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 foreign exchange derivative contracts, both of which are recognized within investment-related gains (losses).

The effectiveness of these hedges is assessed using the spot method. Changes in the fair value of the foreign exchange

derivative contracts 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

foreign exchange derivative contracts. The amortized cost of the AFS fixed maturity securities in qualifying foreign exchange

fair value hedges was $3.7 billion and $2.1 billion as of December 31, 2025 and 2024, respectively.

Global Atlantic has designated interest rate swaps to hedge the interest rate risk associated with certain debt and policy

liabilities. These fair value hedges generally qualify for the shortcut method of assessing hedge effectiveness. The following

table presents the financial statement classification, carrying amount, and cumulative fair value hedging adjustments for

qualifying hedged debt and policy liabilities:


	As of December 31, 2025		As of December 31, 2024
	Carrying Amount of Hedged Liabilities	Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities(1)	Carrying Amount of Hedged Liabilities	Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities(1)
Debt	$3,572,318	$(123,471)	$2,279,261	$(233,202)
Policy Liabilities	3,647,117	(99,239)	4,453,766	(204,435)

(1)Includes $154.6 million and $193.3 million of hedging adjustments on discontinued hedging relationships as of December 31, 2025 and 2024, respectively.

Cash Flow Hedges

Global Atlantic has designated bond forwards to hedge the interest rate risk associated with the planned purchase of AFS

fixed maturity securities in cash flow hedges. These arrangements are hedging purchases through January 2030 and are

expected to affect earnings until 2057. Regression analysis is used to assess the effectiveness of these hedges.

As of December 31, 2025 and 2024, there was a cumulative gain (loss) of $(213.9) million and $(249.7) million,

respectively, on the currently designated bond forwards recorded in accumulated other comprehensive income (loss).

Amounts deferred in accumulated other comprehensive income (loss) 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.

Global Atlantic has designated interest rate swaps to hedge the interest rate risk associated with floating rate

investments, including AFS fixed maturity securities and commercial mortgage loans. Regression analysis is used to assess the

effectiveness of these hedges.

As of December 31, 2025 and 2024, there was a cumulative gain (loss) of $(22.3) million and $(60.8) million on the

currently designated interest rate swaps recorded in accumulated other comprehensive income (loss), respectively. Amounts

deferred in accumulated other comprehensive gain (loss) are reclassified to net investment income in the same period during

which the hedged investments affect earnings.

Global Atlantic has designated foreign exchange swaps to hedge the foreign exchange risk associated with certain policy

liabilities in cash flow hedges. The critical terms of the swaps match those of the hedged liabilities, such that the respective

hedging relationship is expected to be perfectly effective (pursuant to ASC 815-20-25-84).

As of December 31, 2025, there was a cumulative gain (loss) of $(1.7) million on the currently designated foreign

exchange swaps recorded in accumulated other comprehensive loss. Amounts deferred in accumulated other comprehensive

loss are reclassified to net policy benefits and claims in the same period during which the hedged policy liabilities affect

earnings due to changes in spot foreign exchange rates. The amount reclassified from accumulated other comprehensive loss

for the swap designated in the hedge comprises changes in its fair value due to changes in spot exchange rates and an

allocated portion of its initial spot-forward difference.

For all cash flow hedges, Global Atlantic estimates that the amount of gains/losses in accumulated other comprehensive

income (loss) to be reclassified into earnings in the next 12 months will not be material.

Net Investment Hedges

Global Atlantic has designated cross currency swaps to hedge the foreign currency risk associated with certain foreign

currency-denominated equity method investments in net investment hedges. The effectiveness of these hedges is assessed

based on changes in spot rates.

Changes in the fair value of the swaps are recognized in other comprehensive income, consistent with the translation

adjustment for the hedged investment. The component comprising the difference between forward rates and spot rates is

amortized to net investment income over the life of the swaps. As of December 31, 2025 and 2024, the cumulative foreign

currency translation gain (loss) recorded in accumulated other comprehensive income related to net investment hedges was

$(14.1) million and $(25.3) million, respectively.

Derivative Results

The following table presents the financial statement classification and amount of gains (losses) recognized on derivative

instruments and related hedged items, where applicable. None of the Asset Management and Strategic Holdings derivatives

are designated as hedge accounting instruments. The table below includes only derivatives held by Global Atlantic.



	Year Ended December 31, 2025
	Net Investment- Related Gains (Losses)	Net Investment Income	Net Policy Benefits and Claims	Interest Expense	Change in AOCI
Derivatives Designated as Hedge Accounting Instruments:
Fair Value Hedges
Gains (Losses) on Derivatives Designated as Hedge Instruments:
Interest Rate Contracts	$—	$—	$22,068	$64,173	$—
Foreign Currency Contracts	(286,743)	4,370	—	—	21,441
Total Gains (Losses) on Derivatives Designated as Hedge Instruments	$(286,743)	$4,370	$22,068	$64,173	$21,441
Gains (Losses) on Hedged Items:
Interest Rate Contracts	$—	$—	$(22,068)	$(64,173)	$—
Foreign Currency Contracts	287,895	—	—	—	—
Total Gains (Losses) on Hedged Items	$287,895	$—	$(22,068)	$(64,173)	$—
Amortization for Gains (Losses) Excluded from Assessment of Effectiveness:
Foreign Currency Contracts	$23,207	$—	$—	$—	$—
Total Amortization for Gains (Losses) Excluded from Assessment of Effectiveness	$23,207	$—	$—	$—	$—
Total Gains (Losses) on Fair Value Hedges, Net of Hedged Items	$24,359	$4,370	$—	$—	$21,441
Cash Flow Hedges
Foreign Currency Contracts	$—	$—	$(9,163)	$—	$(1,748)
Interest Rate Contracts	—	(10,612)	—	—	74,346
Total Gains (Losses) on Cash Flow Hedges	$—	$(10,612)	$(9,163)	$—	$72,598
Net Investment Hedges
Gains (Losses) on Derivatives Designated as Hedge Instruments	$—	$2,240	$—	$—	$11,223
Total Gains (Losses) on Net Investment Hedges	$—	$2,240	$—	$—	$11,223
Derivatives Not Designated as Hedge Accounting Instruments:
Insurance
Embedded Derivatives - Funds Withheld Receivable	$(47,029)	$—	$—	$—	$—
Embedded Derivatives - Funds Withheld Payable	(521,690)	—	—	—	—
Equity Index Options	926,268	—	—	—	—
Equity Futures Contracts	(51,443)	—	—	—	—
Interest Rate Contracts	86,222	—	—	—	—
Foreign Exchange and Other Derivative Contracts	(214,414)	—	—	—	—
Total Gains (Losses) on Derivatives Not Designated as Hedge Accounting Instruments from Insurance Activities	$177,914	$—	$—	$—	$—
Total	$202,273	$(4,002)	$(9,163)	$—	$105,262


	Year Ended December 31, 2024
	Net Investment- Related Gains (Losses)	Net Investment Income	Net Policy Benefits and Claims	Interest Expense	Change in AOCI
Derivatives Designated as Hedge Accounting Instruments:
Fair Value Hedges
Gains (Losses) on Derivatives Designated as Hedge Instruments:
Interest Rate Contracts	$—	$—	$(108,622)	$(134,580)	$—
Foreign Currency Contracts	119,618	4,551	—	—	(10,977)
Total Gains (Losses) on Derivatives Designated as Hedge Instruments	$119,618	$4,551	$(108,622)	$(134,580)	$(10,977)
Gains (Losses) on Hedged Items:
Interest Rate Contracts	$—	$—	$108,622	$134,580	$—
Foreign Currency Contracts	(117,318)	—	—	—	—
Total Gains (Losses) on Hedged Items	$(117,318)	$—	$108,622	$134,580	$—
Amortization for Gains (Losses) Excluded from Assessment of Effectiveness:
Foreign Currency Contracts	$20,145	$—	$—	$—	$—
Total Amortization for Gains (Losses) Excluded from Assessment of Effectiveness	$20,145	$—	$—	$—	$—
Total Gains (Losses) on Fair Value Hedges, Net of Hedged Items	$22,445	$4,551	$—	$—	$(10,977)
Cash Flow Hedges
Interest Rate Contracts	$—	$(6,043)	$—	$—	$(183,626)
Total Gains (Losses) on Cash Flow Hedges	$—	$(6,043)	$—	$—	$(183,626)
Net Investment Hedges
Gains (Losses) on Derivatives Designated as Hedge Instruments	$—	$1,388	$—	$—	$(25,344)
Total Gains (Losses) on Net Investment Hedges	$—	$1,388	$—	$—	$(25,344)
Derivatives Not Designated as Hedge Accounting Instruments:
Insurance
Embedded Derivatives - Funds Withheld Receivable	$37,226	$—	$—	$—	$—
Embedded Derivatives - Funds Withheld Payable	350,241	—	—	—	—
Equity Index Options	567,543	—	—	—	—
Equity Futures Contracts	(87,484)	—	—	—	—
Interest Rate Contracts	(569,315)	—	—	—	—
Foreign Exchange and Other Derivative Contracts	99,271	—	—	—	—
Total Gains (Losses) on Derivatives Not Designated as Hedge Accounting Instruments from Insurance Activities	$397,482	$—	$—	$—	$—
Total	$419,927	$(104)	$—	$—	$(219,947)



	Year Ended December 31, 2023
	Net Investment- Related Gains (Losses)	Net Investment Income	Net Policy Benefits and Claims	Interest Expense	Change in AOCI
Derivatives Designated as Hedge Accounting Instruments:
Fair Value Hedges
Gains (Losses) on Derivatives Designated as Hedge Instruments:
Interest Rate Contracts	$—	$—	$(53,870)	$(20,410)	$—
Foreign Currency Contracts	(88,384)	—	—	—	9,119
Total Gains (Losses) on Derivatives Designated as Hedge Instruments	$(88,384)	$—	$(53,870)	$(20,410)	$9,119
Gains (Losses) on Hedged Items:
Interest Rate Contracts	$—	$—	$53,870	$20,410	$—
Foreign Currency Contracts	80,210	—	—	—	—
Total Gains (Losses) on Hedged Items	$80,210	$—	$53,870	$20,410	$—
Amortization for Gains (Losses) Excluded from Assessment of Effectiveness:
Foreign Currency Contracts	$28,345	$—	$—	$—	$—
Total Amortization for Gains (Losses) Excluded from Assessment of Effectiveness	$28,345	$—	$—	$—	$—
Total Gains (Losses) on Fair Value Hedges, Net of Hedged Items	$20,171	$—	$—	$—	$9,119
Cash Flow Hedges
Interest Rate Contracts	$—	$(1,381)	$—	$—	$33,446
Total Gains (Losses) on Cash Flow Hedges	$—	$(1,381)	$—	$—	$33,446
Derivatives Not Designated as Hedge Accounting Instruments:
Insurance
Embedded Derivatives - Funds Withheld Receivable	$75,876	$—	$—	$—	$—
Embedded Derivatives - Funds Withheld Payable	(1,040,463)	—	—	—	—
Equity Index Options	482,121	—	—	—	—
Equity Future Contracts	(116,766)	—	—	—	—
Interest Rate and Foreign Exchange Contracts	(101,376)	—	—	—	—
Other	(280)	—	—	—	—
Total Gains (Losses) on Derivatives Not Designated as Hedge Accounting Instruments from Insurance Activities	$(700,888)	$—	$—	$—	$—
Total	$(680,717)	$(1,381)	$—	$—	$42,565

Collateral

The amount of Global Atlantic's net derivative assets and liabilities after consideration of collateral received or pledged

were as follows:


As of December 31, 2025	Gross Amount Recognized	Gross Amounts Offset in the Statements of Financial Condition(1)	Net Amounts Presented in the Statements of Financial Condition	Collateral (Received) / Pledged	Net Amount After Collateral
Derivative Assets (Excluding Embedded Derivatives)	$3,129,309	$(2,823,287)	$306,022	$(511,452)	$(205,430)
Derivative Liabilities (Excluding Embedded Derivatives)	$1,098,773	$(662,528)	$436,245	$723,701	$(287,456)

(1)Represents netting of derivative exposures covered by qualifying master netting agreements.


As of December 31, 2024	Gross Amount Recognized	Gross Amounts Offset in the Statements of Financial Condition(1)	Net Amounts Presented in the Statements of Financial Condition	Collateral (Received) / Pledged	Net Amount After Collateral
Derivative Assets (Excluding Embedded Derivatives)	$2,346,562	$(2,285,211)	$61,351	$(157,782)	$(96,431)
Derivative Liabilities (Excluding Embedded Derivatives)	$1,299,370	$(910,183)	$389,187	$504,665	$(115,478)

(1)Represents netting of derivative exposures covered by qualifying master netting agreements.

9. 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:


	December 31, 2025
	Level I	Level II	Level III		Total
Asset Management and Strategic Holdings
Private Equity	$1,129,094	$331,151	$48,038,163		$49,498,408
Credit	—	3,237,077	4,192,312		7,429,389
Investments of Consolidated CFEs	—	30,673,565	—		30,673,565
Real Assets	102,510	24,262	13,577,003		13,703,775
Other Investments	93,243	2,246	5,180,933		5,276,422
Total Investments (2) (3)	$1,324,847	$34,268,301	$70,988,411		$106,581,559
Foreign Exchange Contracts and Options	—	179,920	—		179,920
Other Derivatives	36	9,869	—		9,905
Total Assets at Fair Value – Asset Management and Strategic Holdings	$1,324,883	$34,458,090	$70,988,411		$106,771,384

Insurance
AFS Fixed Maturity Securities:
U.S. Government and Agencies	$—	$411,070	$—		$411,070
U.S. State, Municipal and Political Subdivisions	—	2,447,994	—		2,447,994
Corporate	—	38,840,214	14,664,089		53,504,303
Structured Securities	—	30,005,461	4,218,228		34,223,689
Total AFS Fixed Maturity Securities	$—	$71,704,739	$18,882,317		$90,587,056
Trading Fixed Maturity Securities	—	21,798,167	3,435,792		25,233,959
Mortgage and Other Loan Receivables	—	—	11,154,547		11,154,547
Real Assets	—	—	8,696,775	(1)	8,696,775
Other Investments	1,035,470	524,740	472,456	(1)	2,032,666
Funds Withheld Receivable at Interest	—	—	78,858		78,858
Reinsurance Recoverable	—	—	934,105		934,105
Derivative Assets	586	305,437	—		306,023
Separate Account Assets	3,841,403	—	—		3,841,403
Total Assets at Fair Value – Insurance	$4,877,459	$94,333,083	$43,654,850		$142,865,392

Total Assets at Fair Value	$6,202,342	$128,791,173	$114,643,261		$249,636,776


	December 31, 2024
	Level I	Level II	Level III		Total
Asset Management and Strategic Holdings
Private Equity	$816,229	$767,787	$34,452,417		$36,036,433
Credit	—	3,261,673	4,805,417		8,067,090
Investments of Consolidated CFEs	—	27,488,538	—		27,488,538
Real Assets	599,496	268,963	12,589,245		13,457,704
Other Investments	179,102	64,601	4,860,219		5,103,922
Total Investments (3)	$1,594,827	$31,851,562	$56,707,298		$90,153,687
Foreign Exchange Contracts and Options	—	511,513	—		511,513
Other Derivatives	42	8,402	—		8,444
Total Assets at Fair Value – Asset Management and Strategic Holdings	$1,594,869	$32,371,477	$56,707,298		$90,673,644

Insurance
AFS Fixed Maturity Securities:
U.S. Government and Agencies	$—	$2,391,407	$—		$2,391,407
U.S. State, Municipal and Political Subdivisions	—	3,769,461	—		3,769,461
Corporate	—	32,585,117	9,354,150		41,939,267
Structured Securities	—	25,851,177	2,308,644		28,159,821
Total AFS Fixed Maturity Securities	$—	$64,597,162	$11,662,794		$76,259,956
Trading Fixed Maturity Securities	—	19,337,734	2,081,507		21,419,241
Mortgage and Other Loan Receivables	—	—	1,611,109		1,611,109
Real Assets	—	—	8,121,139	(1)	8,121,139
Other Investments	207,281	269,250	103,823	(1)	580,354
Funds Withheld Receivable at Interest	—	—	125,887		125,887
Reinsurance Recoverable	—	—	940,731		940,731
Derivative Assets	5,316	56,035	—		61,351
Separate Account Assets	3,981,060	—	—		3,981,060
Total Assets at Fair Value – Insurance	$4,193,657	$84,260,181	$24,646,990		$113,100,828

Total Assets at Fair Value	$5,788,526	$116,631,658	$81,354,288		$203,774,472

(1)Real assets and other investments excluded from the fair value hierarchy table include certain funds for which fair value is measured at net asset value

per share as a practical expedient. As of December 31, 2025 and December 31, 2024, the fair value of these real assets were $25.3 million and $34.5

million, respectively, and other investments were $334.7 million and $4.3 million, respectively. These fund investments have strategies primarily focused

on real assets (primarily real estate) or other investments and are subject to certain restrictions on redemption. As of both December 31, 2025 and

December 31, 2024, there were $1.3 million of unfunded commitments associated with real assets, and as of December 31, 2025 and December 31,

2024, $5.0 million and $1.5 million associated with these other investments, respectively.

(2)Certain investments that are measured at fair value using NAV as a practical expedient under ASC 820 have not been categorized in the fair value

hierarchy. As of December 31, 2025, the fair value of these assets is $355.1 million. The fair value amounts presented in this table are intended to permit

reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Financial Condition.

(3)As of December 31, 2025 and December 31, 2024, the fair value of Equity Method investments is $2.3 billion and $1.8 billion, respectively.

(4)Represents netting of derivative exposures covered by qualifying master netting agreements.

Liabilities, at fair value:


	December 31, 2025
	Level I	Level II	Level III		Total
Asset Management and Strategic Holdings
Securities Sold Short	$134,669	$—	$—		$134,669
Foreign Exchange Contracts and Options	—	1,034,543	—		1,034,543
Unfunded Revolver Commitments	—	—	93,289	(1)	93,289
Debt Obligations of Consolidated CFEs	—	30,227,885	—		30,227,885
Total Liabilities at Fair Value – Asset Management and Strategic Holdings	$134,669	$31,262,428	$93,289		$31,490,386

Insurance
Policy Liabilities (Including Market Risk Benefits)	$—	$—	$1,608,580	(3)	$1,608,580
Closed Block Policy Liabilities	—	—	983,855		983,855
Funds Withheld Payable at Interest	—	—	(2,275,854)		(2,275,854)
Derivative Instruments Payable	918	435,327	—		436,245
Embedded Derivative – Interest-Sensitive Life Products	—	—	485,025		485,025
Embedded Derivative – Annuity Products	—	—	7,355,480		7,355,480
Total Liabilities at Fair Value – Insurance	$918	$435,327	$8,157,086		$8,593,331

Total Liabilities at Fair Value	$135,587	$31,697,755	$8,250,375		$40,083,717


	December 31, 2024
	Level I	Level II	Level III		Total
Asset Management and Strategic Holdings
Securities Sold Short	$109,168	$—	$—		$109,168
Foreign Exchange Contracts and Options	—	131,339	—		131,339
Unfunded Revolver Commitments	—	—	96,848	(1)	96,848
Debt Obligations of Consolidated CFEs	—	27,150,809	—		27,150,809
Total Liabilities at Fair Value – Asset Management and Strategic Holdings	$109,168	$27,282,148	$96,848		$27,488,164

Insurance
Policy Liabilities (Including Market Risk Benefits)	$—	$—	$1,279,794	(3)	$1,279,794
Closed Block Policy Liabilities	—	—	988,320		988,320
Funds Withheld Payable at Interest	—	—	(2,797,544)		(2,797,544)
Derivative Instruments Payable	438	388,749	—		389,187
Embedded Derivative – Interest-Sensitive Life Products	—	—	491,818		491,818
Embedded Derivative – Annuity Products	—	—	5,481,063		5,481,063
Total Liabilities at Fair Value – Insurance	$438	$388,749	$5,443,451		$5,832,638

Total Liabilities at Fair Value	$109,606	$27,670,897	$5,540,299		$33,320,802

(1)These unfunded revolver commitments are valued using the same valuation methodologies as KKR's Level III credit investments.

(2)Represents netting of derivative exposures covered by qualifying master netting agreements.

(3)Includes market risk benefit of $1.3 billion and $1.0 billion as of December 31, 2025 and December 31, 2024, respectively.

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 years ended December 31, 2025 and 2024, respectively.


	For the Year Ended December 31, 2025
	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 (1)
Asset Management and Strategic Holdings
Private Equity	$34,452,418	$2,267,408	$—	$(14,136)	$7,158,457	$4,174,016	$—	$48,038,163	$4,216,130	$—
Credit	4,805,417	—	48,211	—	(608,890)	(52,426)	—	4,192,312	9,205	—
Real Assets	12,589,245	—	—	—	726,212	261,546	—	13,577,003	259,828	—
Other Investments	4,860,219	—	29,648	(24,594)	124,814	190,846	—	5,180,933	183,691	—
Total Assets – Asset Management and Strategic Holdings	$56,707,299	$2,267,408	$77,859	$(38,730)	$7,400,593	$4,573,982	$—	$70,988,411	$4,668,854	$—

Insurance
AFS Fixed Maturity Securities:
Corporate Fixed Maturity Securities	$9,354,150	$—	$366,857	$(8,653)	$4,710,642	$116,570	$124,523	$14,664,089	$—	$88,090
Structured Securities	2,308,644	—	12,296	(79,818)	1,881,689	28,692	66,725	4,218,228	—	57,830
Total AFS Fixed Maturity Securities	$11,662,794	$—	$379,153	$(88,471)	$6,592,331	$145,262	$191,248	$18,882,317	$—	$145,920
Trading Fixed Maturity Securities	2,081,507	—	117,248	(26,817)	1,283,809	(19,955)	—	3,435,792	(19,626)	—
Mortgage and Other Loan Receivables	1,611,109	—	—	—	9,348,963	194,475	—	11,154,547	136,953	—
Real Assets	8,121,139	—	—	—	466,127	109,509	—	8,696,775	89,511	—
Other Investments	103,823	—	—	—	389,842	(21,209)	—	472,456	(32,107)	—
Funds Withheld Receivable at Interest	125,887	—	—	—	—	(47,029)	—	78,858	—	—
Reinsurance Recoverable	940,731	—	—	—	(5,779)	(847)	—	934,105	—	—
Total Assets – Insurance	$24,646,990	$—	$496,401	$(115,288)	$18,075,293	$360,206	$191,248	$43,654,850	$174,731	$145,920

Total	$81,354,289	$2,267,408	$574,260	$(154,018)	$25,475,886	$4,934,188	$191,248	$114,643,261	$4,843,585	$145,920


	For the Year Ended December 31, 2024
	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 (1)
Asset Management and Strategic Holdings
Private Equity	$32,358,353	$(1,064,234)	$9,042	$(473,452)	$1,501,319	$2,121,390	$—	$34,452,418	$2,085,020	$—
Credit	5,452,923	151,713	185,716	(115,891)	(589,788)	(279,256)	—	4,805,417	(131,728)	—
Real Assets	11,365,233	934,530	—	(2,077)	180,419	111,140	—	12,589,245	16,955	—
Other Investments	4,297,344	—	—	(8,106)	637,033	(66,229)	177	4,860,219	(162,034)	177
Total Assets – Asset Management and Strategic Holdings	$53,473,853	$22,009	$194,758	$(599,526)	$1,728,983	$1,887,045	$177	$56,707,299	$1,808,213	$177

Insurance
AFS Fixed Maturity Securities:
Corporate Fixed Maturity Securities	$8,571,003	$—	$—	$(301)	$822,496	$(144,561)	$105,513	$9,354,150	$—	$39,834
Structured Securities	1,830,000	—	95,965	(53,297)	347,284	36,153	52,539	2,308,644	—	68,924
Total AFS Fixed Maturity Securities	$10,401,003	$—	$95,965	$(53,598)	$1,169,780	$(108,408)	$158,052	$11,662,794	$—	$108,758
Trading Fixed Maturity Securities	1,250,161	—	124,982	(66,767)	675,686	97,445	—	2,081,507	39,464	—
Mortgage and Other Loan Receivables	697,402	—	—	—	877,418	36,289	—	1,611,109	44,887	—
Real Assets	4,815,265	—	—	—	3,412,986	(107,112)	—	8,121,139	(117,906)	—
Other Investments	126,008	—	—	—	4,067	(26,252)	—	103,823	(52,911)	—
Funds Withheld Receivable at Interest	88,661	—	—	—	—	37,226	—	125,887	—	—
Reinsurance Recoverable	926,035	—	—	—	(4,514)	19,210	—	940,731	—	—
Total Assets – Insurance	$18,304,535	$—	$220,947	$(120,365)	$6,135,423	$(51,602)	$158,052	$24,646,990	$(86,466)	$108,758

Total	$71,778,388	$22,009	$415,705	$(719,891)	$7,864,406	$1,835,443	$158,229	$81,354,289	$1,721,747	$108,935

(1)As of December 31, 2025 and December 31, 2024, the fair value of Equity Method investments is $2.1 billion and $1.4 billion, respectively.



