KKR & Co. Inc. Annual Report, Year Ended Dec 31, 2022

KKR & Co. Inc. (KKR) reported a net loss of $1.02 billion for the year ended December 31, 2022, a significant shift from a net income of $12.3 billion in the prior year. This change was primarily driven by a substantial decrease in Capital Allocation-Based Income (loss) from $6.84 billion in 2021 to a negative $2.50 billion in 2022, reflecting net depreciation in the value of underlying investments across many of its carry-earning funds, particularly in the Private Equity segment. Despite a challenging market environment characterized by rising interest rates and geopolitical uncertainty, KKR's Asset Management segment's Fee Related Earnings (FRE) increased by 10% year-over-year to $2.17 billion, driven by growth in management fees across its Private Equity, Real Assets, and Credit and Liquid Strategies businesses. The Insurance segment, operated by Global Atlantic, contributed $545 million in operating earnings, though this was lower than the prior year due to higher net cost of insurance and general and administrative expenses, partially offset by higher net investment income. The firm ended the year with $503.9 billion in Assets Under Management (AUM), an increase from the prior year, driven by new capital raised and acquisitions, although total uncalled commitments saw a slight decrease.