KKR & Co. Inc. (KKR)

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial

statements of KKR & Co. Inc., together with its consolidated subsidiaries, and the related notes included elsewhere in this

report and our Annual Report, including the audited consolidated financial statements and the related notes and

"Management's Discussion and Analysis of Financial Condition and Results of Operations" and “Business” section contained

therein. In addition, this discussion and analysis contains forward-looking statements and involves numerous risks and

uncertainties, including those described under "Cautionary Note Regarding Forward-looking Statements" and "Business

Environment" in this report and our Annual Report and "Risk Factors" in our Annual Report, and our other filings with the SEC.

Actual results may differ materially from those contained in any forward-looking statements.

The unaudited condensed consolidated financial statements and the related notes included elsewhere in this report are

hereafter referred to as the "financial statements." Additionally, the condensed consolidated statements of financial condition

are referred to herein as the "consolidated statements of financial condition"; the condensed consolidated statements of

operations are referred to herein as the "consolidated statements of operations"; the condensed consolidated statements of

comprehensive income (loss) are referred to herein as the "consolidated statements of comprehensive income (loss)"; the

condensed consolidated statements of changes in equity are referred to herein as the "consolidated statements of changes in

equity"; and the condensed consolidated statements of cash flows are referred to herein as the "consolidated statements of

cash flows."

Overview

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance

solutions. We aim to generate attractive investment returns by following a patient and disciplined investment approach,

employing world-class people, and supporting growth in our portfolio companies and communities.

Founded in 1976, KKR pioneered the leveraged buyout strategy and has been a leader of the private equity industry for

five decades. Since the inception of our firm, we have expanded our investment strategies and product offerings from

traditional private equity to other alternative asset classes such as leveraged credit, alternative credit, infrastructure, real

estate, energy, growth equity, and core private equity. Over the same period, we scaled from being a U.S.-focused firm to a

global operation with 35 offices around the world as of March 31, 2026. Our business further expanded with the acquisition of

Global Atlantic in 2021, which today conducts our insurance business providing retirement and life insurance solutions. As of

March 31, 2026, we managed $758 billion of assets under management, of which $220 billion comes from Global Atlantic.

Our three reporting segments align with the KKR business model:

Our business model of (i) Asset Management, (ii) Insurance, and (iii) Strategic Holdings corresponds to our three reporting

segments. We have purposely created a business model that we believe enables us to grow long-term, durable, recurring

earnings with a focus on large addressable markets where we can be an industry leader. Importantly, these pieces were built

to leverage our core strengths as a firm: investing acumen, capital allocation expertise and our collaborative culture.

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Business Segments

Asset Management

In Asset Management, we have five business lines: (i) Private Equity, (ii) Real Assets, (iii) Credit and Liquid Strategies, (iv)

Capital Markets, and (v) Principal Activities.

Our Assets Under Management have grown and diversified in the last 15 years across Private Equity, Real Assets, and

Credit and Liquid Strategies as illustrated on the following chart. KKR has evolved from a relatively US-centric and traditional

private equity firm to a global alternative asset manager. As of December 31, 2010, our traditional Private Equity strategy

represented over 70% of our total AUM. As of March 31, 2026, traditional Private Equity was less than 25% of our total AUM.

Assets Under Management ($ in billions):

Liquid Strategies

Alternative Credit

Credit and Liquid

Strategies(1)

$329

+18%

CAGR

Leveraged Credit

Real Estate

Real Assets(2)

$198

Infrastructure &

Energy

Growth Equity

Core Private Equity

Private Equity

$231

Traditional Private

Equity

(1)As of March 31, 2026, Alternative Credit AUM includes $92 billion of asset-based finance, $49 billion of corporate private credit (including $39 billion of

direct lending) and $8 billion of strategic investments.

(2)Real estate credit lends across the risk return spectrum of investments secured by or relating to real property, including senior mortgage loans, mezzanine

loans and mortgage-backed securities in North America and Europe. As of March 31, 2026, real estate credit AUM totals $44 billion. Real estate equity

seeks core, core+ and opportunistic real estate investment opportunities by geography: North America, Europe and Asia Pacific. As of March 31, 2026,

real estate equity AUM totals $40 billion. This includes $12 billion from the management of two publicly listed Japanese REITs through our subsidiary,

KJRM.

(3)The K-Series suite of vehicles are offered through various distribution channels to investors in the U.S. and other jurisdictions around the world. We have

K-Series vehicles that operate or invest in private equity companies, infrastructure assets, credit investments, and real estate. As of March 31, 2026, total

K-Series AUM was $38 billion, which has grown significantly over the past three years.

As an asset management firm, we earn recurring management fees and fee-related performance revenues for providing

investment management services and expertise to our institutional and individual investors who entrust us with their capital.

The amount of fees we charge for managing these assets depends on the underlying investment strategy, liquidity profile, and

ultimately our ability to generate attractive investment returns for our clients.

We earn transaction fees for providing capital markets services as a broker-dealer, and we also earn transaction and

monitoring fees as part of the management of our portfolio companies.

Carried interest that we receive from our investment vehicles entitles us to a specified percentage of investment gains

that are generated on third-party capital that is invested. We earn investment income by investing our own capital alongside

investors in our funds and other investment vehicles and from other assets we own on our balance sheet.

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Operating expenses, which include occupancy expenses and other typical operating expenses, are shared across a single

expense pool given the collaborative nature of our five business lines within Asset Management.

Insurance

Our insurance business operates under the Global Atlantic brand. Global Atlantic is a leading retirement and life

insurance company, with an over 20-year track record of providing a broad suite of protection, legacy, and savings products to

customers and reinsurance solutions to clients across individual and institutional markets.

Global Atlantic primarily generates income by earning a spread between the investment income generated from

originated assets and the required cost of benefits payable to policyholders. Global Atlantic also earns fees paid by

policyholders on certain types of insurance contracts and fees paid by third-party investors, which are reported in our asset

management segment.  As of March 31, 2026, Global Atlantic serves over 3.5 million policyholders.

The following table represents Global Atlantic’s new business volumes by business and product for the three months

ended March 31, 2026 and 2025.

(1)New business volumes in individual markets are referred to as sales. In Global Atlantic's individual market channel, sales of annuities include all money

paid into new and existing contracts. Individual market channel sales for preneed life are based on the face amount of insurance and do not include the

recurring premiums that policyholders may pay over time.

(2)Block reinsurance transactions may be episodic and volumes may fluctuate. Similarly, funding agreements issued in the FABN program are subject to

capital markets conditions and volumes may fluctuate. Flow and pension risk transfer new business volumes typically occur throughout the year. See “—

Risks Related to Our Business—Parts of our earnings and cash flow are highly variable due to the nature of our business” in our Annual Report.

(3)New business volumes from Global Atlantic’s institutional market channel are based on the assets assumed, net of any ceding commission, and are gross

of any retrocessions to investment vehicles that participate in qualifying reinsurance transactions sourced by Global Atlantic and to other third party

reinsurers.

Strategic Holdings

Our Strategic Holdings segment, which we started reporting in the first quarter of 2024, acquires and manages interests

in operating companies that are owned by the firm. Today, those companies primarily consist of our participation in our core

private equity strategy. We have acquired, and in the future we expect to continue to acquire, other long-term assets outside

of, and in addition to, our participation in our core private equity strategy. Strategic Holdings is not limited to acquiring

companies in specific industries. We intend to hold the companies in our Strategic Holdings segment over a longer period of

time, and we believe most of these companies generally have a lower risk profile than would be typical for an investment

through our traditional private equity strategy. We currently expect our Strategic Holdings segment primarily to generate

income from the receipt of dividends from our ownership stakes in these businesses and, upon the sale of any ownership

stake, realized investment income from such sale. As of March 31, 2026, our Strategic Holdings segment consisted of our

ownership stakes in 19 companies.

The fees and carried interest paid by the third party investors in our core private equity funds continue to be reported in

our Asset Management segment and are not reported in our Strategic Holdings segment. Our Asset Management segment

charges a quarterly management fee in our Strategic Holdings segment. Additionally, our Asset Management segment charges

a performance fee from the sale of our interests in the companies included in our Strategic Holdings segment. The

management and performance fees are charged in order to represent the cost of providing advisory services by our Asset

Management segment rather than determining the allocable costs borne by our Asset Management segment to support our

Strategic Holdings segment.

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Based on information made available to management as of March 31, 2026, the following represents KKR’s pro-rata

portion of LTM Adjusted EBITDA(1) of operating companies in Strategic Holdings as of December 31, 2025:

Based on information made available to management as of March 31, 2026, the following represents KKR’s pro-rata

portion of LTM Adjusted Revenue(1) and LTM Adjusted EBITDA(1) of operating companies in Strategic

[Excerpt truncated for page length; source filing is linked above.]

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with the consolidated financial statements of KKR &

Co. Inc., together with its consolidated subsidiaries, and the related notes included elsewhere in this report. In addition, this

discussion and analysis contains forward-looking statements and involves numerous risks and uncertainties, including those

described under "Cautionary Note Regarding Forward-looking Statements" and "Risk Factors." Actual results may differ

materially from those contained in any forward-looking statements.

Business Environment

Our asset management, insurance, and strategic holdings segments are affected by the various market and economic

conditions of the various countries and regions in which we operate. Market and economic conditions are expected to

continue to have a substantial impact on our financial condition, results of operations, and our business in various ways that

we are unable to control, including our ability to make new investments, the valuations of the investments we manage, the

amount of investment proceeds we realize when we exit our investments, the timing for such realization activity, our ability to

fundraise or to sell our various investment and insurance products and services, and the level of our capital markets activities,

as discussed in the "Risk Factors" section of this report.

In 2025, the United States continued to experience economic growth while also continuing to experience inflation in

excess of the U.S. Federal Reserve Board’s 2.0% target rate. The U.S. Federal Reserve Board lowered the target range for the

federal funds rate three times in 2025, including two reductions in the fourth quarter, that brought the target range to

3.50-3.75%. The U.S. Federal Reserve Board in connection with its fourth quarter rate reductions noted that the reduction was

in response to the slowdown in the labor market; however, they maintained a cautious stance as inflation remained

somewhat elevated and above its long-run target.

Real gross domestic product (“GDP”) growth in the Eurozone in 2025 was moderately positive. The European Central

Bank lowered the deposit rate four times in the first half of 2025 to 2.00% as part of a broader easing cycle in response to

downward revisions to inflation expectations. The European Central Bank subsequently held the deposit rate unchanged for

the remainder of 2025 as Eurozone core inflation slowed compared to 2024 and remained close to the European Central

Bank’s 2% medium-term target.

In Asia, Japan’s economy reaccelerated in 2025, supported by resilient exports and consumer spending. The Bank of

Japan continued its gradual monetary policy normalization during 2025, including an increase in its policy rate from 0.25% to

0.75%. In China, the economy grew in 2025 but continued to face significant headwinds, including weak domestic demand,

ongoing contraction in the property sector, and uncertainty relating to ongoing trade tensions with the United States as

discussed further below.

Several key economic indicators in the United States and in other countries and regions in which we operate include:

•GDP. In the United States, real GDP expanded by 2.2% for the year ended December 31, 2025, compared to an

expansion of 2.8% for the year ended December 31, 2024. Eurozone real GDP is estimated to have expanded by 1.4%

for the year ended December 31, 2025, up from 0.9% expansion for the year ended December 31, 2024. In Japan,

real GDP expanded by 1.1% for the year ended December 31, 2025, up from a 0.2% contraction for the year ended

December 31, 2024. Real GDP in China expanded 5.0% for the year ended December 31, 2025, unchanged from 5.0%

growth reported for the year ended December 31, 2024

•Interest Rates. The target federal funds rate set by the U.S. Federal Reserve Board was 3.625% as of December 31,

2025, down from 4.375% as of December 31, 2024. The benchmark short-term interest rate set by the European

Central Bank was 2.0% as of December 31, 2025, down from 3.00% as of December 31, 2024. The benchmark short-

term interest rate set by the Bank of Japan was 0.75% as of December 31, 2025, up from 0.25% as of December 31,

2024. The benchmark interest rate set by The People’s Bank of China was 3.0% as of December 31, 2025, down from

3.10% as of December 31, 2024.

•Inflation. The U.S. core consumer price index rose 2.6% on a year-over-year basis as of December 31, 2025, down

from 3.2% on a year-over-year basis as of December 31, 2024. Eurozone core inflation was 2.3% as of December 31,

2025, down from 2.7% as of December 31, 2024. In Japan, core inflation rose 1.5% on a year-over-year basis as of

December 31, 2025, down from 1.6% on a year-over-year basis as of December 31, 2024. Core inflation in China was

1.2% on a year-over-year basis as of December 31, 2025, up from 0.4% as of December 31, 2024.

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•Unemployment. The U.S. unemployment rate was 4.4% as of December 31, 2025, up from 4.1% as of December 31,

2024. Eurozone unemployment was 6.3% as of December 31, 2025, unchanged from 6.3% as of December 31, 2024.

The unemployment rate in Japan was 2.6% as of December 31, 2025, up from 2.5% as of December 31, 2024. The

unemployment rate in China was 5.2% as of December 31, 2025, substantially unchanged from 5.1% as of December

31, 2024.

In 2025, the United States equity markets appreciated on a year-over-year basis, with varying volatility throughout the

year, and the U.S. 10-year benchmark treasury yield also fluctuated throughout the year to end at a rate lower at year-end

than at the prior year-end of 2024. Short term interest rates fell as the Federal Reserve lowered benchmark interest rates.

European, Japanese and Chinese equity markets all appreciated on a year-over-year basis.

Several key financial market indicators in the United States and in other countries and regions in which we operate

include:

•Equity Markets. For the year ended December 31, 2025, the S&P 500 was up 17.9%, the MSCI Europe Index was up

36.3%, the MSCI Asia Pacific Index was up 28.7% and the MSCI World Index was up 21.6% in U.S. dollar terms, on a

total return basis including dividends. Equity market volatility as evidenced by the Chicago Board Options Exchange

Market Volatility Index (VIX), a measure of volatility, ended at 15.0 as of December 31, 2025, decreasing from 17.4 as

of December 31, 2024.

•Credit Markets. During the year ended December 31, 2025, U.S. investment grade corporate bond spreads (BofA

Merrill Lynch US Corporate Index) tightened by 3 basis points. The non-investment grade credit indices were up

during the year ended December 31, 2025, with the S&P/LSTA Leveraged Loan Index up 5.9% and the BofAML HY

Master II Index up 8.5%. During the year ended December 31, 2025, the 10-year government bond yields fell 40 basis

points in the United States, rose 49 basis points in Germany, rose 97 basis points in Japan, fell 9 basis points in the

UK, and rose 18 basis points in China.

•Commodity Markets. During the year ended December 31, 2025, the 3-year forward price of WTI crude oil decreased

approximately 7.6%, and the 3-year forward price of natural gas decreased from approximately $4.62 per MMBtu as

of December 31, 2024 to $4.51 per MMBtu as of December 31, 2025. The Japan spot LNG import price decreased to

approximately $11.03 per MMBtu as of December 31, 2025, from approximately $13.82 per MMBtu as of December

31, 2024.

•Foreign Exchange Rates. For the year ended December 31, 2025, the euro rose 13.4%, the British pound rose 7.7%,

the Japanese yen rose 0.3%, and the Chinese renminbi rose 4.5%, respectively, relative to the U.S. dollar.

Beginning in March 2025 and continuing through the date of the filing of this report, the United States and countries

around the world have experienced elevated levels of market volatility and uncertainty driven by, among other things,

geopolitical and global trade concerns, including, the imposition of tariffs and threats of tariffs by the United States on certain

of its trading partners since April 2025. This volatility and uncertainty adds to the various risks and uncertainties in the

business environment in which we operate and may have various impacts, including on the valuations of certain of our and

our investment vehicles' investments, the pace and volume of our capital market transactions, deployments, and realizations,

and our fundraising activities.

Other Trends, Uncertainties and Risks Related to Our Business

Please refer to the "Risk Factors" section of this report for important additional detail regarding risks, uncertainties, and

other conditions that could have a material favorable or unfavorable impact on our businesses, including the impact of market

and economic conditions on valuations of investments and the impact of competition we face. These risks, uncertainties, and

other conditions should be read in conjunction with this Business Environment section and the entire Risk Factor section of

this report. In particular, see "Risk Factors—Risks Related to Our Business—Global, regional and local events outside of our

control, including geopolitical events and natural disasters, could materially and adversely impact KKR”, “Risk Factors—Risks

Related to Our Investment Activities—Various conditions and events outside of our control that are difficult to quantify or

predict may have a significant impact on the valuation of our investments”, and "Risk Factors—Risks Related to Our Business

—We operate in a highly competitive industry."

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Basis of Accounting and Key Financial Measures under GAAP

We manage our business using certain financial measures and key operating metrics since we believe these metrics

measure the productivity of our operating activities. We prepare our consolidated financial statements in accordance with

accounting principles generally accepted in the United States of America (“GAAP”). See Note 2 “ Summary of Significant

Accounting Policies” in our financial statements and “—Critical Accounting Policies and Estimates” contained in this section

below. Our key Segment and non-GAAP financial measures and operating metrics are discussed below.

Key Segment and Non-GAAP Performance Measures

The following key segment and non-GAAP performance measures are used by management in making operational and

resource deployment decisions as well as assessing the performance of KKR's business. They include certain financial

measures that are calculated and presented using methodologies other than in accordance with GAAP. These performance

measures as described below are presented prior to giving effect to the allocation of income (loss) between KKR & Co. Inc.

and holders of exchangeable securities and as such represent the entire KKR business in total. In addition, these performance

measures are presented without giving effect to the consolidation of certain investment funds and collateralized financing

entities ("CFEs") that KKR manages.

We believe that providing these segment and non-GAAP performance measures on a supplemental basis to our GAAP

results is helpful to stockholders in assessing the overall performance of KKR's business. These non-GAAP measures should

not be considered as a substitute for financial measures calculated in accordance with GAAP. Reconciliations of these non-

GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP,

where applicable, are included under "—Segment Balance Sheet Measures—Reconciliations to GAAP Measures."