	For the Year Ended December 31, 2025
	Purchases	Issuances	Sales	Settlements	Net Purchases/ Issuances/Sales/ Settlements
Assets (1)
Asset Management and Strategic Holdings
Private Equity	$8,833,839	$—	$(1,675,382)	$—	$7,158,457
Credit	1,329,753	—	(1,772,556)	(166,087)	(608,890)
Real Assets	1,415,178	—	(688,966)	—	726,212
Other Investments	707,702	—	(507,742)	(75,146)	124,814
Total Assets – Asset Management and Strategic Holdings	$12,286,472	$—	$(4,644,646)	$(241,233)	$7,400,593

Insurance
AFS Fixed Maturity Securities:
Corporate Fixed Maturity Securities	$7,612,518	$—	$(994,037)	$(1,907,839)	$4,710,642
Structured Securities	2,929,768	—	(108,161)	(939,918)	1,881,689
Total AFS Fixed Maturity Securities	$10,542,286	$—	$(1,102,198)	$(2,847,757)	$6,592,331
Trading Fixed Maturity Securities	1,927,807	—	(371,940)	(272,058)	1,283,809
Mortgage and Other Loan Receivables	12,669,707	—	(2,914,971)	(405,773)	9,348,963
Real Assets	523,583	—	(57,456)	—	466,127
Other Investments	419,576	—	(29,546)	(188)	389,842
Reinsurance Recoverable	—	—	—	(5,779)	(5,779)
Total Assets – Insurance	$26,082,959	$—	$(4,476,111)	$(3,531,555)	$18,075,293

Total	$38,369,431	$—	$(9,120,757)	$(3,772,788)	$25,475,886


	For the Year Ended December 31, 2024
	Purchases	Issuances	Sales	Settlements	Net Purchases/ Issuances/Sales/ Settlements
Assets (1)
Asset Management and Strategic Holdings
Private Equity	$2,818,931	$—	$(1,317,612)	$—	$1,501,319
Credit	1,501,342	—	(1,695,730)	(395,400)	(589,788)
Real Assets	1,956,315	—	(1,775,896)	—	180,419
Other Investments	3,638,756	—	(2,909,514)	(92,209)	637,033
Total Assets – Asset Management and Strategic Holdings	$9,915,344	$—	$(7,698,752)	$(487,609)	$1,728,983

Insurance
AFS Fixed Maturity Securities:
Corporate Fixed Maturity Securities	$3,852,070	$—	$(1,239,285)	$(1,790,289)	$822,496
Structured Securities	995,608	—	(11,931)	(636,393)	347,284
Total AFS Fixed Maturity Securities	$4,847,678	$—	$(1,251,216)	$(2,426,682)	$1,169,780
Trading Fixed Maturity Securities	1,488,323	—	(433,882)	(378,755)	675,686
Mortgage and Other Loan Receivables	1,065,772	—	(2,487)	(185,867)	877,418
Real Assets	3,431,726	—	(18,740)	—	3,412,986
Other Investments	4,465	—	—	(398)	4,067
Reinsurance Recoverable	—	—	—	(4,514)	(4,514)
Total Assets – Insurance	$10,837,964	$—	$(1,706,325)	$(2,996,216)	$6,135,423

Total	$20,753,308	$—	$(9,405,077)	$(3,483,825)	$7,864,406

(1)As of December 31, 2025 and December 31, 2024, the Net Purchase/Issuance/Sales/Settlements of Equity Method investments is $688.1 million and

($51.4) million, respectively.


	For the Year Ended December 31, 2025
	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 and Strategic Holdings
Unfunded Revolver Commitments	$96,848	$—	$—	$—	$—	$(3,559)	$—	$93,289	$(3,559)
Total Liabilities – Asset Management and Strategic Holdings	$96,848	$—	$—	$—	$—	$(3,559)	$—	$93,289	$(3,559)

Insurance
Policy Liabilities	$1,279,794	$—	$—	$—	$97,058	$194,503	$37,225	$1,608,580	$—
Closed Block Policy Liabilities	988,320	—	—	—	8,211	(11,071)	(1,605)	983,855	—
Funds Withheld Payable at Interest	(2,797,544)	—	—	—	—	521,690	—	(2,275,854)	—
Embedded Derivative – Interest- Sensitive Life Products	491,818	—	—	—	(122,969)	116,176	—	485,025	—
Embedded Derivative – Annuity Products	5,481,063	—	—	—	682,301	1,192,116	—	7,355,480	—
Total Liabilities – Insurance	$5,443,451	$—	$—	$—	$664,601	$2,013,414	$35,620	$8,157,086	$—

Total	$5,540,299	$—	$—	$—	$664,601	$2,009,855	$35,620	$8,250,375	$(3,559)


	For the Year Ended December 31, 2024
	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 and Strategic Holdings
Unfunded Revolver Commitments	$94,683	$—	$—	$—	$—	$2,165	$—	$96,848	$2,165
Total Liabilities – Asset Management and Strategic Holdings	$94,683	$—	$—	$—	$—	$2,165	$—	$96,848	$2,165

Insurance
Policy Liabilities	$1,474,970	$—	$—	$—	$44,891	$(268,545)	$28,478	$1,279,794	$—
Closed Block Policy Liabilities	968,554	—	—	—	5,652	16,870	(2,756)	988,320	—
Funds Withheld Payable at Interest	(2,447,303)	—	—	—	—	(350,241)	—	(2,797,544)	—
Embedded Derivative – Interest- Sensitive Life Products	458,302	—	—	—	(100,797)	134,313	—	491,818	—
Embedded Derivative – Annuity Products	3,587,371	—	—	—	1,109,304	784,388	—	5,481,063	—
Total Liabilities – Insurance	$4,041,894	$—	$—	$—	$1,059,050	$316,785	$25,722	$5,443,451	$—

Total	$4,136,577	$—	$—	$—	$1,059,050	$318,950	$25,722	$5,540,299	$2,165


	Year Ended December 31, 2025
	Issuances	Settlements	Net Issuances/Settlements
Liabilities
Asset Management and Strategic Holdings
Unfunded Revolver Commitments	$—	$—	$—
Total Liabilities – Asset Management and Strategic Holdings	$—	$—	$—

Insurance
Policy Liabilities	$113,802	$(16,744)	$97,058
Closed Block Policy Liabilities	8,211	—	8,211
Embedded Derivative – Interest-Sensitive Life Products	—	(122,969)	(122,969)
Embedded Derivative – Annuity Products	1,053,194	(370,893)	682,301
Total Liabilities – Insurance	$1,175,207	$(510,606)	$664,601

Total	$1,175,207	$(510,606)	$664,601


	Year Ended December 31, 2024
	Issuances	Settlements	Net Issuances/Settlements
Liabilities
Asset Management and Strategic Holdings
Unfunded Revolver Commitments	$—	$—	$—
Total Liabilities – Asset Management and Strategic Holdings	$—	$—	$—

Insurance
Policy Liabilities	$59,211	$(14,320)	$44,891
Closed Block Policy Liabilities	5,652	—	5,652
Embedded Derivative – Interest-Sensitive Life Products	—	(100,797)	(100,797)
Embedded Derivative – Annuity Products	1,375,081	(265,777)	1,109,304
Total Liabilities – Insurance	$1,439,944	$(380,894)	$1,059,050

Total	$1,439,944	$(380,894)	$1,059,050

Total realized and unrealized gains and losses recorded for Asset Management and Strategic Holdings – 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 the consolidated financial assets and liabilities that are measured and reported at fair value and categorized within

Level III as of December 31, 2025. 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 December 31, 2025	Valuation Methodologies & Inputs		Unobservable Input(s) (1)		Weighted Average (2)		Range		Impact to Valuation from an Increase in Input (3)

ASSET MANAGEMENT AND STRATEGIC HOLDINGS

Private Equity	$48,038,163	Inputs to market comparables, discounted cash flow and transaction price		Illiquidity Discount		5.9%		5.0% - 20.0%		Decrease
			Weight Ascribed to Market Comparables		28.5%		0.0% - 100.0%		(4)
			Weight Ascribed to Discounted Cash Flow		60.5%		0.0% - 100.0%		(5)
			Weight Ascribed to Transaction Price/Other		11.0%		0.0% - 100.0%		(6)
		Market comparables		Enterprise Value/LTM EBITDA Multiple		16.6x		5.9x - 40.1x		Increase
			Enterprise Value/Forward EBITDA Multiple		14.3x		7.4x - 23.2x		Increase
		Discounted cash flow		Discount Rate		9.5%		5.6% - 15.0%		Decrease
			Enterprise Value/EBITDA Exit Multiple		14.7x		7.0x - 27.6x		Increase

Credit	$4,192,312	Yield Analysis		Yield		10.5%		3.0% - 23.3%		Decrease
			Net Leverage		6.2x		0.7x -18.5x		Decrease
			EBITDA Multiple		8.9x		5.8x - 14.3x		Increase

Real Assets	$13,577,003
		Inputs to market comparables, discounted cash flow and transaction price		Illiquidity Discount		10.6%		5.0% - 15.0%		Decrease
			Weight Ascribed to Direct Income Capitalization		6.2%		0.0% - 100.0%		(7)
			Weight Ascribed to Discounted Cash Flow		82.4%		0.0% - 100.0%		(5)
			Weight Ascribed to Market Comparables/Other		11.4%		0.0% - 100.0%		(4) (6)
		Market comparables		Enterprise Value/LTM EBITDA Multiple		6.6x		4.3x - 12.7x		Increase
			Enterprise Value/Forward EBITDA Multiple		10.4x		4.3x - 20.4x		Increase
		Direct income capitalization		Current Capitalization Rate		5.4%		3.4% - 7.2%		Decrease
		Discounted cash flow		Exit Capitalization Rate		5.7%		3.1% - 8.8%		Decrease
				Unlevered Discount Rate		7.2%		2.8% - 10.3%		Decrease
				Discount Rate		9.7%		5.9% - 12.7%		Decrease
				Enterprise Value/EBITDA Exit Multiple		16.3x		10.0x - 22.0x		Increase


Other Investments	$5,180,933	(8)	Inputs to market comparables, discounted cash flow and transaction price		Illiquidity Discount		9.0%		5.0% - 15.0%		Decrease
			Weight Ascribed to Market Comparables		32.0%		0.0% - 100.0%		(4)
				Weight Ascribed to Discounted Cash Flow		55.0%		0.0% - 100.0%		(5)
				Weight Ascribed to Transaction Price		13.0%		0.0% - 100.0%		(6)
			Market comparables		Enterprise Value/LTM EBITDA Multiple		11.4x		3.3x - 21.0x		Increase
				Enterprise Value/Forward EBITDA Multiple		10.6x		4.0x - 16.0x		Increase
			Discounted cash flow		Discount Rate		13.2%		3.5% - 43.7%		Decrease
				Enterprise Value/EBITDA Exit Multiple		10.5x		8.3x - 12.5x		Increase

INSURANCE(9)

Corporate Fixed Maturity Securities	$17,185,841		Discounted cash flow		Discount Spread		2.7%		0.3% - 5.2%		Decrease

Structured Securities	$5,132,268		Discounted cash flow		Discount Spread		2.2%		1.4% - 5.2%		Decrease

Mortgage and Other Loan Receivables	$11,154,547		Discounted cash flow		Discount Spread		2.6%		0.6% - 4.5%		Decrease

Real Assets	$8,696,775		Discounted cash flow		Discount Rate		7.2%		6.5% - 8.2%		Decrease
					Terminal Capitalization Rate		5.8%		5.0% - 7.3%		Decrease

Reinsurance Recoverable	$934,105		Present value of expenses paid from the open block plus the cost of capital held in support of the liabilities.		Expense Assumption		$17.3		The average expense assumption is between $8.2 and $78.0 per policy, increased by inflation. The annual inflation rate was increased by		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		9.4%				Decrease
					Cost of Capital		9.5%		3.7% - 13.9%		Increase
			Discounted cash flow		Mortality Rate		5.7%				Increase
				Surrender Rate		2.0%				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. KKR 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)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.

(9)The funds withheld receivable at interest has been excluded from the above table. As discussed in Note 12 – Reinsurance, the funds withheld receivable

at interest is created through funds withheld contracts. The assets supporting these receivables were held in trusts for the benefit of Global Atlantic.

Accordingly, the unobservable inputs utilized in the valuation of the embedded derivative are a component of the invested assets supporting the funds

withheld reinsurance agreements.


Level III Liabilities	Fair Value December 31, 2025		Valuation Methodologies		Unobservable Input(s) (1)		Weighted Average (2)		Range		Impact to Valuation from an Increase in Input (3)

ASSET MANAGEMENT AND STRATEGIC HOLDINGS

Unfunded Revolver Commitments	$93,289		Yield Analysis		Discount Rate		7.6%		0.1% - 14.8%		Decrease

INSURANCE(4)

Policy Liabilities	$1,608,580		Policy liabilities under fair value option:
		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		0.6%		0.4% - 0.7%		Decrease
		Policyholder behavior is also a significant unobservable input, including lapse, surrender and mortality.		Surrender Rate		6.4%		4.2% - 7.9%		Decrease
				Mortality Rate		4.9%		3.5% - 9.1%		Increase
			Market risk benefit:
			Fair value using a non-option and option valuation approach		Instrument-specific Credit Risk (10 and 30 Year)				0.6% / 0.6%		Decrease
			Policyholder behavior is also a significant unobservable input, including lapse, surrender, and mortality.		Mortality Rate		2.6%		0.5% - 28.0%		Decrease
					Surrender Rate		3.7%		0.1% - 36.0%		Decrease

Closed Block Policy Liabilities	$983,855		Present value of expenses paid from the open block plus the cost of capital held in support of the liabilities.		Expense Assumption		$17.3		The average expense assumption is between $8.2 and $78.0 per policy, increased by inflation. The annual inflation rate was increased by		Increase
				Instrument-Specific Credit Risk		0.5%		0.4% - 0.6%		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		9.4%				Decrease
				Cost of Capital		9.5%		3.7% - 13.9%		Increase
		Discounted cash flow		Mortality Rate		5.7%				Increase
				Surrender Rate		2.0%				Increase


Level III Liabilities	Fair Value December 31, 2025		Valuation Methodologies		Unobservable Input(s) (1)		Weighted Average (2)		Range		Impact to Valuation from an Increase in Input (3)
Embedded Derivative – Interest-Sensitive Life Products	$485,025		Policy persistency is a significant unobservable input.		Lapse Rate		3.2%				Decrease
				Mortality Rate		0.9%				Decrease
		Future costs for options used to hedge the contract obligations		Option Budget Assumption		3.5%				Increase
				Instrument-Specific Credit Risk		0.5%		0.4% - 0.6%		Decrease

Embedded Derivative – Annuity Products	$7,355,480		Policyholder behavior is a significant unobservable input, including utilization and lapse.		Utilization:
				Fixed-Indexed Annuity		96.5%				Increase
				Surrender Rate:
				Retail FIA		13.4%				Increase
				Institutional FIA		20.5%				Decrease
				Mortality Rate:
				Retail FIA		2.8%				Decrease
				Institutional FIA		1.7%				Decrease
		Future costs for options used to hedge the contract obligations		Option Budget Assumption:
				Retail FIA		3.1%				Increase
				Institutional FIA		3.9%				Increase
				Instrument-Specific Credit Risk		0.5%		0.4% - 0.6%		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. KKR has

determined that market participants would likely 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 fair value of the embedded derivative component of the funds withheld payable at interest has been excluded from the above table. The investments

supporting the funds withheld payable at interest balance are held in a trust by Global Atlantic. Accordingly, the unobservable inputs utilized in the

valuation of the embedded derivative are a component of the investments supporting the reinsurance cession agreements.

In the table above, certain private equity investments may be valued at cost for a period of time after an acquisition as

the best indicator of fair value. In addition, certain valuations of private equity investments may be entirely or partially

derived by reference to observable valuation measures for a pending or consummated transaction.

The various unobservable inputs used to determine the Level III valuations may have similar or diverging impacts on

valuation. Significant increases and decreases in these inputs in isolation and interrelationships between those inputs could

result in significantly higher or lower fair value measurements as noted in the table above.

Financial Instruments Not Carried At Fair Value

Asset management and strategic holdings financial instruments are primarily measured at fair value on a recurring basis,

except as disclosed in Note 16 "Debt Obligations."

The following tables present carrying amounts and fair values of Global Atlantic’s financial instruments which are not

carried at fair value as of December 31, 2025 and 2024:


		Fair Value Hierarchy
As of December 31, 2025	Carrying Value	Level I	Level II	Level III	Fair Value
($ in thousands)
Financial Assets:
Insurance
Mortgage and Other Loan Receivables	$42,484,070	$—	$—	$41,892,590	$41,892,590
Policy Loans	1,651,870	—	—	1,622,702	1,622,702
FHLB Common Stock and Other Investments	165,117	—	—	165,117	165,117
Funds Withheld Receivables at Interest	2,245,488	—	2,245,488	—	2,245,488
Cash and Cash Equivalents	7,511,273	7,511,273	—	—	7,511,273
Restricted Cash and Cash Equivalents	211,610	211,610	—	—	211,610
Total Financial Assets	$54,269,428	$7,722,883	$2,245,488	$43,680,409	$53,648,780
Financial Liabilities:
Insurance
Policy Liabilities – Policyholder Account Balances	$66,755,852	$—	$53,979,665	$12,388,101	$66,367,766
Funds Withheld Payables at Interest	49,098,598	—	49,098,598	—	49,098,598
Debt Obligations	3,820,407	—	—	3,886,916	3,886,916
Securities Sold Under Agreements to Repurchase	664,249	—	664,249	—	664,249
Total Financial Liabilities	$120,339,106	$—	$103,742,512	$16,275,017	$120,017,529


		Fair Value Hierarchy
As of December 31, 2024	Carrying Value	Level I	Level II	Level III	Fair Value
($ in thousands)
Financial Assets:
Insurance
Mortgage and Other Loan Receivables	$51,139,968	$—	$—	$49,542,913	$49,542,913
Policy Loans	1,622,958	—	—	1,557,776	1,557,776
FHLB Common Stock and Other Investments	166,919	—	—	166,919	166,919
Funds Withheld Receivables at Interest	2,411,971	—	2,411,971	—	2,411,971
Cash and Cash Equivalents	6,343,445	6,343,445	—	—	6,343,445
Restricted Cash and Cash Equivalents	350,512	350,512	—	—	350,512
Total Financial Assets	$62,035,773	$6,693,957	$2,411,971	$51,267,608	$60,373,536
Financial Liabilities:
Insurance
Policy Liabilities – Policyholder Account Balances	$59,880,083	$—	$51,914,709	$7,088,877	$59,003,586
Funds Withheld Payables at Interest	46,759,454	—	46,759,454	—	46,759,454
Debt Obligations	3,713,336	—	—	3,682,060	3,682,060
Securities Sold Under Agreements to Repurchase	261,396	—	261,396	—	261,396
Total Financial Liabilities	$110,614,269	$—	$98,935,559	$10,770,937	$109,706,496

10. FAIR VALUE OPTION

The following table summarizes the financial instruments for which the fair value option has been elected:


	December 31, 2025	December 31, 2024
Assets (1)
Asset Management and Strategic Holdings
Credit	$456,999	$1,323,493
Investments of Consolidated CFEs	30,673,565	27,488,538
Real Assets	163,839	290,053
Private Equity	1,145,721	1,571,476
Other Investments	100,075	124,562
Total Asset Management and Strategic Holdings	$32,540,199	$30,798,122
Insurance
Fixed Maturity Securities	$458,463	$100,162
Mortgage and Other Loan Receivables	11,154,547	1,611,109
Real Assets	730,721	471,498
Other Investments	717,107	47,944
Reinsurance Recoverable	934,105	940,731
Total Insurance	$13,994,943	$3,171,444

Total	$46,535,142	$33,969,566

Liabilities
Asset Management and Strategic Holdings
Debt Obligations of Consolidated CFEs	$30,227,885	$27,150,809
Total Asset Management and Strategic Holdings	$30,227,885	$27,150,809
Insurance
Policy Liabilities	$1,242,659	$1,265,878
Total Insurance	$1,242,659	$1,265,878

Total	$31,470,544	$28,416,687

(1)As of December 31, 2025 and December 31, 2024, the fair value of Equity Method investments was $1.3 billion and $1.8 billion, respectively.

The following table presents the net realized and unrealized gains (losses) on financial instruments for which the fair

value option was elected:


	For the Year Ended December 31, 2025
	Net Realized Gains (Losses)	Net Unrealized Gains (Losses)	Total
Assets (1)
Asset Management and Strategic Holdings
Credit	$(4,190)	$(12,831)	$(17,021)
Investments of Consolidated CFEs	(249,941)	(408,109)	(658,050)
Real Assets	683	20,430	21,113
Private Equity	51,920	(19,228)	32,692
Other Investments	(5,816)	1,086	(4,730)
Total Asset Management and Strategic Holdings	$(207,344)	$(418,652)	$(625,996)
Insurance
Fixed Maturity Securities	$295	$(78,016)	$(77,721)
Mortgage and Other Loan Receivables	16,536	147,809	164,345
Real Assets	1,359	8,787	10,146
Other Investments	(463)	(51,259)	(51,722)
Total Insurance	$17,727	$27,321	$45,048

Total	$(189,617)	$(391,331)	$(580,948)

Liabilities
Asset Management and Strategic Holdings
Debt Obligations of Consolidated CFEs	$(9,661)	$387,876	$378,215
Total Asset Management and Strategic Holdings	$(9,661)	$387,876	$378,215
Insurance
Policy Liabilities	$—	$18,109	$18,109
Total Insurance	$—	$18,109	$18,109

Total	$(9,661)	$405,985	$396,324


	For the Year Ended December 31, 2024
	Net Realized Gains (Losses)	Net Unrealized Gains (Losses)	Total
Assets (1)
Asset Management and Strategic Holdings
Credit	$(30,456)	$5,968	$(24,488)
Investments of Consolidated CFEs	(61,580)	84,799	23,219
Real Assets	(8,865)	(118,631)	(127,496)
Private Equity	56,846	(58,366)	(1,520)
Other Investments	5,155	(3,957)	1,198
Total Asset Management and Strategic Holdings	$(38,900)	$(90,187)	$(129,087)
Insurance
Fixed Maturity Securities	$—	$—	$—
Mortgage and Other Loan Receivables	—	42,778	42,778
Real Assets	15,842	(29,385)	(13,543)
Other Investments	—	(15,119)	(15,119)
Total Insurance	$15,842	$(1,726)	$14,116

Total	$(23,058)	$(91,913)	$(114,971)

Liabilities
Asset Management and Strategic Holdings
Debt Obligations of Consolidated CFEs	$(10,387)	$(58,952)	$(69,339)
Total Asset Management and Strategic Holdings	$(10,387)	$(58,952)	$(69,339)
Insurance
Policy Liabilities	$—	$84,672	$84,672
Total Insurance	$—	$84,672	$84,672

Total	$(10,387)	$25,720	$15,333


	For the Year Ended December 31, 2023
	Net Realized Gains (Losses)	Net Unrealized Gains (Losses)	Total
Assets (1)
Asset Management and Strategic Holdings
Credit	$(68,282)	$48,709	$(19,573)
Investments of Consolidated CFEs	(104,196)	1,019,063	914,867
Real Assets	68,955	(109,996)	(41,041)
Private Equity	72,634	133,973	206,607
Other Investments	65,012	(882)	64,130
Total Asset Management and Strategic Holdings	$34,123	$1,090,867	$1,124,990
Insurance
Mortgage and other loan receivables	$—	$(1,342)	$(1,342)
Real assets	—	(52,291)	(52,291)
Other Investments	—	(13,123)	(13,123)
Total Insurance	$—	$(66,756)	$(66,756)

Total	$34,123	$1,024,111	$1,058,234

Liabilities
Asset Management and Strategic Holdings
Debt Obligations of Consolidated CFEs	$(1,212)	$(1,015,491)	$(1,016,703)
Total Asset Management and Strategic Holdings	$(1,212)	$(1,015,491)	$(1,016,703)
Insurance
Policy liabilities	$—	$62,621	$62,621
Total Insurance	$—	$62,621	$62,621
Total	$(1,212)	$(952,870)	$(954,082)

(1)As of December 31, 2025, December 31, 2024, and December 31, 2023, the net gains (losses) of Equity Method investments were $41.7 million, $(124.4)

million, and $232.1 million.

