Summary
KKR & Co. Inc. (KKR) has filed an 8-K to disclose information regarding the adoption of a new insurance accounting standard, ASU 2018-12 (LDTI), and its impact on certain non-GAAP financial measures. The company has released a presentation for stockholders and analysts that recasts certain historical financial results for the full year 2021 and full year and quarterly periods of 2022 on an unaudited basis to reflect the LDTI adoption. Furthermore, KKR is adjusting how it manages and assesses the performance of its Insurance business. Starting with the first quarter of 2023 results, the company will exclude certain LDTI impacts from its non-GAAP measures and will begin reporting Insurance segment operating earnings on a pre-tax basis. This filing serves to inform investors about these accounting and reporting changes, which may affect the comparability of KKR's financial performance metrics going forward.
Key Highlights
- 1KKR is adopting the new Financial Accounting Standards Board (FASB) Accounting Standards Update 2018-12 (LDTI) for insurance and reinsurance accounting.
- 2The adoption of LDTI requires recasting of certain historical financial results for the full year 2021 and full year/quarterly periods of 2022 on an unaudited basis.
- 3KKR is modifying its approach to managing and assessing the performance of its Insurance business in conjunction with the LDTI adoption.
- 4Beginning with Q1 2023 results, KKR will adjust certain non-GAAP measures to exclude specific impacts of LDTI.
- 5KKR will report Insurance segment operating earnings on a pre-tax basis starting from the first quarter of 2023.
- 6A presentation detailing these changes and their impact is available on KKR's Investor Center website.