10-QPeriod: Q1 FY2024

KKR & Co. Inc. Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 9, 2024For Securities:KKRKKRTKKR-PDKKRS

Summary

KKR & Co. Inc. (KKR) reported a strong first quarter of 2024, with total GAAP revenues of $9.66 billion, a significant increase of 208% year-over-year, driven by robust performance in both its Asset Management and Insurance segments. Asset Management revenue rose 3% to $1.96 billion, bolstered by a substantial 205% increase in Capital Allocation-Based Income, largely due to strong investment performance across various funds. The Insurance segment, operated by Global Atlantic, saw its revenues surge by 285% to $7.70 billion, primarily driven by a significant increase in Net Premiums, reflecting new reinsurance transactions and growth in new business volumes. This segment also benefited from higher Net Investment Income, up 18% year-over-year, supported by increased assets under management and higher portfolio yields. Net income attributable to KKR & Co. Inc. common stockholders more than doubled to $682.2 million, or $0.74 per diluted share, up from $322.7 million, or $0.36 per diluted share, in the prior year's quarter. This performance reflects the company's diversified business model and effective deployment of capital across its investment strategies.

Financial Highlights

27 data points
Beta

Revenue

$9.66B

Net Income

$682.21M

7.1% Net Margin

Total Assets

$339.77B

Cash & Equivalents

$16.17B

Free Cash Flow

$1.53B

Financial Statements
Beta
Revenue$9.66B
Interest Expense$754.06M
Net Income$682.21M

Key Highlights

  • 1Total GAAP Revenues increased significantly by 208% year-over-year to $9.66 billion.
  • 2Asset Management revenues grew 3% to $1.96 billion, driven by a substantial 205% increase in Capital Allocation-Based Income due to strong investment performance.
  • 3Insurance segment revenues more than tripled to $7.70 billion, primarily due to higher Net Premiums and a 18% increase in Net Investment Income.
  • 4Net Income Attributable to KKR & Co. Inc. Common Stockholders more than doubled to $682.2 million, or $0.74 per diluted share.
  • 5Fee Related Earnings increased by 22% to $668.7 million, reflecting higher management fees across all business lines.
  • 6Assets Under Management (AUM) increased by $24.8 billion to $577.6 billion, driven by growth across Private Equity, Real Assets, and Credit & Liquid Strategies.
  • 7KKR announced a quarterly dividend of $0.175 per share, payable in May 2024, underscoring its commitment to returning capital to shareholders.

Frequently Asked Questions

The substantial year-over-year increase in total GAAP revenues to $9.66 billion was primarily driven by the Insurance segment's revenue growth of 285% to $7.70 billion, fueled by higher Net Premiums from new reinsurance transactions and increased individual market channel sales. The Asset Management segment also contributed with a 3% revenue increase to $1.96 billion, largely due to a significant 205% surge in Capital Allocation-Based Income resulting from strong investment performance across various funds.

KKR demonstrated a substantial improvement in profitability, with Net Income Attributable to KKR & Co. Inc. Common Stockholders more than doubling to $682.2 million in Q1 2024, up from $322.7 million in Q1 2023. This growth translates to a diluted EPS of $0.74, a significant increase from $0.36 in the prior year's comparable period. The improved profitability reflects the strong performance across both the Asset Management and Insurance segments.

KKR's Assets Under Management (AUM) increased by $24.8 billion to $577.6 billion as of March 31, 2024. This growth was primarily fueled by new capital raised across its Private Equity, Real Assets, and Credit & Liquid Strategies business lines. Additionally, investment value appreciation, particularly in the Private Equity and Real Assets segments, contributed to the increase, although this was partially offset by distributions and redemptions from certain funds.

KKR continues to demonstrate a commitment to returning capital to shareholders. The company announced a quarterly dividend of $0.175 per share, payable in May 2024 to common stockholders of record as of May 13, 2024. This aligns with their stated annual dividend policy of $0.70 per share.