11. INSURANCE INTANGIBLE ASSETS AND LIABILITIES

The following reflects the reconciliation of the components of insurance intangible assets to the total balance reported in

the consolidated statements of financial condition as of December 31, 2025 and December 31, 2024:


	December 31,	December 31,
	2025	2024
Deferred Acquisition Costs, or "DAC"	$2,366,589	$1,731,076
Value of Business Acquired	1,080,641	1,165,193
Cost-of-Reinsurance Intangibles	2,308,106	2,302,674
Deferred Sales Inducements, or “DSI”	149,892	—
Total Insurance Intangible Assets	$5,905,228	$5,198,943

Deferred Acquisition Costs

The following tables reflect the deferred acquisition costs roll-forward by product category for the years ended

December 31, 2025, 2024, and 2023:


	Year Ended December 31, 2025
	Fixed Rate Annuities	Fixed Indexed Annuities	Interest Sensitive Life	Other	Total
Balance, as of the Beginning of the Period	$463,393	$787,585	$131,143	$348,955	$1,731,076
Capitalizations	152,042	415,457	7,846	388,909	964,254
Amortization Expense	(125,471)	(149,653)	(8,559)	(45,058)	(328,741)
Balance, as of the End of the Period	$489,964	$1,053,389	$130,430	$692,806	$2,366,589


	Year Ended December 31, 2024
	Fixed Rate Annuities	Fixed Indexed Annuities	Interest Sensitive Life	Other	Total
Balance, as of the Beginning of the Period	$373,863	$481,970	$132,079	$166,785	$1,154,697
Capitalizations	197,662	404,165	7,640	202,251	811,718
Amortization Expense	(108,132)	(98,550)	(8,576)	(20,081)	(235,339)
Balance, as of the End of the Period	$463,393	$787,585	$131,143	$348,955	$1,731,076


	Year Ended December 31, 2023
	Fixed Rate Annuities	Fixed Indexed Annuities	Interest Sensitive Life	Other	Total
Balance, as of the Beginning of the Period	$221,679	$367,813	$116,021	$115,457	$820,970
Capitalizations	218,243	175,869	23,592	66,458	484,162
Amortization Expense	(66,059)	(61,712)	(7,534)	(15,130)	(150,435)
Balance, as of the End of the Period	$373,863	$481,970	$132,079	$166,785	$1,154,697

Value of Business Acquired

The following tables reflect the value of business acquired, or “VOBA” asset roll-forward by product category for the

years ended December 31, 2025, 2024, and 2023:


	Year Ended December 31, 2025
	Fixed Rate Annuities	Fixed Indexed Annuities	Interest Sensitive Life	Variable Annuities	Other	Total
Balance, as of the Beginning of the Period	$41,235	$578,162	$249,412	$224,347	$72,037	$1,165,193
Amortization Expense	(3,472)	(42,639)	(12,845)	(19,391)	(6,205)	(84,552)
Balance, as of the End of the Period	$37,763	$535,523	$236,567	$204,956	$65,832	$1,080,641


	Year Ended December 31, 2024
	Fixed Rate Annuities	Fixed Indexed Annuities	Interest Sensitive Life	Variable Annuities	Other	Total
Balance, as of the Beginning of the Period	$44,922	$621,372	$262,942	$245,042	$78,706	$1,252,984
Amortization Expense	(3,687)	(43,210)	(13,530)	(20,695)	(6,669)	(87,791)
Balance, as of the End of the Period	$41,235	$578,162	$249,412	$224,347	$72,037	$1,165,193


	Year Ended December 31, 2023
	Fixed Rate Annuities	Fixed Indexed Annuities	Interest Sensitive Life	Variable Annuities	Other	Total
Balance, as of the Beginning of the Period	$48,762	$663,296	$276,795	$241,778	$85,898	$1,316,529
Amortization Expense	(3,840)	(41,924)	(13,853)	3,264	(7,192)	(63,545)
Balance, as of the End of the Period	$44,922	$621,372	$262,942	$245,042	$78,706	$1,252,984

The following tables reflect the negative value of business acquired, or “negative VOBA” liability roll-forward by product

category for the years ended December 31, 2025, 2024, and 2023:


	Year Ended December 31, 2025
	Fixed Rate Annuities	Fixed Indexed Annuities	Interest Sensitive Life	Variable Annuities	Other	Total
Balance, as of the Beginning of the Period	$44,432	$75,255	$391,816	$85,182	$169,623	$766,308
Amortization Expense	(12,493)	(22,315)	(33,688)	(6,869)	(12,511)	(87,876)
Balance, as of the End of the Period	$31,939	$52,940	$358,128	$78,313	$157,112	$678,432


	Year Ended December 31, 2024
	Fixed Rate Annuities	Fixed Indexed Annuities	Interest Sensitive Life	Variable Annuities	Other	Total
Balance, as of the Beginning of the Period	$65,966	$106,538	$421,213	$91,295	$182,920	$867,932
Amortization Expense	(21,534)	(31,283)	(29,397)	(6,113)	(13,297)	(101,624)
Balance, as of the End of the Period	$44,432	$75,255	$391,816	$85,182	$169,623	$766,308


	Year Ended December 31, 2023
	Fixed Rate Annuities	Fixed Indexed Annuities	Interest Sensitive Life	Variable Annuities	Other	Total
Balance, as of the Beginning of the Period	$98,342	$145,610	$461,592	$99,776	$198,804	$1,004,124
Amortization Expense	(32,376)	(39,072)	(40,379)	(8,481)	(15,884)	(136,192)
Balance, as of the End of the Period	$65,966	$106,538	$421,213	$91,295	$182,920	$867,932

Estimated future amortization of VOBA and Negative VOBA as of December 31, 2025, is as follows:


Years	VOBA	Negative VOBA	Total, net
2026	$79,616	$(71,562)	$8,054
2027	74,438	(60,837)	13,601
2028	69,793	(52,894)	16,899
2029	65,603	(46,871)	18,732
2030	61,687	(41,655)	20,032
Thereafter	729,504	(404,613)	324,891
Total	$1,080,641	$(678,432)	$402,209

Unearned Revenue Reserves and Unearned Front-End Loads

The following tables reflect unearned revenue reserves and unearned front-end loads liability roll-forward by product

category for the years ended December 31, 2025, 2024, and 2023:


	Years Ended December 31,
	2025	2024	2023
	Preneed
Balance, as of the Beginning of the Period	$230,790	$178,053	$118,186
Deferral	69,242	69,303	71,798
Amortized to Income during the Period	(20,822)	(16,566)	(11,931)
Balance, as of the End of the Period	$279,210	$230,790	$178,053

Significant inputs, judgments, assumptions for insurance intangibles and related amortization amounts

Global Atlantic considers surrender rates, mortality rates, and other relevant policy decrements in determining the

expected life of the contract. As a part of Global Atlantic's actual experience update for the years ended December 31, 2025

and 2024, Global Atlantic concluded that there was no material change in relevant inputs, judgments, or assumptions

requiring an update of the amortization rate for insurance intangibles and related amortization amounts.

12**.** REINSURANCE

Global Atlantic maintains a number of reinsurance treaties with third parties whereby Global Atlantic assumes annuity

and life policies on a coinsurance, modified coinsurance or funds withheld basis. Global Atlantic also maintains other

reinsurance treaties including the cession of certain annuity, life and health policies.

The effects of all reinsurance agreements on the consolidated statements of financial condition were as follows:


	December 31, 2025	December 31, 2024
Policy Liabilities:
Direct	$97,358,820	$84,062,566
Assumed	108,199,907	101,142,800
Total Policy Liabilities	205,558,727	185,205,366
Ceded(1)	(47,727,495)	(45,006,124)
Net Policy Liabilities	$157,831,232	$140,199,242

(1)Reported within reinsurance recoverable within the consolidated statements 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 December 31, 2025			As of December 31, 2024
A.M. Best Rating(1)	Reinsurance Recoverable and Funds Withheld Receivable at Interest	Credit Enhancements(2)	Net Reinsurance Credit Exposure(3)	Reinsurance Recoverable and Funds Withheld Receivable at Interest	Credit Enhancements(2)	Net Reinsurance Credit Exposure(3)
A++	$77,376	$—	$77,376	$26,854	$—	$26,854
A+	2,106,064	—	2,106,064	1,731,697	—	1,731,697
A	1,551,142	—	1,551,142	2,143,893	—	2,143,893
A-	3,633,569	3,182,815	450,754	3,926,161	3,477,840	448,321
B++	1,552	—	1,552	600	—	600
B+	—	—	—	—	—	—
B	—	—	—	—	—	—
B-	—	—	—	—	—	—
C++/C+	—	—	—	(231)	—	—
Not Rated or Private Rating(4)	42,977,248	43,639,929	—	39,979,509	40,484,070	—
Total	$50,346,951	$46,822,744	$4,186,888	$47,808,483	$43,961,910	$4,351,365

(1)Ratings are periodically updated (at least annually) as A.M. Best issues new ratings.

(2)Credit enhancements primarily include funds withheld payable at interest.

(3)Includes credit loss allowance of $25.6 million and $16.4 million as of December 31, 2025 and 2024, respectively, held against reinsurance recoverable

and funds withheld receivable at interest.

(4)Includes $43.0 billion and $40.0 billion as of December 31, 2025 and 2024, respectively, associated with cessions to certain sponsored investment vehicles

that participate in qualifying institutional and individual market activities sourced by Global Atlantic.

As of December 31, 2025 and 2024, Global Atlantic had $2.3 billion and $2.5 billion of funds withheld receivable at

interest with six counterparties related to modified coinsurance and funds withheld contracts, respectively. The assets

supporting the funds withheld receivable at interest balance are held in trusts for the benefit of Global Atlantic.

The effects of reinsurance on the consolidated statements of operations were as follows:


	Years Ended December 31,
	2025	2024	2023
Net Premiums:
Direct	$1,822,474	$642,803	$118,535
Assumed	3,370,466	11,915,597	4,138,758
Ceded	(1,795,754)	(4,659,566)	(2,281,618)
Net Premiums	$3,397,186	$7,898,834	$1,975,675


	Years Ended December 31,
	2025	2024	2023
Policy Fees:
Direct	$906,470	$917,684	$912,931
Assumed	1,099,104	1,111,998	442,085
Ceded	(654,760)	(651,996)	(94,767)
Net Policy Fees	$1,350,814	$1,377,686	$1,260,249


	Years Ended December 31,
	2025	2024	2023
Net Policy Benefits and Claims:
Direct	$6,683,552	$4,047,792	$3,406,055
Assumed	8,249,333	15,949,420	5,922,927
Ceded	(4,201,732)	(6,703,930)	(2,966,725)
Net Policy Benefits and Claims	$10,731,153	$13,293,282	$6,362,257

Global Atlantic holds collateral for, and provides collateral to, its reinsurance clients. Global Atlantic held $49.0 billion and

$46.6 billion, respectively, of collateral in the form of funds withheld payable at interest on behalf of its reinsurers as of

December 31, 2025 and 2024. As of both December 31, 2025 and 2024, reinsurers held collateral of $1.1 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 December 31, 2025 and 2024, these trusts held in

excess of the $107.3 billion and $100.2 billion of assets they are required to hold in order to support reserves of $104.1 billion

and $96.9 billion, respectively. Of the cash held in trust, Global Atlantic classified $139.1 million and $185.8 million as

restricted as of December 31, 2025 and 2024, respectively.

13. NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF COMMON

STOCK

For the years ended December 31, 2025, 2024, and 2023 basic and diluted Net Income (Loss) attributable to KKR & Co.

Inc. per share of common stock were calculated as follows:


	Years Ended December 31,
	2025	2024	2023
Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders	$2,251,867	$3,076,245	$3,680,514
(-) Accumulated Series D Mandatory Convertible Preferred Dividend (1)	13,477	—	—
Net Income (Loss) Available to KKR & Co. Inc. Common Stockholders – Basic	$2,238,390	$3,076,245	$3,680,514
(+) Series C Mandatory Convertible Preferred Dividend (if dilutive) (2)	—	—	51,747
(+) Series D Mandatory Convertible Preferred Dividend (if dilutive) (3)	—	—	—
Net Income (Loss) Available to KKR & Co. Inc. Common Stockholders – Diluted	$2,238,390	$3,076,245	$3,732,261


Basic Net Income (Loss) Per Share of Common Stock
Weighted Average Shares of Common Stock Outstanding – Basic	890,342,060	887,021,433	867,496,813
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock – Basic	$2.51	$3.47	$4.24


Diluted Net Income (Loss) Per Share of Common Stock
Weighted Average Shares of Common Stock Outstanding – Basic	890,342,060	887,021,433	867,496,813
Incremental Common Shares:
Assumed vesting of dilutive equity awards (4)	65,414,866	51,883,167	25,294,958
Assumed conversion of Series C Mandatory Convertible Preferred Stock (2)	—	—	18,995,662
Assumed conversion of Series D Mandatory Convertible Preferred Stock (3)	—	—	—
Weighted Average Shares of Common Stock Outstanding – Diluted	955,756,926	938,904,600	911,787,433
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock – Diluted	$2.34	$3.28	$4.09

(1)For the year ended December 31, 2025, Net Income (Loss) Available to KKR & Co. Inc. Common Stockholders - Basic reflects the accumulated undeclared

dividends on Series D Mandatory Convertible Preferred Stock of 13.5 million.

(2)For the year ended December 31, 2023, the impact of Series C Mandatory Convertible Preferred Stock calculated under the if-converted method was

dilutive, and as such (i) shares of common stock (assuming a conversion ratio based on the average volume weighted average price per share of common

stock over each reporting period) were included in the Weighted Average Shares of Common Stock Outstanding - Diluted and (ii) Series C Mandatory

Convertible Preferred dividends were added back to Net Income (Loss) Available to KKR & Co. Inc. Common Stockholders - Diluted.

(3)For the year ended December 31, 2025, the impact of Series D Mandatory Convertible Preferred Stock calculated under the if-converted method was not

dilutive.

(4)For the years ended December 31, 2025, 2024, and 2023, Weighted Average Shares of Common Stock Outstanding – Diluted includes unvested equity

awards, including certain equity awards that have met their market price-based vesting condition but have not satisfied their service-based vesting

condition. Vesting of these equity awards dilute equity holders of KKR Group Partnership, including KKR & Co. Inc. and holders of exchangeable securities

pro rata in accordance with their respective ownership interests in KKR Group Partnership.

Exchangeable Securities

For the years ended December 31, 2025, 2024, and 2023 vested restricted holdings units (as defined in Note 19 "Equity-

Based Compensation") 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 ownership interests in KKR

Group Partnership. See Note 1 "Organization" in our financial statements.


	Years Ended December 31,
	2025	2024	2023
Weighted Average Vested Restricted Holdings Units	9,200,005	6,828,095	3,675,345

Market Condition Awards

KKR also grants restricted stock units and restricted holdings units that are subject to both a service-based vesting

condition and a market price based vesting condition (referred to hereafter as "Market Condition Awards"). As of December

31, 2025, all unvested Market Condition awards have met their market price based vesting condition. These Market Condition

awards remain unvested until their service conditions are satisfied. For the years ended December 31, 2024, and 2023,

19.4 million and 25.7 million, respectively, of unvested equity awards that are subject to market price based 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 based vesting condition was not satisfied. See Note 19 "Equity-Based

Compensation" in our financial statements.

14. OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES

Other Assets consist of the following:


	December 31, 2025	December 31, 2024
Asset Management and Strategic Holdings
Unsettled Investment Sales (1)	$738,343	$293,379
Receivables	253,412	259,644
Due from Broker (2)	127,220	97,524
Deferred Tax Assets, net	82,870	50,627
Interest Receivable	311,293	264,680
Fixed Assets, net (3)	975,498	902,896
Foreign Exchange Contracts and Options (4)	179,920	511,513
Goodwill (5)(6)	519,582	509,561
Intangible Assets (6)(7)	1,614,179	1,457,871
Derivative Assets	9,905	8,444
Prepaid Taxes	256,945	167,751
Prepaid Expenses	92,144	57,629
Operating Lease Right of Use Assets (8)	706,884	701,274
Deferred Financing Costs	17,737	19,594
Other	408,449	231,899
Total Asset Management and Strategic Holdings	$6,294,381	$5,534,286

Insurance
Deferred Tax Assets, net	$2,799,455	$2,788,672
Accrued Investment Income	1,665,064	1,475,704
Goodwill	509,972	509,972
Unsettled Investment Sales(1) and Derivative Collateral Receivables	435,263	141,532
Derivative Assets	306,022	61,351
Premiums and Other Account Receivables	234,114	254,992
Intangible Assets(9)	233,012	343,657
Operating Lease Right of Use Assets (8)	157,113	165,204
Market Risk Benefit Assets	997	2,319
Prepaid Taxes	—	273,197
Other	321,899	276,104
Total Insurance	$6,662,911	$6,292,704

Total Other Assets	$12,957,292	$11,826,990

(1)Primarily includes amounts due from third parties for investments sold for which cash settlement has not yet occurred.

(2)Represents amounts held at clearing brokers resulting from securities transactions.

(3)Net of accumulated depreciation and amortization of $383.1 million and $326.0 million as of December 31, 2025 and December 31, 2024, respectively.

Depreciation and amortization expense of $81.4 million, $71.6 million, and $68.4 million for the years ended December 31, 2025, 2024, and 2023

respectively, are included in General, Administrative and Other in the accompanying consolidated statements of operations. Additionally, KKR’s fixed

assets are predominantly located in the United States.

(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 and Strategic Holdings" in our

financial statements for the net changes in fair value associated with these instruments.

(5)As of December 31, 2025, the carrying value of goodwill is recorded and assessed for impairment at the reporting unit. As of December 31, 2025, there

are approximately $(81.5) million of cumulative foreign currency translation adjustments included in AOCI related to the goodwill recorded as result of the

acquisition of KJRM.

(6)KKR acquired HealthCare Royalty Management, LLC on July 30, 2025, and recognized goodwill of $8.6 million allocated to the Asset Management

segment, intangibles assets of $141.6 million, and noncontrolling interests of $28.3 million.

(7)As of December 31, 2025, there are approximately $(277.8) million of cumulative foreign currency translation adjustments included in AOCI related to the

intangible assets recorded as result of the acquisition of KJRM.

(8)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 $103.2 million, $89.7 million, and $67.8 million for the years ended December 31,

2025, 2024, and 2023 respectively. For Insurance, non-cancelable operating leases consist of leases for office space and land in North America. For the

years ended December 31, 2025, 2024, and 2023 the operating lease cost was $19.0 million, $20.9 million, and $21.9 million, respectively.

(9)The definite life intangible assets are amortized using the straight-line method over the useful life of the assets which is an average of 10.7 years. The

indefinite life intangible assets are not subject to amortization. The amortization expense of definite life intangible assets was $18.8 million, $19.1 million,

and $17.6 million for the years ended December 31, 2025, 2024, and 2023, respectively

Accrued Expenses and Other Liabilities consist of the following:


	December 31, 2025	December 31, 2024
Asset Management and Strategic Holdings
Amounts Payable to Carry Pool (1)	$5,875,527	$4,170,773
Unsettled Investment Purchases (2)	1,805,026	2,081,970
Securities Sold Short (3)	134,669	109,168
Accrued Compensation and Benefits	122,574	130,717
Interest Payable	520,781	467,324
Foreign Exchange Contracts and Options (4)	1,034,543	131,339
Accounts Payable and Accrued Expenses	632,920	425,731
Taxes Payable	83,830	91,398
Uncertain Tax Positions	45,515	42,054
Unfunded Revolver Commitments	93,289	96,848
Operating Lease Liabilities (5)	759,796	722,241
Deferred Tax Liabilities, net	3,060,541	2,840,342
Other Liabilities	179,324	138,598
Total Asset Management and Strategic Holdings	$14,348,335	$11,448,503

Insurance
Unsettled Investment Purchases(2) and Derivative Collateral Liabilities	$926,008	$347,121
Securities Sold Under Agreements to Repurchase	664,249	261,396
Accrued Expenses	662,891	562,226
Derivative Liabilities	436,245	389,187
Operating Lease Liabilities (5)	175,679	185,547
Insurance Operations Balances in Course of Settlement	135,575	190,775
Current Income Tax Payable	71,624	—
Accrued Employee Related Expenses	114,965	107,049
Accounts and Commissions Payable	46,945	31,414
Tax Payable to Former Parent Company	46,318	49,477
Interest Payable	37,448	40,315
Other Tax Related Liabilities	23,748	22,455
Total Insurance	$3,341,695	$2,186,962

Total Accrued Expenses and Other Liabilities	$17,690,030	$13,635,465

(1)Represents the amount of carried interest payable to current and former KKR employees arising from KKR's investment funds and co-investment vehicles

that provide for carried interest.

(2)Primarily includes amounts owed to third parties for investment purchases for which cash settlement has not yet 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 and Strategic Holdings" in our financial statements 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 and Strategic Holdings" in our

financial statements for the net changes in fair value associated with these instruments.

(5)For Asset Management, operating leases for office space have remaining lease terms that range from approximately 1 year to 16 years, some of which

include options to extend the leases from 2 years to 10 years. The weighted average remaining lease terms were 12.7 years and 13.1 years as of

December 31, 2025 and December 31, 2024, respectively. The weighted average discount rates were 3.8% and 3.7% as of December 31, 2025 and

December 31, 2024, respectively. For Insurance, operating leases for office space have remaining lease terms that range from approximately 2 years to 9

years, some of which include options to extend the leases for up to 10 years. The weighted average remaining lease terms were 6.8 years and 7.4 years as

of December 31, 2025 and 2024, respectively. The weighted average discount rates were 4.9% and 4.7% as of December 31, 2025 and 2024, respectively.

The weighted average remaining lease terms for land were 42.0 years and 42.8 years as of December 31, 2025 and 2024, respectively. For Asset

Management and Strategic Holdings and Insurance, non-cash right of use assets obtained in exchange for new operating lease liabilities were $155.2

million, $408.0 million, and $32.5 million for the years ended December 31, 2025, 2024, and 2023, respectively.

