01—Abstract
Summary
Summary of the 10-K filed March 1, 2023. Cited figures are marked; the original filing is the authoritative source.
Apollo Global Management, Inc. (APO) reported its 2022 annual results, showcasing a robust asset management segment with $547.6 billiona in Assets Under Management (AUM) across its yield, hybrid, and equity strategies.
The company also highlighted its significant retirement services business, primarily through its subsidiary Athene, which contributed substantially to overall revenues. Despite market volatility impacting investment income within the asset management segment, Apollo demonstrated resilience with Fee Related Earnings (FRE) growing by 11.3% to $1.4 billionb. The retirement services segment saw substantial revenue generation, though it was impacted by investment-related losses, primarily due to rising interest rates.
The company's strategic focus on generating spread income through its insurance liabilities and asset management capabilities continues to be a key driver of its retirement services business. Apollo's diversified business model, with its strong AUM base and significant presence in retirement services, positions it to navigate the evolving economic landscape.
02—Key points
Key Highlights
- Total Assets Under Management (AUM) reached $547.6 billion as of December 31, 2022, with the "Yield" strategy accounting for the largest portion at $392.5 billion.
- Fee Related Earnings (FRE) for the Asset Management segment increased by 11.3% to $1.4 billion in 2022, driven by growth in management fees and capital solutions fees.
- The Retirement Services segment, operated by Athene, generated $8.2 billion in revenues in 2022, primarily from premiums, net investment income, and product charges, although offset by investment-related losses.
- Net income attributable to Apollo Global Management, Inc. common stockholders was a loss of $3.2 billion for 2022, compared to a net income of $1.8 billion in 2021, significantly impacted by investment-related losses in the Retirement Services segment.
- Apollo repurchased approximately 2.8 million shares of common stock during the fourth quarter of 2022, reflecting a commitment to capital return to shareholders.
- The company declared a quarterly cash dividend of $0.40 per share, indicating a continued focus on shareholder returns.
- Total expenses increased significantly by 325.0% to $17.5 billion in 2022, largely due to the inclusion of Retirement Services expenses, which were not present in the prior year period.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2022filed March 1, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $10.97B$5.95B | +84.3% |
| Operating Expenses | $15.91B$4.11B | +286.8% |
| Interest Expense | $222.00M$138.00M | +60.9% |
| Net Income | -$1.96B$1.80B | −208.8% |
| EPS (Basic) | $-3.43$7.32 | −146.9% |
| EPS (Diluted) | $-3.43$7.32 | −146.9% |
| Shares Outstanding (Basic) | 584.69M236.57M | +147.2% |
| Shares Outstanding (Diluted) | 584.69M236.57M | +147.2% |
05—Questions
Frequently Asked Questions
What was Apollo's total AUM at the end of 2022?
Apollo Global Management's total Assets Under Management (AUM) reached $547.6 billion as of December 31, 2022.
How did the Retirement Services segment perform in 2022?
The Retirement Services segment, primarily through Athene, generated $8.2 billion in revenues in 2022. This was driven by premiums and net investment income, but the segment experienced investment-related losses totaling $12.7 billion, largely due to rising interest rates and market volatility impacting hedging derivatives and other securities.
What is the outlook for Apollo's Fee Related Earnings (FRE)?
Apollo reported an 11.3% increase in Fee Related Earnings (FRE) to $1.4 billion for the Asset Management segment in 2022. This growth was attributed to an increase in management fees, capital solutions fees, and other related fees, indicating a positive trend in the recurring revenue generation from its asset management operations.
What is the company's dividend policy?
Apollo Global Management currently intends to pay an annual cash dividend of $1.72 per share of common stock. The company declared a quarterly dividend of $0.40 per share, payable in February 2023, reflecting a commitment to returning capital to shareholders.
06—Continue