KKR & Co. Inc. Quarterly Report for Q1 Ended Mar 31, 2023

Summary

KKR & Co. Inc. (KKR) reported its first quarter 2023 financial results, showcasing a significant increase in net income attributable to KKR & Co. Inc. common stockholders, rising to $322.7 million from a net loss of $9.8 million in the prior year's first quarter. This improvement was primarily driven by a strong rebound in Capital Allocation-Based Income, which swung from a loss of $945.7 million in Q1 2022 to a gain of $449.0 million in Q1 2023, largely due to favorable investment performance across various funds. The Asset Management segment's Fee Related Earnings experienced a slight decrease to $548.6 million from $604.9 million, influenced by lower transaction fees and higher operating expenses, although management fees saw growth. The Insurance segment, operated by Global Atlantic, demonstrated robust growth, with Insurance Segment Operating Earnings increasing by 42% year-over-year to $205.1 million, driven by higher net investment income and increased new business volumes. Total revenues grew substantially to $3.13 billion from $1.00 billion year-over-year. While total expenses also increased, reflecting higher compensation and benefits in asset management and increased policy benefits and claims in insurance, the significant improvement in capital allocation-based income and net investment income from Global Atlantic led to a substantial net income recovery. KKR's total assets increased to $282.6 billion from $275.3 billion at the end of 2022, with investments in the Asset Management segment growing to $97.9 billion from $92.4 billion. The company maintained a strong liquidity position, with $9.7 billion in cash, cash equivalents, and restricted cash as of March 31, 2023.

Key Highlights

• 1Net Income Attributable to KKR & Co. Inc. Common Stockholders significantly improved, reaching $322.7 million for Q1 2023, a substantial rebound from a net loss of $9.8 million in Q1 2022.
• 2Total revenues surged by 213% year-over-year to $3.13 billion, driven by a strong recovery in Capital Allocation-Based Income and growth in Net Investment Income from the Insurance segment.
• 3Capital Allocation-Based Income swung from a $945.7 million loss in Q1 2022 to a $449.0 million gain in Q1 2023, indicating improved investment performance across funds.
• 4Insurance Segment Operating Earnings grew by 42% year-over-year to $205.1 million, primarily due to higher net investment income and increased new business volumes.
• 5Fee Related Earnings for the Asset Management segment decreased slightly to $548.6 million from $604.9 million, mainly due to lower transaction fees and increased operating expenses, despite growth in management fees.
• 6Total Assets increased to $282.6 billion as of March 31, 2023, from $275.3 billion at December 31, 2022, with investments in Asset Management rising to $97.9 billion.
• 7The company maintained a healthy liquidity position, with $9.7 billion in cash, cash equivalents, and restricted cash as of March 31, 2023.

Frequently Asked Questions