15. VARIABLE INTEREST ENTITIES

Consolidated VIEs

KKR consolidates certain VIEs in which it is determined that KKR is the primary beneficiary. The consolidated VIEs are

predominately CLOs 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 fees and

performance income. KKR's investment strategies differ for these VIEs; however, the fundamental risks have similar

characteristics, including loss of invested capital and loss of management fees and performance income. 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 that are formed by Global Atlantic to either (i) hold

investments, including fixed maturity securities, consumer and other loans, renewable energy, transportation and real estate,

or (ii) to conduct certain reinsurance activities with third party commitments.

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 fees and performance income. 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 December 31, 2025, KKR's

commitments to these unconsolidated investment funds were $2.2 billion. KKR generally has not provided any financial

support other than its obligated amount as of December 31, 2025. Additionally, Global Atlantic has unfunded commitments of

$447.1 million as of December 31, 2025.

As of December 31, 2025 and December 31, 2024, 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:


	December 31, 2025	December 31, 2024
Asset Management and Strategic Holdings
Investments	$11,842,627	$9,798,370
Due from (to) Affiliates, net	1,871,408	1,437,525
Maximum Exposure to Loss	$13,714,035	$11,235,895
Insurance
Real Assets	$79,367	$124,910
Other Investments	720,933	664,951
Maximum Exposure to Loss	$800,300	$789,861
Total Maximum Exposure to Loss	$14,514,335	$12,025,756

16**.** DEBT OBLIGATIONS

KKR enters into credit agreements and issues debt for its general operating and investment purposes.

KKR's Asset Management and Strategic Holdings debt obligations consisted of the following:


	December 31, 2025				December 31, 2024
By remaining maturity at period end date	Financing Available	Principal	Carrying Value	Fair Value	Financing Available	Principal	Carrying Value	Fair Value
Revolving Credit Facilities: (1)
Under 1 Year	$750,000	$—	$—	$—	$750,000	$—	$—	$—
1-5 Years	3,491,580	—	—	—	3,468,753	—	—	—
After 5 Years	—	—	—	—	—	—	—	—
Subtotal	4,241,580	—	—	—	4,218,753	—	—	—
KKR USD Senior Notes: (2)(3)(6)(8)
Under 1 Year	—	—	—	—	—	—	—	—
1-5 Years	—	750,000	746,889	734,340	—	750,000	746,000	709,328
After 5 Years	—	5,150,000	5,061,292	4,423,212	—	4,250,000	4,167,548	3,436,331
Subtotal	—	5,900,000	5,808,181	5,157,552	—	5,000,000	4,913,548	4,145,659
KKR Yen Senior Notes: (2)(3)(6)
Under 1 Year(9)	—	—	—	—	—	31,788	31,762	31,766
1-5 Years	—	844,873	842,356	830,188	—	830,314	826,986	823,390
After 5 Years	—	582,605	576,434	511,264	—	591,902	584,999	570,285
Subtotal	—	1,427,478	1,418,790	1,341,452	—	1,454,004	1,443,747	1,425,441
KKR Euro Senior Notes: (2)(3)(6)
Under 1 Year	—	—	—	—	—	—	—	—
1-5 Years	—	763,538	760,278	725,033	—	673,366	669,325	634,836
After 5 Years	—	—	—	—	—	—	—	—
Subtotal	—	763,538	760,278	725,033	—	673,366	669,325	634,836
KKR Subordinated Notes: (2)(3)(7)
Under 1 Year	—	—	—	—	—	—	—	—
1-5 Years	—	—	—	—	—	—	—	—
After 5 Years	—	1,090,000	1,059,366	951,180	—	500,000	487,110	366,200
Subtotal	—	1,090,000	1,059,366	951,180	—	500,000	487,110	366,200
KFN USD Senior Notes: (2)(3)(4)
Under 1 Year	—	—	—	—	—	—	—	—
1-5 Years	—	—	—	—	—	—	—	—
After 5 Years	—	190,000	188,459	194,534	—	690,000	684,730	608,237
Subtotal	—	190,000	188,459	194,534	—	690,000	684,730	608,237
KFN Junior Subordinated Notes:(2)(4)(5)
Under 1 Year	—	—	—	—	—	—	—	—
1-5 Years	—	—	—	—	—	—	—	—
After 5 Years	—	—	—	—	—	258,517	240,136	211,909
Subtotal	—	—	—	—	—	258,517	240,136	211,909
Total KKR & KFN Notes	4,241,580	9,371,016	9,235,074	8,369,751	4,218,753	8,575,887	8,438,596	7,392,282

Other Debt Obligations: (1)(2)(8)	6,356,060	40,612,665	39,882,670	39,860,877	5,628,669	37,697,802	37,495,324	37,409,158

Total	$10,597,640	$49,983,681	$49,117,744	$48,230,628	$9,847,422	$46,273,689	$45,933,920	$44,801,440

(1)Financing available is reduced by the dollar amounts specified in any issued letters of credit.

(2)Carrying value 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.

(3)Interest rates of the notes are fixed and the weighted average interest rates are the following:


	December 31, 2025	December 31, 2024
KKR USD Senior Notes	4.37%	4.23%
KKR Yen Senior Notes	1.69%	1.67%
KKR Euro Senior Notes	1.63%	1.63%
KKR Subordinated Notes	5.84%	4.63%
KFN USD Senior Notes	5.27%	5.44%

(4)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.

(5)As of December 31, 2025, the floating-rate notes were fully repaid. The interest rates on the notes were floating, with a weighted average interest rate of

7.3% and a weighted average maturity of 11.8 years as of December 31, 2024.

(6)The notes are classified as Level II within the fair value hierarchy and fair value is determined by third party broker quotes.

(7)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.

(8)As of December 31, 2025 and December 31, 2024, the principal value, carrying value and fair value reflects the elimination for the portion of applicable

debt obligations that are held by Global Atlantic.

(9)On March 21, 2025, the ¥5.0 billion 0.764% Senior Notes due 2025 matured and the principal and accrued interest were paid in full.

Redemption of KFN 5.500% Senior Notes Due 2032

On August 19, 2025, KKR Financial Holdings LLC, a wholly-owned KKR subsidiary ("KFN"), fully redeemed all of its

$500,000,000 aggregate principal amount outstanding 5.500% Senior Notes due 2032 at a redemption price equal to 100% of

the principal amount thereof plus accrued and unpaid interest thereon, which amounted to approximately $510.6 million.

KKR Issued 5.100% Senior Notes Due 2035

On August 7, 2025, KKR & Co. Inc. completed the offering of $900,000,000 aggregate principal amount of its 5.100%

Senior Notes due 2035 (the “2035 Notes”). The 2035 Notes are guaranteed by KKR Group Partnership L.P. The 2035 Notes

were issued pursuant to an indenture (the “2035 Notes Base Indenture”) dated May 28, 2025 between KKR & Co. Inc. and The

Bank of New York Mellon Trust Company, N.A., as trustee (the “2035 Notes Trustee”), as supplemented by a second

supplemental indenture, dated August 7, 2025 (the “2035 Notes Second Supplemental Indenture” and, together with the

2035 Notes Base Indenture, the “2035 Notes Indenture”), among KKR & Co. Inc., KKR Group Partnership L.P., and the 2035

Notes Trustee.

The 2035 Notes bear interest at a rate of 5.100% per annum and will mature on August 7, 2035 unless earlier redeemed.

Interest on the 2035 Notes accrues from August 7, 2025 and is payable semi-annually in arrears on February 7 and August 7 of

each year, commencing on February 7, 2026 and ending on the maturity date. The 2035 Notes are unsecured and

unsubordinated obligations of KKR & Co. Inc. The 2035 Notes are fully and unconditionally guaranteed, on an unsubordinated

unsecured basis, by KKR Group Partnership L.P.

The 2035 Notes Indenture includes covenants, including limitations on KKR & Co. Inc.’s and KKR Group Partnership L.P.’s

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 2035 Notes

Indenture also provides for events of default and further provides that the 2035 Notes Trustee or the holders of not less than

25% in aggregate principal amount of the outstanding 2035 Notes may declare the 2035 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 2035 Notes and

any accrued and unpaid interest on the 2035 Notes automatically become due and payable. Prior to May 7, 2035, the 2035

Notes may be redeemed at KKR & Co. Inc.’s option in whole or in part, at any time and from time to time, at the make-whole

redemption price set forth in the 2035 Notes. On or after May 7, 2035, the 2035 Notes may be redeemed at KKR & Co. Inc.’s

option in whole or in part, at any time and from time to time, at par plus any accrued and unpaid interest on the 2035 Notes

redeemed to, but not including, the date of redemption. If a change of control repurchase event (as defined in the 2035 Notes

Indenture) occurs, KKR & Co. Inc. must offer to repurchase the 2035 Notes at a repurchase price in cash equal to 101% of the

aggregate principal amount of the 2035 Notes repurchased plus any accrued and unpaid interest on the 2035 Notes

repurchased to, but not including, the date of repurchase.

KKR Issued 6.875% Subordinated Notes Due 2065

On May 28, 2025, KKR & Co. Inc. completed the offering of $590,000,000 aggregate principal amount of its 6.875%

Subordinated Notes due 2065 (the “2065 Notes”), including $40,000,000 principal amount of 2065 Notes issued pursuant to

the partial exercise by the underwriters of the 2065 Notes of their 30-day option to purchase up to an additional $82,500,000

principal amount of 2065 Notes to cover over-allotments. The 2065 Notes are guaranteed by KKR Group Partnership L.P. The

2065 Notes were issued pursuant to an indenture (the “2065 Base Indenture”) dated May 28, 2025, between KKR & Co. Inc.

and The Bank of New York Mellon Trust Company, N.A., as trustee (the “2065 Notes Trustee”), as supplemented by a first

supplemental indenture, dated May 28, 2025, (the “2065 First Supplemental Indenture” and, together with the 2065 Base

Indenture, the “2065 Notes Indenture”), among KKR & Co. Inc., KKR Group Partnership L.P., and the 2065 Notes Trustee.

The 2065 Notes bear interest at a rate of 6.875% per annum and will mature on June 1, 2065 unless earlier redeemed.

Interest on the 2065 Notes accrues from May 28, 2025, and is payable quarterly in arrears on March 1, June 1, September 1,

and December 1 of each year, commencing on September 1, 2025, and ending on the maturity date. The 2065 Notes are

unsecured and subordinated obligations of KKR & Co. Inc. The 2065 Notes are fully and unconditionally guaranteed, on a

subordinated unsecured basis, by KKR Group Partnership L.P.

The 2065 Notes Indenture includes covenants, including limitations on KKR & Co. Inc.’s and KKR Group Partnership L.P.’s

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 2065 Notes

Indenture also provides for events of default and further provides that the 2065 Notes Trustee or the holders of not less than

25% in aggregate principal amount of the outstanding 2065 Notes may declare the 2065 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 2065 Notes and

any accrued and unpaid interest on the 2065 Notes automatically become due and payable. On or after June 1, 2030, the

2065 Notes may be redeemed at KKR & Co. Inc.’s option in whole or in part, at any time and from time to time, at par plus any

accrued and unpaid interest to, but excluding, the date of redemption; provided that if the 2065 Notes are not redeemed in

whole, at least $25 million aggregate principal amount of the 2065 Notes must remain outstanding after giving effect to such

redemption. If a “tax redemption event” (as set forth in the 2065 Notes Indenture) occurs, the 2065 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 2065 Notes may

be redeemed, in whole, but not in part, at any time prior to June 1, 2030, within 90 days of the occurrence of a rating agency

event (as set forth in the 2065 Notes Indenture), at a redemption price equal to 102% of their principal amount plus any

accrued and unpaid interest to, but excluding, the date of redemption.

KCM 364*-Day* Revolving Credit Facility

On April 2, 2025, KKR Capital Markets Holdings L.P. and certain other capital markets subsidiaries (the "KCM Borrowers")

replaced their existing 364-day revolving credit agreement with a new 364-day revolving credit agreement (the "KCM 364-Day

Revolving Credit Facility”) with Mizuho Bank, Ltd., as administrative agent, and one or more lenders party thereto. The KCM

364-Day Revolving Credit Facility replaced the prior 364-day revolving credit facility, dated as of April 4, 2024, between the

KCM Borrowers and the administrative agent, and one or more lenders party to the prior facility, which was terminated

according to its terms on April 2, 2025. The KCM 364-Day Revolving Credit Facility provides for revolving borrowings up to

$750 million, expires on April 1, 2026, and ranks pari passu with the existing $750 million 5-year revolving credit facility

provided by them for KKR's capital markets business (the "KCM Five-Year Revolving Credit Facility"). If a borrowing is made

under the KCM 364-Day Revolving Credit Agreement, the interest rate will vary depending on the type of drawdown

requested. As with the KCM Five-Year Revolving Credit Facility, borrowings under the KCM 364-Day Revolving Credit Facility

may only be used for KKR’s capital markets business. This facility’s only obligors are entities involved in KKR’s capital markets

business, and its liabilities are non-recourse to other parts of KKR’s business. The KCM 364-Day Revolving Credit Facility

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, which are substantially similar to

those found in the KCM Five-Year Revolving Credit Facility. The KCM Borrowers' obligations under the KCM 364-Day Revolving

Credit Facility are secured by certain assets of the KCM Borrowers, including a pledge of equity interests of certain subsidiaries

of the KCM Borrowers.

Other Asset Management and Strategic Holdings Debt Obligations

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 levered investment

vehicles and other entities 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.

As of December 31, 2025, other debt obligations consisted of the following:


	Financing Available	Principal	Carrying Value(1)	Fair Value	Weighted Average Interest Rate	Weighted Average Remaining Maturity in Years
Financing Facilities of Consolidated Funds and Other	$6,356,060	$9,678,441	$9,654,785	$9,632,992	5.2%	5.1
Debt Obligations of Consolidated CFEs	—	30,934,224	30,227,885	30,227,885	(2)	10.6
	$6,356,060	$40,612,665	$39,882,670	$39,860,877

(1)Includes borrowings collateralized by fund investments, fund co-investments, and other assets held by levered investment vehicles of $3.3 billion.

(2)The senior notes of the consolidated CFEs had a weighted average interest rate of 5.1%. 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 December 31, 2025, the fair value of the consolidated

CLO assets was $34.3 billion. This collateral consisted of Cash and Cash Equivalents, Investments, and Other Assets.

Global Atlantic's debt obligations consisted of the following:


	December 31, 2025				December 31, 2024
By Remaining Maturity at Period End Date	Financing Available	Principal	Carrying Value(1)	Fair Value(2)	Financing Available	Principal	Carrying Value(1)	Fair Value(2)
Revolving Credit Facilities:
Under 1 Year	$—	$—	$—	$—	$—	$—	$—	$—
1-5 Years	1,000,000	—	—	—	1,000,000	—	—	—
After 5 Years	—	—	—	—	—	—	—	—
Subtotal	1,000,000	—	—	—	1,000,000	—	—	—
Senior Notes: (4)
Under 1 Year	—	—	—	—	—	—	—	—
1-5 Years	—	500,000	478,361	492,650	—	500,000	459,138	474,250
After 5 Years	—	2,050,000	1,944,982	2,098,205	—	2,050,000	1,854,183	2,040,505
Subtotal	—	2,550,000	2,423,343	2,590,855	—	2,550,000	2,313,321	2,514,755
Subordinated Notes: (4)
Under 1 Year	—	—	—	—	—	—	—	—
1-5 Years	—	—	—	—	—	—	—	—
After 5 Years	—	1,223,741	1,199,664	1,249,395	—	1,350,000	1,329,615	1,353,975
Subtotal	—	1,223,741	1,199,664	1,249,395	—	1,350,000	1,329,615	1,353,975

Debt Obligations of Consolidated Special Purpose Vehicles(3)	142,600	197,400	197,400	197,400	269,600	70,400	70,400	70,394
Total	$1,142,600	$3,971,141	$3,820,407	$4,037,650	$1,269,600	$3,970,400	$3,713,336	$3,939,124

(1)Carrying value of debt as of December 31, 2025 and 2024, includes purchase accounting adjustments of $26.9 million and $34.1 million, respectively, net

debt issuance costs of $(54.2) million and $(57.9) million, respectively, and cumulative fair value loss on hedged debt obligations of $(123.5) million and

$(233.2) million, respectively. The amortization of the purchase accounting adjustments was $7.1 million, $6.1 million, and $3.1 million for the years

ended December 31, 2025, 2024, and 2023, respectively.

(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)These debt obligations primarily include debt obligations of consolidated co-investment vehicles that are not guaranteed by KKR or Global Atlantic.

(4)Interest rates of the notes are fixed and the weighted average interest rates are the following:


	December 31, 2025	December 31, 2024
Senior Notes	5.67%	5.67%
Subordinated Notes	7.54%	6.14%

Tender offer of Global Atlantic 4.70% Subordinated Debentures due 2051

On November 17, 2025, Global Atlantic (Fin) Company ("GA FinCo") commenced an at-par cash tender offer for its then

outstanding $750 million aggregate principal amount of 4.70% subordinated debentures due 2051. Upon close of the tender

offer on November 21, 2025, Global Atlantic accepted $726 million aggregate principal amount of such debentured that had

been offered for purchase.

Issuance of Global Atlantic 7.25% Subordinated Debentures due 2056

On November 26, 2025, GA FinCo issued $600 million aggregate principal amount of 7.25% fixed-to-fixed rate

subordinated debentures maturing on March 1, 2056. The subordinated debentures were issued pursuant to the

Subordinated Indenture, dated as of July 6, 2021, among GA FinCo, as issuer, Global Atlantic Limited (Delaware) (formerly

known as Global Atlantic Financial Limited, "GALD"), as guarantor, and U.S. Bank National Association, as trustee, as

supplemented by the Third Supplemental Indenture, dated as of November 26, 2025.

The subordinated debentures will bear interest (i) from, and including, November 26, 2025 to, but not including, the

initial interest reset date of March 1, 2031 at an annual rate of 7.25% and (ii) from and including March 1, 2031, 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 3.55% provided, that the interest rate during any interest reset period will not reset below 7.25% (which equals the

initial interest rate on the Debentures). Interest on the subordinated debentures is payable semi-annually in arrears on March

1 and September 1 of each year, commencing on March 1, 2026, and on the maturity date.

GA FinCo has the right on one or more occasions to defer the payment of interest on the subordinated debentures due

2056 for up to five consecutive years. During an optional deferral period, interest will continue to accrue at the interest rate

on the subordinated debentures due 2056, compounded semi-annually as of each interest payment date, and certain

restrictions are placed on GA FinCo and GALD including with respect to making payments on any indebtedness or guarantees

ranking on parity with or junior to the subordinated indentures.

GA FinCo may elect to redeem the subordinated debentures due 2056 either in whole at any time or in part from time to

time during the three-month period prior to, and including, March 1, 2031, or after the initial interest reset date, on any

interest payment 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. GA FinCo also has

certain redemption rights related to tax, rating agency and capital events.

Global Atlantic Insurance Operating Company Revolving Credit Facility

On January 16, 2026, subsequent to the end of the period, Global Atlantic Limited (Delaware) and GA FinCo (together, the

“GA Guarantors”) and certain direct and indirect insurance company subsidiaries of the Guarantors (such insurance company

subsidiaries, the “GA OpCo Borrowers”, and together with the Guarantors, the “GA OpCo Credit Parties”) entered into a credit

agreement (the “GA OpCo Credit Agreement”) with Wells Fargo Bank, N.A., as administrative agent (the “GA Administrative

Agent”) and other lenders from time to time party thereto.

The GA OpCo Credit Agreement provides the GA OpCo Borrowers with an unsecured revolving credit facility (the “GA

OpCo Credit Facility”) in an aggregate principal amount of $3.00 billion as of January 16, 2026, with the option to request an

increase in the facility amount of up to an additional $500 million, for an aggregate principal amount of $3.50 billion, subject

to certain conditions, including obtaining new or increased commitments from new or existing lenders. The GA OpCo Credit

Facility is a 364-day facility, scheduled to mature on January 15, 2027, which may from time to time be extended for

additional 364-day periods at the GA OpCo Borrowers’ option, subject to the consent of the applicable lenders, and the GA

OpCo Borrowers may prepay, terminate or reduce the commitments under the GA OpCo Credit Facility at any time without

penalty. Borrowings under the GA OpCo Credit Facility are available for general corporate purposes including working capital.

Interest on borrowings under the GA OpCo Credit Facility will be based on either (i) the term Secured Overnight Financing

Rate (SOFR), plus a margin based on a corporate ratings-based grid ranging from 1.10% to 1.375%, or (ii) an alternate base

rate, plus a margin based on a corporate ratings-based grid ranging from 0.10% to 0.375%.

Certain other terms of the GA OpCo Credit Agreement include: (i) financial covenants that require GALD and certain of its

consolidated subsidiaries not to exceed a specified debt-to-total-capitalization ratio and to satisfy a net worth threshold; (ii)

customary representations, affirmative covenants and certain negative covenants; and (iii) customary events of default, upon

the occurrence of which the lenders will have the ability to accelerate all outstanding loans under the GA OpCo Credit Facility

and terminate the commitments.

Debt Covenants

Borrowings of KKR (including Global Atlantic) contain various debt covenants. These covenants do not, in management's

opinion, materially restrict KKR's operating business or investment strategies as of December 31, 2025. KKR (including Global

Atlantic) was in compliance with such debt covenants in all material respects as of December 31, 2025.



Scheduled principal payments for Asset Management and Strategic Holdings debt obligations as of December 31, 2025 are as follows:
	Revolving Credit Facilities	Notes Issued	Other Debt Obligations	Total
2026	—	—	798,866	798,866
2027	—	232,276	2,395,891	2,628,167
2028	—	285,240	1,016,862	1,302,102
2029	—	1,829,408	276,957	2,106,365
2030	—	11,487	798,103	809,590
Thereafter	—	7,012,605	35,325,986	42,338,591
	$—	$9,371,016	$40,612,665	$49,983,681

Scheduled principal payments for Insurance debt obligations as of December 31, 2025 are as follows:
	Revolving Credit Facilities	Notes Issued	Other Debt Obligations	Total
2026	$—	$—	$—	$—
2027	—	—	197,400	197,400
2028	—	—	—	—
2029	—	500,000	—	500,000
2030	—	—	—	—
Thereafter	—	3,273,741	—	3,273,741
	$—	$3,773,741	$197,400	$3,971,141

17. POLICY LIABILITIES

The following reflects the reconciliation of the components of policy liabilities to the total balance reported in the

consolidated statements of financial condition as of December 31, 2025 and 2024:


	December 31, 2025	December 31, 2024
Policyholders’ Account Balances	$151,484,861	$137,881,796
Liability for Future Policy Benefits	30,646,223	26,795,091
Additional Liability for Annuitization, Death, or Other Insurance Benefits	7,923,814	7,491,915
Market Risk Benefit Liability	1,349,774	1,002,236
Other Policy-Related Liabilities(1)	14,154,055	12,034,328
Total Policy Liabilities	$205,558,727	$185,205,366

(1)Other policy-related liabilities as of December 31, 2025 and 2024 primarily consist of embedded derivatives associated with contractholder deposit funds

($7.8 billion and $6.0 billion, respectively), cost-of-reinsurance liabilities (both $3.1 billion), policy liabilities accounted under a fair value option ($1.1

billion and $1.2 billion, respectively), negative VOBA ($678.4 million and $766.3 million, respectively) and outstanding claims ($355.8 million and $303.8

million, respectively).

