01—Abstract
Summary
Summary of the 10-K filed February 29, 2024. Cited figures are marked; the original filing is the authoritative source.
KKR & Co. Inc. reported strong financial performance in its 2023 10-K filing, driven by robust growth in its asset management and insurance segments.
The company's Assets Under Management (AUM) reached $552.8 billiona, reflecting successful capital raising efforts across its Private Equity, Real Assets, and Credit and Liquid Strategies businesses. The Asset Management segment saw increased management fees, particularly in Private Equity and Credit, benefiting from new capital raised and higher market interest rates. The Insurance segment, operated by Global Atlantic, also demonstrated significant growth, with net investment income increasing substantially due to higher average assets under management and improved portfolio yields.
Both segments contributed positively to the company's overall financial health, with KKR & Co. Inc. reporting a significant net income attributable to common stockholders for the year. The company also highlighted its commitment to returning capital to shareholders through its share repurchase program and its planned quarterly dividend of $0.175b per share.
02—Key points
Key Highlights
- Assets Under Management (AUM) increased to $552.8 billion, up from $503.9 billion in the prior year, indicating successful fundraising and growth across business lines.
- Asset Management segment operating earnings increased by $142.2 million in fees and other, primarily driven by higher management fees across Private Equity, Real Assets, and Credit and Liquid Strategies.
- Insurance segment operating earnings increased by $91.9 million, largely attributed to a $1.3 billion increase in net investment income driven by higher average assets under management and improved portfolio yields.
- Capital Allocation-Based Income (Loss) for Asset Management transitioned from a negative $2.5 billion in the prior year to a positive $2.8 billion, reflecting the appreciation of underlying investments.
- Net income attributable to KKR & Co. Inc. common stockholders was $3.7 billion for the year, a significant turnaround from a net loss of $591 million in the prior year.
- The company announced a new quarterly dividend of $0.175 per share, indicating confidence in future earnings and a commitment to shareholder returns.
- KKR completed the acquisition of the remaining minority equity interests in Global Atlantic, making it a wholly-owned subsidiary and further integrating its insurance operations.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 29, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $14.50B$5.70B | +154.2% |
| Interest Expense | $2.77B$1.55B | +78.8% |
| Net Income | $3.73B-$521.66M | +815.5% |
05—Questions
Frequently Asked Questions
What was KKR's total Assets Under Management (AUM) as of December 31, 2023?
As of December 31, 2023, KKR's total Assets Under Management (AUM) was $552.8 billion.
How did the Asset Management segment perform in 2023 compared to 2022?
The Asset Management segment saw a significant improvement in performance. Total revenues increased by $5.5 billion, primarily driven by a shift from a negative $2.5 billion Capital Allocation-Based Income (Loss) in 2022 to a positive $2.8 billion in 2023, reflecting the appreciation of underlying investments. Management fees also increased by $373.8 million across the Private Equity, Real Assets, and Credit and Liquid Strategies businesses.
What was the financial performance of the Insurance segment (Global Atlantic) in 2023?
The Insurance segment reported a significant increase in net investment income, up $1.3 billion to $5.5 billion, primarily due to higher average assets under management and improved portfolio yields from higher market interest rates. Insurance segment operating earnings increased by $91.9 million to $816.6 million.
What is KKR's outlook on dividends and share repurchases?
KKR announced a new quarterly dividend of $0.175 per share, translating to an annualized dividend of $0.70 per share. The company also indicated that as of February 6, 2024, approximately $194 million remained available under its share repurchase program.
06—Continue