Adjusted Net Income

Adjusted Net Income ("ANI") is a performance measure of KKR’s earnings, which is derived from KKR’s reported segment

results. ANI is used to assess the performance of KKR’s business operations and measures the earnings potentially available

for distribution to its equity holders or reinvestment into its business. ANI is equal to Total Segment Earnings less Interest

Expense, Net and Other and Income Taxes on Adjusted Earnings. Interest Expense, Net and Other includes (i) interest expense

on debt obligations not attributable to any particular segment and (ii) cumulative dividend expense on the Series D

Mandatory Convertible Preferred Stock, net of interest income earned on cash and short-term investments. Income Taxes on

Adjusted Earnings represents the amount of income taxes that would be paid assuming that all adjusted earnings were

allocated to KKR & Co. Inc. and taxed at the same effective rate, which assumes that all securities exchangeable into shares of

common stock of KKR & Co. Inc. were exchanged. The economic assumptions and methodologies that impact Income taxes on

Adjusted Earnings are similar to those used in calculating the current income tax provision under U.S. GAAP. Equity based

compensation expense is excluded from ANI, because (i) KKR believes that the cost of equity awards granted to employees

does not contribute to the earnings potentially available for distributions to its equity holders or reinvestment into its

business and (ii) excluding this expense makes KKR’s reporting metric more comparable to the corresponding metric

presented by other publicly traded companies in KKR’s industry, which KKR believes enhances an investor’s ability to compare

KKR’s performance to these other companies. Income Taxes on Adjusted Earnings includes the benefit of tax deductions

arising from equity-based compensation, which reduces Income Taxes on Adjusted Earnings during the period. If tax

deductions from equity-based compensation were to be excluded from Income Taxes on Adjusted Earnings, KKR’s ANI would

be lower and KKR’s effective tax rate would appear to be higher, even though a lower amount of income taxes would have

actually been paid or payable during the period. KKR separately discloses the amount of tax deduction from equity-based

compensation for the period reported and the effect of its inclusion in ANI for the period. KKR makes these adjustments when

calculating ANI in order to more accurately reflect the net realized earnings that are expected to be or become available for

distribution to KKR’s equity holders or reinvestment into KKR’s business. However, ANI does not represent and is not used to

calculate actual dividends under KKR’s dividend policy, which is a fixed amount per period, and ANI should not be viewed as a

measure of KKR’s liquidity.

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Total Segment Earnings

Total Segment Earnings is a performance measure that KKR believes is useful to stockholders as it provides a

supplemental measure of our operating performance without taking into account items that KKR does not believe arise from

or relate directly to KKR's operations. Total Segment Earnings excludes: (i) equity-based compensation charges, (ii)

amortization of acquired intangibles, and (iii) transaction-related and non-operating items, if any. Transaction-related and

non-operating items primarily arise from corporate actions, which consist of: (i) impairments, (ii) transaction costs from

acquisitions, including any acquisition-related stock consideration, (iii) depreciation on real estate that KKR owns and

occupies, (iv) contingent liabilities, net of any recoveries, (v) certain integration, restructuring, and other non-operating

expenses, and (vi) other gains or charges that affect period-to-period comparability and are not reflective of KKR's ongoing

operational performance. Inter-segment transactions are not eliminated from segment results when management considers

those transactions in assessing the results of the respective segments. These transactions include (i) management fees earned

by our Asset Management segment as the investment adviser for Global Atlantic insurance companies, (ii) management and

performance fees earned by our Asset Management segment for acquiring and managing the companies included in our

Strategic Holdings segment, and (iii) interest income and expense based on lending arrangements where our Asset

Management segment borrows from our Insurance segment. All these inter-segment transactions are recorded by each

segment based on the applicable governing agreements. Additionally, due to the integrated nature of our segment operations

and as part of our strategic capital allocation decisions, inter-segment asset transfers have and may continue to occur. In

these cases in segment reporting, the assets are transferred at their fair value, and no realization is recognized at the time of

transfer. Earnings are recognized upon realization events and transactions with third parties. Total Segment Earnings

represents the total segment earnings of KKR’s Asset Management, Insurance and Strategic Holdings segments.

Asset Management Segment Earnings

Asset management segment earnings is the segment profitability measure used to make operating decisions and to

assess the performance of the Asset Management segment. This measure is presented before income taxes and is comprised

of: (i) Fee Related Earnings, (ii) Realized Performance Income, (iii) Realized Performance Income Compensation, (iv) Realized

Investment Income, and (v) Realized Investment Income Compensation. Asset Management Segment Earnings excludes the

impact of: (i) unrealized gains (losses) on investments, (ii) unrealized carried interest, and (iii) unrealized carried interest

compensation. Management fees earned by KKR as the adviser, manager or sponsor for its investment funds, vehicles and

accounts, including its Global Atlantic insurance companies and Strategic Holdings segment, are included in Asset

Management Segment Earnings.

Insurance Operating Earnings

Insurance Operating Earnings is the segment profitability measure used to make operating decisions and to assess the

performance of the Insurance segment. This measure is presented before income taxes and is comprised of: (i) Net

Investment Income, (ii) Net Cost of Insurance, and (iii) General, Administrative, and Other Expenses. Insurance Operating

Earnings excludes the impact of: (i) investment gains (losses) which include realized gains (losses) related to asset/liability

matching investment strategies and unrealized investment gains (losses) and (ii) non-operating changes in policy liabilities and

derivatives which includes (a) changes in the fair value of market risk benefits and other policy liabilities measured at fair

value and related benefit payments, (b) fees attributed to guaranteed benefits, (c) derivatives used to manage the risks

associated with policy liabilities, and (d) losses at contract issuance on payout annuities. Insurance Operating Earnings

includes (i) realized gains and losses not related to asset/liability matching investment strategies and (ii) the investment

management costs that are earned by our Asset Management segment as the investment adviser of the Global Atlantic

insurance companies.

Strategic Holdings Segment Earnings

Strategic Holdings Segment Earnings is the segment profitability measure used to make operating decisions and to assess

the performance of the Strategic Holdings segment. This measure is presented before income taxes and is comprised of:

Dividends, Net and Net Realized Investment Income. Strategic Holdings Segment Earnings excludes the impact of unrealized

gains (losses) on investments. Strategic Holdings Segment Earnings includes management fees and performance fee expenses

that are earned by the Asset Management segment.

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Fee Related Earnings

Fee related earnings is a performance measure used to assess the Asset Management segment’s generation of earnings

from revenues that are measured and received on a more recurring basis as compared to KKR’s investing earnings. KKR

believes this measure is useful to stockholders as it provides additional insight into the profitability of our fee generating asset

management and capital markets businesses. FRE equals (i) Management Fees, including fees paid by the Insurance and

Strategic Holdings segments to the Asset Management segment and fees paid by Ivy vehicles and other reinsurance vehicles,

(ii) Transaction and Monitoring Fees, Net and (iii) Fee Related Performance Revenues, less (x) Fee Related Compensation, and

(y) Other Operating Expenses.

Fee Related Performance Revenues refers to the realized portion of performance fees from certain AUM that has an

indefinite term and for which there is no immediate requirement to return invested capital to investors upon the realization

of investments. Fee related performance revenues consists of performance fees (i) expected to be received from our

investment funds, vehicles and accounts on a recurring basis, and (ii) that are not dependent on a realization event involving

investments held by the investment fund, vehicle or account.

Fee Related Compensation refers to the compensation expense, excluding equity-based compensation, paid from (i)

Management Fees, (ii) Transaction and Monitoring Fees, Net, and (iii) Fee Related Performance Revenues.

Other Operating Expenses represents the sum of (i) occupancy and related charges and (ii) other operating expenses.

Strategic Holdings Operating Earnings

Strategic Holdings Operating Earnings is a performance measure used to assess the firm’s earnings from companies and

businesses reported through its Strategic Holdings segment. Strategic Holdings Operating Earnings currently consists of

earnings derived from dividends that the firm receives from businesses acquired through the firm’s participation in our core

private equity strategy. Strategic Holdings Operating Earnings currently equals dividends less management fees that are

earned by our Asset Management segment. This measure is used by management to assess the Strategic Holdings segment’s

generation of earnings from revenues that are measured and received on a more recurring basis than, and are not dependent

on, realizations from investment activities.

Total Operating Earnings

Total Operating Earnings is a performance measure that represents the sum of (i) FRE, (ii) Insurance Operating Earnings,

and (iii) Strategic Holdings Operating Earnings. KKR believes this measure is useful to stockholders as it provides additional

insight into the profitability of the most recurring forms of earnings from each of KKR’s segments as compared to investing

earnings.

Total Investing Earnings

Total Investing Earnings is a performance measure that represents the sum of (i) Net Realized Performance Income and

(ii) Net Realized Investment Income. KKR believes this measure is useful to stockholders as it provides additional insight into

the earnings of KKR’s segments from the realization of investments.

Total Asset Management Segment Revenues

Total Asset Management Segment Revenues is a performance measure that represents the realized revenues of the Asset

Management segment (which excludes unrealized carried interest and unrealized gains (losses) on investments) and is the

sum of (i) Management Fees, (ii) Transaction and Monitoring Fees, Net, (iii) Fee Related Performance Revenues, (iv) Realized

Performance Income, and (v) Realized Investment Income. Asset Management Segment Revenues excludes Realized

Investment Income earned based on the performance of businesses presented in the Strategic Holdings segment. KKR

believes that this performance measure is useful to stockholders as it provides additional insight into all forms of realized

revenues generated by our Asset Management segment.

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Key Operating and Capital Metrics

Assets Under Management

Assets under management represent the assets managed (including core private equity), advised or sponsored by KKR

from which KKR is entitled to receive management fees or performance income (currently or upon a future event), general

partner capital, and assets managed, advised or sponsored by our strategic BDC partnership and the hedge fund and other

managers in which KKR holds an ownership interest. We believe this measure is useful to stockholders as it provides

additional insight into the capital raising activities of KKR and its hedge fund and other managers and the overall activity in

their investment funds and other managed or sponsored capital. KKR calculates the amount of AUM as of any date as the sum

of: (i) the fair value of the investments of KKR's investment funds and certain co-investment vehicles; (ii) uncalled capital

commitments from these funds, including uncalled capital commitments from which KKR is currently not earning

management fees or performance income; (iii) the asset value of the Global Atlantic insurance companies; (iv) the par value of

outstanding CLOs; (v) KKR's pro rata portion of the AUM of hedge fund and other managers in which KKR holds an ownership

interest; (vi) all of the AUM of KKR's strategic BDC partnership; (vii) the acquisition cost of invested assets of certain non-US

real estate investment trusts and (viii) the value of other assets managed or sponsored by KKR. The pro rata portion of the

AUM of hedge fund and other managers is calculated based on KKR’s percentage ownership interest in such entities

multiplied by such entity’s respective AUM. KKR's definition of AUM (i) is not based on any definition of AUM that may be set

forth in the governing documents of the investment funds, vehicles, accounts or other entities whose capital is included in this

definition, (ii) includes assets for which KKR does not act as an investment adviser, and (iii) is not calculated pursuant to any

regulatory definitions.

Capital Invested

Capital invested is the aggregate amount of capital invested by (i) KKR’s investment funds (including core private equity)

and Global Atlantic insurance companies, (ii) KKR's Principal Activities business line as a co-investment, if any, alongside KKR’s

investment funds, and (iii) KKR's Principal Activities business line in connection with a syndication transaction conducted by

KKR's Capital Markets business line, if any. Capital invested is used as a measure of investment activity at KKR during a given

period. We believe this measure is useful to stockholders as it provides a measure of capital deployment across KKR’s business

lines. Capital invested includes investments made using investment financing arrangements like credit facilities, as applicable.

Capital invested excludes (i) investments in certain leveraged credit strategies, (ii) capital invested by KKR’s Principal Activities

business line that is not a co-investment alongside KKR’s investment funds, and (iii) capital invested by KKR’s Principal

Activities business line that is not invested in connection with a syndication transaction by KKR’s Capital Markets business line.

Capital syndicated by KKR's Capital Markets business line to third parties other than KKR’s investment funds or Principal

Activities business line is not included in capital invested.

Fee Paying AUM

Fee paying AUM represents only the AUM from which KKR is entitled to receive management fees. We believe this

measure is useful to stockholders as it provides additional insight into the capital base upon which KKR earns management

fees. FPAUM is the sum of all of the individual fee bases that are used to calculate management fees and differs from AUM in

the following respects: (i) assets and commitments from which KKR is not entitled to receive a management fee are excluded

(e.g., assets and commitments with respect to which it is entitled to receive only performance income or is otherwise not

currently entitled to receive a management fee) and (ii) certain assets, primarily in its private equity funds, are reflected based

on capital commitments and invested capital as opposed to fair value because fees are not impacted by changes in the fair

value of underlying investments.

Uncalled Commitments

Uncalled commitments is the aggregate amount of unfunded capital commitments that KKR’s investment funds and

carry-paying co-investment vehicles (including core private equity) have received from fund investors to contribute capital to

fund future investments, and the amount of uncalled commitments is not reduced by capital invested using borrowings under

an investment fund’s subscription facility until capital is called from our fund investors. We believe this measure is useful to

stockholders as it provides additional insight into the amount of capital that is available to KKR’s investment funds and carry

paying co-investment vehicles to make future investments. Uncalled commitments are not reduced for investments

completed using fund-level investment financing arrangements or investments we have committed to make but remain

unfunded at the reporting date.

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Analysis of Consolidated Results of Operations (GAAP Basis)

The following is a discussion of our consolidated results of operations on a GAAP basis for the years ended December 31,

2025 and 2024. You should read this discussion in conjunction with the financial statements and related notes included

elsewhere in this report. For a more detailed discussion of the factors that affected our segment results in these periods, see

"—Analysis of Segment Operating Results." See "Risk Factors" and "—Business Environment" in this report for more

information about risks, uncertainties, and other market and economic conditions that may impact our business, financial

performance, operating results, and valuations. For the discussion comparing our consolidated results of operations on a

GAAP basis for the years ended December 31, 2024 and 2023, see "Part II, Item 7. Management's Discussion and Analysis of

Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year ended December 31, 2024,

filed with the SEC on February 28, 2025.

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Consolidated Results of Operations (GAAP Basis) – Asset Management and Strategic

Holdings

Revenues

For the years ended December 31, 2025 and 2024, revenues consisted of the following:

Fees and Other

Total Fees and Other for the year ended December 31, 2025, increased compared to the year ended December 31, 2024,

primarily as a result of an increase in management fees, which were partially offset by a decrease in Capital Markets

transaction fees.

For a more detailed discussion of the factors that affected our transaction fees during the period, see "—Analysis of Asset

Management Segment Operating Results."

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The increase in management fees was primarily attributable to (i) management fees commencing at North America Fund

XIV in the second quarter of 2025, (ii) management fees commencing at Global Infrastructure Investors V in the third quarter

of 2024 and management fees earned on new capital raised that were retroactive to the start of the fund’s investment period

and (iii) management fees earned on new capital raised over the past twelve months by our private equity and infrastructure

K-Series vehicles. The increase was partially offset by (i) a lower level of management fees earned from Ascendant (our U.S.

middle market traditional private equity fund) due to management fees earned on new capital raised in 2024 that were

retroactive to the start of the fund’s investment period and no such retroactive fees were earned in the current year, (ii) a

decrease in management fees earned from North America Fund XIII as a result of entering its post-investment period in the

second quarter of 2025 and now paying fees based on invested capital rather than committed capital, and (iii) no

management fees earned from Asian Fund II in the current period due to the termination of management fees in the fourth

quarter of 2024.

Management fees due from consolidated investment funds and other investment vehicles are eliminated upon

consolidation under GAAP. However, because these amounts are funded by, and earned from, noncontrolling interests, upon

consolidation under GAAP, KKR's allocated share of the net income from the consolidated investment funds and other

investment vehicles is increased by the amount of fees that are eliminated. Accordingly, net income (loss) attributable to KKR

would be unchanged if such investment funds and other investment vehicles were not consolidated. For a more detailed

discussion on the factors that affect our management fees during the period, see "—Analysis of Asset Management Segment

Operating Results."

Fee credits increased compared to the prior period as a result of (i) a higher level of transaction fees in our Private Equity

business line and (ii) a higher level of monitoring fees in our Private Equity and Real Assets business lines. Fee credits owed to

consolidated investment funds and other investment vehicles are eliminated upon consolidation under GAAP. However,

because these amounts are owed to noncontrolling interests, upon consolidation under GAAP, KKR's allocated share of the

net income from the consolidated investment funds and other investment vehicles is decreased by the amount of fee credits

that are eliminated. Accordingly, net income (loss) attributable to KKR would be unchanged if such investment funds and

other investment vehicles were not consolidated. Transaction and monitoring fees earned from KKR portfolio companies are

not eliminated upon consolidation because those fees are earned from companies which are not consolidated. Furthermore,

transaction fees earned in our capital markets business are not shared with fund investors. Accordingly, certain transaction

fees are reflected in our revenues without a corresponding fee credit.

Capital Allocation-Based Income (Loss)

Capital Allocation-Based Income (Loss) for the year ended December 31, 2025, was positive primarily due to the net

appreciation of the underlying investments in many of our unconsolidated carry-earning investment vehicles, most notably

North America Fund XIII, Asian Fund IV, and our private equity and infrastructure K-Series vehicles. Capital Allocation-Based

Income (Loss) for the year ended December 31, 2024, was positive primarily due to the net appreciation of the underlying

investments in many of our unconsolidated carry-earning investment funds, most notably North America Fund XIII, Global

Infrastructure Investors IV, and our private equity and infrastructure K-Series vehicles.

KKR calculates the carried interest that would be due to KKR for each investment fund, pursuant to the fund agreements,

as if the fair value of the underlying investments were realized as of the reporting date, irrespective of whether such amounts

have been realized. Since the fair value of the underlying investments varies between reporting periods, it is necessary to

make adjustments to the amounts recorded as carried interest to reflect either (i) positive performance, resulting in an

increase in the carried interest allocated to the general partner or (ii) negative performance that would cause the amount due

to KKR to be less than the amount previously recognized, resulting in a negative adjustment to carried interest allocated to

the general partner. In each case, it is necessary to calculate the carried interest on cumulative results compared to the

carried interest recorded to date and to make the required positive or negative adjustments.

Investment Income (Loss)

Net Gains (Losses) from Investment Activities for the year ended December 31, 2025

The net gains from investment activities for the year ended December 31, 2025, were comprised of net realized gains of

$202.9 million and net unrealized gains of $4,598.6 million. See Note 4 "Net Gains (Losses) from Investment Activities – Asset

Management and Strategic Holdings" in our financial statements for detail of realized and unrealized gains and losses from

Investment Activities by asset class.

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Investment gains and losses relating to our general partner capital interest in our unconsolidated funds are not reflected

in our discussion and analysis of Net Gains (Losses) from Investment Activities. Our economics associated with these

investment gains and losses are reflected in Capital Allocation-Based Income (Loss) as described above.