Policyholders’ Account Balances

The following reflects the policyholders’ account balances roll-forward for the years ended December 31, 2025 and 2024,

and the policyholders’ account balances weighted average interest rates, net amount at risk, and cash surrender value as of

those dates:


	Year Ended December 31, 2025
	Fixed Rate Annuities	Fixed Indexed Annuities	Interest Sensitive Life	Funding Agreements	Other(1)	Total
Balance as of Beginning of Period	$65,086,617	$33,718,335	$22,175,897	$7,158,103	$9,742,844	$137,881,796
Issuances and Premiums Received	12,001,427	7,200,884	1,115,543	7,709,696	3,154,406	31,181,956
Benefit Payments, Surrenders, and Withdrawals	(10,728,514)	(4,911,507)	(1,638,152)	(3,139,916)	(1,397,950)	(21,816,039)
Interest(2)	2,820,447	1,014,152	723,022	414,953	339,300	5,311,874
Other Activity(3)	(353,307)	(2,602)	(906,028)	102,284	84,927	(1,074,726)
Balance as of End of Period	$68,826,670	$37,019,262	$21,470,282	$12,245,120	$11,923,527	$151,484,861
Less: Reinsurance Recoverable	(12,768,756)	(2,931,199)	(7,299,702)	—	(3,202,519)	(26,202,176)
Balance as of End of Period, Net of Reinsurance Recoverable	$56,057,914	$34,088,063	$14,170,580	$12,245,120	$8,721,008	$125,282,685

Average Interest Rate	4.43%	2.96%	3.29%	4.18%	3.34%	3.82%
Net Amount at Risk, Gross of Reinsurance(4)	$—	$—	$105,007,879	$—	$1,119,018	$106,126,897
Cash Surrender Value(5)	$53,074,220	$38,920,369	$13,637,822	$—	$4,329,190	$109,961,601

(1)“Other” consists of activity related to payout annuities without life contingencies, preneed, variable annuities, and life products.

(2)Interest includes interest credited to policyholders’ account values, and interest accreted in other components of the policyholder account balance,

including investment-type contract values, host amounts for contractholder deposits with embedded derivatives, funding agreements, and other

associated reserves.

(3) “Other activity” includes policy charges, fees and commissions, transfers, assumption changes, fair value changes, and the impact of hedge fair value

adjustments.

(4)Net amount at risk represents the difference between the face value of the insurance policy and the reserve accumulated under that same policy.

(5)Cash surrender values are reported net of any applicable surrender charges, net of reinsurance.


	Year Ended December 31, 2024
	Fixed Rate Annuities	Fixed Indexed Annuities	Interest Sensitive Life	Funding Agreements	Other(1)	Total
Balance as of Beginning of Period	$56,762,736	$30,168,445	$21,969,053	$7,015,998	$9,271,122	$125,187,354
Issuances and Premiums Received	16,453,922	8,097,987	1,991,442	2,372,925	1,611,601	30,527,877
Benefit Payments, Surrenders, and Withdrawals	(10,038,636)	(5,211,414)	(1,453,435)	(2,553,181)	(1,579,574)	(20,836,240)
Interest(2)	2,305,618	773,638	723,201	277,270	343,238	4,422,965
Other Activity(3)	(397,023)	(110,321)	(1,054,364)	45,091	96,457	(1,420,160)
Balance as of End of Period	$65,086,617	$33,718,335	$22,175,897	$7,158,103	$9,742,844	$137,881,796
Less: Reinsurance Recoverable	(11,664,932)	(3,074,278)	(7,504,951)	—	(3,532,472)	(25,776,633)
Balance as of End of Period, Net of Reinsurance Recoverable	$53,421,685	$30,644,057	$14,670,946	$7,158,103	$6,210,372	$112,105,163

Average Interest Rate	4.05%	2.74%	3.29%	4.21%	3.31%	3.56%
Net Amount at Risk, Gross of Reinsurance(4)	$—	$—	$111,882,678	$—	$1,140,998	$113,023,676
Cash Surrender Value(5)	$50,421,300	$33,928,559	$13,974,862	$—	$4,458,881	$102,783,602

(1)“Other” consists of activity related to payout annuities without life contingencies, preneed, variable annuities, and life products.

(2)Interest includes interest credited to policyholders’ account values, and interest accreted in other components of the policyholder account balance,

including investment-type contract values, host amounts for contractholder deposits with embedded derivatives, funding agreements, and other

associated reserves.

(3)“Other activity” includes policy charges, fees and commissions, transfers, assumption changes, fair value changes, and the impact of hedge fair value

adjustments.

(4)Net amount at risk represents the difference between the face value of the insurance policy and the reserve accumulated under that same policy.

(5)Cash surrender values are reported net of any applicable surrender charges, net of reinsurance.

The following table presents the account values by range of guaranteed minimum crediting rates and the related range of

differences, in basis points, between rates being credited to policyholders and the respective guaranteed minimums. Account

values, as disclosed below, differ from policyholder account balances as they exclude balances associated with index credits,

contractholder deposit fund host balances, funding agreements, and other associated reserves. In addition, policyholder

account balances include discounts and premiums on assumed business which are not reflected in account values.


	As of December 31, 2025
	Account Values with Adjustable Crediting Rates Subject to Guaranteed Minimums:
Range of Guaranteed Minimum Crediting Rates:	At Guaranteed Minimum	1 - 49 bps Above Guaranteed Minimum	50 - 99 bps Above Guaranteed Minimum	100 - 150 bps Above Guaranteed Minimum	Greater Than 150 bps Above Guaranteed Minimum	Total
Less Than 1.00%	$2,618,469	$350,774	$374,482	$268,868	$31,782,842	$35,395,435
1.00% - 1.99%	1,204,519	501,431	644,453	1,741,122	13,613,777	17,705,302
2.00% - 2.99%	912,743	28,775	22,015	98,832	5,944,539	7,006,904
3.00% - 4.00%	10,145,728	1,075,097	477,338	1,284,925	3,016,279	15,999,367
Greater Than 4.00%	12,506,347	1,304,767	60,701	6,237	—	13,878,052
Total	$27,387,806	$3,260,844	$1,578,989	$3,399,984	$54,357,437	$89,985,060
Percentage of Total	30%	4%	2%	4%	60%	100%


	As of December 31, 2024
	Account Values with Adjustable Crediting Rates Subject to Guaranteed Minimums:
Range of Guaranteed Minimum Crediting Rates:	At Guaranteed Minimum	1 - 49 bps Above Guaranteed Minimum	50 - 99 bps Above Guaranteed Minimum	100 - 150 bps Above Guaranteed Minimum	Greater Than 150 bps Above Guaranteed Minimum	Total
Less Than 1.00%	$3,479,329	$36,286	$357,440	$740,947	$32,674,542	$37,288,544
1.00% - 1.99%	1,304,845	738,935	805,357	1,867,453	10,903,160	15,619,750
2.00% - 2.99%	769,182	36,663	56,798	697,085	3,671,581	5,231,309
3.00% - 4.00%	10,302,787	1,619,059	474,803	1,253,515	1,478,389	15,128,553
Greater Than 4.00%	11,785,696	1,353,687	76,806	7,020	—	13,223,209
Total	$27,641,839	$3,784,630	$1,771,204	$4,566,020	$48,727,672	$86,491,365
Percentage of Total	32%	4%	2%	5%	57%	100%

Liability for Future Policy Benefits

The following tables summarize the balances of, and changes in, the liability for future policy benefits for traditional and

limited-payment contracts for the years ended December 31, 2025 and 2024:


	Years Ended
	December 31, 2025			December 31, 2024
	Payout Annuities(1)	Other(2)	Total	Payout Annuities(1)	Other(2)	Total
Present Value of Expected Net Premiums
Balance as of Beginning of Period	$—	$(1,399,211)	$(1,399,211)	$—	$(208,370)	$(208,370)

Balance at Original Discount Rate	$—	$(1,444,663)	$(1,444,663)	$—	$(241,058)	$(241,058)
Effect of Changes in Cash Flow Assumptions	—	(45,136)	(45,136)	—	—	—
Effect of Actual Variances from Expected Experience	—	(50,291)	(50,291)	—	(99,920)	(99,920)
Adjusted Beginning of Period Balance	—	(1,540,090)	(1,540,090)	—	(340,978)	(340,978)
Issuances	—	(285,334)	(285,334)	—	(1,276,555)	(1,276,555)
Interest	—	(70,212)	(70,212)	—	(48,966)	(48,966)
Net Premiums Collected	—	311,091	311,091	—	221,836	221,836
Ending Balance at Original Discount Rate	—	(1,584,545)	(1,584,545)	—	(1,444,663)	(1,444,663)
Effect of Changes in Discount Rate Assumptions	—	5,974	5,974	—	45,452	45,452
Balance as of End of Period	$—	$(1,578,571)	$(1,578,571)	$—	$(1,399,211)	$(1,399,211)

Present Value of Expected Future Policy Benefits
Balance as of Beginning of Period	$19,067,478	$9,126,824	$28,194,302	$17,427,353	$604,767	$18,032,120

Balance at Original Discount Rate	$22,116,114	$9,336,911	$31,453,025	$20,040,000	$701,655	$20,741,655
Effect of Changes in Cash Flow Assumptions	(33,743)	131,146	97,403	(28,430)	—	(28,430)
Effect of Actual Variances from Expected Experience	18,212	(11,359)	6,853	18,093	(34,295)	(16,202)
Adjusted Beginning of Period Balance	22,100,583	9,456,698	31,557,281	20,029,663	667,360	20,697,023
Issuances	4,247,357	463,279	4,710,636	3,307,864	9,008,029	12,315,893
Interest	777,931	452,287	1,230,218	644,967	345,231	990,198
Benefit Payments	(1,999,791)	(905,499)	(2,905,290)	(1,866,380)	(683,709)	(2,550,089)
Ending Balance at Original Discount Rate	25,126,080	9,466,765	34,592,845	22,116,114	9,336,911	31,453,025
Effect of Changes in Discount Rate Assumptions	(2,362,730)	(5,321)	(2,368,051)	(3,048,636)	(210,087)	(3,258,723)
Balance as of End of Period	22,763,350	9,461,444	32,224,794	19,067,478	9,126,824	28,194,302
Net Liability for Future Policy Benefits	22,763,350	7,882,873	30,646,223	19,067,478	7,727,613	26,795,091
Less: Reinsurance Recoverable(3)	(10,360,009)	(6,016,258)	(16,376,267)	(9,579,679)	(6,139,016)	(15,718,695)
Net Liability for Future Policy Benefits, Net of Reinsurance Recoverables	$12,403,341	$1,866,615	$14,269,956	$9,487,799	$1,588,597	$11,076,396

(1)Payout annuities generally only have a single premium received at contract inception. As a result, the liability for future policy benefits generally would

not reflect a present value for future premiums for payout annuities.

(2)“Other” consists of activity related to long-term care insurance, variable annuities, traditional life insurance, preneed insurance, and fixed-rate annuity

products. Mortality and morbidity risks associated with the long-term care insurance have been ceded to a third-party reinsurer.

(3)Reinsurance recoverables associated with the liability for future policy benefits is net of the effect of changes in discount rate assumptions of

$384.4 million and $(284.7) million for the years ended December 31, 2025 and 2024, respectively.

The following table summarizes the amount of gross premiums related to traditional and limited-payment contracts

recognized in the consolidated statements of operations for the years ended December 31, 2025, 2024, and 2023:


	Gross Premiums
	Years Ended December 31,
	2025	2024	2023
Payout Annuities	$4,299,908	$3,577,363	$4,143,287
Other	853,196	8,943,328	64,493
Total Products	$5,153,104	$12,520,691	$4,207,780

The following table reflects the weighted-average duration and weighted-average interest rates of the future policy

benefit liability as of December 31, 2025 and 2024:


	As of December 31, 2025
	Payout Annuities	Other
Weighted-Average Interest Rates, Original Discount Rate	4.22%	5.25%
Weighted-Average Interest Rates, Current Discount Rate	5.19%	5.11%
Weighted-Average Liability Duration (Years, Current Rates)	8.30	9.10

	As of December 31, 2024
	Payout Annuities	Other
Weighted-Average Interest Rates, Original Discount Rate	3.81%	4.89%
Weighted-Average Interest Rates, Current Discount Rate	5.44%	5.51%
Weighted-Average Liability Duration (Years, Current Rates)	8.45	9.46

The following reflects the undiscounted ending balance of expected future gross premiums and expected future benefits

and payments for traditional and limited-payment contracts, as of December 31, 2025 and 2024:


	As of December 31, 2025
	Payout Annuities	Other
Expected Future Benefit Payments, Undiscounted	$38,989,687	$16,462,284
Expected Future Benefit Payments, Discounted (Original Discount Rate)	25,126,080	9,466,765
Expected Future Benefit Payments, Discounted (Current Discount Rate)	22,763,350	9,461,444

Expected Future Gross Premiums, Undiscounted	—	2,387,698
Expected Future Gross Premiums, Discounted (Original Discount Rate)	—	1,891,414
Expected Future Gross Premiums, Discounted (Current Discount Rate)	—	1,880,446

	As of December 31, 2024
	Payout Annuities	Other
Expected Future Benefit Payments, Undiscounted	$33,415,451	$16,509,005
Expected Future Benefit Payments, Discounted (Original Discount Rate)	22,116,114	9,336,911
Expected Future Benefit Payments, Discounted (Current Discount Rate)	19,067,478	9,126,824

Expected Future Gross Premiums, Undiscounted	—	2,072,528
Expected Future Gross Premiums, Discounted (Original Discount Rate)	—	1,614,118
Expected Future Gross Premiums, Discounted (Current Discount Rate)	—	1,567,542

Significant Inputs, Judgments, and Assumptions used in Measuring Future Policyholder Benefits

Significant policyholder behavior and other assumption inputs to the calculation of the liability for future policy benefits

include discount rates, mortality and, for life insurance, lapse rates. Global Atlantic reviews its assumptions at least annually,

and more frequently if necessary. Accordingly, as part of the annual assumption review conducted during the years ended

December 31, 2025 and 2024, assumptions were revised for an increase in expected mortality on certain payout annuities and

pension risk transfer products, which resulted in a $97.4 million and $28.4 million increase, respectively, to net income before

taxes.

For the years ended December 31, 2025 and 2024, Global Atlantic recognized $(437.1) million and $238.1 million in other

comprehensive income (loss) (gross of the impact of reinsurance), respectively, due to changes in the future policy benefits

estimate from updating discount rates. During the years ended December 31, 2025 and 2024, there were no changes to the

methods used to determine the discount rates.

Additional Liability for Annuitization, Death, or Other Insurance Benefits

The following tables reflect the additional liability for annuitization, death, or other insurance benefits roll-forward for the

years ended December 31, 2025 and 2024:


	Years Ended December 31,
	2025	2024
Balance as of Beginning of Period	$7,630,210	$7,251,266
Effect of Changes in Cash Flow Assumptions	4,508	(16,361)
Effect of Changes in Experience	(74,002)	(59,717)
Adjusted Balance as of Beginning of Period	7,560,716	7,175,188
Issuances	23,528	23,401
Assessments	698,518	694,061
Benefits Paid	(532,144)	(504,520)
Interest	254,564	242,080
Balance as of End of Period	8,005,182	7,630,210
Less: Impact of Unrealized Investment Gains and Losses	81,368	138,295
Less: Reinsurance Recoverable, End of Period	1,755,064	1,586,281
Balance, End of Period, Net of Reinsurance Recoverable and Impact of Unrealized Investment Gains and Losses	$6,168,750	$5,905,634

The additional liability for annuitization, death, or other insurance benefits relates primarily to secondary guarantees on

certain interest-sensitive life products, and preneed insurance.

The following reflects the amount of gross assessments recognized for the additional liability for annuitization, death, or

other insurance benefits in the consolidated statements of operations for the years ended December 31, 2025, 2024, and

2023:


	Gross Assessments
	Years Ended December 31,
	2025	2024	2023
Total Amount Recognized Within Revenue in the Consolidated Statements of Operations	$701,062	$710,732	$471,957

The following reflects the weighted average duration and weighted average interest rate for the additional liability for

annuitization, death, or other insurance benefits as of December 31, 2025 and 2024:


	As of
	December 31, 2025	December 31, 2024
Weighted-Average Interest, Current Discount Rate	3.30%	3.29%
Weighted-Average Liability Duration (Years)	24.79	26.51

Significant Inputs, Judgments, and Assumptions used in Measuring the Additional Liabilities for Annuitization, Death, or Other

Insurance Benefits

Significant policyholder behavior assumption inputs to the calculation of the additional liability for annuitization, death,

or other insurance benefits include mortality, lapse rates, investment yields and interest margin. Global Atlantic reviews its

assumptions at least annually, and more frequently if necessary. Accordingly, as part of the annual assumption review

conducted during the year ended December 31, 2025, assumptions for higher mortality, lapse rates, and investment yields

were updated, which resulted in a $4.5 million increase to net income before taxes. During the year ended December 31,

2024, assumptions for lapse rates, investment yields, and interest margin were updated, which resulted in a $16.4 million

decrease to net income before taxes.

Market Risk Benefits

The following table presents the balances of, and changes in, market risk benefits:


	Years Ended
	December 31, 2025			December 31, 2024
	Fixed-Indexed Annuity	Variable- and Other Annuities	Total	Fixed-Indexed Annuity	Variable- and Other Annuities	Total
Balance as of Beginning of Period	$815,981	$183,936	$999,917	$868,268	$252,683	$1,120,951

Balance as of Beginning of Period, Before Impact of Changes in Instrument-Specific Credit Risk	$716,544	$150,107	$866,651	$790,615	$225,594	$1,016,209
Issuances	115,129	(1,327)	113,802	59,261	(49)	59,212
Interest	41,047	8,276	49,323	41,965	10,142	52,107
Attributed Fees Collected	123,090	87,078	210,168	104,938	89,462	194,400
Benefit Payments	(8,606)	(8,138)	(16,744)	(7,240)	(7,080)	(14,320)
Effect of Changes in Interest Rates	8,051	20,597	28,648	(177,230)	(79,171)	(256,401)
Effect of Changes in Equity Markets	(46,228)	(52,423)	(98,651)	(18,262)	(69,324)	(87,586)
Effect of Actual Experience Different from Assumptions	11,231	7,778	19,009	49,020	(17,322)	31,698
Effect of Changes in Other Future Expected Assumptions	48,808	(42,817)	5,991	(126,523)	(2,145)	(128,668)
Balance as of End of Period Before Impact of Changes in Instrument-Specific Credit Risk	1,009,066	169,131	1,178,197	716,544	150,107	866,651
Effect of Changes in Instrument-Specific Credit Risk	131,757	38,823	170,580	99,437	33,829	133,266
Balance as of End of Period	1,140,823	207,954	1,348,777	815,981	183,936	999,917
Less: Reinsurance Recoverable as of the End of the Period	—	(10,468)	(10,468)	—	(11,371)	(11,371)
Balance as of End of Period, Net of Reinsurance Recoverable	$1,140,823	$197,486	$1,338,309	$815,981	$172,565	$988,546

Net Amount at Risk	$5,425,310	$1,248,285	$6,673,595	$4,696,606	$1,288,267	$5,984,873
Weighted-average Attained Age of Contract holders (Years)	71	71	71	71	70	71

The following reflects the reconciliation of the market risk benefits reflected in the preceding table to the amounts

reported in an asset and liability position, respectively, in the consolidated statements of financial condition as of

December 31, 2025 and 2024:


	As of December 31, 2025			As of December 31, 2024
	Asset	Liability	Net	Asset	Liability	Net
Fixed-Indexed Annuities	$756	$1,141,579	$(1,140,823)	$2,319	$818,300	$(815,981)
Variable- and Other Annuities	241	208,195	(207,954)	—	183,936	(183,936)
Total	$997	$1,349,774	$(1,348,777)	$2,319	$1,002,236	$(999,917)

Significant Inputs, Judgments, and Assumptions Used in Measuring Market Risk Benefits

Significant policyholder behavior and other assumption inputs to the calculation of the market risk benefits include

interest rates, instrument-specific credit risk, mortality rates, surrender rates, and utilization rates. Global Atlantic reviews its

assumptions at least annually, and more frequently if necessary. Accordingly, as part of the annual assumption review

conducted during the year ended December 31, 2025, assumptions were updated for higher expected morbidity for certain

long-term care related benefit riders, offset in part by an increase in expected fixed-indexed annuity activations, which

resulted in a $6.0 million decrease to net income before taxes. During the year ended December 31, 2024, assumptions for

fixed-indexed annuities mortality, surrenders, and utilization, and variable annuity activations were updated, which resulted

in a $128.7 million increase to net income before taxes.

Separate Account Liabilities

Separate account assets and liabilities consist of investment accounts established and maintained by Global Atlantic for

certain variable annuity and interest-sensitive life insurance contracts. Some of these contracts include minimum guarantees

such as GMDBs and GMWBs that guarantee a minimum payment to the policyholder.

The assets that support these variable annuity and interest-sensitive life insurance contracts are measured at fair value

and are reported as separate account assets on the consolidated statements of financial condition. An equivalent amount is

reported as separate account liabilities. Market risk benefit assets and liabilities for minimum guarantees are valued and

presented separately from separate account assets and separate account liabilities. For more information on market risk

benefits see “—Market risk benefits” in this footnote. Policy charges assessed against the policyholders for mortality,

administration and other services are included in “Policy fees” in the consolidated statements of operations.

The following table presents the balances of and changes in separate account liabilities:


	Years Ended
	December 31, 2025			December 31, 2024
	Variable Annuities	Interest-Sensitive Life	Total	Variable Annuities	Interest-Sensitive Life	Total
Balance as of Beginning of Period	$3,400,617	$580,443	$3,981,060	$3,565,029	$541,971	$4,107,000
Premiums and Deposits	20,772	11,653	32,425	25,846	13,014	38,860
Surrenders, Withdrawals and Benefit Payments	(484,611)	(17,974)	(502,585)	(551,657)	(25,219)	(576,876)
Investment Performance	382,226	92,422	474,648	474,335	94,489	568,824
Other	(104,506)	(39,639)	(144,145)	(112,936)	(43,812)	(156,748)
Balance as of End of Period	$3,214,498	$626,905	$3,841,403	$3,400,617	$580,443	$3,981,060

Cash Surrender Value as of End of Period(1)	$3,214,498	$626,905	$3,841,403	$3,400,617	$580,443	$3,981,060

(1)Cash surrender value attributed to the separate accounts does not reflect the impact of surrender charges; surrender charges are attributed to

policyholder account balances recorded in the general account.

The following table presents the aggregate fair value of assets, by major investment asset type, supporting separate

accounts:


	December 31, 2025	December 31, 2024
Asset Type:
Managed Volatility Equity/Fixed Income Blended Fund	$1,757,775	$1,930,973
Equity	1,742,429	1,685,944
Fixed Income	140,134	146,475
Money Market	201,027	217,086
Alternative	38	582
Total Assets Supporting Separate Account Liabilities	$3,841,403	$3,981,060

Closed Blocks

Summarized financial information of Global Atlantic’s closed blocks is as follows:


	December 31, 2025	December 31, 2024
Assets
Total Investments	$1,335	$1,361
Cash and Cash Equivalents	6,155	9,062
Accrued Investment Income	44	46
Reinsurance Recoverable	934,105	940,732
Deferred Income Taxes	53,693	50,321
Total Assets	995,332	1,001,522
Liabilities
Policy Liabilities	897,203	899,732
Policyholder Dividend Obligation at Fair Value	74,516	76,297
Policyholder Dividends Payable at Fair Value	9,353	9,578
Total Policy Liabilities	981,072	985,607
Accrued Expenses and Other Liabilities	12,073	13,639
Total Liabilities	993,145	999,246
Excess of Closed Block Liabilities Over Assets Designated to the Closed Blocks and Maximum Future Earnings to be Recognized from Closed Block Assets and Liabilities	$(2,187)	$(2,276)


	Years Ended
	December 31, 2025	December 31, 2024	December 31, 2023
Revenues
Premiums and Other Income	$98	$1,449	$(911)
Net Investment Expense	290	332	319
Total Revenues	388	1,781	(592)
Benefits and Expenses
Policy Benefits and Claims	2,001	(929)	(2,219)
Other Expenses	(189)	44	(13)
Total Benefits and Expenses	1,812	(885)	(2,232)
Net Contribution from the Closed Blocks	(1,424)	2,666	1,640
Income Tax (Benefit) Expense	(3,339)	(7,367)	861
Net Income (Loss)	$1,915	$10,033	$779

Many expenses related to the closed block operations are charged to operations outside the closed blocks; accordingly,

the contribution from the closed blocks does not represent the actual profitability of the closed block operations.

