KKR & Co. Inc. Quarterly Report for Q2 Ended Jun 30, 2021

Summary

KKR & Co. Inc. (KKR) reported strong financial results for the quarter ended June 30, 2021, demonstrating significant growth driven by its asset management and insurance segments. Total revenues surged to $3.14 billion, a substantial increase from $1.33 billion in the prior year's quarter, reflecting robust performance across its investment strategies and the impact of its recently acquired Global Atlantic insurance business. Net income attributable to KKR common stockholders grew significantly to $1.28 billion, or $2.05 per diluted share, up from $698.6 million, or $1.24 per diluted share, in the same period last year. The company's asset management segment saw strong growth in management and transaction fees, alongside positive capital allocation-based income. The insurance segment, now consolidated following the Global Atlantic acquisition in February 2021, contributed positively to the overall financial performance. Key drivers of the robust performance include strong investment gains in the asset management segment, with Net Gains (Losses) from Investment Activities reaching $3.22 billion, a notable increase from $1.48 billion in the prior year. This reflects positive market performance across various asset classes. The company's expansion into the insurance sector through Global Atlantic is proving to be a strategic success, contributing new revenue streams and diversification. KKR also continues to actively manage its capital structure, with share repurchases and dividend payments reflecting a commitment to shareholder returns. The company's balance sheet remains strong, with total assets growing substantially, largely due to the inclusion of Global Atlantic's assets.

Key Highlights

• 1Total Revenues increased significantly to $3.14 billion for Q2 2021, up from $1.33 billion in Q2 2020.
• 2Net Income Attributable to KKR & Co. Inc. Common Stockholders rose to $1.28 billion ($2.05/diluted share) in Q2 2021, from $698.6 million ($1.24/diluted share) in Q2 2020.
• 3Net Gains (Losses) from Investment Activities for the Asset Management segment grew to $3.22 billion in Q2 2021, compared to $1.48 billion in Q2 2020.
• 4The acquisition of Global Atlantic, closed in February 2021, significantly contributed to the consolidated financial results, establishing a new Insurance segment.
• 5Capital Allocation-Based Income (Loss) turned positive to $1.53 billion in Q2 2021, a substantial improvement from $938.5 million in Q2 2020.
• 6Total Assets increased substantially to $229.2 billion as of June 30, 2021, primarily due to the Global Atlantic acquisition.
• 7KKR's After-tax Distributable Earnings showed strong growth, reaching $925.6 million for Q2 2021, up from $365.6 million in Q2 2020.

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