For the year ended December 31, 2025, net gains (losses) from investment activities were driven primarily by mark-to-

market gains relating to our investment in Exact Holding B.V. (technology sector), USI, Inc. (financial services sector), and IVI-

RMA Global, S.L. (health care sector) held through our consolidated core private equity vehicles. These mark-to-market gains

were partially offset by (i) mark-to-market losses primarily relating to our investment in PetVet Care Centers, LLC (healthcare

sector) held through our consolidated core private equity vehicles, and OneStream, Inc. (NASDAQ: OS), (ii) mark-to-market

losses on certain foreign exchange forward contracts and (iii) mark-to-market losses on certain investments held in

consolidated CLOs.

Net investment gains (losses) for each asset class are influenced by the valuation methodology applied to each asset, as

well as factors specific to each investment. For the year ended December 31, 2025, net investment gains (losses) were

primarily generated in the following asset classes:

•Private Equity (including core private equity), which were primarily impacted by overall positive operating

performance of certain portfolio companies. Changes in market multiples varied across regions and sectors used in

the market comparables methodology for the valuation of Level III investments; and

•Real Assets, which primarily benefited from the overall positive operating performance of certain infrastructure

assets. Changes in market multiples varied across regions and sectors used in the market comparables methodology

for the valuation of Level III investments.

See "Risk Factors" and "—Business Environment" in this report for more information about the factors that may impact

our business, financial performance, operating results, and valuation.

Net Gains (Losses) from Investment Activities for the year ended December 31, 2024

The net gains from investment activities for the year ended December 31, 2024, were comprised of net realized gains of

$246.8 million and net unrealized gains of $3,196.0 million. See Note 4 "Net Gains (Losses) from Investment Activities – Asset

Management and Strategic Holdings" in our financial statements for detail of realized and unrealized gains and losses from

Investment Activities by asset class.

Investment gains and losses relating to our general partner capital interest in our unconsolidated funds are not reflected

in our discussion and analysis of Net Gains (Losses) from Investment Activities. Our economics associated with these

investment gains and losses are reflected in Capital Allocation-Based Income (Loss) as described above.

For the year ended December 31, 2024, net gains (losses) from investment activities were driven primarily by mark-to-

market gains primarily relating to our investment in USI, Inc., 1-800 Contacts Inc. (healthcare sector), April SA (financial

services sector), and Exact Holding B.V. (technology sector) held through our consolidated core private equity vehicles. These

mark-to-market gains were partially offset by mark-to-market losses primarily relating to our investment in BridgeBio Pharma,

Inc. (NASDAQ: BBIO), PetVet Care Centers, LLC (healthcare sector), and Accell Group N.V. (consumer products sector).

The factors that affect each investment strategy vary depending on the nature of the asset class and the valuation

methodology employed. For the year ended December 31, 2024, net investment gains (losses) were primarily generated in

the following asset classes:

•Private Equity (including core private equity), which were primarily impacted by (i) overall positive operating

performance of its portfolio companies and (ii) the positive returns of global equity markets and the related increase

of market multiples used in the market comparables methodology for the valuation of Level III investments; and

•Real Assets, which primarily benefited from the positive operating performance of certain infrastructure assets and,

to a lesser extent, by the positive returns of global equity markets and the related increase of market multiples used

in the market comparables methodology for the valuation of Level III investments.

See "Risk Factors" and "—Business Environment" in this report for more information about the factors that may impact

our business, financial performance, operating results, and valuation.

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Dividend Income

During the year ended December 31, 2025, dividend income was primarily from (i) our investments in 1-800 Contacts Inc.,

Exact Holdings B.V. and April SA, all held through our consolidated core vehicles and (ii) various investments in certain of our

consolidated opportunistic real estate equity funds. During the year ended December 31, 2024, dividend income was

primarily from (i) our investments in 1-800 Contacts Inc. and Exact Holdings B.V. held through our consolidated core private

equity vehicles, (ii) certain of our consolidated opportunistic real estate equity funds, and (iii) our investment in MásOrange

(telecommunications sector), held through our consolidated European Fund V.

Significant dividends from portfolio companies and consolidated funds are generally not recurring quarterly dividends,

and while they may occur in the future, their size and frequency are variable. For a discussion of other factors that affected

KKR's dividend income, see "—Analysis of Asset Management Segment Operating Results."

Interest Income

The decrease in interest income during the year ended December 31, 2025, compared to the year ended December 31,

2024, was primarily due to the impact of lower market interest rates during the current period on floating rate credit

investments held in consolidated CLOs and certain of our consolidated private credit funds. The decrease was partially offset

by the impact of closing CLOs that are consolidated subsequent to December 31, 2024. For a discussion of other factors that

affected KKR's interest income, see "—Analysis of Asset Management Segment Operating Results."

Interest Expense

The decrease in interest expense during the year ended December 31, 2025, compared to the year ended December 31,

2024, was primarily due to the impact of lower market interest rates during the current period on floating rate debt

obligations held in consolidated CLOs and at certain consolidated funds and other investment vehicles. The decrease was

partially offset by (i) the impact of closing CLOs that were consolidated subsequent to December 31, 2024, and (ii) an increase

in the amount of borrowings outstanding. For a discussion of other factors that affected KKR's interest expense, see "—Key

Segment and Non-GAAP Performance Measures."

Expenses

Compensation and Benefits

The increase in compensation and benefits during the year ended December 31, 2025, compared to the year ended

December 31, 2024, was primarily due to a higher level of accrued carried interest compensation driven by a higher level of

carried interest income earned in the current period.

Occupancy and Related Charges

The increase in occupancy and related charges during the year ended December 31, 2025, compared to the year ended

December 31, 2024, was primarily due to the commencement of new office leases in the current period.

General, Administrative and Other

The increase in general, administrative and other expenses during the year ended December 31, 2025, compared to the

year ended December 31, 2024, was primarily due to a higher level of expenses reimbursable from our  investment funds and

a higher level of corporate general administrative costs, partially offset by a prior year legal accrual that did not recur in the

current period.

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Consolidated Results of Operations (GAAP Basis) – Insurance

Revenues

For the years ended December 31, 2025 and 2024, revenues consisted of the following:

Net Premiums

Net premiums decreased for the year ended December 31, 2025, as compared to the year ended December 31, 2024,

primarily due to a decrease in initial premiums assumed from fewer reinsurance transactions with life contingencies or

morbidity risk during the year ended December 31, 2025, as compared to the year ended December 31, 2024. Offsetting

these decreases in part were increases from new premiums earned on direct pension risk transfer and preneed insurance

products with life contingencies or morbidity risk. Initial premiums from new business are generally offset by a comparable

change in policy reserves reported within net policy benefits and claims (as discussed below under “Expenses—Net policy

benefits and claims”).

Net Investment Income

Net investment income increased for the year ended December 31, 2025, as compared to the year ended December 31,

2024, primarily due to (i) increased average assets under management due to growth in assets in the institutional and

individual market channels as a result of the cumulative impact of new business volumes in the current and preceding

quarters, and (ii) higher average portfolio yields.

Net Investment-Related Gains (Losses)

The components of net investment-related gains (losses) were as follows:

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Net Gains (Losses) on Derivative Instruments

The decrease in the fair value of embedded derivatives on funds withheld at interest payable for the year ended

December 31, 2025 was primarily driven by the changes in the fair value of the underlying investments in the funds withheld

at interest payable portfolio, which is primarily comprised of fixed maturity securities (designated as trading for accounting

purposes), mortgage and other loan receivables, and real asset investments. The underlying investments in the funds

withheld at interest payable portfolio increased in value during the year ended December 31, 2025 resulting in a loss on the

related embedded derivative, primarily due to a decrease in market interest rates during the year. In contrast, during the year

ended December 31, 2024, market interest rates increased, resulting in a decline in the fair value of the underlying

investments and a corresponding gain on the related embedded derivative.

The increase in the fair value of equity index options was primarily driven by the performance of the underlying indices.

Global Atlantic purchases equity index options to hedge the market risk of embedded derivatives in indexed universal life and

fixed-indexed annuity products (the change in which is accounted for in net policy benefits and claims). The majority of Global

Atlantic's equity index options are based on the S&P 500 Index, which increased during both the years ended December 31,

2025 and 2024, and an increase in the notional amount of equity market contracts outstanding.

The increase in the fair value of interest rate contracts was primarily driven by a decrease in market interest rates during

the year ended December 31, 2025, as compared to an increase in market interest rates during the year ended December 31,

2024, resulting in a gain on interest rate contracts for the year ended December 31, 2025, as compared to a loss on interest

rate contracts for the year ended December 31, 2024.

The decrease in the fair value of foreign exchange and other derivative contracts was primarily driven by a decrease due

to depreciation of the U.S. dollar against the euro and British pound during the year ended December 31, 2025.

Net Other Investment-Related Gains (Losses)

The components of net other investment-related gains (losses) were as follows:

The decrease in net other investment-related losses for the year ended December 31, 2025, as compared to the year

ended December 31, 2024, was primarily due to (i) an increase in unrealized gains on fixed maturity securities classified as

trading, and (ii) an increase in foreign exchange gains on non-U.S. dollar denominated investments due to the greater foreign

exchange volatility as a result of the depreciation of the U.S. dollar against the euro and British pound during the year ended

December 31, 2025.

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Offsetting these decreases in net other investment-related losses in part was an increase in realized losses on available-

for-sale fixed maturity securities due to portfolio repositioning trades during the year ended December 31, 2025.

Expenses

Net Policy Benefits and Claims

Net policy benefits and claims decreased for the year ended December 31, 2025, as compared to the year ended

December 31, 2024, primarily due to (i) lower initial reserves assumed related to new reinsurance transactions with life

contingencies or morbidity risk in the year ended December 31, 2025, as compared to the year ended December 31, 2024, (ii)

favorable impacts related to the assumption review described below, and (iii) the change in the value of embedded

derivatives in Global Atlantic’s fixed indexed annuity products as a result of an increase in equity market gains for the year

ended December 31, 2025, as compared to the year ended December 31, 2024 (as discussed above under "—Consolidated

Results of Operations (GAAP Basis)—Revenues—Net investment-related gains (losses)". Global Atlantic purchases equity

index options in order to hedge this risk, the fair value changes of which are accounted for in gains (losses) on derivative

instruments, and generally offsets the change in embedded derivative fair value reported in net policy benefits and claims).

These decreases were partially offset by (i) higher average funding costs due to higher crediting rates and the ordinary-

course run-off of older business originated in a low interest rate environment, (ii) new reserves established related to new

business originated with life or morbidity risks associated with preneed insurance and direct pension risk transfer products,

and (iii) an increase in market risk benefits losses due to a decrease in market interest rates for the year ended December 31,

2025, as compared to an increase in market interest rates for the year ended December 31, 2024.

The assumptions on which reserves, deferred revenue and expenses are based are intended to represent an estimate of

the benefits that are expected to be payable to, and fees or premiums that are expected to be collectible from, policyholders

in future periods. Global Atlantic reviews the adequacy of its reserves, deferred revenue and expenses, and the assumptions

underlying those items at least annually, usually in the third quarter, referred to as an “assumption review.” As Global Atlantic

analyzes its assumptions, to the extent Global Atlantic chooses to update one or more of those assumptions, there may be an

“unlocking” impact. Generally, favorable unlocking means the change in assumptions required a reduction in reserves, or in

deferred revenue liabilities, and unfavorable unlocking means the change in assumptions required an increase in reserves or

in deferred revenue liabilities, or a reduction in deferred expenses.

For the year ended December 31, 2025, there was a net favorable assumption review impact of $82.7 million on net

policy benefits and claims, which was primarily due to (i) higher expected yield assumptions for certain interest-sensitive life

products, (ii) favorable expected surrender and persistency assumption changes for certain income annuity, variable annuity,

and life insurance products, and (iii) a decrease in expected morbidity assumptions on long-term care riders for certain fixed

annuity products, offset in part by (i) higher mortality rate assumptions for certain life insurance products, (ii) a change in the

activation assumption related to certain benefit riders on fixed-indexed annuities, and (iii) higher surrender rate assumptions

for certain assumed annuity products.

For the year ended December 31, 2024, there was a net favorable assumption review impact of $74.6 million on net

policy benefits and claim, which was primarily due to (i) higher assumed mortality rates for guaranteed income riders on

fixed-indexed annuities, and (ii) higher assumed interest rate margins on certain interest-sensitive life products due to an

increase in assumed reinvestment rates and flat crediting rates. These favorable impacts were partially offset by (i) lower

assumed surrender rates on interest-sensitive life products without secondary guarantees, (ii) an increase in the option

budget assumptions for certain fixed-indexed annuities and interest sensitive life products, and (iii) higher surrender rate

assumption for certain assumed flow annuity business.

Amortization of Policy Acquisition Costs

Amortization of policy acquisition costs increased for the year ended December 31, 2025, as compared to the year ended

December 31, 2024, primarily due to (i) the remeasurement of the policy liabilities associated with certain cost-of-reinsurance

asset intangibles during the year ended December 31, 2024, resulting in an increase in the cost-of-reinsurance asset and a

decrease in amortization in the comparative twelve month period, and (ii) an increase in deferred acquisition costs

amortization for the year ended December 31, 2025 associated with the cumulative impact of new business volumes

generated from individual retirement annuities and preneed insurance.

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Interest Expense

Interest expense increased for the year ended December 31, 2025, as compared to the year ended December 31, 2024,

primarily due to an increase in total debt outstanding.

Insurance Expenses

Insurance expenses decreased for the year ended December 31, 2025, as compared to the year ended December 31,

2024, primarily due to a decrease in commission expenses as a result of the lower new business volumes in the institutional

markets channel.

General, Administrative and Other

General, administrative and other increased for the year ended December 31, 2025, as compared to the year ended

December 31, 2024, primarily due to increased employee compensation expenses, offset in part by a lower level of consulting

and employee augmentation costs.

Other Consolidated Results of Operations (GAAP Basis)

Income Tax Expense (Benefit)

Income tax expense decreased slightly for the year ended December 31, 2025, as compared to the year ended December

31, 2024, primarily driven by a lower level of income before tax attributable to KKR common stockholders partially offset by

an increase in state and foreign income taxes. As reported in Note 18 “Income Taxes” KKR’s effective tax rate is 13%. If you

are to exclude the reported net income (loss) before taxes not attributable to KKR common stockholders, KKR’s effective tax

rate would be 24%. For a discussion of factors that impacted KKR's tax provision, see Note 18 "Income Taxes" in our financial

statements included elsewhere in this report.

Net Income (Loss) Attributable to Redeemable Noncontrolling Interests

Net income (loss) attributable to redeemable noncontrolling interests relates primarily to net income (loss) attributable

to third-party limited partner interests in consolidated investment funds and other investment vehicles when the

noncontrolling interests have redemption features that are not solely within the control of KKR. Net income (loss) attributable

to redeemable noncontrolling interests increased for the year ended  December 31, 2025, as compared to the year ended

December 31, 2024, primarily due to a higher level of net gains from investment activities at these consolidated investment

funds and other investment vehicles.

Net Income (Loss) Attributable to Noncontrolling Interests

Net income (loss) attributable to noncontrolling interests relates primarily to net income (loss) attributable to (i) non-

redeemable third-party limited partner interests in consolidated investment funds and other investment vehicles and (ii)

exchangeable securities representing ownership interests in KKR Group Partnership until they are exchanged for common

stock of KKR & Co. Inc. Net income (loss) attributable to noncontrolling interests increased for the year ended December 31,

2025, as compared to the year ended December 31, 2024, primarily due to a higher level of net gains from investment

activities at our consolidated investment funds and other investment vehicles.

Net Income (Loss) Attributable to KKR & Co. Inc.

Net income (loss) attributable to KKR & Co. Inc. decreased for the year ended December 31, 2025, as compared to the

year ended December 31, 2024, primarily due to a higher level of realized investment losses on available-for-sale fixed

maturity securities in our insurance business, which were partially offset by (i) a higher level of capital allocation-based

income from our asset management business, (ii) a higher level of investment-related net gains attributable to KKR & Co. Inc.

from our asset management and strategic holdings operations and (iii) a higher level of asset management fee related income

in the current period.

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Consolidated Statements of Financial Condition (GAAP Basis)

Please see our consolidated statements of financial condition on a GAAP basis as of December 31, 2025 and December

31, 2024 in our financial statements included in this report.

KKR & Co. Inc. Stockholders’ Equity - Common Stock increased from December 31, 2024 primarily due to unrealized gains

on available-for sale-securities from Global Atlantic that are recorded in other comprehensive income and net income

attributable to KKR & Co. Inc. common stockholders, which were partially offset by dividends to common and preferred

stockholders.

Consolidated Statements of Cash Flows (GAAP Basis)

The following is a discussion of our consolidated cash flows for the years ended December 31, 2025, 2024, and 2023. You

should read this discussion in conjunction with the financial statements and related notes included elsewhere in this report.

The consolidated statements of cash flows include the cash flows of our consolidated entities, which include certain

consolidated investment funds, CLOs and certain variable interest entities formed by Global Atlantic notwithstanding the fact

that we may hold only a minority economic interest in those investment funds and CFEs. The assets of our consolidated

investment funds and CFEs, on a gross basis, can be substantially larger than the assets of our business and, accordingly, could

have a substantial effect on the cash flows reflected in our consolidated statements of cash flows. The primary cash flow

activities of our consolidated funds and CFEs involve: (i) capital contributions from fund investors; (ii) using the capital of fund

investors to make investments; (iii) financing certain investments with indebtedness; (iv) generating cash flows through the

realization of investments; and (v) distributing cash flows from the realization of investments to fund investors. Because our

consolidated investment funds are treated as investment companies for accounting purposes, certain of these cash flow

amounts are included in our cash flows from operations.

Net Cash Provided (Used) by Operating Activities

Our net cash provided (used) by operating activities was $0.5 billion, $6.6 billion, and $(1.5) billion during the years ended

December 31, 2025, 2024, and 2023, respectively. Our operating activities primarily included: (i) investments purchased (asset

management and strategic holdings), net of proceeds from investments (asset management and strategic holdings) of

$(9.2) billion, $(0.7) billion, and $(8.6) billion during the years ended December 31, 2025, 2024, and 2023, respectively, (ii) net

realized gains (losses) on investments (asset management and strategic holdings) of $0.2 billion, $0.2 billion, and $(0.8) billion

during the years ended December 31, 2025, 2024, and 2023, respectively, (iii) change in unrealized gains (losses) on

investments (asset management and strategic holdings) of $4.6 billion, $3.2 billion, and $3.8 billion during the years ended

December 31, 2025, 2024, and 2023, respectively, (iv) capital allocation-based income (loss) (asset management and strategic

holdings) of $3.8 billion, $3.6 billion, and $2.8 billion during the years ended December 31, 2025, 2024, and 2023,

respectively, (v) net investment and policy liability-related gains (losses) (insurance) of $(3.3) billion, $(3.3) billion, and $(2.6)

billion during the years ended December 31, 2025, 2024, and 2023, respectively, and (vi) interest credited to policyholder

account balances (net of policy fees) (insurance) of $5.0 billion, $4.2 billion, and $2.8 billion during the years ended December

31, 2025, 2024, and 2023, respectively. Investment funds are investment companies under GAAP and reflect their

investments and other financial instruments at fair value.