The closed blocks of business represent policies acquired through acquisition, which were valued at fair value as of the

acquisition date.

18. 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 corporate 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 subsidiaries of Global Atlantic, are domestic

corporations for U.S. federal income tax purposes and are subject to U.S. federal, state, and local income taxes.

Income (loss) before income taxes includes the following components:


	For the Years Ended December 31,
	2025	2024	2023
Income (Loss) before Income Taxes:
United States	$6,474,872	$5,087,745	$5,614,242
Foreign	624,288	772,688	940,367
Total Income (Loss) before Income Taxes	$7,099,160	$5,860,433	$6,554,609

The provision (benefit) for income taxes consists of the following:


	For the Years Ended December 31,
	2025	2024	2023
Current
Federal	$1,109,978	$363,242	$462,940
State and Local	164,258	93,925	52,480
Foreign	204,460	188,837	108,836
Subtotal	1,478,696	646,004	624,256
Deferred
Federal	(554,175)	249,601	447,488
State and Local	41,170	62,538	121,198
Foreign	(11,943)	(3,747)	4,581
Subtotal	(524,948)	308,392	573,267
Total Income Taxes	$953,748	$954,396	$1,197,523

The following table reconciles the U.S. Federal Statutory Tax Rate to the Effective Income Tax Rate under the ASU

2023-09 guidance on income tax disclosures issued in December 2023 for the year ended December 31, 2025:


	Year Ended December 31, 2025
	Amount	Rate (%)
Statutory U.S. Federal Income Tax Rate	$1,490,824	21.0%
State and Local Income Tax, net of federal income tax effect (1)	170,290	2.4%
Foreign Tax Effects
Bermuda
Tax rate differential	5,698	0.1%
Foreign tax credits	(71,329)	(1.0)%
Other foreign jurisdictions	45,285	0.6%
Effect of Changes in Tax Law or Rates (Current)	—	—%
Effect of Cross-Border Tax Laws
US tax on foreign insurance company	88,980	1.3%
Other	(8,997)	(0.1)%
Tax Credits	(4,845)	(0.1)%
Change in Valuation Allowances	4,576	—%
Nontaxable or Nondeductible Items
Income not attributable to KKR & Co. Inc.	(773,246)	(10.9)%
Compensation charges borne by KKR Holdings	73,747	1.0%
Other	(65,598)	(0.9)%
Changes in Unrecognized Tax Benefits	(619)	—%
Other Adjustments	(1,018)	—%
Effective Income Tax	$953,748	13.4%

(1)State and local income taxes in California and New York comprise a majority of the state and local income taxes, net of federal income tax effect category.

The following table reconciles the U.S. Federal Statutory Tax Rate to the Effective Income Tax Rate for the years ended

December 31, 2024 and 2023:


	December 31, 2024	December 31, 2023
Statutory U.S. Federal Income Tax Rate	21.0%	21.0%
Income not attributable to KKR & Co. Inc. (1)	(15.5)%	(8.8)%
Foreign Income Taxes	—%	(0.3)%
State and Local Income Taxes	2.2%	2.2%
Compensation Charges not attributable to KKR & Co. Inc.	10.1%	4.9%
Change in Valuation Allowance	(1.1)%	—%
Non-Deductible Expenses	1.1%	—%
Other	(1.5)%	(0.7)%
Effective Income Tax Rate	16.3%	18.3%

(1)Represents primarily income attributable to noncontrolling interests for all periods.

A summary of the tax effects of the temporary differences is as follows:


Asset Management and Strategic Holdings	December 31, 2025	December 31, 2024
Deferred Tax Assets
Fund Management Fee Credits	$127,591	$127,006
Equity Based Compensation	37,246	96,476
KKR Holdings Unit Exchanges (1)	366,250	387,836
Depreciation and Amortization	102,419	140,088
Operating Lease Liability	176,828	179,640
Other	41,536	8,248
Total Deferred Tax Assets before Valuation Allowance	851,870	939,294
Valuation Allowance	(24,130)	—
Total Deferred Tax Assets	827,740	939,294
Deferred Tax Liabilities
Investment Basis Differences / Net Unrealized Gains & Losses	3,082,831	3,030,794
Indefinite Lived Intangible Asset(2)	454,284	444,123
Operating Lease Right-of-Use Asset	176,818	179,640
Other	91,478	74,452
Total Deferred Tax Liabilities	3,805,411	3,729,009
Total Deferred Taxes, Net	$(2,977,671)	$(2,789,715)

(1)In connection with exchanges of KKR Holdings equity into common stock of KKR & Co. Inc., KKR records a deferred tax asset associated with an increase in

KKR & Co. Inc.'s share of the tax basis of the tangible and intangible assets of KKR Group Partnership. This amount is offset by an adjustment to record

amounts due to KKR Holdings and principals under the tax receivable agreement, which is included within Due to Affiliates in the consolidated statements

of financial condition. The net impact of these adjustments was recorded as an adjustment to equity at the time of the exchanges.

(2)In connection with the acquisition of KJRM in 2022, KKR recognized a deferred tax liability resulting from the difference in the book and tax basis of the

indefinite lived intangibles.


Insurance	December 31, 2025	December 31, 2024
Deferred Tax Assets
Insurance Reserves	$1,172,164	$675,090
Insurance Intangibles	421,016	461,211
Net Operating Loss and Capital Loss Carryforwards	1,166,358	813,382
Insurance Investment Basis Differences, Including Derivatives	235,583	819,881
Other	—	84,006
Total Deferred Tax Assets before Valuation Allowance	2,995,121	2,853,570
Valuation Allowance	(42,631)	(36,933)
Total Deferred Tax Assets	2,952,490	2,816,637
Deferred Tax Liabilities
Insurance Loss Reserve Adjustment	—	27,965
Other	153,035	—
Total Deferred Tax Liabilities	153,035	27,965
Total Deferred Taxes, Net	$2,799,455	$2,788,672

Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income

will be generated to permit use of the existing deferred tax assets. As of December 31, 2025, a valuation allowance of

$24.1 million has been recorded against certain state deferred tax assets primarily due to tax credit carryforwards that are

expected to expire unutilized.

In 2022, changes in market conditions, including rapidly rising interest rates, impacted the unrealized tax gains and losses

in the available for sale securities portfolios of Global Atlantic, resulting in deferred tax assets related to net unrealized tax

capital losses for which the carryforward period has not yet begun. As such, when assessing recoverability, Global Atlantic

considered our ability and intent to hold the underlying securities to recovery. Based on all available evidence, Global Atlantic

concluded that a valuation allowance should be established on a portion of the US deferred tax assets related to unrealized

tax capital losses that are not more-likely-than-not to be realized, which represents the portion of the portfolio Global Atlantic

estimates it would not be able to hold to recovery. In 2024, Global Atlantic concluded that it had the ability to utilize realized

capital loss carryforwards prior to their expiration, and to recover its unrealized losses in the available for sale securities

portfolio. As a result, Global Atlantic concluded that it was more likely than not that the related US deferred tax assets would

be wholly realizable, and consequently released the previously recorded valuation allowance recorded against its deferred

income tax assets. Therefore, the valuation allowance of $89 million was released through the income tax expense line of the

statement of operations as of December 31, 2024. As of December 31, 2025, there is no valuation allowance on realized or

unrealized capital losses, as management concluded that realization is more likely than not. Certain Global Atlantic in scope

entities have a full valuation allowance of $4.6 million on its net deferred tax assets, as realization is not more likely than not.

On December 27, 2023, the Government of Bermuda enacted the Bermuda Corporate Income Tax ("Bermuda CIT").

Commencing on January 1, 2025, the Bermuda CIT generally will impose a 15% corporate income tax on in-scope entities that

are residents in Bermuda or have a Bermuda permanent establishment. On January 2, 2024, Global Atlantic became subject to

Bermuda CIT and resulted in the establishment of a $22.1 million deferred tax asset, primarily on available-for-sale securities,

which was offset by a full valuation allowance. As of December 31, 2025, deferred tax assets associated with Bermuda CIT on

Global Atlantic and certain in-scope entities was $38.1 million. Global Atlantic does not believe those deferred tax assets will

more likely than not be realized and therefore maintains a full valuation allowance.

As of December 31, 2025, KKR has state tax credit carryforwards of $24.1 million that will begin to expire in 2031. As of

December 31, 2025, the Global Atlantic and certain in-scope entities have U.S. federal net operating loss ("NOL")

carryforwards totaling $3.3 billion; $56.3 million will begin to expire in 2034 and the remainder has an indefinite life. Global

Atlantic also has capital loss carryforwards of $1.8 billion which will begin to expire in 2027.

As of December 31, 2025, KKR has accumulated undistributed earnings generated by certain foreign subsidiaries for

which we have not recorded any deferred taxes with respect to outside U.S. federal income tax basis difference on these

subsidiaries because of our ability and intent to reinvest such earnings indefinitely unless they can be distributed tax free. KKR

will continue to evaluate its capital management plans. It is not practicable for us to determine the amount of unrecognized

deferred income tax liability due to the complexity associated with the hypothetical calculation.

On December 20, 2021, the OECD released Pillar Two Model Rules, which contemplate a global 15% minimum tax rate. In

January 2026, the OECD released a “side-by-side” administrative guidance package under Pillar Two, agreed to by 145

jurisdictions, which introduces simplification measures and additional safe harbors intended to reduce compliance burdens

and further align the global minimum tax framework. The package includes a simplified effective tax rate safe harbor,

extensions of transitional relief, a new substance-based tax incentive safe harbor, and a side-by-side system for reporting in

various countries in which we do business. For the year ended December 31, 2025, KKR concluded there was no material

impact on income taxes with respect to Pillar Two. KKR will continue to evaluate the potential future impacts of Pillar Two and

will continue to review the issuance of this guidance.

For the year ended December 31, 2025, cash payments of income taxes, net of refunds, were as follows:


	For the Year Ended
	December 31, 2025
Federal	$841,229
State	155,596
Foreign
United Kingdom	105,296
Other	107,095
Total Payments, net of refunds	$1,209,216

Tax Contingencies

KKR files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of

business, KKR is subject to examination by U.S. federal and certain state, local and foreign tax regulators. As of December 31,

2025, tax returns of KKR and its predecessor entities are no longer subject to examinations for years before 2018 for U.S.

federal tax returns and 2014 for state and local tax returns under general statute of limitations provisions.

For the years ended December 31, 2025, 2024, and 2023, KKR's unrecognized tax benefits relating to uncertain tax

positions, excluding related interest and penalties, consisted of the following:


	For the Years Ended December 31,
	2025	2024	2023
Unrecognized Tax Benefits, beginning of period	$32,830	$16,476	$41,008
Gross increases in tax positions in prior periods	—	10,677	—
Gross decreases in tax positions in prior periods	(577)	—	(13,878)
Gross increases in tax positions in current period	7,362	5,927	935
Lapse of statute of limitations	—	(250)	(219)
Settlements with taxing authorities	(7,027)	—	(11,370)
Unrecognized Tax Benefits, end of period	$32,588	$32,830	$16,476

If the above tax benefits were recognized, the effective income tax rate would be reduced. KKR recognizes interest and

penalties accrued related to unrecognized tax benefits as income tax expense. Related to the unrecognized tax benefits, KKR

had a net increase of accrued penalties of $0.3 million and interest of $1.6 million during 2025 and in total, as of December

31, 2025, recognized a liability for penalties of $2.6 million and interest of $8.5 million. During 2024, penalties increased by

$0.4 million and interest increased by $1.8 million and in total, as of December 31, 2024, recognized a liability for penalties of

$2.3 million and interest of $6.9 million. During 2023, penalties decreased by $1.3 million and interest decreased by

$6.7 million and in total, as of December 31, 2023, recognized a liability for penalties of $2.0 million and interest of

$5.1 million.

19**.** EQUITY-BASED COMPENSATION

The following table summarizes the expense associated with equity-based compensation in connection with KKR equity

incentive awards for the years ended December 31, 2025, 2024, and 2023, respectively.


	For the Years Ended December 31,
	2025	2024	2023
Asset Management(1)	$621,974	$611,644	$502,816
Insurance	100,135	134,799	115,653
Total	$722,109	$746,443	$618,469

(1)For the year ended December 31, 2025, KKR recorded acquisition-related stock consideration of $5.1 million.

KKR Equity Incentive Awards

Under KKR's equity incentive plan, KKR is permitted to grant equity awards representing ownership interests in

KKR & Co. Inc. common stock. On March 29, 2019, the Amended and Restated KKR & Co. Inc. 2019 Equity Incentive Plan (the

"2019 Equity Incentive Plan") became effective. Following the effectiveness of the 2019 Equity Incentive Plan, KKR no longer

makes further grants under the Amended and Restated KKR & Co. Inc. 2010 Equity Incentive Plan, and the 2019 Equity

Incentive Plan became KKR's only plan for providing new equity awards by KKR & Co. Inc. 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. As of December 31, 2025, 53,140,914

shares may be issued under the 2019 Equity Incentive Plan. KKR has also issued equity grants in the form of restricted

holdings units through KKR Holdings III L.P. ("KKR Holdings III"), which are not issued under the 2019 Equity Incentive Plan and

are currently held by certain current and former KKR employees. Equity awards granted generally consist of (i) restricted stock

units that convert into shares of common stock of KKR & Co. Inc. (or cash equivalent) upon vesting and (ii) restricted holdings

units that are exchangeable into shares of common stock of KKR & Co. Inc. upon vesting and certain other conditions,

including those described below.

Service-Vesting Awards

KKR grants restricted stock units and restricted holdings units that are subject to service-based vesting, typically over a

three to five-year period from the date of grant (referred to hereafter as "Service-Vesting Awards"). In certain cases, these

Service-Vesting Awards may have a percentage of the award that vests immediately upon grant, and certain Service-Vesting

Awards may have vesting periods longer than five years. Additionally, some but not all Service-Vesting Awards are subject to

transfer restrictions and/or minimum retained ownership requirements. Generally, the transfer restriction period, if

applicable, lasts for (i) one year with respect to one-half of the awards vesting on any vesting date and (ii) two years with

respect to the other one-half of the awards vesting on such vesting date. While providing services to KKR, some but not all of

these awards are also subject to minimum retained ownership rules requiring the award recipient to continuously hold shares

of common stock equivalents equal to at least 15% of their cumulatively vested awards that have or had the minimum

retained ownership requirement. Holders of the Service-Vesting Awards do not participate in dividends until such awards

have met their vesting requirements.

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 December 31, 2025, there was approximately $775 million of total estimated unrecognized expense related to

unvested Service-Vesting Awards, which is expected to be recognized over the weighted average remaining requisite service

period of 2.4 years.

A summary of the status of unvested Service-Vesting Awards from January 1, 2025 through December 31, 2025 is

presented below:


	Shares	Weighted Average Grant Date Fair Value
Balance, January 1, 2025	21,105,890	$64.65
Granted	2,413,187	112.30
Vested	(6,396,381)	59.60
Forfeitures	(978,911)	73.31
Balance, December 31, 2025	16,143,785	$73.25

Market Condition Awards

KKR also grants restricted stock units and restricted holdings units that are subject to both a service-based vesting

condition and a market price based vesting condition. The following is a discussion of the Market Condition Awards, excluding

the Co-CEO Awards (as defined and discussed below).

The number of Market Condition Awards (other than the Co-CEO awards) that will vest depend upon (i) the market price

of KKR common stock reaching certain price targets that range from $45.00 to $140.00 and (ii) the employee being employed

by KKR on a certain date, which typically ranges from five to six years from the date of grant (with exceptions for involuntary

termination without cause, death and permanent disability). The market price vesting condition is met when the average

closing price of KKR common stock during 20 consecutive trading days meets or exceeds the stock price targets. Holders of the

Market Condition Awards do not participate in dividends until such awards have met both their service-based and market

price based vesting requirements. Additionally, these awards are subject to additional transfer restrictions and minimum

retained ownership requirements after vesting.

Due to the existence of the service requirement, the vesting period for these Market Condition Awards (other than the

Co-CEO awards) is explicit, and as such, compensation expense will be recognized on (i) a straight-line basis over the period

from the date of grant through the date the award recipient is required to be employed by KKR and (ii) assumes a forfeiture

rate of up to 7% 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 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 and the significant

assumptions used to estimate the grant date fair value of these Market Condition Awards:


	Weighted Average	Range
Grant Date Fair Value	$30.62	$19.87 - $79.94
Closing KKR share price as of valuation date	$51.74	$37.93 - $98.62
Risk Free Rate	2.21%	0.41% - 4.41%
Volatility	30.04%	28.00% - 38.00%
Dividend Yield	1.27%	0.71% - 1.53%
Expected Cost of Equity	10.74%	9.13% - 11.80%

As of December 31, 2025, there was approximately $358 million of total estimated unrecognized expense related to these

unvested Market Condition Awards, which is expected to be recognized over the weighted average remaining requisite

service period of 1.6 years.

A summary of the status of unvested Market Condition Awards from January 1, 2025 through December 31, 2025 is

presented below:


	Shares	Weighted Average Grant Date Fair Value
Balance, January 1, 2025	38,019,023	$31.33
Granted	—	—
Vested	(65,467)	44.84
Forfeitures	(628,295)	46.26
Balance, December 31, 2025	37,325,261	$31.05

As of December 31, 2025, all of the Market Condition awards have met their market price based vesting condition. These

Market Condition awards remain unvested until their service conditions (as described above) are satisfied.

Co-CEO Awards

On December 9, 2021, the Board of Directors approved grants of 7.5 million restricted holdings units to each of KKR’s Co-

Chief Executive Officers that are subject to both a service-based vesting condition and a market price based vesting condition

(referred to hereafter as "Co-CEOs Awards"). For both Co-Chief Executive Officers, 20% of the Co-CEOs Awards are eligible to

vest at each of the following KKR common stock prices targets: $95.80, $105.80, $115.80, $125.80 and $135.80. The market

price based vesting condition is met when the average closing price of KKR common stock during 20 consecutive trading days

meets or exceeds the stock price targets. In addition to the market price based vesting conditions, in order for the award to

vest, the Co-Chief Executive Officer is required to be employed by KKR on December 31, 2026 (with exceptions for involuntary

termination without cause, death and permanent disability).

These awards will be automatically canceled and forfeited upon the earlier of a Co-Chief Executive Officer’s termination

of service (except for involuntary termination without cause, death or permanent disability) or the failure to meet the market

price based vesting condition by December 31, 2028 (for which continued service is required if the market price vesting

condition is met after December 31, 2026). Co-CEO Awards do not participate in dividends until such awards have met both

their service-based and market price based vesting requirements. Additionally, these awards are subject to additional transfer

restrictions and minimum retained ownership requirements after vesting.

Due to the existence of the service requirement, the vesting period for these Co-CEO 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 December

31, 2026 given the derived service period is less than the explicit service period. 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 these Co-CEO Awards

will not participate in dividends 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 and the significant

assumptions used to estimate the grant date fair value of these Co-CEO Awards:


Grant Date Fair Value	$48.91
Closing KKR share price as of valuation date	$75.76
Risk Free Rate	1.42%
Volatility	28.0%
Dividend Yield	0.77%
Expected Cost of Equity	9.36%

As of December 31, 2025, there was approximately $145 million of total estimated unrecognized expense related to these

unvested Co-CEO Awards, which is expected to be recognized ratably from January 1, 2026 to December 31, 2026. As of

December 31, 2025, all Co-CEO Awards have met their market price based vesting condition. The Co-CEO Awards remain

unvested until their service conditions (as described above) are satisfied.

20. RELATED PARTY TRANSACTIONS

Due from Affiliates consists of:


	December 31, 2025	December 31, 2024
Amounts Due From Unconsolidated Investment Funds	$1,954,509	$1,583,090
Amounts Due From Portfolio Companies	353,192	272,955
Due From Affiliates	$2,307,701	$1,856,045

Due to Affiliates consists of:


	December 31, 2025	December 31, 2024
Amounts Due to Current and Former Employees Under the Tax Receivable Agreement	$359,261	$378,951
Amounts Due to Unconsolidated Investment Funds	83,101	145,565
Due to Affiliates	$442,362	$524,516

Tax Receivable Agreement

KKR Group Co. Inc. (formerly KKR & Co. Inc.) and KKR Holdings were parties to a tax receivable agreement, which required

KKR to pay to KKR Holdings or to its limited partners a portion of any cash tax savings realized by KKR resulting from their

exchange of KKR Group Partnership Units for shares of common stock. In connection with the Reorganization Mergers, KKR

Holdings and KKR terminated the tax receivable agreement on May 30, 2022; provided that, notwithstanding such

termination of the tax receivable agreement, all obligations of KKR to make payments arising under the tax receivable

agreement with respect to any exchanges completed prior to May 30, 2022 remain outstanding until fully paid.

Prior to the Reorganization Mergers, KKR was required to acquire KKR Group Partnership Units from time to time

pursuant to the exchange agreement with KKR Holdings. The KKR Group Partnership made an election under Section 754 of

the Code that was effective for each taxable year in which an exchange of KKR Group Partnership Units for shares of common

stock occurred, which may have resulted in an increase in KKR's tax basis of the assets of KKR Group Partnership at the time of

an exchange of KKR Group Partnership Units. Certain of these exchanges were expected to result in an increase in KKR's share

of the tax basis of the tangible and intangible assets of the KKR Group Partnership, primarily attributable to a portion of the

goodwill inherent in KKR's business that would not otherwise have been available. This increase in tax basis may have

increased depreciation and amortization deductions for tax purposes and therefore reduced the amount of income tax KKR

otherwise would be required to pay. This increase in tax basis may have also decreased gain (or increased loss) on future

dispositions of certain capital assets to the extent tax basis is allocated to those capital assets.

The tax receivable agreement required KKR to pay to KKR Holdings, or to current and former principals who exchanged

KKR Holdings equity for shares of common stock (as transferees of KKR Group Partnership Units), 85% of the amount of cash

savings, if any, in U.S. federal, state and local income tax that KKR realized as a result of the increase in tax basis described

above, as well as 85% of the amount of any such savings KKR actually realized as a result of increases in tax basis that arose

due to future payments under the agreement. KKR benefited from the remaining 15% of cash savings, if any, in income tax

that it realized.

These payment obligations are obligations of KKR Group Co. Inc. (formerly KKR & Co. Inc.) and its wholly-owned

subsidiary, KKR Group Holdings Corp., which are treated as corporations for U.S. tax purposes, but are not payment

obligations of KKR & Co. Inc. or KKR Group Partnership L.P., and are recorded within Due to Affiliates in the accompanying

consolidated statements of financial condition. Payments made under the tax receivable agreement are required to be made

within 90 days of the filing of KKR's tax returns, which may result in a timing difference between the tax savings received by

KKR and the cash payments made to the exchanging holders of KKR Group Partnership Units.

Effective July 1, 2018, we amended the tax receivable agreement to reflect the conversion of KKR & Co. L.P. to KKR Group

Co. Inc. (formerly KKR & Co. Inc.) on July 1, 2018 (the "Conversion"). The amendment also provides that, in the event the

maximum U.S. federal corporate income tax rate is increased to a rate higher than 21.0% within the five- year period

following the Conversion, for exchanges pursuant to the exchange agreement that take place within that five-year period

(other than exchanges following the death of an individual), payments of cash tax savings realized as a result of such

exchanges shall be calculated by applying a U.S. federal corporate income tax rate not to exceed 21.0%. The amendment also

clarified that the tax benefit payments with respect to exchanges completed at any time prior to the Conversion will be

calculated without taking into account the step-up in tax basis in our underlying assets that we generated in 2018 as a result

of the Conversion.