Net Cash Provided (Used) by Investing Activities

Our net cash provided (used) by investing activities was $(16.3) billion, $(19.0) billion, and $(3.9) billion during the years

ended December 31, 2025, 2024, and 2023, respectively. Our investing activities primarily included: (i) investments purchased

(insurance), net of proceeds from investments (insurance), of $(16.0) billion, $(18.9) billion, and $(3.8) billion during the years

ended December 31, 2025, 2024, and 2023, respectively, (ii) acquisitions, net of cash acquired, of $(146.3) million during the

year ended December 31, 2025, and (iii) the purchase of fixed assets of $(160.8) million, $(141.5) million, and $(108.4) million

during the years ended December 31, 2025, 2024, and 2023, respectively.

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Net Cash Provided (Used) by Financing Activities

Our net cash provided (used) by financing activities was $17.4 billion, $7.1 billion, and $12.8 billion during the years

ended December 31, 2025, 2024, and 2023, respectively. Our financing activities primarily included: (i) contributions from, net

of distributions to, our noncontrolling and redeemable noncontrolling interests of $6.3 billion, $0.1 billion, and $6.4 billion

during the years ended December 31, 2025, 2024, and 2023, respectively, (ii) proceeds received, net of repayment of debt

obligations, of $2.0 billion, $3.5 billion, and $3.6 billion during the years ended December 31, 2025, 2024, and 2023,

respectively, (iii) proceeds from the issuance of Series D Mandatory Convertible Preferred Stock (net of issuance cost) of

$2.5 billion during the year ended December 31, 2025, (iv) additions to, net of withdrawals from, contractholder deposit funds

(insurance) of $7.0 billion, $7.9 billion, and $1.9 billion during the years ended December 31, 2025, 2024, and 2023,

respectively, (v) cash consideration for the 2024 GA Acquisition of $(2.6) billion during the year ended December 31, 2024, (vi)

reinsurance transactions, net of cash provided (insurance) of $193.6 million, $47.8 million, and $1.2 billion during the years

ended December 31, 2025, 2024, and 2023, respectively, (vii) common stock dividends of $(649.9) million, $(612.1) million,

and $(563.3) million during the years ended December 31, 2025, 2024, and 2023, respectively, (viii) Series D Mandatory

Convertible Preferred Stock Dividends of $(118.6) million during the year ended December 31, 2025, and (ix) Series C

Mandatory Convertible Preferred Stock Dividends of $(51.7) million during the year ended December 31, 2023.

Analysis of Segment Operating Results

The following is a discussion of the results of our business on a segment basis for the years ended December 31, 2025 and

2024. You should read this discussion in conjunction with the information included under "—Analysis of Non-GAAP

Performance Measures" and the financial statements and related notes included elsewhere in this report. See "Risk Factors"

and "—Business Environment" in this report for more information about factors that may impact our business, financial

performance, operating results, and valuations. For the discussion comparing our business on a segment basis for the years

ended December 31, 2024 and 2023, see "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and

Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on

February 28, 2025.

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Analysis of Asset Management Segment Operating Results

The following tables set forth information regarding KKR's asset management segment operating results for the years

ended December 31, 2025 and 2024.

Management Fees

The following table presents management fees by business line:

The increase in Private Equity management fees was primarily attributable to (i) management fees commencing at North

America Fund XIV in the second quarter of 2025 and (ii) management fees earned on new capital raised over the past twelve

months at our private equity K-Series vehicles, net of certain revenue sharing arrangements. The increase was partially offset

by (i) a lower level of management fees earned from Ascendant (our U.S. middle market traditional private equity fund) due

to management fees earned on new capital raised in 2024 that were retroactive to the start of the fund’s investment period

and no such retroactive fees were earned in the current year, (ii) a decrease in management fees earned from North America

Fund XIII as a result of entering its post-investment period in the second quarter of 2025, and now paying fees based on

invested capital rather than committed capital, and (iii) no management fees earned from Asian Fund II in the current period

due to the termination of management fees in the fourth quarter of 2024. During the three and twelve months ended

December 31, 2025, approximately $12.0 million and $17.0 million, respectively of management fees were earned on new

capital raised that were retroactive to the start of the relevant fund’s investment period. Additionally, in the fourth quarter of

2025 approximately $11.4 million of fees were recognized for providing advisory services to entities in certain fund structures.

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The increase in Real Assets management fees was primarily attributable to (i) management fees commencing at Global

Infrastructure Investors V in the third quarter of 2024, (ii) management fees earned on new capital raised over the past twelve

months at our infrastructure K-Series vehicles, net of certain revenue sharing arrangements, and (iii) a higher level of

management fees earned from Global Atlantic primarily due to the growth in assets from inflows. The increase was partially

offset by a decrease in management fees earned from Global Infrastructure Investors III and Asia Pacific Infrastructure

Investors due to a decrease in invested capital during the current year. During the three and twelve months ended December

31, 2025, approximately $14.3 million and $71.1 million, respectively of management fees were earned on new capital raised

that is retroactive to the start of the relevant fund's investment period. Additionally, in the fourth quarter of 2025

approximately $5.6 million of fees were recognized for providing advisory services to entities in certain fund structures.

The increase in Credit and Liquid Strategies management fees was primarily attributable to (i) a higher level of

management fees earned from Global Atlantic primarily due to the growth in assets from inflows, (ii) an increase in capital

invested in certain alternative credit strategy accounts, which resulted in an increase in its fee base, and (iii) a higher level of

management fees earned from CLOs from new issuances in both the United States and Europe during the year ended

December 31, 2025.

Transaction and Monitoring Fees, Net

The following table presents transaction and monitoring fees, net by business line:

Our Private Equity, Real Assets, and Credit and Liquid Strategies business lines earn transaction and monitoring fees from

portfolio companies, and under the terms of the management agreements with certain of our investment funds, we are

required to share all or a portion of such fees with our fund investors. For most of our investment funds, transaction and

monitoring fees are credited against fund management fees up to 100% of the amount of the transaction and monitoring fees

attributable to that investment fund, which results in a decrease of our monitoring and transaction fees. Our Capital Markets

business line earns transaction fees, which are generally not shared with fund investors.

The decrease in transaction and monitoring fees, net is primarily due to a lower level of transaction fees earned in our

Capital Markets business line. The decrease in capital markets transaction fees was primarily due to a decrease in the size of

capital markets transactions for the year ended December 31, 2025. Overall, we completed 404 capital markets transactions

for the year ended December 31, 2025, of which 49 represented equity offerings and 355 represented debt offerings, as

compared to 397 transactions for the year ended December 31, 2024, of which 56 represented equity offerings and 341

represented debt offerings. We earn fees in connection with underwriting, syndication, and other capital markets services.

While each of the capital markets transactions that we undertake in this business line is separately negotiated, our fee rates

are generally higher with respect to underwriting or syndicating equity offerings than with respect to debt offerings, and the

amount of fees that we earn for similar transactions generally correlates with overall transaction sizes.

Our capital markets fees are generated in connection with activity involving our Private Equity, Real Assets, and Credit

and Liquid Strategies business lines as well as from third-party companies. For the year ended December 31, 2025,

approximately 15% of our transaction fees in our Capital Markets business line were earned from unaffiliated third parties as

compared to approximately 13% for the year ended December 31, 2024. Our transaction fees are comprised of fees earned

from North America, Europe, and the Asia-Pacific region. For the year ended December 31, 2025, approximately 54% of our

transaction fees were generated outside of North America as compared to approximately 47% for the year ended December

31, 2024. Our Capital Markets business line is dependent on the overall capital markets environment, which is influenced by,

among other things, equity prices, credit spreads, and volatility. Our Capital Markets business line does not generate

monitoring fees.

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Fee Related Performance Revenues

The following table presents fee related performance revenues by business line:

Fee related performance revenues represent performance fees that are (i) expected to be received from our investment

funds, investment vehicles and accounts on a more recurring basis and (ii) not dependent on a realization event involving

investments held by the investment fund, vehicle or account.

The increase in fee related performance revenues for the year ended December 31, 2025 compared to the prior period

was primarily due to a higher level of performance revenues being earned from our infrastructure K-Series vehicles in our Real

Assets business line.

Fee Related Compensation

The increase in fee related compensation for the year ended December 31, 2025 compared to the prior period was

primarily due to a higher level of compensation recorded in connection with the higher level of fee related revenues.

Other Operating Expenses

The increase in other operating expenses for the year ended December 31, 2025 compared to the prior period was

primarily due to a higher level of occupancy related and general and administrative costs.

Fee Related Earnings

The increase in fee related earnings for the year ended December 31, 2025 compared to the prior period was primarily

due to (i) a higher level of management fees across our Private Equity, Real Assets, and Credit and Liquid Strategies business

lines and (ii) a higher level of fee related performance revenues primarily earned in our Real Assets business line, partially

offset by a (i) higher level of fee related compensation and other operating expenses and (ii) a lower level of transaction fees

earned in our Capital Markets business line, as described above.

Realized Performance Income

The following table presents realized performance income by business line:

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Realized performance income in our Private Equity business line for the year ended December 31, 2025 consisted

primarily of (i) realized proceeds from the sale of our investments in Seiyu Group (consumer products sector) held by Asian

Fund IV, ReliaQuest, LLC (technology sector) held by Next Generation Technology Growth Fund II, Integrated Specialty

Services (financial services sector) held by Americas Fund XII, and The Citation Group (services sector) held by both European

Fund V and Global Impact Fund and (ii) performance income from our core private equity vehicles and private equity K-Series

vehicles. Realized performance income in our Private Equity business line was reduced by $344 million as a result of the

repayment of the Asian Fund II clawback obligation in the fourth quarter of 2025. On a net basis, after giving effect to carried

interest distributions already recouped from current and former employees, the clawback obligation reduced fourth quarter

2025 net realized performance income by $207 million.

Realized performance income in our Private Equity business line for the year ended December 31, 2024 consisted

primarily of (i) realized proceeds from the sale of our investments in AppLovin Corporation (NASDAQ: APP) and

GeoStabilization International (industrials sector), both held by Americas Fund XII, and Kokusai Electric Corporation (TYO:

6525) held by Asian Fund III and (ii) performance income from our core private equity vehicles and private equity K-Series

vehicles.

Realized performance income in our Real Assets business line for the year ended December 31, 2025 consisted primarily

of realized proceeds from the sale of our investments in Pinnacle Towers (infrastructure: telecommunications sector) held by

Asia Pacific Infrastructure Investors, Metronet Holdings, LLC (infrastructure: telecommunications sector), and NEP Renewables

II, LLC (infrastructure: energy and energy transition sector) held by Global Infrastructure Investors III, and Q-Park N.V.

(infrastructure: transportation sector) held by Global Infrastructure Investors II.

Realized performance income in our Real Assets business line for the year ended December 31, 2024 consisted primarily

of realized proceeds from the sale of our investment in FiberCop S.p.A. (infrastructure: telecommunications sector) and

ADNOC Oil Pipelines (infrastructure: midstream sector), both held by Global Infrastructure Investors III.

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Realized performance income in our Credit and Liquid Strategies business line for the year ended December 31, 2025

consisted primarily of (i) performance fees earned from Marshall Wace and (ii) realized proceeds at Lending Partners III.

Realized performance income in our Credit and Liquid Strategies business line for the year ended December 31, 2024

consisted primarily of performance fees earned from Marshall Wace and our sub-advisory agreement with a UK investment

fund manager.

Realized Performance Income Compensation

The increase in realized performance income compensation for the year ended December 31, 2025 compared to the prior

period was primarily due to a higher level of compensation recorded in connection with the higher level of realized

performance income.

Realized Investment Income

The following table presents realized investment income from our Principal Activities business line:

The decrease in realized investment income is primarily due to a lower level of interest income and dividends partially

offset by a higher level of net realized gains. The amount of realized investment income depends on the transaction activity of

our funds and Asset Management segment balance sheet, which can vary from period to period.

For the year ended December 31, 2025, realized investment income was primarily comprised of (i) realized gains primarily

from the sale of our investments in BridgeBio Pharma, Inc., ReliaQuest, LLC, BrightSpring Health Services (fka Pharmerica)

(NASDAQ: BTSG), and Kokusai Electric Corporation, (ii) realized gains from the settlement of certain foreign exchange forward

contracts, and (iii) interest income primarily from our investments in CLOs. Partially offsetting the realized gains were realized

losses, the most significant of which were (i) a realized loss related to a structured multi-asset investment vehicle and (ii)

realized losses from the sale of various revolving credit facilities by the Capital Markets business line.

For the year ended December 31, 2024, realized investment income was primarily comprised of (i) interest income

primarily from our investments in CLOs and (ii) realized gains primarily from the sale of our investments in AppLovin

Corporation, Kokusai Electric Corporation, BridgeBio Pharma, Inc., and Darktrace Limited (LSE: DARK). Partially offsetting the

realized gains were realized losses, the most significant of which were (i) a realized loss on our alternative credit investment

Selecta Group HoldCo. (consumer products sector), (ii) realized losses from the sale of various revolving credit facilities, (iii) a

realized loss on our infrastructure investment, Indus Towers Limited (NSE: INDUSTOW), and (iv) a realized loss on our private

equity investment, Acteon Group Ltd. (energy sector).

Realized investment income includes the net income (loss) from KKR Capstone. For the year ended December 31, 2025,

total fees attributable to KKR Capstone were $113.6 million and total expenses attributable to KKR Capstone were $100.0

million. For KKR Capstone-related adjustments in reconciling segment revenues and expenses to GAAP revenues and expenses

"—See Note 21 “Segment Reporting” in the accompanying financial statements.

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As of the date of this filing, we have transactions that are pending or that have closed after December 31, 2025 that are

expected to result in realized performance income and realized investment income of at least $900 million, which are

expected to be realized in the first half of 2026. See “—Liquidity—Sources of Liquidity” for additional information. Some of

these transactions are not complete, and are subject to the satisfaction of closing conditions, including regulatory approvals;

therefore, there can be no assurance if or when such transactions will be completed. In addition, we may realize gains or

losses based on transactions or other events that occur after the date of filing this report, which could impact, positively or

negatively, the total amount of our realized performance income and realized investment income. Therefore, no assurance

can be given for what our actual realized performance income and realized investment income between the fourth quarter of

2025 and first half of 2026 or future periods will be.

Realized Investment Income Compensation

The decrease in realized investment income compensation for the year ended December 31, 2025 compared to the prior

period is primarily due to a lower level of compensation recorded in connection with the lower level of realized investment

income.

Operating and Capital Metrics

See also “Fund Performance Metrics” for more information about our investment funds, vehicles and accounts across our

Private Equity, Real Assets and Credit and Liquid Strategies business lines, including investment performance, capital

commitments, uncalled capital commitments, and invested capital of each. See also "Risk Factors" and "—Business

Environment" in this report for more information about the factors that may impact our business, financial performance,

operating results and valuations.

The following tables present our key asset management segment operating and capital metrics:

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Assets Under Management

Private Equity

The following table reflects the changes in the AUM of our Private Equity business line from December 31, 2024 to

December 31, 2025:

(1)Reflects the AUM of investment funds sponsored (or managed) by HealthCare Royalty Management, LLC at closing.

AUM of our Private Equity business line was $229.4 billion as of December 31, 2025, an increase of $34.0 billion,

compared to $195.4 billion as of December 31, 2024.

The increase was primarily attributable to (i) investment funds sponsored (or managed) by HealthCare Royalty

Management, LLC, which is an alternative asset management firm that we acquired on July 30, 2025, (ii) new capital raised

from North America Fund XIV and our private equity K-Series vehicles, and (iii) appreciation in investment value primarily

from Asian Fund IV, North America Fund XIII, our core private equity strategy and our private equity K-Series vehicles. Partially

offsetting the increases were (i) the release of capital commitments related to one of our strategic investor partnerships with

an insurance client, and (ii) distributions to fund investors primarily as a result of realized proceeds, most notably from Asian

Fund IV, Americas Fund XII and Asian Fund III.

For the year ended December 31, 2025, the value of our traditional private equity investment portfolio appreciated by

14%. This was comprised of a 16% increase in share prices of publicly held investments and a 14% increase in value of our

privately held investments. For the year ended December 31, 2025, the value of our growth equity investment portfolio

increased 13%, and the value of our core private equity investment portfolio increased 7%.

Real Assets

The following table reflects the changes in the AUM of our Real Assets business line from December 31, 2024 to

December 31, 2025:

AUM of our Real Assets business line was $192.5 billion as of December 31, 2025, an increase of $26.5 billion, compared

to $166.0 billion as of December 31, 2024.

The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows invested in real estate, our

infrastructure K-Series vehicles, and Global Infrastructure Investors V, and, to a lesser extent, (ii) appreciation in investment

value from Global Infrastructure Investors IV and the Diversified Core Infrastructure Fund. Partially offsetting the increase

were (i) payments to Global Atlantic policyholders and (ii) distributions to fund investors as a result of realized proceeds, most

notably from Global Infrastructure Investors III and one of our infrastructure separately managed accounts with a public

pension plan.

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For the year ended December 31, 2025, the value of our infrastructure investment portfolio appreciated 11% and the

value of our opportunistic real estate equity investment portfolio appreciated by 5%.

Credit and Liquid Strategies

The following table reflects the changes in the AUM of our Credit and Liquid Strategies business line from December 31,

2024 to December 31, 2025:

AUM of our Credit and Liquid Strategies business line totaled $322.0 billion as of December 31, 2025, an increase of $45.8

billion, compared to AUM of $276.2 billion as of December 31, 2024.

The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows and various private credit and

leveraged credit investment funds, (ii) the issuance of CLOs, and, to a lesser extent, (iii) investment value appreciation across

our leveraged credit and private credit investment funds, and on assets managed by Marshall Wace. Partially offsetting the

increase were (i) payments to Global Atlantic policyholders, (ii) distributions to, and redemptions from, fund investors at

certain private and leveraged credit funds, and (iii) redemptions at Marshall Wace.

Fee Paying Assets Under Management

Private Equity

The following table reflects the changes in the FPAUM of our Private Equity business line from December 31, 2024 to

December 31, 2025:

(1)Reflects the FPAUM of investment funds sponsored (or managed) by HealthCare Royalty Management, LLC at closing.

FPAUM of our Private Equity business line was $151.2 billion as of December 31, 2025, an increase of $31.6 billion,

compared to $119.6 billion as of December 31, 2024.

The increase was primarily attributable to (i) investment funds sponsored (or managed) by HealthCare Royalty

Management, LLC, (ii) management fees commencing at North America Fund XIV in the second quarter of 2025, and (iii) new

capital raised from our private equity K-Series vehicles, our core private equity strategy, and assets we manage and earn fees

from in our Strategic Holdings segment. Partially offsetting the increase were (i) a change in fee base for North America Fund

XIII as a result of the fund entering its post-investment period in the second quarter of 2025, during which we earn fees on

invested capital rather than committed capital, (ii) distributions to fund investors primarily as a result of realized proceeds,

most notably from Asian Fund III and Americas Fund XII and (iii) fees waived at North America Fund XI in exchange for

extending the term of the fund.

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Real Assets

The following table reflects the changes in the FPAUM of our Real Assets business line from December 31, 2024 to

December 31, 2025:

FPAUM of our Real Assets business line was $163.5 billion as of December 31, 2025, an increase of $23.8 billion,

compared to $139.7 billion as of December 31, 2024.

The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows invested in real estate, our

infrastructure K-Series vehicles, and Global Infrastructure Investors V, (ii) management fees commencing at Asia Pacific

Infrastructure III in the fourth quarter of 2025, and to a lesser extent, (iii) appreciation in investment value from the

Diversified Core Infrastructure Fund. Partially offsetting the increase were (i) a change in fee base for Asia Pacific

Infrastructure III in the fourth quarter of 2025, during which we earn fees on invested capital rather than committed capital,

(ii) payments to Global Atlantic policyholders, and (iii) distributions to fund investors as a result of realized proceeds, most

notably from one of our infrastructure separately managed accounts with a public pension plan and Global Infrastructure

Investors III.

Credit and Liquid Strategies

The following table reflects the changes in the FPAUM of our Credit and Liquid Strategies business line from December

31, 2024 to December 31, 2025:

FPAUM of our Credit and Liquid Strategies business line was $289.5 billion as of December 31, 2025, an increase of

$36.8 billion, compared to $252.7 billion as of December 31, 2024.

The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows and deployment at various

private credit and leveraged credit investment funds, (ii) the issuance of CLOs, and, to a lesser extent, (iii) investment value

appreciation on assets managed by Marshall Wace. Partially offsetting the increase were (i) payments to Global Atlantic

policyholders, (ii) distributions to, and redemptions from, fund investors at certain private and leveraged credit funds, and (iii)

redemptions at Marshall Wace.

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Uncalled Commitments

Private Equity

As of December 31, 2025, our Private Equity business line had $52.3 billion of remaining uncalled commitments that

could be called for investments in new transactions as compared to $54.9 billion as of December 31, 2024. The decrease was

primarily attributable to (i) the release of capital commitments related to one of our strategic investor partnerships with an

insurance client and (ii) capital called from fund investors to make investments, largely offset by new capital commitments

from fund investors during the period.

Real Assets

As of December 31, 2025, our Real Assets business line had $35.0 billion of remaining uncalled commitments that could

be called for investments in new transactions as compared to $33.3 billion as of December 31, 2024. The increase was

primarily attributable to new capital commitments from fund investors, which was partially offset by capital called from fund

investors to make investments during the period.

Credit and Liquid Strategies

As of December 31, 2025, our Credit and Liquid Strategies business line had $31.1 billion of remaining uncalled

commitments that could be called for investments in new transactions as compared to $21.4 billion as of December 31, 2024.

The increase was primarily attributable to new capital commitments from fund investors, which was partially offset by capital

called from fund investors to make investments during the period.

Capital Invested

Private Equity

For the year ended December 31, 2025, $24.1 billion of capital was invested by our Private Equity business line, as

compared to $17.1 billion for the year ended December 31, 2024. The increase was driven primarily by a $4.7 billion increase

in capital invested in our core private equity strategy and a $2.5 billion increase in capital invested in our traditional private

equity strategy. During the year ended December 31, 2025, 41% of capital deployed in private equity was in transactions in

North America, 39% was in Europe, and 20% was in the Asia-Pacific region. The number of large private equity investments

made in any quarterly or year-to-date period is volatile and, consequently, a significant amount of capital invested in one

period or a few periods may not be indicative of a similar level of capital deployment in future periods.

Real Assets

For the year ended December 31, 2025, $26.7 billion of capital was invested by our Real Assets business line, as

compared to $27.9 billion for the year ended December 31, 2024. The decrease was driven primarily by a $3.8 billion decrease

in capital invested in our real estate strategy, partially offset by (i) a $1.7 billion increase in capital invested in our

infrastructure strategy and (ii) a $0.8 billion increase in capital invested in our energy strategy. During the year ended

December 31, 2025, 53% of capital deployed in real assets was in transactions in North America, 22% was in Europe, and 25%

was in the Asia-Pacific region. The number of large real assets investments made in any quarterly or year-to-date period is

volatile and, consequently, a significant amount of capital invested in one period or a few periods may not be indicative of a

similar level of capital deployment in future periods.

Credit and Liquid Strategies

For the year ended December 31, 2025, $43.8 billion of capital was invested by our Credit and Liquid Strategies business

line, as compared to $38.6 billion for the year ended December 31, 2024. The increase was driven primarily by a higher level

of capital deployed across our private credit strategies, most notably direct lending. During the year ended December 31,

2025, 79% of capital deployed was in transactions in North America, 16% was in Europe, and 5% was in the Asia-Pacific region.

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Analysis of Insurance Segment Operating Results

The following table sets forth information regarding KKR's insurance segment operating results for the years ended

December 31, 2025 and 2024:

Net Investment Income

Net investment income increased for the year ended December 31, 2025, as compared to the year ended December 31,

2024, primarily due to (i) increased average assets under management from the cumulative impact of new business volume

growth, and (ii) higher average portfolio yields.

Net Cost of Insurance

Net cost of insurance increased for the year ended December 31, 2025, as compared to the year ended December 31,

2024, primarily due to (i) growth in reserves in the institutional and individual market channels as a result of the cumulative

impact of new business volumes in the current year, and (ii) higher average funding costs due to higher crediting rates and the

routine run-off of older business originated in a lower interest rate environment.

Net cost of insurance for the year ended December 31, 2025, also reflects a $40.1 million favorable impact from the

annual assumption review changes (as discussed above under —Consolidated Results of Operations (GAAP Basis)—Net Policy

Benefits and Claims) due to (i) higher expected yield assumptions for certain interest-sensitive life products, and (ii) favorable

expected surrender and persistency assumption changes for certain variable annuity and life insurance products offset in part

by (i) higher mortality rate assumptions for certain life insurance products, and (ii) higher surrender rate assumptions for

certain assumed annuity products.

General, Administrative and Other

General, administrative and other expenses increased for the year ended December 31, 2025, as compared to the year

ended December 31, 2024, primarily due to (i) an increase in cash compensation expenses, and (ii) higher interest expense

primarily reflecting higher levels of borrowing.

Insurance Operating Earnings

Insurance operating earnings increased for the year ended December 31, 2025, as compared to the year ended December

31, 2024, primarily due to an increase in net investment income due to an increase in average assets under management and

higher portfolio yields, and the favorable impact of the annual assumption review, partially offset by an increase in net cost of

insurance due to the cumulative impact of new business volume growth and higher crediting rates.

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Analysis of Strategic Holdings Segment Operating Results

The following table sets forth information regarding KKR's strategic holdings segment operating results for the years

ended December 31, 2025 and 2024:

Dividends, Net

For the year ended December 31, 2025, dividends, net were comprised of dividend income from 1-800 Contacts, Exact

Holding B.V., April S.A., Atlantic Aviation FBO Inc. (infrastructure: transportation sector) and ERM Worldwide Group Limited

(services sector). For the year ended December 31, 2024, dividends, net were comprised of dividend income from 1-800

Contacts Inc., Exact Holdings B.V., Viridor Limited (energy and energy transition sector), FiberCop S.p.A., Arnott's Biscuits

Limited (consumer products sector) and Atlantic Aviation FBO Inc. For the year ended December 31, 2025, the contractual

management fee charged by our Asset Management segment was $36.6 million and for the year ended December 31, 2024,

the management fee was $31.8 million.

Net Realized Investment Income

For the year ended December 31, 2025, net realized investment income was comprised of realized gains from the sale of

CyrusOne Inc. (infrastructure: telecommunications sector) and Refresco Group B.V. (manufacturing sector). For the year

ended December 31, 2024 net realized investment income was comprised of a realized gain from the sale of FiberCop S.p.A.

Realized investment income earned in our Strategic Holdings segment is reduced by a contractual performance fee charged by

our Asset Management segment. For the year ended December 31, 2025, the performance fee was $12.3 million and for the

year ended December 31, 2024, the performance fee was $15.5 million.

Strategic Holdings Segment Earnings

Strategic Holdings segment earnings for the year ended December 31, 2025, was higher compared to the prior period

primarily due to a higher level of dividends, partially offset by a lower level of net realized investment income.

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Analysis of Non-GAAP Performance Measures

The following is a discussion of our Non-GAAP performance measures for the years ended December 31, 2025 and 2024.

For a discussion comparing our Non-GAAP performance measures for the years ended December 31, 2024 and 2023, see "Part

II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on

Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025.

Total Operating Earnings

The increase in total operating earnings for the year ended December 31, 2025 compared to the prior period was

primarily due to a higher level of fee related earnings and to a lesser extent insurance operating earnings and strategic

holdings operating earnings. For a discussion of fee related earnings, insurance operating earnings, and strategic holdings

operating earnings, see "—Analysis of Asset Management Segment Operating Results", "—Analysis of Insurance Segment

Operating Results", and "—Analysis of Strategic Holdings Segment Operating Results."

Total Investing Earnings

The decrease in total investing earnings for the year ended December 31, 2025 compared to the prior period was

primarily due to (i) a lower level of net realized investment income and (ii) a lower level of net realized performance income

due to the reduction in realized performance income for the repayment of the Asian Fund II clawback obligation in the fourth

quarter of 2025. For a discussion of net realized performance income and net realized investment income, see "—Analysis of

Asset Management Segment Operating Results" and "—Analysis of Strategic Holdings Segment Operating Results."

Total Segment Earnings

The increase in total segment earnings for the year ended December 31, 2025 compared to the prior period was primarily

due to an increase in total operating earnings, offset by a decrease in total investing earnings.

Adjusted Net Income

The increase in adjusted net income for the year ended December 31, 2025 compared to the prior period was primarily

due to a higher level of total segment earnings, partially offset by an increase in income taxes on adjusted earnings and

interest expense, net and other.

Interest Expense, Net and Other

The increase in interest expense, net and other for the year ended December 31, 2025 compared to the prior period was

primarily due to dividends paid on the Series D Mandatory Convertible Preferred Stock that was issued in the first quarter of

2025.

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Income Taxes on Adjusted Earnings

The increase in income taxes on adjusted earnings for the year ended December 31, 2025 compared to the prior period

was primarily due to a higher level of total segment earnings.

For the years ended December 31, 2025 and 2024, the amount of the tax benefit from equity-based compensation

included in income taxes on adjusted earnings was $124.4 million and $126.7 million, respectively. The inclusion of the tax

benefit from equity-based compensation in Adjusted Net Income had the effect of increasing this measure by 3% for both the

years ended December 31, 2025 and 2024.

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Fund Performance Metrics

Private Equity

The table below presents information as of December 31, 2025, relating to our current private equity and other

investment vehicles reported in our Private Equity business line for which we have the ability to earn carried interest. This

data does not reflect acquisitions or disposals of investments, changes in investment values, or distributions occurring after

December 31, 2025.

(1)The start date represents the start of the fund's investment period as defined in the fund's governing documents and may or may not be the same as the

date upon which management fees begin to accrue.

(2)The end date represents the end of the fund's investment period as defined in the fund's governing documents and is generally not the date upon which

management fees cease to accrue. For funds that initially charge management fees on the basis of committed capital, the end date is generally the date

on or after which the management fees begin to be calculated instead on the basis of invested capital and may, for certain funds, begin to be calculated

using a lower rate.

(3)The commitment represents the aggregate capital commitments to the fund, including capital commitments by third-party fund investors and the general

partner. Foreign currency commitments have been converted into U.S. dollars based on the exchange rate that prevailed on December 31, 2025.

(4)The remaining cost represents the initial investment of the general partner and limited partners, reduced for returns of capital.

(5)The "Invested" and "Realized" columns do not include the amounts of any realized investments that restored the unused capital commitments of the fund

investors, if any.

(6)"Unallocated Commitments" represent commitments received from our strategic investor partnerships that have yet to be allocated to a particular

investment strategy.

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Real Assets

The table below presents information as of December 31, 2025, relating to our current real asset and other investment

vehicles reported in our Real Assets business line for which we have the ability to earn carried interest. This data does not

reflect acquisitions or disposals of investments, changes in investment values, or distributions occurring after December 31,

2025.

(1)The start date represents the start of the fund's investment period as defined in the fund's governing documents and may or may not be the same as the

date upon which management fees begin to accrue.

(2)The end date represents the end of the fund's investment period as defined in the fund's governing documents and is generally not the date upon which

management fees cease to accrue. For funds that initially charge management fees on the basis of committed capital, the end date is generally the date

on or after which the management fees begin to be calculated instead on the basis of invested capital and may, for certain funds, begin to be calculated

using a lower rate.

(3)The commitment represents the aggregate capital commitments to the fund, including capital commitments by third-party fund investors and the general

partner. Foreign currency commitments have been converted into U.S. dollars based on the exchange rate that prevailed on December 31, 2025.

(4)The remaining cost represents the initial investment of the general partner and limited partners, reduced for returns of capital.

(5)Open-ended fund.

(6)Includes an Asia-focused vehicle with different fund terms.

(7)"Unallocated Commitments" represent commitments received from our strategic investor partnerships that have yet to be allocated to a particular

investment strategy.

Private Equity and Real Asset Performance

The table below presents information as of December 31, 2025, relating to the historical performance of certain of our

Private Equity and Real Assets investment vehicles since inception, which we believe illustrates the benefits of our investment

approach. This data does not reflect additional capital raised since December 31, 2025, or acquisitions or disposals of

investments, changes in investment values, or distributions occurring after that date. The information presented below is not

intended to be representative of any past or future performance for any particular period other than the period presented

below. Past performance is no guarantee of future results.

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(1)These funds were not contributed to KKR as part of the acquisition of the assets and liabilities of KKR & Co. (Guernsey) L.P. (formerly known as KKR Private

Equity Investors, L.P.) on October 1, 2009.

(2)Where commitments are not U.S. dollar-denominated, such amounts have been converted into U.S. dollars based on the exchange rate prevailing on

December 31, 2025.

(3)The gross IRR, net IRR and gross multiple of invested capital are calculated for our investment funds that made their first investment at least 24 months

prior to December 31, 2025. We therefore have not calculated gross IRRs, net IRRs and gross multiples of invested capital with respect to these funds.

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(4)An investment is considered realized when it has been disposed of or has otherwise generated disposition proceeds or current income that has been

distributed by the relevant fund.

(5)IRRs measure the aggregate annual compounded returns generated by a fund's investments over a holding period. Net IRRs are calculated after giving

effect to the allocation of realized and unrealized carried interest and the payment of any applicable management fees and organizational expenses.

Gross IRRs are calculated before giving effect to the allocation of realized and unrealized carried interest and the payment of any applicable management

fees and organizational expenses.

The gross multiples of invested capital measure the aggregate value generated by a fund's investments in absolute terms. Each multiple of invested capital

is calculated by adding together the total realized and unrealized values of a fund's investments and dividing by the total amount of capital invested by the

fund. Such amounts do not give effect to the allocation of realized and unrealized carried interest or the payment of any applicable management fees or

organizational expenses.

KKR's Private Equity and Real Assets funds may utilize third-party financing facilities to provide liquidity to such funds. The above net and gross IRRs are

calculated from the time capital contributions are due from fund investors to the time fund investors receive a related distribution from the fund, and the

use of such financing facilities generally decreases the amount of time that would otherwise be used to calculate IRRs, which tends to increase IRRs when

fair value grows over time and decrease IRRs when fair value decreases over time.

For more information, see "Risk Factors—Risks Related to Our Investment Activities—Future results of our investments

may be different than, and may not achieve the levels of, any of our historical returns" in this report.

Credit and Liquid Strategies

The table below presents information as of December 31, 2025, relating to our current credit investment vehicles

reported in our Credit and Liquid Strategies business line for which we have the ability to earn carried interest. This data does

not reflect acquisitions or disposals of investments, changes in investment values, or distributions occurring after December

31, 2025.

(1)The start date represents the start of the fund's investment period as defined in the fund's governing documents and may or may not be the same as the

date upon which management fees begin to accrue.

(2)The end date represents the end of the fund's investment period as defined in the fund's governing documents and is generally not the date upon which

management fees cease to accrue. For funds that initially charge management fees on the basis of committed capital, the end date is generally the date

on or after which the management fees begin to be calculated instead on the basis of invested capital and may, for certain funds, begin to be calculated

using a lower rate.

(3)The commitment represents the aggregate capital commitments to the fund, including capital commitments by third-party fund investors and the general

partner. Foreign currency commitments have been converted into U.S. dollars based on the foreign exchange rate that prevailed on December 31, 2025.

(4)The remaining cost represents the initial investment of the general partner and limited partners, reduced for returns of capital.

The following table presents information regarding certain leveraged credit strategies managed by KKR from inception to

December 31, 2025. The information presented below is not intended to be representative of any past or future performance

for any particular period other than the period presented below. Past performance is no guarantee of any future result.

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(1)The benchmarks referred to herein include the S&P/LSTA Leveraged Loan Index (the "S&P/LSTA Loan Index"), S&P/LSTA U.S. B/BB Ratings Loan Index (the

"S&P/LSTA BB-B Loan Index"), the Bank of America Merrill Lynch High Yield Master II Index (the "BoAML HY Master II Index"), the BofA Merrill Lynch BB-B

US High Yield Index (the "BoAML HY BB-B Constrained"), the Credit Suisse Institutional Western European Leveraged Loan Index (the "CS Inst West

European Leveraged Loan Index"), and S&P European Leveraged Loans (All Loans). The S&P/LSTA Loan Index is a daily tradable index for the U.S. loan

market that seeks to mirror the market-weighted performance of the largest institutional loans that meet certain criteria. The BoAML HY Master II Index is

an index for high-yield corporate bonds. It is designed to measure the broad high-yield market, including lower-rated securities. The CS Inst West

European Leveraged Loan Index contains only institutional loan facilities priced above 90, excluding TL and TLa facilities and loans rated CC, C or are in

default. The S&P European Leveraged Loan Index reflects the market-weighted performance of institutional leveraged loan portfolios investing in

European credits. While the returns of our leveraged credit strategies reflect the reinvestment of income and dividends, none of the indices presented in

the chart above reflect such reinvestment, which has the effect of increasing the reported relative performance of these strategies as compared to the

indices. Furthermore, these indices are not subject to management fees, incentive allocations, or expenses.