For the years ended December 31, 2025, 2024, and 2023, cash payments that have been made under the tax receivable

agreement were $25.5 million, $27.2 million, and $16.3 million, respectively. KKR expects to benefit from the remaining 15%

of cash savings, if any, in income tax that they realize. As of December 31, 2025, $22.8 million of cumulative income tax

savings have been realized.

Discretionary Investments

Certain of KKR's current and former employees and other qualifying personnel are permitted to invest, and have invested,

their own capital in KKR's funds, in side-by-side investments with these funds and the firm, as well as in funds managed by its

hedge fund partnerships. Side-by-side investments are made on the same terms and conditions as those acquired by the

applicable fund or the firm, except that the side-by-side investments do not subject the investor to management fees or a

carried interest. The cash contributed by these individuals aggregated $611.9 million, $863.8 million, and $629.0 million for

the years ended December 31, 2025, 2024, and 2023, respectively.

Aircraft and Other Services

Certain of our senior employees own aircraft that are used for KKR's business in the ordinary course of its operations. The

hourly rates that KKR pays for the use of these aircraft are based on current market rates for chartering private aircraft of the

same type. KKR incurred $5.8 million, $6.2 million, and $3.4 million for the use of these aircraft for the years ended December

31, 2025, 2024, and 2023, respectively, of which substantially all was paid to entities controlled by Messrs. Kravis, Roberts and

Nuttall, and of which substantially all was borne by KKR rather than its investment funds (which indirectly bear the cost of

some of these flights at commercial airline rates).

Facilities

Messrs. Kravis and Roberts, including their estate planning trusts, whose beneficiaries include their children, and certain

other senior employees who are not executive officers of KKR, are minority limited partners in a real estate partnership that

owns KKR's Menlo Park location. Payments made to this partnership were $7.1 million, $7.7 million, and $9.5 million for the

years ended December 31, 2025, 2024, and 2023, respectively. In November 2022, this lease was renewed for another 15-

year term.

21. SEGMENT REPORTING

KKR operates through three reportable segments which are presented below and reflect how its chief operating decision-

makers, who are the Co-Chief Executive Officers, 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 the Strategic Holdings segment) 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. retirement 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.

Strategic Holdings - The strategic holdings business acquires and manages interests in operating companies that are

owned by KKR. This segment primarily generates income from dividends from these businesses. Dividends are

presented net of management fees paid to the Asset Management segment. If KKR were to sell a portion or all of a

business reported in Strategic Holdings, the realized gain or loss would be presented as realized investment income,

net of a performance fee paid to the Asset Management segment.

KKR’s segment profitability measures 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. and holders of any

exchangeable securities, and the consolidation of the investment funds, vehicles and accounts that KKR advises, manages or

sponsors (including CFEs). For each segment, the chief operating decision makers use the key measure of segment earnings to

allocate resources to that segment in the annual budget and forecasting process. KKR's segment profitability measures

excludes: (i) equity-based compensation charges, (ii) amortization of acquired intangibles, and (iii) transaction-related and

non-operating items, if any. Transaction-related and non-operating items arise from corporate actions, which consist of: (i)

impairments, (ii) transaction costs from acquisitions, including any acquisition-related stock consideration, (iii) depreciation on

real estate that KKR owns and occupies, (iv) contingent liabilities, net of any recoveries, (v) certain integration, restructuring,

and other non-operating expenses, and (vi) other gains or charges that affect period-to-period comparability and are not

reflective of KKR's ongoing operational performance.

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 the Asset

Management segment as the investment adviser for Global Atlantic insurance companies, (ii) management and performance

fees earned by the Asset Management segment from the Strategic Holdings segment, and (iii) interest income and expense

based on lending arrangements where the Asset Management segment borrows from the Insurance segment. All these inter-

segment transactions are recorded by each segment based on the applicable governing agreements. Additionally, due to the

integrated nature of our segment operations and as part of our strategic capital allocation decisions, inter-segment asset

transfers have and may continue to occur. In these cases in segment reporting, the assets are transferred at their fair value,

and no gain or loss is recognized at the time of transfer. Earnings are recognized upon realization events and transactions with

third parties. Total Segment Earnings represents the total segment earnings of KKR’s Asset Management, Insurance, and

Strategic Holdings segments:

Asset Management Segment Earnings is the segment profitability measure used to make operating decisions and to

assess the performance of the Asset Management segment. This measure is presented before income taxes and is

comprised of: (i) Fee Related Earnings, (ii) Realized Performance Income, (iii) Realized Performance Income

Compensation, (iv) Realized Investment Income, and (v) Realized Investment Income Compensation. Asset

Management Segment Earnings excludes the impact of: (i) unrealized gains (losses) on investments, (ii) unrealized

carried interest, and (iii) unrealized carried interest compensation. Management fees earned by KKR as the adviser,

manager or sponsor for its investment funds, vehicles and accounts, including its Global Atlantic insurance companies

and Strategic Holdings segment, are included in Asset Management Segment Earnings.

Insurance Operating Earnings is the segment profitability measure used to make operating decisions and to assess

the performance of the Insurance segment. This measure is presented before income taxes and is comprised of: (i)

Net Investment Income, (ii) Net Cost of Insurance, and (iii) General, Administrative, and Other Expenses. Insurance

Operating Earnings excludes the impact of: (i) investment gains (losses) which include realized gains (losses) related

to asset/liability matching investment strategies and unrealized investment gains (losses) and (ii) non-operating

changes in policy liabilities and derivatives which includes (a) changes in the fair value of market risk benefits and

other policy liabilities measured at fair value and related benefit payments, (b) fees attributed to guaranteed

benefits, (c) derivatives used to manage the risks associated with policy liabilities, and (d) losses at contract issuance

on payout annuities. Insurance Operating Earnings includes (i) realized gains and losses not related to asset/liability

matching investment strategies and (ii) the investment management costs that are earned by our Asset Management

segment as the investment adviser of the Global Atlantic insurance companies.

Strategic Holdings Segment Earnings is the segment profitability measure used to make operating decisions and to

assess the performance of the Strategic Holdings segment. This measure is presented before income taxes and is

comprised of: Dividends, Net and Net Realized Investment Income. Strategic Holdings Segment Earnings excludes the

impact of unrealized gains (losses) on investments. Strategic Holdings Segment Earnings includes management fees

and performance fee expenses that are earned by the Asset Management segment.

KKR disclosed all the segment expenses under the significant expense principle for each reportable segment. There are no

expenses to be disclosed in the other segment category, because segment revenues minus segment expenses equals the

segment measure of profit of each reportable segment.

Segment Presentation

The following tables set forth information regarding KKR's segment results:


	Years Ended December 31,
	2025	2024	2023
Asset Management
Management Fees (1)(2)	$4,100,841	$3,461,381	$3,030,325
Transaction and Monitoring Fees, Net	1,092,577	1,165,884	720,654
Fee Related Performance Revenues	181,784	137,992	94,427
Fee Related Compensation	(940,721)	(833,918)	(865,336)
Other Operating Expenses	(720,168)	(663,543)	(596,284)
Fee Related Earnings	3,714,313	3,267,796	2,383,786
Realized Performance Income	1,879,512	1,822,115	1,065,389
Realized Performance Income Compensation	(1,387,776)	(1,213,327)	(666,440)
Realized Investment Income (3)	403,455	534,668	645,031
Realized Investment Income Compensation	(60,520)	(80,198)	(103,590)
Asset Management Segment Earnings	$4,548,984	$4,331,054	$3,324,176

Insurance
Net Investment Income (1) (4)	$7,224,118	$6,328,822	$5,377,817
Net Cost of Insurance	(5,229,343)	(4,448,886)	(3,283,009)
General, Administrative and Other	(885,380)	(865,390)	(805,109)
Pre-tax Operating Earnings	1,109,395	1,014,546	1,289,699
Pre-tax Operating Earnings Attributable to Noncontrolling Interests	—	—	(473,062)
Insurance Operating Earnings	$1,109,395	$1,014,546	$816,637

Strategic Holdings
Dividends, Net (2)	$162,096	$76,211	$14,531
Strategic Holdings Operating Earnings	162,096	76,211	14,531
Net Realized Investment Income(3)	69,861	87,693	—
Strategic Holdings Segment Earnings	$231,957	$163,904	$14,531

Total Segment Earnings	$5,890,336	$5,509,504	$4,155,344

(1) Includes intersegment management fees of $673.9 million, $537.2 million, and $445.9 million earned by the Asset Management segment from the Insurance segment for the years ended December 31, 2025, 2024, and 2023, respectively.
(2) Includes intersegment management fees of $36.6 million and $31.8 million earned by the Asset Management segment from the Strategic Holdings segment for the years ended December 31, 2025 and 2024, respectively.
(3) Includes intersegment performances fees of $12.3 million and $15.5 million earned by the Asset Management segment from the Strategic Holdings segment for the years ended December 31, 2025 and 2024, respectively.
(4) Includes intersegment interest expense of $18.6 million, $10.2 million, and $186.4 million for the years ended December 31, 2025, 2024, and 2023, respectively.
	As of December 31,
	2025	2024
Segment Assets:
Asset Management	$26,214,100	$25,868,340
Insurance	272,649,491	243,719,868
Strategic Holdings	11,626,832	8,052,232
Total Segment Assets	$310,490,423	$277,640,440

	Years Ended December 31,
Non-Cash Expenses Excluded from Segment Earnings	2025	2024	2023
Equity Based Compensation
Asset Management	$621,974	$611,644	$502,816
Insurance	100,135	134,799	71,579
Total Non-Cash Expenses	$722,109	$746,443	$574,395

Reconciliations of Total Segment Amounts

The following tables reconcile Segment Revenues, Expenses, Earnings, and Assets to their equivalent GAAP measure:


	Years Ended December 31,
	2025	2024	2023
Total GAAP Revenues	$19,464,307	$21,878,698	$14,499,312
Impact of Consolidation and Other	1,313,552	1,344,972	861,928
Asset Management Adjustments:
Capital Allocation-Based Income (Loss) (GAAP)	(3,771,235)	(3,558,284)	(2,843,437)
Realized Carried Interest	1,570,205	1,481,760	1,005,759
Realized Investment Income	403,455	534,668	645,031
Capstone Fees	(113,563)	(110,953)	(100,314)
Expense Reimbursements	(165,397)	(152,726)	(75,687)
Strategic Holdings Adjustments:
Realized Investment Income and Dividends	280,930	211,157	14,531
Insurance Adjustments:
Net Premiums	(3,397,186)	(7,898,834)	(1,975,675)
Policy Fees	(1,350,814)	(1,377,686)	(1,260,249)
Other Income	(256,763)	(238,410)	(176,442)
(Gains) Losses from Investments(1)	1,907,743	1,532,863	700,380
Non-Operating Changes in Policy Liabilities and Derivatives	(770,990)	(32,459)	(346,963)
Total Segment Revenues (2)	$15,114,244	$13,614,766	$10,948,174

(1)Includes gains and losses on funds withheld receivables and payables embedded derivatives.

(2)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, (vi) Net Investment Income, and (vii) Dividends, Net.


	Years Ended December 31,
	2025	2024	2023
Total GAAP Expenses	$19,012,315	$20,985,860	$12,358,605
Impact of Consolidation and Other	(825,185)	(448,776)	(392,778)
Asset Management Adjustments:
Equity-based Compensation	(616,915)	(611,644)	(502,816)
Unrealized Carried Interest Compensation	(1,566,828)	(1,505,558)	(792,758)
Amortization of Intangibles	(1,787)	—	—
Transaction-related and Non-operating Items	(96,289)	(122,009)	(31,805)
Reimbursable Expenses	(165,397)	(152,726)	(75,687)
Capstone Expenses	(100,030)	(81,280)	(77,642)
Insurance Adjustments:
Net Premiums	(3,397,186)	(7,898,834)	(1,975,675)
Policy Fees	(1,350,814)	(1,377,686)	(1,260,249)
Other Income	(256,763)	(238,410)	(176,442)
Non-Operating Changes in Policy Liabilities	(1,249,932)	(270,326)	(608,081)
Equity-Based Compensation	(100,135)	(134,799)	(115,653)
Amortization of Intangibles	(18,796)	(17,935)	(17,647)
Transaction-Related and Non-Operating Items	(42,350)	(20,615)	(11,604)
Total Segment Expenses (1)	$9,223,908	$8,105,262	$6,319,768

(1)Total Segment Expenses is comprised of (i) Fee Related Compensation, (ii) Realized Performance Income Compensation, (iii) Realized Investment Income

Compensation, (iv) Net Cost of Insurance, (v) General, Administrative and Other, and (vi) Other Operating Expenses.


	Years Ended December 31,
	2025	2024	2023
Income (Loss) Before Tax (GAAP)	$7,099,160	$5,860,433	$6,554,609
Impact of Consolidation and Other	(3,991,700)	(1,252,727)	(1,543,641)
Interest Expense, Net	257,725	302,381	325,919
Asset Management Adjustments:
Unrealized (Gains) Losses	560,892	(673,790)	(843,627)
Unrealized Carried Interest	(2,140,747)	(1,943,200)	(1,656,974)
Unrealized Carried Interest Compensation	1,566,828	1,505,558	792,758
Transaction-related and Non-operating Items(1)	96,289	122,009	31,805
Equity-based Compensation	268,067	279,418	230,858
Equity-based Compensation - Performance based	348,848	332,226	271,958
Amortization of Acquired Intangibles	1,787	—	—
Strategic Holdings Adjustments:
Unrealized (Gains) Losses	(746,252)	(958,418)	(691,307)
Insurance Adjustments:(2)
(Gains) Losses from Investments(2,3)	2,088,687	1,465,348	363,956
Non-Operating Changes in Policy Liabilities and Derivatives(2)	319,471	296,917	228,929
Transaction-Related and Non-Operating Items(1)(2)	42,350	20,615	7,347
Equity-Based Compensation(2)	100,135	134,799	71,579
Amortization of Acquired Intangibles(2)	18,796	17,935	11,175
Total Segment Earnings	$5,890,336	$5,509,504	$4,155,344

(1)For the year ended December 31, 2025, Transaction-related and Other Non-operating items includes (i) $99 million related to transaction-related costs

and other corporate actions, which includes $5 million of acquisition-related stock consideration and (ii) $39 million of costs associated with certain

integration, restructuring, and other non-operating expenses across our Asset Management and Insurance businesses.

(2)Amounts represent the portion allocable to KKR.

(3)Includes gains and losses on funds withheld receivables and payables embedded derivatives.


	As of
	December 31, 2025	December 31, 2024
Total GAAP Assets	$410,144,072	$360,099,411
Impact of Consolidation and Reclassifications	(93,778,122)	(78,288,198)
Carry Pool Reclassifications	(5,875,527)	(4,170,773)
Total Segment Assets	$310,490,423	$277,640,440

22. 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 New York Stock Exchange ("NYSE"). Subject to preferences that apply to any 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 Preferred Stock

Except for any distribution required by Delaware law to be made upon a dissolution event, the holders of Series I

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. 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. The Series I preferred stock will be eliminated on the Sunset Date (as defined in Note 1

"Organization"), which is scheduled to occur not later than December 31, 2026.

Series D Mandatory Convertible Preferred Stock

On March 7, 2025, KKR & Co. Inc. issued 51,750,000 shares, or $2.59 billion aggregate liquidation preference, of Series D

Mandatory Convertible Preferred Stock.

Subject to certain exceptions, so long as any share of Series D Mandatory Convertible Preferred Stock remains

outstanding, no dividend or distributions will be declared or paid on shares of KKR & Co. Inc.’s common stock, par value $0.01

per share, or any other class or series of stock ranking junior to the Series D Mandatory Convertible Preferred Stock, and no

common stock or any other class or series of stock ranking junior to the Series D Mandatory Convertible Preferred Stock will

be purchased, redeemed, or otherwise acquired for consideration by KKR & Co. Inc. or any of its subsidiaries unless, in each

case, all accumulated and unpaid dividends for all preceding dividend periods have been declared and paid in cash, shares of

common stock or a combination thereof, or a sufficient sum of cash or number of shares of common stock has been set aside

for the payment of such dividends, on all outstanding shares of Series D Mandatory Convertible Preferred Stock. In addition,

when dividends on shares of the Series D Mandatory Convertible Preferred Stock (i) have not been declared and paid in full on

any dividend payment date (or, in the case of any parity stock having dividend payment dates different from such dividend

payment dates on a dividend payment date falling within a regular dividend period related to such dividend payment date), or

(ii) have been declared but a sum of cash or number of shares of Common Stock sufficient for payment thereof has not been

set aside for the benefit of the holders thereof on the applicable regular record date, no dividends may be declared or paid on

any parity stock unless dividends are declared on the shares of Series D Mandatory Convertible Preferred Stock such that the

respective amounts of such dividends declared on the shares of Series D Mandatory Convertible Preferred Stock and such

shares of parity stock shall be allocated pro rata among the holders of the shares of Series D Mandatory Convertible Preferred

Stock and the holders of any shares of parity stock then outstanding.

Unless converted earlier, each share of the Series D Mandatory Convertible Preferred Stock will automatically convert on

the mandatory conversion date, which is expected to be March 1, 2028, into between 0.3312 shares and 0.4140 shares of

common stock, in each case, subject to customary anti-dilution adjustments described in the certificate of designations

setting forth the terms of the Series D 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 March 1, 2028.

Dividends on the Series D Mandatory Convertible Preferred Stock will be payable on a cumulative basis when, as and if

declared by KKR & Co. Inc.’s board of directors, or an authorized committee thereof (which will be influenced by receipt of

distributions from KKR Group Partnership in respect of our Series D mirrored preferred units that we hold in KKR Group

Partnership) at an annual rate of 6.25% on the liquidation preference of $50.00 per share of Series D 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 D Mandatory Convertible Preferred Stock will be payable quarterly on March 1, June

1, September 1 and December 1 of each year to, and including, March 1, 2028, commencing on June 1, 2025.

Upon KKR & Co. Inc.’s voluntary or involuntary liquidation, winding-up or dissolution, each holder of the Series D

Mandatory Convertible Preferred Stock will be entitled to receive a liquidation preference in the amount of $50.00 per share

of Series D 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, such amount 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 D Mandatory

Convertible Preferred Stock and before any payment or distribution is made to holders of any stock ranking junior to the

Series D Mandatory Convertible Preferred Stock, including, without limitation, Common 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 2019 Equity Incentive Plan representing the right to receive common stock. KKR expects that

the program 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. In April 2024, the share repurchase program was amended such

that when the remaining available amount under the share repurchase program becomes $50 million or less, the total

available amount under the share repurchase program will automatically add an additional $500 million to the then remaining

available amount of $50 million or less (the “Share Repurchase Program Increase Threshold”). The Share Repurchase Program

Increase Threshold was reached during the second quarter of 2025, which automatically added an additional $500 million to

the then remaining available amount. As of January 30, 2026, there was approximately $439 million remaining under the

program. Any additional increases to this remaining available amount would require a separate approval by the Board of

Directors of KKR & Co. Inc. The repurchase program does not have an expiration date.

The following table presents the shares of KKR & Co. Inc. common stock that have been repurchased or equity awards

retired under the repurchase program:


	Years Ended December 31,
	2025	2024	2023
Shares of common stock repurchased	36,411	—	5,395,162
Equity awards for common stock retired	1,071,587	1,170,857	764,999

Change in KKR & Co. Inc.'s Ownership Interest

Vesting of restricted holdings units results in a change in ownership in KKR Group Partnership, while KKR retains a

controlling interest, and is accounted for as an equity transaction between the controlling and noncontrolling interests.

Noncontrolling Interests

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 in KKR's Capital Markets business line;

(iii)certain current and former employees who hold exchangeable securities; and

(iv)third-party investors in certain of Global Atlantic's consolidated entities.

The following table presents the balances of, and changes in, Noncontrolling Interests:


	Years Ended December 31,
	2025	2024	2023
Balance at the beginning of the period	$36,747,947	$34,904,791	36,410,858
Net Income (Loss) Attributable to Noncontrolling Interests	3,619,846	1,756,643	1,630,230
Other Comprehensive Income (Loss), net of tax	1,362	6,294	588,415
Compensation Modification – Issuance of Holdings III Units	—	53,623	—
Equity-Based Compensation (Non-Cash Contribution)	407,113	432,299	323,577
2024 GA Acquisition – Cash consideration	—	(2,622,230)	—
2024 GA Acquisition – Issuance of Holdings III Units	—	40,789	—
Change in KKR & Co. Inc.'s Ownership - 2024 GA Acquisition	—	2,169,300	—
Change in KKR & Co. Inc.'s Ownership Interest	(450,616)	(431,394)	(156,867)
Capital Contributions	11,355,497	7,466,717	12,871,585
Capital Distributions	(6,081,746)	(8,191,990)	(8,301,516)
Changes in Consolidation	2,391,392	1,163,105	(8,461,491)
Impact of Acquisition – HealthCare Royalty Management, LLC (1)	28,313	—	—
Balance at the end of the period	$48,019,108	$36,747,947	$34,904,791

(1)Represents noncontrolling interests in HealthCare Royalty Management, LLC as of the acquisition date.

23. REDEEMABLE NONCONTROLLING INTERESTS

Redeemable noncontrolling interests primarily represents noncontrolling interests of certain KKR investment funds and

vehicles that are subject to periodic redemption by fund investors following the expiration of a specified period of time, or

may be withdrawn subject to a redemption fee during the period when capital may not be otherwise withdrawn.

Consolidated fund investor's interests subject to redemption as described above are presented as Redeemable Noncontrolling

Interests in the accompanying consolidated statements of financial condition and presented as Net Income (Loss) Attributable

to Redeemable Noncontrolling Interests in the accompanying consolidated statements of operations. When redeemable

amounts become legally payable to fund investors, they are classified as a liability and included in Accounts Payable, Accrued

Expenses, and Other Liabilities in the accompanying consolidated statements of financial condition.

The following table presents the balances of, and changes in, Redeemable Noncontrolling Interests:


	Years Ended December 31,
	2025	2024	2023
Balance at the beginning of the period	$1,585,177	$615,427	$152,065
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests	155,103	73,149	(5,405)
Capital Contributions	1,068,632	922,127	499,433
Capital Distributions	(98,670)	(23,763)	(2,845)
Change in KKR & Co. Inc.'s Ownership Interest	—	(1,763)	—
Changes in Consolidation	—	—	(27,821)
Balance at the end of the period	$2,710,242	$1,585,177	$615,427

24. COMMITMENTS AND CONTINGENCIES

Funding Commitments and Others

As of December 31, 2025, KKR had unfunded commitments consisting of $10.5 billion to its investment funds and

vehicles. These unfunded commitments also include funding requirements to levered investment vehicles and structured

transactions to fund or otherwise be liable for a portion of the vehicle's investment losses and/or to provide the vehicle with

liquidity upon certain termination events.

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 December 31, 2025, these capital markets

commitments amounted to $1.0 billion. Whether these amounts are actually funded, in whole or in part, depends on the

contractual terms of such capital markets commitments, including the satisfaction or waiver of any conditions to closing or

funding. KKR's capital markets business has arrangements with third parties, which are expected to reduce KKR's risk under

certain circumstances when underwriting certain debt transactions. As a result, our unfunded capital markets commitments

as of December 31, 2025, have been reduced to reflect the amount expected to be funded by such third parties. As of

December 31, 2025, KKR's capital markets business line has entered into such arrangements representing a total notional

amount of $5.0 billion.