(2)Performance is based on a blended composite of Bank Loans, High Yield, and Structured Credit strategy accounts. The benchmark used for purposes of

comparison for the Multi-Asset Credit Composite strategy is based on 65% S&P/LSTA Loan Index and 35% BoAML HY Master II Index to May 2022, and

50% S&P/LSTA Loan Index, 50% BoAML HY Master II Index, from June 2022.

(3)The Opportunistic Credit strategy invests in high-yield securities and corporate loans with no preset allocation. The benchmark used for purposes of

comparison for the Opportunistic Credit strategy presented herein is based on 50% S&P/LSTA Loan Index and 50% BoAML HY Master II Index. Funds

within this strategy may utilize third-party financing facilities to enhance investment returns. In cases where financing facilities are used, the amounts

drawn on the facility are deducted from the assets of the fund in the calculation of net asset value, which tends to increase returns when net asset value

grows over time and decrease returns when net asset value decreases over time.

(4)Performance is based on a composite of portfolios that primarily invest in leveraged loans. The benchmark used for purposes of comparison for the Bank

Loans strategy is based on the S&P/LSTA Loan Index.

(5)Performance is based on a composite of portfolios that primarily invest in high-yield securities. The benchmark used for purposes of comparison for the

High Yield strategy is based on the BoAML HY Master II Index.

(6)The returns presented are calculated based on local currency.

(7)Performance is based on a composite of portfolios that primarily invest in higher quality leveraged loans. The benchmark used for purposes of comparison

for the European Leveraged Loans strategy is based on the CS Inst West European Leveraged Loan Index.

(8)Performance is based on a composite of portfolios that primarily invest in European institutional leveraged loans. The benchmark used for purposes of

comparison for the European Credit Opportunities strategy is based on the S&P European Leveraged Loans (All Loans) Index.

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The following table presents information regarding our alternative credit investment funds where investors have capital

commitments from inception to December 31, 2025. The information presented below is not intended to be representative of

any past or future performance for any particular period other than the period presented below. Past performance is no

guarantee of any future result.

(1)Recycled capital is excluded from the amounts invested and realized.

(2)These credit funds utilize third-party financing facilities to provide liquidity to such funds, and in such event IRRs are calculated from the time capital

contributions are due from fund investors to the time fund investors receive a related distribution from the fund. The use of such financing facilities

generally decreases the amount of invested capital that would otherwise be used to calculate IRRs, which tends to increase IRRs when fair value grows

over time and decrease IRRs when fair value decreases over time. IRRs measure the aggregate annual compounded returns generated by a fund's

investments over a holding period and are calculated taking into account recycled capital. Net IRRs presented are calculated after giving effect to the

allocation of realized and unrealized carried interest and the payment of any applicable management fees and organizational expenses. Gross IRRs are

calculated before giving effect to the allocation of carried interest and the payment of any applicable management fees and organizational expenses.

(3)The multiples of invested capital measure the aggregate value generated by a fund's investments in absolute terms. Each multiple of invested capital is

calculated by adding together the total realized and unrealized values of a fund's investments and dividing by the total amount of capital invested by the

investors. The use of financing facilities generally decreases the amount of invested capital that would otherwise be used to calculate multiples of

invested capital, which tends to increase multiples when fair value grows over time and decrease multiples when fair value decreases over time. Such

amounts do not give effect to the allocation of any realized and unrealized returns on a fund's investments to the fund's general partner pursuant to a

carried interest or the payment of any applicable management fees and are calculated without taking into account recycled capital.

For additional information regarding impact of market conditions on the value and performance of our investments, see

"Risk Factors—Risks Related to Our Business—Difficult market and economic conditions can, and periodically do, materially

and adversely affect KKR." and "Risk Factors—Risks Related to Our Investment Activities—Future results of our investments

may be different than, and may not achieve the levels of, any of our historical returns" in this report.

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Segment Balance Sheet Measures

Asset Management Segment Investment Portfolio

To the extent our investments are realized at values above or below their cost in future periods, adjusted net income

would be positively or negatively affected by the amount of any such gain or loss, respectively, during the period in which the

realization event occurs.

Our investments in the Asset Management segment by asset class as of December 31, 2025 are as follows:

(1)Investments is a term used solely for purposes of financial presentation of a portion of KKR's balance sheet and includes majority ownership of

subsidiaries that operate KKR's asset management and insurance businesses, including the general partner interests of KKR's investment funds.

Investments presented are principally the assets measured at fair value that are held by KKR's asset management segment, which, among other things,

does not include the underlying investments held by Global Atlantic and Marshall Wace. This table excludes investments in our Strategic Holdings and

Insurance segments, for which additional information is available  in Note 21 "Segment Reporting" in our financial statements.

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Insurance Segment Investment Portfolio

As of December 31, 2025, the Insurance segment’s investment portfolio (on an unconsolidated basis, excluding the

elimination of intercompany balances) consisted of the following categories of investments:

The portion of the Insurance segment’s investment portfolio consisting of floating rate assets was 27% and 25% as of

December 31, 2025, and December 31, 2024, respectively.

Credit Quality of Fixed Maturity Securities

As of December 31, 2025, 95%, and 91% of the Insurance segment’s fixed maturity securities were considered investment

grade under ratings from the Securities Valuation Office of the NAIC and NRSROs, respectively. As of December 31, 2024, 95%,

and 90% of fixed maturity securities were considered investment grade under ratings from NAIC and NRSROs, respectively.

Securities where a rating by a NRSRO was not available are considered investment grade if they have a NAIC designation of

“1” or “2.”

The Securities Valuation Office of the NAIC evaluates the fixed maturity security investments of insurers for regulatory

reporting and capital assessment purposes and assigns securities to one of six credit quality categories called “NAIC

designations.” Using an internally developed rating is permitted by the NAIC if no rating is available. These designations are

generally similar to the credit quality designations of NRSROs for marketable fixed maturity securities, except for certain

structured securities as described below. NAIC designations of “1,” highest quality, and “2,” high quality, include fixed

maturity securities generally considered investment grade by NRSROs. NAIC designations “3” through “6” include fixed

maturity securities generally considered below investment grade by NRSROs.

Consistent with the NAIC Process and Procedures Manual, a NRSRO rating was assigned based on the following criteria: (i)

the equivalent S&P rating where the security is rated by one NRSRO; (ii) the equivalent S&P rating of the lowest NRSRO when

the security is rated by two NRSROs; and (iii) the equivalent S&P rating of the second lowest NRSRO if the security is rated by

three or more NRSROs. If the lowest two NRSROs’ ratings are equal, then such rating will be the assigned rating. NRSROs’

ratings available for the periods presented were S&P, Fitch, Moody’s, DBRS, Inc., and Kroll Bond Rating Agency, Inc. If no

rating is available from a rating agency, then an internally developed rating is used.

Within the funds withheld receivable at interest portfolio, 97% of the fixed maturity securities were investment grade by

NAIC designation as of both December 31, 2025, and December 31, 2024, respectively.

Trading fixed maturity securities primarily back funds withheld payable at interest where the investment performance is

ceded to reinsurers under the terms of the respective reinsurance agreements.

Unrealized Gains and Losses on Available-for-Sale Fixed Maturity Securities

The Insurance segment’s investments in available-for-sale (“AFS”) fixed maturity securities are reported at fair value with

changes in fair value recorded in other comprehensive income as unrealized gains or losses, net of taxes and offsets.

Unrealized gains and losses can be created by changes in interest rates or by changes in credit spreads.

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As of December 31, 2025, and December 31, 2024, the Insurance segment had gross unrealized losses on below

investment grade AFS fixed maturity securities of $313.8 million and $584.3 million based on NRSRO ratings, and $187.7

million and $245.6 million based on NAIC ratings, respectively. As of December 31, 2025, unrealized losses were not

recognized in net income on these fixed maturity securities since the Insurance segments neither intends to sell the securities

nor does it believe that it is more likely than not that it will be required to sell these securities before recovery of their cost or

amortized cost basis.

Credit Quality of Mortgage and Other Loan Receivables

Mortgage and other loan receivables consist of commercial and residential mortgage loans, consumer loans, and other

loan receivables. As of December 31, 2025, and December 31, 2024, 27% and 30% of the total investments consisted of the

Insurance segment’s mortgage and other loan receivables, respectively.

The Insurance segment invests in U.S. mortgage loans, comprised of first lien and mezzanine commercial mortgage loans

and first lien residential mortgage loans. For the commercial mortgage loan portfolio, the most prevalent property type is

multi-family residential buildings, which represents approximately half of the portfolio as of both December 31, 2025, and

December 31, 2024. Office and retail properties represent approximately 21% and 20% of the portfolio as of December 31,

2025 and December 31, 2024, respectively.

The Insurance segment’s commercial mortgage loans are assigned NAIC designations, with designations “CM1” and

“CM2” considered to be investment grade. As of both December 31, 2025, and December 31, 2024, 91% of the commercial

mortgage loan portfolio were rated investment grade based on NAIC designation, respectively. The payment status of over

99% of the commercial mortgage loan portfolio is current as of both December 31, 2025, and December 31, 2024,

respectively.

The loan-to-value ratio is expressed as a percentage of the current amount of the loan relative to the value of the

underlying collateral. As of December 31, 2025, and December 31, 2024, approximately 89% and 90%, respectively, of the

commercial mortgage loans have a loan-to-value ratio of 70% or less, and as of December 31, 2025, and December 31, 2024,

2% and 1% have loan-to-value ratio over 90%, respectively.

Changing economic conditions and updated assumptions affect the Insurance segment’s assessment of the collectibility

of commercial mortgage loans. Changing vacancies and rents are incorporated into the analysis performed to measure the

allowance for credit losses. In addition, the Insurance segment continuously monitors its commercial mortgage loan portfolio

to identify risk. Areas of emphasis are properties that have exposure to specific geographic events or have deteriorating

credit.

The Insurance segment’s residential mortgage loan portfolio primarily includes mortgage loans backed by single family

rental properties, prime loans, and re-performing loans that were purchased at a discount after they were modified and

returned to performing status. The Insurance segment also extends financing to counterparties in the form of repurchase

agreements secured by mortgage loans, including performing and non-performing mortgage loans.

As of December 31, 2025, the payment status of 97% of the residential mortgage loan portfolio is current, and

approximately $273.4 million is 90 days or more past due or in process of foreclosure (representing 1% of the total residential

mortgage portfolio). As of December 31, 2024, the payment status of 97% of the residential mortgage loan portfolio was

current and approximately $275.1 million were 90 days or more past due or in process of foreclosure (representing 1% of the

total residential mortgage portfolio).

The weighted average loan-to-value ratio for residential mortgage loans was 64% and 63% as of December 31, 2025, and

December 31, 2024, respectively.

The Insurance segment’s consumer loan portfolio is primarily comprised of home improvement loans, residential solar

loans, student loans, and auto loans. As of December 31, 2025, 97% of the consumer loan portfolio is in current status and

approximately $31.3 million is 90 days or more past due or in process of foreclosure (representing 1% of the total consumer

loan portfolio).

See Note 7 “Investments” in the accompanying financial statements in this report for additional information regarding

the Insurance segment’s investment portfolio.

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Additional Information

To provide supplemental information to stockholders about the net assets of KKR on a segment basis, KKR’s book value

was $33.1 billion as of December 31, 2025, which included cash and short-term investments of $4.8 billion. KKR's book value

includes its net investment in Global Atlantic, investments in the Asset Management and Strategic Holdings segments, and the

net impact of certain other assets and liabilities, including income taxes. KKR's book value excludes the net assets allocable to

investors in KKR’s investment funds and other noncontrolling interest holders. From January 1, 2025 through December 31,

2025, the Asset Management segment transferred $1.1 billion of investments to the Insurance segment for which no gain or

loss was recognized.

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Reconciliations to GAAP Measures

Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders

(1)For the year ended December 31, 2025, Transaction-related and Other Non-operating items includes (i) $99 million related to transaction-related costs

and other corporate actions, and (ii) $39 million of costs associated with certain integration, restructuring, and other non-operating expenses across our

Asset Management and Insurance businesses.

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KKR & Co. Inc. Stockholders' Equity - Common Stock

(1)Book Value is a non-GAAP performance measure, which provides additional insight into the net assets of KKR presented on a basis that (i) excludes the net

assets that are allocated to investors in KKR’s investment funds and other noncontrolling interest holders, (ii) includes the net assets that are attributable

to certain securities exchangeable into shares of common stock of KKR & Co. Inc., (iii) includes the net investment in Global Atlantic, investments in the

Asset Management and Strategic Holdings segments, and (iv) includes the net impact of certain other assets and liabilities, including the net impact of

KKR's tax assets and liabilities as calculated under GAAP. Book Value excludes the dilutive impact of the conversion of any of KKR & Co. Inc.’s Series D

Mandatory Convertible Preferred Stock. If all outstanding shares of the Series D Mandatory Convertible Preferred Stock were converted into KKR & Co.

Inc. common stock as of December 31, 2025, our Book Value would have increased by $2.5 billion and our common stock outstanding would have

increased by 20.8 million shares.

Cash and Cash Equivalents - Asset Management and Strategic Holdings

Investments - Asset Management and Strategic Holdings

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Liquidity

We manage our liquidity and capital requirements by (a) focusing on our cash flows before the consolidation of our funds

and CFEs and the effect of changes in short term assets and liabilities, which we anticipate will be settled for cash within one

year, and (b) seeking to maintain access to sufficient liquidity through various sources. The overall liquidity framework and

cash management approach of our insurance business are also based on seeking to build an investment portfolio that is cash

flow matched, providing cash inflows from insurance assets that meet our insurance companies' expected cash outflows to

pay their liabilities. Our primary cash flow activities typically involve (i) generating cash flow from operations; (ii) generating

income from investment activities, by investing in investments that generate yield (namely interest and dividends), as well as

through the sale of investments and other assets; (iii) funding capital commitments that we have made to, and advancing

capital to, our funds and CLOs; (iv) developing and funding new investment strategies, investment products, and other growth

initiatives, including acquisitions of other investments, assets, and businesses; (v) underwriting and funding capital

commitments in our capital markets business; (vi) distributing cash flow to our stockholders and any holders of our preferred

stock, if any; and (vii) paying borrowings, interest payments, and repayments under credit agreements, our senior and

subordinated notes, and other borrowing arrangements. See "—Liquidity," "—Liquidity Needs," and "—Dividends and Stock

Repurchases."

See "Risk Factors" and "—Business Environment" in this report for more information on factors that may impact our

business, financial performance, operating results, and valuations.

Sources of Liquidity

Our primary sources of liquidity consist of amounts received from: (i) our operating activities, including the fees earned

from our funds, portfolio companies, and capital markets transactions; (ii) realizations on carried interest from our investment

funds; (iii) interest and dividends from investments that generate yield, including our investments in CLOs; (iv) in our

insurance business, cash inflows in respect of new premiums, policyholder deposits, reinsurance transactions, and funding

agreements, including through memberships in FHLBs; (v) realizations on and sales of investments and other assets, including

the transfers of investments or other assets for fund formations (including CLOs and other investment vehicles); and (vi)

borrowings, including advances under our revolving credit facilities, debt offerings, repurchase agreements, and other

borrowing arrangements. In addition, we may generate cash proceeds from issuances of our or our subsidiaries' equity

securities. We have access to funding under various credit facilities, other borrowing arrangements and other sources of

liquidity that we have entered into with major financial institutions or which we receive from the capital markets. For a

discussion of our debt obligations, including our debt securities, revolving credit agreements and loans, see Note 16 "Debt

Obligations" in our financial statements.

Many of our investment funds like our private equity and real assets funds provide for carried interest. With respect to

our carry-paying investment funds, carried interest is eligible to be distributed to the general partner of the fund only after all

of the following are met: (i) a realization event has occurred (e.g., sale of a portfolio company, dividend, etc.); (ii) the vehicle

has achieved positive overall investment returns since its inception, in excess of performance hurdles where applicable, and is

accruing carried interest; and (iii) with respect to investments with a fair value below cost, cost has been returned to fund

investors in an amount sufficient to reduce remaining cost to the investments' fair value. Even after all of the preceding

conditions are met, the general partner of the fund may, in its sole discretion, decide to defer the distribution of carried

interest to it to a later date. In addition, these funds generally include what is called a “clawback” provision, which provides

that the general partner must return any carried interest that is paid in excess of what the general partner is entitled to

receive at the end of the term of the fund, as discussed further below.

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As of December 31, 2025, certain of our investment funds had met the first and second criteria, as described above, but

did not meet the third criteria. In these cases, carried interest accrues on the consolidated statement of operations, but will

not be distributed in cash to us as the general partner of an investment fund upon a realization event. For a fund that has a

fair value above cost, overall, and is otherwise accruing carried interest, but has one or more investments where fair value is

below cost, the shortfall between cost and fair value for such investments is referred to as a "netting hole." When netting

holes are present, realized gains on individual investments that would otherwise allow the general partner to receive carried

interest distributions are instead used to return invested capital to our funds' limited partners in an amount equal to the

netting hole. Once netting holes have been filled with either (i) return of capital equal to the netting hole for those

investments where fair value is below cost or (ii) increases in the fair value of those investments where fair value is below

cost, then realized carried interest will be distributed to the general partner upon a realization event. A fund that is in a

position to pay cash carry refers to a fund for which carried interest is expected to be paid to the general partner upon the

next material realization event, which includes funds with no netting holes as well as funds with a netting hole that is

sufficiently small in size such that the next material realization event would be expected to result in the payment of carried

interest. Strategic investor partnerships with fund investors may require netting across the various funds in which they invest,

which may reduce the carried interest we otherwise would have earned if such fund investors were to have invested in our

funds without the existence of the strategic investor partnership. As of December 31, 2025, netting holes in excess of $50

million existed at North America Fund XI in the amount of $417 million. The remaining unrealized gains accrued at this fund as

of December 31, 2025 is in excess of its netting hole. In accordance with the criteria set forth above, other funds currently

have and may in the future develop netting holes, and netting holes for those and other funds may otherwise increase or

decrease in the future.

If the investment fund has distributed carried interest but subsequently does not have sufficient value to provide for the

distribution of carried interest at the end of the life of the investment fund, the general partner is typically required to return

previously distributed carried interest to the fund investors. Current and former employees who received distributions of

carried interest subject to clawback would be required to return the amount of such distributions to KKR. However, it is KKR’s

obligation to return carried interest subject to clawback to the fund investors. As of December 31, 2025, approximately $150

million of previously distributed carried interest, in aggregate, was subject to a clawback obligation, assuming that all

applicable carry-paying investment funds were liquidated at their reported fair values as of December 31, 2025. As of

December 31, 2025, there are no investment funds subject to a clawback obligation in excess of $50 million that has not

already reduced net realized performance income. See Note 24 "Commitments and Contingencies—Contingent Repayment

Guarantees" in our financial statements included elsewhere in this report for further information. See also the negative

amounts included in the Carried Interest column in the table included in this Item 7 in “Fund Performance Metrics” for further

information on clawback obligations.

Liquidity Needs

We expect that our primary liquidity needs will consist of cash required to meet various obligations, including, without

limitation, to:

•continue to support and grow our asset management business, including seeding new investment strategies,

supporting capital commitments made by our investment vehicles to existing and future funds, co-investments

and otherwise supporting the investment vehicles that we sponsor, and acquiring other assets, businesses, and

investments for our businesses;

•continue to support and grow our insurance business;

•continue to support and grow our strategic holdings business, including through the acquisition of new operating

companies;

•grow and expand our businesses generally, including by acquiring or launching new, complementary, or adjacent

businesses;

•warehouse investments in portfolio companies or other investments for the benefit of one or more of our funds,

accounts or CLOs or other investment vehicles pending the contribution of committed capital by the fund

investors in such investment vehicles, and advancing capital to them for operational or other needs;

• funding requirements to levered investment vehicles or structured transactions;

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•service debt obligations including the payment of obligations at maturity, on interest payment dates or upon

redemption;

•fund cash operating expenses and contingencies, including for litigation matters and guarantees;

•pay corporate income taxes and other taxes;

•pay policyholders and amounts in our insurance business related to investment, reinvestment, reinsurance, or

funding agreement activity;

•pay amounts that may become due under our tax receivable agreement;

•pay cash dividends in accordance with our dividend policy for our common stock or the terms of our preferred

stock;

•underwrite commitments, advance loan proceeds, and fund syndication commitments within our capital

markets business;

•post or return collateral in respect of derivative contracts;

•satisfy regulatory requirements for our capital markets business, risk retention requirements for CLOs (to the

extent they may apply), or to address capital needs of unregulated and regulated subsidiaries, including capital

and collateral requirements, as applicable, for our insurance and broker-dealer subsidiaries; and

•repurchase shares of our common stock or retire equity awards pursuant to the share repurchase program or

repurchase or redeem other securities issued by us (for a discussion of KKR's share repurchase program, see

Note 22 "Equity" in our financial statements).

Capital Commitments

The agreements governing our active investment funds generally require the general partners of the funds to make

minimum capital commitments to such funds, which generally range from 2% to 8% of a fund's total capital commitments at

final closing, but may be greater for certain funds (i) where we are pursuing newer strategies, (ii) where third party investor

demand is limited, and (iii) where a larger commitment is consistent with the asset allocation strategy.

As of December 31, 2025, KKR had unfunded commitments consisting of $10.5 billion to its investment funds and other

investment vehicles across Private Equity, Real Assets, and Credit and Liquid Strategies business lines. These unfunded

commitments include $2.7 billion of uncalled capital commitments to certain investment vehicles in connection with

investments in the core private equity strategy. These unfunded commitments also include funding requirements to levered

investment vehicles and structured transactions to fund or otherwise be liable for a portion of the vehicle's investment losses

and/or to provide the vehicle with liquidity upon certain termination events.

In addition to these uncalled commitments and funding obligations to KKR's investment funds and investment vehicles,

KKR has entered into contractual commitments primarily with respect to underwriting transactions, debt financing, revolving

credit facilities, and equity syndications in our Capital Markets business line. As of December 31, 2025, these capital markets

commitments amounted to $1.0 billion. Whether these amounts are actually funded, in whole or in part, depends on the

contractual terms of such capital markets commitments, including the satisfaction or waiver of any conditions to closing or

funding. From time to time, we fund these various capital markets commitments noted above in our capital markets business

by drawing all or substantially all of our availability for borrowings under our available credit facilities available for our Capital

Markets business line. We generally expect these borrowings by our capital markets business to be repaid promptly as these

commitments are syndicated to third parties or otherwise fulfilled or terminated, although we may in some instances elect to

retain a portion of the commitments for our own investment. Additionally, KKR's capital markets business has arrangements

with third parties, which are expected to reduce KKR's risk under certain circumstances when underwriting certain debt

transactions. As a result, our unfunded capital markets commitments as of December 31, 2025 have been reduced to reflect

the amount expected to be funded by such third parties. As of December 31, 2025, KKR's capital markets business line has

entered into such arrangements representing a total notional amount of $5.0 billion. For more information about our Capital

Markets business line's risks, see "Risk Factors—Risks Related to Our Business—Our capital markets activities expose us to

material risks" in this report.

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Tax Receivable Agreement

On May 30, 2022, KKR terminated the tax receivable agreement with KKR Holdings other than with respect to exchanges

of KKR Holdings equity completed prior to such date. As of December 31, 2025, an undiscounted payable of $359.3 million has

been recorded in due to affiliates in the financial statements representing management's best estimate of the amounts

currently expected to be owed for certain exchanges of KKR Holdings equity that took place prior to the termination of the tax

receivable agreement. As of December 31, 2025, $129.4 million of cumulative cash payments have been made under the tax

receivable agreement since inception.

Dividends and Stock Repurchases

A dividend of $0.185 per share of our common stock has been declared and will be paid on March 3, 2026 to holders of

record of our common stock as of the close of business on February 17, 2026.

A dividend of $0.78125 per share of Series D Mandatory Convertible Preferred Stock has been declared and set aside for

payment on March 1, 2026 to holders of record of Series D Mandatory Convertible Preferred Stock as of the close of business

on February 15, 2026.

When KKR & Co. Inc. receives distributions from KKR Group Partnership, holders of exchangeable securities receive their

pro rata share of such distributions from KKR Group Partnership.

The declaration and payment of dividends to our common or preferred stockholders will be at the sole discretion of our

Board of Directors, and our dividend policy may be changed at any time. We announced on February 5, 2026 that our current

dividend policy will be to pay dividends to holders of our common stock in an annual aggregate amount of $0.78 per share (or

a quarterly dividend of $0.195 per share) beginning with the dividend announced with the results for the three months ended

March 31, 2026. The declaration of dividends is subject to the discretion of our Board of Directors based on a number of

factors, including KKR’s future financial performance and other considerations that the Board of Directors deems relevant,

and compliance with the terms of KKR & Co. Inc.'s certificate of incorporation and applicable law. For U.S. federal income tax

purposes, any dividends we pay (including dividends on our preferred stock) generally will be treated as qualified dividend

income for U.S. individual stockholders to the extent paid out of our current or accumulated earnings and profits, as

determined for U.S. federal income tax purposes. There can be no assurance that future dividends will be made as intended

or at all or that any particular dividend policy for our common stock or our preferred stock will be maintained. Furthermore,

the declaration and payment of distributions by KKR Group Partnership and our other subsidiaries may also be subject to

legal, contractual and regulatory restrictions, including restrictions contained in our debt agreements.

Since 2015, KKR has repurchased, or retired equity awards representing, a total of 94.2 million shares of common stock

for $2.8 billion, which equates to an average price of $29.36 per share. For further information, see "Part II—Item 5—Market

for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities."

Contractual Obligations, Commitments and Contingencies

In the ordinary course of business, we (including Global Atlantic) and our consolidated funds and CFEs enter into

contractual arrangements that may require future cash payments. Contractual arrangements include (i) commitments to fund

the purchase of investments or other assets (including obligations to fund capital commitments as the general partner of our

investment funds) or to fund collateral for derivative transactions or otherwise, (ii) obligations arising under our senior notes,

subordinated notes, and other indebtedness, (iii) commitments by our capital markets business to underwrite transactions or

to lend capital, (iv) obligations arising under insurance policies written, (v) other contractual obligations, including servicing

agreements with third-party administrators for insurance policy administration, and (vi) commitments to fund the business,

operations or investments of our subsidiaries.  In addition, we may incur contingent liabilities for claims that may be made

against us in the future.  For more information about these contingent liabilities, please see Note 24 "Commitments and

Contingencies" in our financial statements.

The following table sets forth information relating to anticipated future cash payments as of December 31, 2025

excluding consolidated funds and CFEs with a reconciliation of such amounts to anticipated future cash payments by us

(including Global Atlantic) and our consolidated funds and CFEs.

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(1)These uncalled commitments represent amounts committed by us to fund a portion of the purchase price paid for each investment made by our

investment funds which are actively investing. Because capital contributions are due on demand, the above commitments have been presented as falling

due within one year. However, given the size of such commitments and the pace at which our investment funds make investments, we expect that the

capital commitments presented above will be called over a period of several years. See "—Liquidity Needs" and Note 16 "Debt Obligations" in our financial

statements.

(2)Amounts include senior notes and subordinated notes issued by KKR and its subsidiaries.

(3)These interest obligations on debt represent estimated interest to be paid over the term of the related debt obligation, which has been calculated

assuming the debt outstanding as of December 31, 2025 is not repaid until its maturity. Future interest rates are assumed to be those in effect as of

December 31, 2025, including both variable and fixed rates, as applicable, provided for by the relevant debt agreements. The amounts presented above

include accrued interest on outstanding indebtedness.

(4)Represents various commitments in our capital markets business in connection with the underwriting of loans, securities and other financial instruments.

These commitments are shown net of amounts syndicated.

(5)Represents obligations in our capital markets business to lend under various revolving credit facilities.

(6)Represents commitments of KKR's asset management business line to fund the purchase of various investments.

(7)Global Atlantic has other obligations related to collateral payable held for derivative instruments ($511.5 million) and outstanding commitments to make

investments in commercial mortgage loans, other lending facilities and other investments ($7.3 billion) which have not been included in the above table

as the exact timing of these payments cannot be estimated. Global Atlantic's debt obligations are non-recourse to KKR beyond the assets of Global

Atlantic.

(8)Global Atlantic also has obligations to meet future obligations for policy liabilities. These obligations are subject to variability in amount and timing and as

such include significant assumptions related to the receipt of future premiums, mortality, lapse, renewal, withdrawal, and annuitization activity

comparable with actual experience. These assumptions also include market growth and policy crediting. Estimated cash flows for these obligations with

an expected maturity within the next year, within the next 5 years, and for all years were $21.2 billion, $109.6 billion, and $254.5 billion, respectively,

gross of reinsurance offsets. Due to the significance of the assumptions used, these amounts may differ materially from actual results.

(9)The payments due by period for debt obligations reflect the contractual maturities of principal.

(10)Reflects estimated future interest payments. Future interest on variable rate debt (which includes borrowing under Global Atlantic's revolving credit

facility and the subordinated debentures) was computed using prevailing rates as of December 31, 2025 and, as such, does not consider the impact of

future rate movements. Future interest on fixed rate debt was computed using the stated rate on the obligations.

(11)Reflects operational servicing agreements with third-party administrators for policy administration.

(12)Represents uncalled commitments of our consolidated funds excluding KKR's portion of uncalled commitments as the general partner of the respective

funds. Because capital contributions are due on demand, the above commitments have been presented as falling due within one year. However, given the

size of such commitments and the pace at which our investment funds make investments, we expect that the capital commitments presented above will

be called over a period of several years. See "—Liquidity Needs" and Note 16 "Debt Obligations" in our financial statements.

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(13)Amounts include (i) financing arrangements entered into by our consolidated funds with the objective of providing liquidity to the funds of $6.6 billion,

(ii) debt securities issued by our consolidated CLOs of $30.2 billion and (iii) borrowings collateralized by fund investments, fund co-investments and other

assets held by levered investment vehicles of $3.3 billion. Debt securities issued by consolidated CLO entities are supported solely by the investments held

at the CLO vehicles and are not collateralized by assets of any other KKR entity. Borrowings by levered investment vehicles are supported solely by the

investments held at the investment vehicles and are not collateralized by assets of any other KKR entity. Obligations under financing arrangements

entered into by our consolidated funds are generally limited to our pro rata equity interest in such funds. Our management companies bear no obligations

to repay any financing arrangements at our consolidated funds.

(14)Represents a debt obligation in connection with the ownership of KKR office space.

(15)The interest obligations on debt of our CFEs and other borrowings represent estimated interest to be paid over the term of the related debt obligation,

which has been calculated assuming the debt outstanding as of December 31, 2025 is not repaid until its maturity. Future interest rates are assumed to be

those in effect as of December 31, 2025, including both variable and fixed rates, as applicable, provided for by the relevant debt agreements. The

amounts presented above include accrued interest on outstanding indebtedness.

The commitment table above excludes contractual amounts owed under the tax receivable agreement because the

ultimate amount and timing of the amounts due are not presently known.

Off Balance Sheet Arrangements

We do not have any off-balance sheet financings or liabilities other than contractual commitments and other legal

contingencies incurred in the normal course of our business.

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Critical Accounting Policies and Estimates

The preparation of our financial statements in accordance with GAAP requires our management to make estimates and

judgments that affect the reported amounts of assets and liabilities, the recognition and disclosure of contingent assets and

liabilities at the date of the financial statements and the reported amounts of revenues, expenses, investment income (loss)

and income taxes during the reporting periods. Such estimates include but are not limited to (i) the valuation of investments

and financial instruments, (ii) the determination of the income tax provision, (iii) the impairment of goodwill and intangible

assets, (iv) the impairment of available-for-sale investments, (v) the valuation of insurance policy liabilities, including market

risk benefits, (vi) the valuation of embedded derivatives in policy liabilities and funds withheld, and (vii) the determination of

the allowance for loan losses. Our management bases these estimates and judgments on available information, historical

experience and other assumptions that we believe are reasonable under the circumstances. However, these estimates,

judgments and assumptions are often subjective and may be impacted negatively based on changing circumstances or

changes in our analyses. If actual amounts are ultimately different from those estimated, judged or assumed, revisions are

included in the financial statements in the period in which the actual amounts become known. We believe our critical

accounting policies could potentially produce materially different results if we were to change underlying estimates,

judgments or assumptions.

For a further discussion about our critical accounting policies, see Note 2 "Summary of Significant Accounting Policies" in

our financial statements included in this report.

Basis of Accounting

We consolidate the financial results of KKR Group Partnership and its consolidated entities, which include the accounts of

our investment advisers, broker-dealers, Global Atlantic’s insurance companies, the general partners of certain

unconsolidated investment funds, general partners of consolidated investment funds and their respective consolidated

investment funds, and certain other entities including CFEs.

When an entity is consolidated, we reflect the accounts of the consolidated entity, including its assets, liabilities,

revenues, expenses, investment income, cash flows, and other amounts, on a gross basis. While the consolidation of an

investment fund or entity does not have an effect on the amounts of Net Income Attributable to KKR or KKR's stockholders'

equity that KKR reports, the consolidation does significantly impact the financial statement presentation under GAAP. This is

due to the fact that the accounts of the consolidated entities are reflected on a gross basis while the allocable share of those

amounts that are attributable to third parties are reflected as single line items. The single line items in which the accounts

attributable to third parties are recorded are presented as noncontrolling interests on the consolidated statements of

financial condition and net income (loss) attributable to noncontrolling interests on the consolidated statements of

operations.

The presentations in the consolidated statement of financial condition and consolidated statement of operations reflect

the significant industry diversification of KKR by its acquisition of Global Atlantic. Global Atlantic operates an insurance

business, and KKR operates an asset management business, which manages the operations of the Strategic Holdings segment

(see Note 21 "Segment Reporting") in our financial statements included in this report, each of which possess distinct

characteristics. As a result, KKR developed a two-tiered approach for the financial statements presentation, where Global

Atlantic's insurance operations are presented separately from KKR's asset management business. KKR believes that these

separate presentations provide a more informative view of the consolidated financial position and results of operations than

traditional aggregated presentations and that reporting Global Atlantic’s insurance operations separately is appropriate given,

among other factors, the relative significance of Global Atlantic’s policy liabilities, which are not obligations of KKR (other than

the insurance companies that issued them). If a traditional aggregate presentation were to be used, KKR would expect to

eliminate or combine several identical or similar captions, which would condense the presentations, but would also reduce

the level of information presented. KKR also believes that using a traditional aggregate presentation would result in no new

line items compared to the two-tier presentation included in the financial statements in this report.

In the ordinary course of business, KKR’s Asset Management, Strategic Holdings, and Insurance businesses enter into

transactions with each other, which may include transactions pursuant to their investment management agreements and

financing arrangements. The borrowings from these financing arrangements are non-recourse to KKR beyond the assets

pledged to support such borrowings. All the investment management and financing arrangements amongst KKR’s Asset

Management, Strategic Holdings, and Insurance businesses are eliminated in consolidation.

All intercompany transactions and balances have been eliminated.

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Consolidation

KKR consolidates all entities that it controls either through a majority voting interest or as the primary beneficiary of

variable interest entities (“VIEs”). The following discussion is intended to provide supplemental information about how the

application of consolidation principles impact our financial results, and management’s process for implementing those

principles including areas of significant judgment. For a detailed description of our accounting policy on consolidation, see

Note 2 "Summary of Significant Accounting Policies" in our financial statements included in this report.

As part of its consolidation procedures, KKR evaluates: (i) whether it holds a variable interest in an entity, (ii) whether the

entity is a VIE, and (iii) whether the KKR’s involvement would make it the primary beneficiary. The determination that KKR

holds a controlling financial interest in an investment vehicle significantly changes the presentation of our consolidated

financial statements.

The assessment of whether we consolidate an investment vehicle we manage requires the application of significant

judgment. These judgments are applied both at the time we become involved with an investment vehicle and on an ongoing

basis and include, but are not limited to:

•Determining whether our management fees, carried interests, or incentive fees represent variable interests - We

make judgments as to whether the fees we earn are commensurate with the level of effort required for those fees

and at market rates. In making this judgment, we consider, among other things, the extent of third party investment

in the entity and the terms of any other interests we hold in the VIE.