Global Atlantic has commitments to purchase or fund investments of $7.3 billion as of December 31, 2025. These

commitments include those related to mortgage loans, other lending facilities, and real assets. For those commitments that

represent a contractual obligation to extend credit, Global Atlantic has recorded a liability of $30.9 million for current

expected credit losses as of December 31, 2025.

In addition, Global Atlantic has entered into 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.

Global Atlantic has certain contingent funding obligations related to development-stage renewable energy projects in the

amount of $322.2 million as of December 31, 2025, with expiration dates occurring between March 2026 and September

For accounting purposes, these contingent funding obligations are considered guarantees of the obligations of the

development-stage renewable energy projects.

As of December 31, 2025, purchase commitments under agreements with third-party administrators and other service

providers were as follows:



2026		$27,825
2027		17,625
2028		12,266
2029		10,450
2030		9,291
Thereafter		45,066
Total		$122,523

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.

As of December 31, 2025, the approximate aggregate future lease payments required on the asset management

operating leases are as follows:



2026		$82,539
2027		77,698
2028		76,768
2029		74,355
2030		68,109
Thereafter		587,902
Total Lease Payments Required		967,371
Less: Imputed Interest		207,575
Total Operating Lease Liabilities		$759,796

As of December 31, 2025, the approximate aggregate future lease payments required on the Global Atlantic operating

leases are as follows:



2026		$16,780
2027		16,753
2028		13,358
2029		12,011
2030		12,480
Thereafter		284,337
Total Lease Payments Required		355,719
Less: Imputed Interest		180,040
Total Operating Lease Liabilities		$175,679

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. KKR has guaranteed its general partners' clawback obligations.

As of December 31, 2025, approximately $150 million of carried interest was subject to this clawback obligation,

assuming that all applicable carry-paying investment funds were liquidated at their December 31, 2025 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 $65 million of that amount from Associates Holdings, which is not

a KKR subsidiary. As of December 31, 2025, Associates Holdings had access to cash reserves sufficient to reimburse the full

$65 million that would be due to KKR. If the investments in all carry-paying funds were to be liquidated at zero value, a

possibility that management views to be remote, the clawback obligation would have been approximately $5.8 billion as of

December 31, 2025. KKR will acquire control of Associates Holdings when a subsidiary of KKR becomes its general partner

upon the closing of the transactions contemplated to occur on the Sunset Date (as defined in Note 1 "Organization"), which

will occur not later than December 31, 2026.

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. KKR (including KFN) and certain of

KKR's investment funds have provided and provide certain credit support, such as indemnities and guarantees, relating to a

variety of matters, including non-recourse carve-out guarantees for fraud, willful misconduct and other wrongful acts in

connection with the financing of (i) certain real estate investments that we have made, including KKR's corporate real estate,

and (ii) certain investment vehicles that KKR manages or sponsors.

KKR also has provided, and provides, credit support in connection with its businesses, including:

i.to certain of its subsidiaries' obligations in connection with a limited number of investment vehicles that KKR

manages,

ii.in connection with repayment and funding obligations to third-party lenders on behalf of certain employees,

excluding its executive officers, in connection with their personal investments in KKR investment funds and a

levered multi-asset investment vehicle,

iii.through a contingent guarantee of a subsidiary’s loan repayment obligations, which does not become effective

unless and until its loan becomes accelerated due to certain specified events of default involving the

investment vehicles managed by KJRM,

iv.the obligations of our subsidiaries' funding obligations to our investment vehicles, and

v.certain of our investment vehicles to fund or otherwise be liable for a portion of their investment losses and/or

to provide them with liquidity upon certain termination events.

In addition, KKR has agreed to tender to one of its consolidated investment vehicles up to a fixed number of shares that

KKR owns in it if the net asset value of such shares is less than an agreed upon value on June 1, 2027.

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.

In addition, 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,

Global Atlantic (Fin) Company ("GA FinCo"), a Delaware corporation and wholly-owned indirect subsidiary of TGAFG, the

holding company for the Global Atlantic business, is obligated to make annual payments out of available cash, guaranteed by

Global Atlantic Financial Group Limited, to Goldman Sachs over an approximately 25-year period. As of December 31, 2025,

the present value of the remaining amount to be paid is $46.3 million. Although these payments are subordinated and

deferrable, deferral of these payments would result in restrictions on distributions by GA FinCo and Global Atlantic Financial

Group Limited.

Unless otherwise stated above, KKR's maximum exposure under the arrangements described under this section “—

Indemnifications and Other Guarantees” are currently unknown as there are no stated or notional amounts included in these

arrangements and KKR's liabilities for these matters would require a claim to be made against KKR in the future.

Legal Proceedings

From time to time, KKR (including Global Atlantic) is involved in various legal proceedings, requests for information,

lawsuits, arbitration, and claims incidental to the conduct of KKR's businesses. KKR's businesses are also subject to extensive

regulation, which may result in regulatory or other legal proceedings against them. Moreover, in the ordinary course of

business, KKR is and can be the defendant or the plaintiff in numerous lawsuits with respect to acquisitions, bankruptcy,

insolvency and other events. Such lawsuits may involve claims, or may be resolved on terms, that adversely affect the value of

certain investments owned by KKR's funds and Global Atlantic's insurance companies.

Kentucky Matter

In December 2017, KKR & Co. L.P. (which is now KKR Group Co. Inc.) and its then Co-Chief Executive Officers, Henry Kravis

and George Roberts, were named as defendants in a lawsuit filed in Kentucky state court (the “2017 Action”) 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. The 2017 Action was

dismissed at the direction of the Supreme Court of Kentucky for lack of Kentucky constitutional standing. This dismissal

became final on February 16, 2024.

On July 21, 2020, the Office of the Attorney General, on behalf of the Commonwealth of Kentucky (the "Kentucky AG"),

filed a new lawsuit in the same Kentucky state court (the “2020 AG Action”) making essentially the same allegations as those

raised in the 2017 Action, including against what was then KKR & Co. Inc. (now KKR Group Co. Inc.) and Messrs. Kravis and

Roberts. On May 1, 2024, the trial court denied motions to dismiss the 2020 AG Action filed by KKR & Co. Inc. and Messrs.

Kravis and Roberts.

On April 8, 2024, after receiving permission from the Kentucky trial court in the 2020 AG Action, the Kentucky AG

amended its complaint in the 2020 AG Action to add a claim for breach of contract. The Kentucky AG also filed an action (the

"2024 AG Action") substantially identical to the 2020 AG Action, including the new claim for breach of contract. On April 23,

2024, KKR & Co. Inc., Messrs. Kravis and Roberts and other defendants moved to strike the Kentucky AG's amended complaint

in the 2020 AG Action, to stay consideration of the breach of contract claim and the 2024 AG Action until after the trial court's

ruling on the motions to dismiss the 2020 AG Action, and to deny a motion by the Kentucky AG to consolidate the 2020 AG

Action and the 2024 AG Action. These motions were denied, and the trial court consolidated the 2020 AG Action with the

2024 AG Action. On June 17, 2024, KKR & Co. Inc., Messrs. Kravis and Roberts and other defendants filed new motions to

dismiss the consolidated 2020 AG Action and 2024 AG Action.

In January 2021, some of the attorneys for the plaintiffs in the 2017 Action filed a new lawsuit on behalf of a new set of

plaintiffs, who claim to be “Tier 3” members of Kentucky Retirement Systems (the “Tier 3 Plaintiffs”), alleging substantially the

same allegations as in the 2017 Action. On July 9, 2021, the Tier 3 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, which has entered an order staying this case until the completion of the

2020 AG Action. On August 20, 2021, the Tier 3 Plaintiffs and other individual plaintiffs filed a second complaint in Kentucky

state court (the “Second Tier 3 Action”), purportedly on behalf of Kentucky Retirement Systems’ funds, alleging the same

claims against what was then KKR & Co. Inc. (now KKR Group Co. Inc.) and Messrs. Kravis and Roberts as in the July 9th

amended complaint but without the RICO or class action allegations. On May 1, 2024, the trial court denied motions to

dismiss the Second Tier 3 Action filed by KKR & Co. Inc. and Messrs. Kravis and Roberts. On July 3, 2024, KKR & Co. Inc.,

Messrs. Kravis and Roberts and other defendants filed a writ of prohibition asking the Kentucky Court of Appeals to order the

trial court to dismiss the Second Tier 3 Action. On November 12, 2024, the Court of Appeals denied the request for a writ of

prohibition. Defendants have appealed that denial by petitioning the Kentucky Supreme Court for a writ of prohibition. The

Second Tier 3 Action is stayed pending the outcome of this petition.

On March 24, 2022, in a separate declaratory judgment action brought by the Commonwealth of Kentucky regarding the

enforceability of certain indemnification provisions available to what was then KKR & Co. Inc. (now KKR Group Co. Inc.) and

Prisma Capital Partners LP, the Kentucky state court concluded that it has personal jurisdiction over KKR & Co. Inc. in that

action, and that the indemnification provisions violated the Kentucky Constitution and were therefore unenforceable. On

December 1, 2023, the Kentucky Court of Appeals reversed the trial court’s summary judgment on the issue of personal

jurisdiction over KKR & Co. Inc., but affirmed the trial court’s rulings that the indemnification provisions violated the Kentucky

Constitution and were unenforceable. On February 5, 2024, the Kentucky Court of Appeals denied the petitions of KKR & Co.

Inc. and others for rehearing. On April 8, 2024, KKR & Co. Inc. and other defendants in the declaratory judgment case filed

motions with the Supreme Court of Kentucky for discretionary review of the Court of Appeals' December 1, 2023 decision. On

August 14, 2024, the Kentucky Supreme Court granted discretionary review in the Kentucky AG’s declaratory judgment case of

both personal jurisdiction over KKR & Co. Inc. and the enforceability and constitutionality of the indemnification provisions

and, on September 22, 2025, opening briefs were filed by KKR & Co. Inc. and other defendants. The Commonwealth of

Kentucky filed its response briefs on November 21, 2025, and KKR & Co. Inc. and other defendants filed their reply briefs on

December 15, 2025.

On January 8, 2025, KKR, Messrs. Kravis and Roberts, Prisma Capital Partners L.P., and certain other defendants entered

into an agreement with the Commonwealth of Kentucky, Kentucky Public Pensions Authority, County Employees Retirement

System and Kentucky Retirement Systems (the “KPPA Entities”) to settle the 2020 AG Action and the 2024 AG Action. On May

12, 2025, the Kentucky trial court entered an order declining to enter the parties’ jointly proposed order approving the

settlement. Because the receipt of the court’s approval was a contractual condition to the settlement becoming final, the

settlement agreement terminated. KKR, Messrs. Kravis and Roberts, Prisma Capital Partners L.P., and the other defendants

that were party to the settlement agreement continue to deny any liability, wrongdoing, or damage, maintain that the

settlement was not an admission of any fault, liability, wrongdoing or damage, and maintain that they entered into the

settlement solely to avoid further legal expense, inconvenience, and the distraction of burdensome and protracted litigation.

KKR intends to continue to vigorously defend against all claims against KKR and Messrs. Kravis and Roberts.

On November 19, 2025, the Kentucky Public Pensions Authority (“KPPA”) filed a motion to intervene in the consolidated

2020 AG Action and 2024 AG Action to assert claims against KKR & Co. Inc., Prisma Capital Partners LP, and Prisma Capital

Partners LLC. On December 8, 2025, the court entered an agreed order tendered by the parties granting KPPA’s motion to

intervene and ordering that all briefing and deadlines relating to KPPA’s intervening complaint are stayed pending decision by

the Kentucky Supreme Court in the appeals arising out of the Kentucky AG’s declaratory judgment action.

Shareholder Derivative Litigation

On July 30, 2024, a shareholder derivative complaint was filed in Delaware Chancery Court and was subsequently

amended on August 7, 2024 (first amended complaint) and further amended on August 19, 2025 (second amended

complaint). The operative second amended complaint claims, among other matters, that the Co-Founders and various current

and former executive officers and directors of KKR & Co. Inc. breached fiduciary duties and wasted corporate assets in

connection with transactions contemplated by the Reorganization Agreement pursuant to which, among other things, the Co-

Founders, certain current and former executive officers, and other senior executives of KKR received common stock from KKR.

The suit seeks to recover on behalf of KKR & Co. Inc. a cancellation of shares issued in the reorganization, monetary damages,

injunctive relief, restitution, and other remedies. KKR & Co. Inc. and other defendants filed a motion to dismiss the operative

second amended complaint on October 6, 2025. On December 18, 2025, plaintiffs filed their opposition to the motion to

dismiss the second amended complaint. Defendants filed their response on February 13, 2026.

Regulatory Matters

KKR currently is, and expects to continue to become from time to time, subject to various examinations, inquiries and

investigations by various U.S. and non-U.S. governmental and regulatory agencies. Such examinations, inquiries and

investigations may result in the commencement of civil, criminal or administrative proceedings, or the imposition of fines,

penalties, or other remedies, against KKR and its personnel. KKR is subject to periodic examinations of its regulated businesses

by various U.S. and non-U.S. governmental and regulatory agencies, including but not limited to the Securities and Exchange

Commission ("SEC"), 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.

KKR may also become subject to civil, criminal, administrative, or other inquiries or investigations (through a request for

information, civil investigative demand, subpoena or otherwise) by any of the foregoing governmental and regulatory

agencies as well as by any other U.S. or non-U.S. governmental or regulatory agency, including but not limited to the SEC, U.S.

Department of Justice ("DOJ"), U.S. state attorney generals, and similar non-U.S. governmental or regulatory agencies.

Since 2022, as previously disclosed, KKR has been subject to investigations by the Antitrust Division of the DOJ (the “DOJ”)

related to the accuracy and completeness of certain filings made by KKR pursuant to the premerger notification requirements

under the Hart‐Scott‐Rodino Act of 1976 (“HSR”) for certain transactions in 2021 and 2022. On January 14, 2025, the DOJ filed

a civil antitrust complaint (the “DOJ Complaint”) in the U.S. District Court for the Southern District of New York against KKR

and various KKR-sponsored investment entities (the “KKR Defendants”) alleging violations of the HSR Act. The DOJ Complaint

requests various relief for the alleged violations of the HSR Act by the KKR Defendants, including civil penalties in an amount

to be determined and various equitable relief, including potential disgorgement and injunctive relief against future violations

of the HSR Act. On January 14, 2025, KKR filed a complaint (the “KKR Complaint”) in the U.S. District Court for the District of

Columbia against Doha Mekki in her official capacity as Acting Assistant Attorney General of the United States for the

Antitrust Division, the DOJ, the Federal Trade Commission (“FTC”), and the United States of America pertaining to the HSR-

related investigations conducted by the DOJ. On January 16, 2025, KKR voluntarily dismissed the KKR Complaint filed in the

U.S. District Court for the District of Columbia and re-filed it in the U.S. District Court for the Southern District of New York as

related to the DOJ Complaint. The KKR Complaint requests various forms of relief, including declaratory judgments that: (i)

KKR did not violate the HSR Act; (ii) the DOJ’s and FTC’s interpretations of the HSR Act are unconstitutionally vague; and (iii)

the DOJ seeks an excessive fine in violation of the U.S. Constitution. KKR intends to vigorously defend against the DOJ

Complaint and filed a motion to dismiss the DOJ Complaint on April 17, 2025. The DOJ filed its motion to dismiss the KKR

Complaint on April 23, 2025, and KKR and the DOJ agreed to dismiss one count of the KKR Complaint and to stay the rest of

the DOJ’s motion to dismiss pending resolution of KKR’s motion to dismiss the DOJ Complaint. The DOJ has continued its

investigations into certain of KKR’s past HSR filings, and KKR continues to cooperate in connection with these investigations.

The DOJ may initiate additional civil or criminal proceedings or take other actions against KKR, its employees or portfolio

companies, which could include further antitrust investigations into past HSR filings or transactions or other purported

violations of law. There can be no certainty as to the possible outcome of the DOJ Complaint, the KKR Complaint, the DOJ’s

investigations, or such other proceedings or other actions, any of which could result in a range of adverse financial and non‐

financial consequences to KKR. Even in the event that the parties are able to settle the pending litigation, it is possible that

any such settlement could involve significant monetary penalties and/or other possible remedial measures. In addition, KKR is

currently, and may from time to time become, subject to other investigations by the Antitrust Division of the DOJ and other

U.S. or non-U.S. governmental authorities related to antitrust matters, including the European Commission’s investigation

relating to the acquisition of certain infrastructure assets of Telecom Italia S.p.A. and FiberCop S.p.A. KKR is currently

cooperating in connection with these other investigations.

Loss Contingencies

KKR establishes an accrued liability for legal or regulatory proceedings only when those matters present loss

contingencies that are both probable and reasonably estimable. KKR includes in its financial statements the amount of any

reserve for regulatory, litigation and related matters that Global Atlantic includes in its financial statements. 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 also have the possibility of resulting in losses in excess of any amounts accrued. To the extent

KKR can in any particular period estimate an aggregate range of reasonably possible losses, these decisions involve significant

judgment given that it is inherently difficult to determine whether any loss for a matter is probable or even possible or to

estimate the amount of any loss in many legal, governmental and regulatory matters.

Estimating an accrued liability or a reasonably possible loss involves significant judgment due to many uncertainties,

including among others: (i) the proceeding 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; (vi) there may be novel

legal issues or unsettled legal theories to be presented or a large number of parties; or (vii) the proceeding relates to a

regulatory examination, inquiry, or investigation. It is not possible to predict the ultimate outcome of all pending litigations,

arbitrations, claims, and governmental or regulatory examinations, inquiries, investigations and proceedings, and some of the

matters discussed above seek or may seek potentially large or indeterminate relief. Consequently, management is unable as

of the date of filing of this report to estimate an amount or range of reasonably possible losses related to matters pending

against KKR. In addition, any amounts accrued as loss contingencies or disclosed as reasonably possible losses may be, in part

or in whole, subject to insurance or other payments such as contributions and indemnity, which may reduce any ultimate loss.

As of the date of filing this report, management does not believe, based on currently available information, that the

outcomes of the matters pending against KKR will have a material adverse effect upon its financial statements. However,

given the potentially large and/or indeterminate relief sought or that may be sought in certain of these matters and the

inherent unpredictability of litigations, arbitrations, claims, and governmental or regulatory examinations, inquiries,

investigations and proceedings, it is possible that an adverse outcome in certain matters could have a material adverse effect

on KKR's financial results in any future period. In addition, there can be no assurance that material losses will not be incurred

from claims that have not yet been asserted or those where potential losses have not yet been determined to be probable or

possible and reasonably estimable.

Other Financing Arrangements

Global Atlantic has financing arrangements with unaffiliated third parties to support the reserves of its affiliated special

purpose reinsurers. Total fees associated with these financing arrangements were $31.6 million, $17.9 million, and

$20.3 million for the years ended December 31, 2025, 2024, and 2023, respectively, and are included in insurance expenses in

the consolidated statements of operations. As of December 31, 2025 and 2024, the total capacity of the financing

arrangements with third parties was $2.6 billion and $2.4 billion, respectively.

Other than the matters disclosed above, there were no outstanding or unpaid balances from the financing arrangements

with unaffiliated third parties as of both December 31, 2025 and 2024.

25. CAPITAL & REGULATORY REQUIREMENTS

Insurance subsidiary capital requirements

All of our Global Atlantic insurance companies are subject to minimum capital and surplus requirements. Insurance

companies typically operate in excess of such requirements. Failure to maintain such minimum capital will result in regulatory

actions, including in certain circumstances regulatory takeover of the insurance company.

In the United States, our Global Atlantic's insurance companies are subject to risk based capital ("RBC") standards and

other minimum capital and surplus requirements imposed by state laws. The RBC formula is intended to measure the

adequacy of the insurance company’s statutory surplus in relation to the risks inherent in its business. The RBC formula

requires higher surplus in relation to items deemed to have higher risk. Regulatory action is triggered beginning at 200% RBC

and below.

Our Global Atlantic Bermuda insurance companies are subject to Bermuda Solvency Capital Requirements ("BSCR")

standards and other minimum capital and surplus requirements imposed by the BMA. The BMA expects that insurers operate

at or above a BSCR ratio of at least 120%.

Each of our Global Atlantic insurance companies exceeded the minimum requirements that would trigger regulatory

action for all periods presented in this report.

Insurance subsidiary dividend restrictions

Payments of dividends by our U.S. and Bermuda-domiciled insurance companies are restricted by insurance statutes and

regulations. Our ability to pay dividends out of our U.S.-domiciled insurance companies is limited to the dividend paying

capacity of Global Atlantic's indirect insurance subsidiary, Commonwealth Annuity and Life Insurance Company

(“Commonwealth”). Commonwealth has negative unassigned surplus, and while it remains so, Commonwealth must obtain

written approval from the Massachusetts Division of Insurance prior to the payment of any dividend or distribution. Without

prior regulatory approval, and subject to maintaining certain solvency requirements, our U.S. and Bermuda insurance

subsidiaries, may declare ordinary dividends or distributions to their holding companies during 2025, as follows:


($ in thousands)		Ordinary dividend and distribution capacity
U.S. domiciled
Commonwealth Annuity and Life Insurance Company		None

Bermuda domiciled
Global Atlantic Re Limited		$1,674,870

Shareholders’ equity of our principal U.S.-domiciled insurance subsidiary, Commonwealth Annuity and Life Insurance

Company, determined pursuant to statutory accounting rules was approximately $6.8 billion and $6.2 billion as of December

31, 2025 and 2024, respectively. Statutory surplus computed under those methodologies differ from equity reported in

accordance with U.S. GAAP primarily because fixed maturity securities are required to be carried at cost or amortized cost,

embedded derivatives on funds withheld reinsurance balances are not recognized, policy acquisition costs are expensed when

incurred and asset valuation, and interest maintenance reserves are required to be held. Life insurance reserves are

calculated based upon different assumptions and the recognition of deferred tax assets is based on different recoverability

assumptions.

Shareholders’ equity of our Bermuda-domiciled insurance subsidiary, Global Atlantic Re Limited, determined pursuant to

statutory accounting rules was approximately $5.1 billion and $4.2 billion as of December 31, 2025 and 2024, respectively.

Bermuda reinsurers file statutory financial statements with the Bermuda Monetary Authority (the "BMA") that may differ

from U.S. GAAP. For example, Bermuda statutory surplus differs from U.S. GAAP primarily due to a modification that permits

our Bermuda insurance subsidiary to not measure the embedded derivative included within certain funds withheld

coinsurance agreements at fair value.

26. SUBSEQUENT EVENTS

A dividend of $0.185 per share of common stock of KKR & Co. Inc. has been declared and was announced on February 5,

This dividend will be paid on March 3, 2026 to common stockholders of record as of the close of business on February

17, 2026. Additionally, beginning with the dividend to be announced with the results of the quarter ending March 31, 2026,

KKR intends to increase its regular annualized dividend per share of common stock from $0.74 to $0.78.

A dividend of $0.78125 per share of Series D Mandatory Convertible Preferred Stock has been declared and was

announced on February 5, 2026 and set aside for payment. This dividend will be paid on March 1, 2026 to holders of record of

Series D Mandatory Convertible Preferred Stock as of the close of business on February 15, 2026.

On February 4, 2026, KKR entered into a definitive agreement to acquire 100% of Arctos Partners, LP (“Arctos”), an

investment firm that provides strategic growth capital and liquidity solutions to sports franchises and to private investment

fund sponsors. The closing of the acquisition is subject to the satisfaction of regulatory and specified sports approvals as well

as other customary conditions. Subject to the closing, KKR agreed to pay (i) $1.4 billion in initial consideration for the seller's

equity interests in Arctos, consisting of cash and equity securities of KKR, and (ii) up to $550 million of additional equity

securities based on KKR share price and Arctos business-specific performance targets. The number of shares or units issuable

in connection with the initial equity consideration of $1.1 billion will be calculated using $130.62 per share of common stock

of KKR & Co. Inc.

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