•Determining whether a legal entity qualifies as a VIE - For those entities where KKR holds a variable interest,

management determines whether each of these entities qualifies as a VIE and, if so, whether or not KKR is the

primary beneficiary. The assessment of whether the entity is a VIE is generally performed qualitatively, which

requires judgment. These judgments include: (i) determining whether the equity investment at risk is sufficient to

permit the entity to finance its activities without additional subordinated financial support, (ii) evaluating whether

the equity holders, as a group, can make decisions that have a significant effect on the economic performance of the

entity, (iii) determining whether two or more parties’ equity interests should be aggregated, and (iv) determining

whether the equity investors have proportionate voting rights to their obligations to absorb losses or rights to

receive returns from an entity. Entities that do not qualify as VIEs are generally assessed for consolidation as voting

interest entities. Under the voting interest entity model, KKR consolidates those entities it controls through a

majority voting interest.

•Concluding whether KKR has an obligation to absorb losses or the right to receive benefits that could potentially be

significant to the VIE - As there is no explicit threshold in GAAP to define “potentially significant,” we must apply

judgment and evaluate both quantitative and qualitative factors to conclude whether this threshold is met.

Changes to these judgments could result in a change in the consolidation conclusion for a legal entity.

Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

between market participants at the measurement date under current market conditions. For further information about our

fair value measurements accounting policies, please see “Note 2—Summary of Significant Accounting Policies—Fair Value

Measurements.”

Level III Valuation Methodologies

Our investments and financial instruments are impacted by various economic conditions and events outside of our

control that are difficult to quantify or predict, which may have a significant impact on the valuation of our investments and,

therefore, on the carried interest and investment income we realize.

There is inherent uncertainty involved in the valuation of Level III investments, and there is no assurance that, upon

liquidation, KKR will realize the values reflected in our valuations. Our valuations may differ significantly from the values that

would have been used had an active market for the investments existed, and it is reasonably possible that the difference

could be material. See "Risk Factors" and "—Business Environment" in this report for more information on factors that may

impact our business, financial performance, operating results, and valuations.

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Key unobservable inputs that have a significant impact on our Level III valuations as described above are included in Note

9 "Fair Value Measurements" in our financial statements.

Across the total Level III private equity investment portfolio (including core private equity investments) held directly and

through both consolidated and unconsolidated investment vehicles in our Asset Management segment, the overall weights

ascribed to a market comparables valuation methodology, the discounted cash flow valuation methodology, and a valuation

methodology based on pending sales for this portfolio of Level III private equity investments (including core private equity

investments) were 38%, 55%, and 7%, respectively, as of December 31, 2025.

Across the total Level III real assets investment portfolio held directly and through both consolidated and unconsolidated

investment vehicles in our Asset Management segment, the overall weights ascribed to a market comparables valuation

methodology, the discounted cash flow valuation methodology, the direct income capitalization valuation methodology, and a

valuation methodology based on pending sales for this portfolio of Level III real assets investments were 3%, 91%, 2%, and

4%,  respectively, as of December 31, 2025.

Level III Valuation Process

The valuation process involved for Level III measurements for our financial statements is completed on a quarterly basis

and is designed to subject the valuation of Level III investments to an appropriate level of consistency, oversight, and review.

For private equity and real asset investments classified as Level III, investment professionals prepare preliminary

valuations based on their evaluation of financial and operating data, company specific developments, market valuations of

comparable companies, and other factors. KKR begins its procedures to determine the fair values of its Level III assets

approximately one month prior to the end of a reporting period, and KKR follows additional procedures to ensure that its

determinations of fair value for its Level III assets are appropriate as of the relevant reporting date. These preliminary

valuations are generally reviewed by an independent valuation firm engaged by KKR to perform certain procedures in order to

assess the reasonableness of KKR's valuations. The valuations of certain real asset investments are determined solely by

independent valuation firms without the preparation of preliminary valuations by our investment professionals, and instead

such independent valuation firms rely on valuation information available to it as a broker or valuation firm. For credit

investments, an independent valuation firm is engaged by KKR to assist with the valuations of most investments classified as

Level III. As of December 31, 2025, less than 5% of the total value of  Level III investments in aggregate across all of our

segments were not valued with the engagement of an independent valuation firm.

For Level III investments, KKR has a Global Valuation Committee that is responsible for coordinating and implementing

the firm's valuation processes to ensure consistency in the application of valuation principles across portfolio investments and

between reporting periods. The Global Valuation Committee is assisted by the asset class-specific valuation committees,

which are responsible for the review and approval of all preliminary Level III valuations in their respective asset classes at least

on a quarterly basis. The members of these valuation committees are comprised of investment professionals and

professionals from business operations functions such as legal, compliance, and finance, who are not primarily responsible for

the management of the investments. All Level III valuations for investments are also subject to approval by the Global

Valuation Committee, which is comprised of senior employees including investment professionals and professionals from

business operations functions, and includes KKR's Chief Financial Officer, Chief Legal Officer and General Counsel, and Chief

Compliance Officer. Once Level III valuations are approved by the Global Valuation Committee, a presentation of such

valuations is provided to the Audit Committee and then to the Board of Directors of KKR & Co. Inc.  Level III valuations for our

insurance segment’s investments are approved by the Global Atlantic Valuation Committee prior to being presented to the

Global Valuation Committee.

As described above, Level III investments were valued using internal models with significant unobservable inputs, and our

determinations of the fair values of these investments may differ materially from the values that would have resulted if

readily observable inputs had existed. Additional external factors may cause those values, and the values of investments for

which readily observable inputs exist, to increase or decrease over time, which may create volatility in our earnings and the

amounts of assets and stockholders' equity that we report from time to time.

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Changes in the fair value of investments impacts the amount of carried interest that is recognized as well as the amount

of investment income that is recognized for investments across our business segments and through our consolidated funds as

described below. We estimate that an immediate 10% decrease  in the fair value of investments held directly and through

consolidated investment funds generally would result in a commensurate change in the amount of net gains (losses) from

investment activities for investments held directly and through investment funds and a more significant impact to the amount

of carried interest recognized, regardless of whether the investment was valued using observable market prices or

management estimates with significant unobservable pricing inputs. With respect to consolidated investment funds, the

impact that the consequential decrease in investment income would have on net income attributable to KKR would generally

be significantly less than the amount described above, given that a majority of the change in fair value of our consolidated

funds would be attributable to noncontrolling interests and therefore we are only impacted to the extent of our carried

interest and our ownership in the consolidated investment funds and investment vehicles.

As of December 31, 2025, upon completion by, where applicable, independent valuation firms of certain limited

procedures requested to be performed by them on certain Level III investments, the independent valuation firms concluded

that the fair values, as determined by KKR (including Global Atlantic), of those investments reviewed by them were

reasonable. The limited procedures did not involve an audit, review, compilation or any other form of examination or

attestation under generally accepted auditing standards and were not conducted on all Level III investments. We are

responsible for determining the fair value of investments in good faith, and the limited procedures performed by an

independent valuation firm are supplementary to the inquiries and procedures that we are required to undertake to

determine the fair value of the commensurate investments on a GAAP basis.

As of December 31, 2025, there were no investments across business segments which represented greater than 5% of

total investments on a GAAP basis. Our investment income on a GAAP and segment basis can be impacted by volatility in the

public markets. See "Risk Factors" and "—Business Environment" in this report for a discussion of factors that may impact the

valuations of our investments, financial results, operating results, and valuations, and "—Segment Balance Sheet Measures"

for additional information regarding our largest holdings on a segment basis.

Business Combinations

KKR accounts for business combinations using the acquisition method of accounting, under which the purchase price of

the acquisition is allocated to the assets acquired and liabilities assumed using the fair values determined by management as

of the acquisition date.

Management’s determination of fair value of assets acquired and liabilities assumed at the acquisition date is based on

the best information available in the circumstances and may incorporate management’s own assumptions and involve a

significant degree of judgment. We use our best estimates and assumptions to accurately assign fair value to the tangible and

identifiable intangible assets acquired and liabilities assumed at the acquisition date as well as the useful lives of those

acquired intangible assets. Examples of critical estimates in valuing certain of the intangible assets we have acquired include,

but are not limited to, future expected cash inflows and outflows, future fundraising assumptions, expected useful life,

discount rates, and income tax rates. Our estimates for future cash flows are based on historical data, various internal

estimates and certain external sources, and are based on assumptions that are consistent with the plans and estimates we are

using to manage the underlying assets acquired. We estimate the useful lives of the intangible assets based on the expected

period over which we anticipate generating economic benefit from the asset. We base our estimates on assumptions we

believe to be reasonable but that are unpredictable and inherently uncertain. Unanticipated events and circumstances may

occur that could affect the accuracy or validity of such assumptions, estimates or actual result.

Income Taxes

Significant judgment is required in estimating the provision for (benefit from) income taxes, current and deferred tax

balances (including valuation allowance), accrued interest or penalties, and uncertain tax positions. In evaluating these

judgments, we consider, among other items, projections of taxable income (including the character of such income),

beginning with historic results and incorporating assumptions of the amount of future pre-tax operating income. These

assumptions about future taxable income require significant judgment and are consistent with the plans and estimates that

KKR uses to manage its business. Revisions in estimates or actual costs of a tax assessment may ultimately be materially

different from the recorded accruals and unrecognized tax benefits, if any. Please see Note 18 "Income Taxes" in our financial

statements in this report for further details.

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Critical Accounting Policies and Estimates – Asset Management and Strategic Holdings

Revenues

Fees and Other

Fees and other consist primarily of (i) management and incentive fees from providing investment management services

to unconsolidated funds, CLOs, other investment vehicles, and separately managed accounts; (ii) transaction fees earned in

connection with successful investment transactions and from capital markets activities; (iii) monitoring fees from providing

services to portfolio companies; (iv) expense reimbursements from certain investment funds and portfolio companies; and

(v) consulting fees. These fees are based on the contractual terms of the governing agreements and are recognized when

earned, which coincides with the period during which the related services are performed and in the case of transaction fees,

upon closing of the transaction. Monitoring fees may provide for a termination payment following an initial public offering or

change of control. These termination payments are recognized in the period when the related transaction closes.

Transaction fee calculations and management fee calculations based on committed capital or invested capital typically do

not require discretion and therefore do not require the use of significant estimates or judgments. Management fee

calculations based on net asset value depend on the fair value of the underlying investments within the investment vehicles.

Estimates and assumptions are made when determining the fair value of the underlying investments within the funds and

could vary depending on the valuation methodology that is used as well as economic conditions.

Capital Allocation-Based Income (Loss)

Capital allocation-based income (loss) is earned from those arrangements whereby KKR serves as general partner and

includes income or loss from KKR's capital interest as well as "carried interest" which entitles KKR to a disproportionate

allocation of investment income or loss from an investment fund's limited partners.

Carried interest is recognized upon appreciation of the funds’ investment values above certain return hurdles set forth in

their partnership agreement. KKR recognizes revenues attributable to capital allocation-based income based upon the amount

that would be due pursuant to the fund partnership agreement at each period end as if the funds were terminated at that

date. Accordingly, the amount recognized reflects KKR’s share of the gains and losses of the associated funds’ underlying

investments measured at their then-current fair values relative to the fair values as of the end of the prior period. Because of

the inherent uncertainty in measuring the fair value of investments in the absence of observable market prices as previously

discussed, these estimated values may differ significantly from the values that would have been used had a ready market for

the investments existed, and it is reasonably possible that the difference could be material.

Expenses

Compensation and Benefits

Compensation and Benefits expense includes (i) base cash compensation consisting of salaries and wages, (ii) benefits,

(iii) carry pool allocations, (iv) equity-based compensation, and (v) discretionary cash bonuses.

Discretionary Cash Bonus

To supplement base cash compensation, benefits, carry pool allocations, and equity-based compensation, we typically

pay discretionary cash bonuses, which are included in Compensation and Benefits expense in the consolidated statements of

operations, based principally on the level of (i) management fees and other fee related revenues (including incentive fees), (ii)

realized performance income, which includes realized carried interest, and (iii) realized investment income earned during the

year. The amounts paid as discretionary cash bonuses, if any, are at our sole discretion and vary from individual to individual

and from period to period, including having no cash bonus. We accrue discretionary cash bonuses when payment becomes

probable and reasonably estimable which is generally in the period when we make the decision to pay discretionary cash

bonuses and is based upon a number of factors, including the recognition of asset management segment revenues, and other

factors determined during the year.

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We expect to pay our employees by assigning a percentage range to each component of asset management segment

revenues. Prior to January 1, 2024, based on the current components and blend of our asset management segment revenues

on an annual basis, we expected to use approximately: (i) 20‐25% of fee related revenues, (ii) 60‐70% of realized carried

interest and incentive fees not included in fee related performance revenues or earned from our hedge fund partnerships,

and (iii) 10‐20% of realized investment income and hedge fund partnership incentive fees, to pay our asset management

employees. Beginning in January 2024, we expect to use approximately: (i) 15%-20% of fee related revenues, (ii) 70%-80% of

realized carried interest and incentive fees not included in fee related performance revenues or earned from our hedge fund

partnerships, and (iii) 10%-20% of realized investment income and hedge fund partnership incentive fees, to pay our asset

management employees. Because these ranges are applied to applicable asset management segment revenue components

independently, and on an annual basis, the amount paid as a percentage of total asset management segment revenue will

vary and will, for example, likely be higher in a period with relatively higher realized carried interest and lower in a period with

relatively lower realized carried interest. We decide whether to pay a discretionary cash bonus and determine the percentage

of applicable revenue components to pay compensation only upon the occurrence of the realization event. There is no

contractual or other binding obligation that requires us to pay a discretionary cash bonus to the asset management

employees, except in limited circumstances.

Carry Pool Allocation

With respect to our funds that provide for carried interest, we allocate a portion of the realized and unrealized carried

interest that we earn to Associates Holdings, which we refer to as the carry pool, from which our asset management

employees and certain other carry pool participants are eligible to receive a carried interest allocation. The allocation is

determined based upon a fixed arrangement between Associates Holdings and us, and we do not exercise discretion on

whether to make an allocation to the carry pool upon a realization event. We refer to the portion of carried interest that we

allocate to the carry pool as the carry pool percentage.

Effective January 2, 2024, KKR applies a carry pool percentage of up to 80% for all funds, which is a carry pool percentage

in excess of the carry pool percentages previously fixed by investment fund as discussed further below, which depended on

the fund’s vintage. This increase to the carry pool percentage was approved by a majority of KKR's independent directors, and

the carry pool percentage may not be increased above 80% without the further approval of a majority of KKR's independent

directors. For funds that closed after December 31, 2023, the carry pool percentage is fixed at 80%. For funds that closed prior

to December 31, 2023, the carry pool percentage is calculated at a fixed percentage of 40%, 43%, or 65% (depending on the

fund’s vintage) for carried interest realized up to a high water mark, which was established based on the unrealized carried

interest balance that existed on January 2, 2024, plus an additional percentage amount up to 80% based on a formulaic

allocation, only if the unrealized carried interest balance at any period end exceeds the high water mark. This imposes a

limitation of the carry pool allocation for such funds based on the amount of cumulative unrealized carried interest income

earned subsequent to December 31, 2023.

For funds that closed before December 31, 2023, if the cumulative carried interest subsequent to December 31, 2023 is

not sufficient to fund this formulaic allocation, the allocation of earnings reverts to the carry pool percentage in effect before

this modification. As such, upon modification of the carry pool percentage effective on January 2, 2024, the cumulative

unrealized carried interest was not sufficient to fund the additional formulaic allocation percentage in excess of the pre-

existing 40%, 43%, and 65% carry pool percentages, and therefore no incremental expense was recognized as of such date.

The carry pool percentage applicable for all funds that closed prior to December 31, 2023 will not be less than their applicable

carry pool percentages of 40%, 43%, or 65% prior to December 31, 2023 (for funds that closed after December 31, 2020 but

before December 31, 2023, the carry pool percentage was fixed at 65%; for funds that closed after June 30, 2017 but before

December 31, 2020, the carry pool percentage was fixed at 43%; and the carry pool percentage was fixed at 40% for older

funds that contributed to KKR's carry pool), and will not be more than 80%. The intent of this modification is that for all funds

that closed prior to January 2, 2024, upon the final liquidation of each fund, realized carried interest distributed will equal the

historical fund carry pool allocations up to the high water mark and only distributions of realized carried interest in excess of

the high water mark will be distributed at 80 percent if and only if the unrealized carried interest balance at any period end

exceeds the high water mark. Under no circumstance would a distribution of carried interest exceed 80% of the total allocable

carried interest at any time.

KKR accounts for the carry pool as a compensatory profit-sharing arrangement in Accrued Expenses and Other Liabilities

within the accompanying consolidated statements of financial condition in conjunction with the related carried interest

income and it is recorded as compensation expense. The liability that is recorded in each period reflects the legal entitlement

of Associates Holdings at each point in time should the total unrealized carried interest be realized at the value recorded at

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each reporting date. Upon a reversal of carried interest income, the related carry pool allocation, if any, is also reversed.

Accordingly, such compensation expense is subject to both positive and negative adjustments.

On the Sunset Date (which will not be later than December 31, 2026), KKR will acquire control of Associates Holdings and

will commence making decisions regarding the allocation of the carry proceeds pursuant to the limited partnership agreement

of Associates Holdings. Until the Sunset Date, our Co-Founders will continue to make decisions regarding the allocation of the

carry proceeds to themselves and others, pursuant to the limited partnership agreement of Associates Holdings, provided that

any allocation of carry proceeds to the Co-Founders will be on a percentage basis consistent with past practice. For additional

information about the Sunset Date and the Reorganization Agreement, see Note 1 "Organization" in our financial statements

included in this report.

Equity-based Compensation

In addition to the cash-based compensation and carry pool allocations as described above, employees receive equity

awards under our Equity Incentive Plan, most of which are subject to service-based vesting typically over a three to five-year

period from the date of grant, and some of which are also subject to the achievement of market-based conditions. Certain of

these awards are subject to post-vesting transfer restrictions and minimum retained ownership requirements.

Compensation expense relating to the issuance of equity-based awards is measured at fair value on the grant date. In

determining the aggregate fair value of any award grants, we make judgments as to the grant-date fair value, particularly for

certain equity awards with a vesting condition based upon market conditions, whose grant date fair values are based on a

probability distributed Monte-Carlo simulation. See Note 19 "Equity-Based Compensation,” in our financial statements

included in this report for further discussion and activity of these awards.

Investment Income (Loss) – Net Gains (Losses) from Investment Activities

Net gains (losses) from investment activities consist of realized and unrealized gains and losses arising from our

investment activities as well as income earned from certain equity method investments. Fluctuations in net gains (losses) from

investment activities between reporting periods is driven primarily by changes in the fair value of our investment portfolio as

well as the realization of investments. The fair value of, as well as the ability to recognize gains from, our investments is

significantly impacted by the global financial markets, which, in turn, affects the net gains (losses) from investment activities

recognized in any given period. Upon the disposition of an investment, previously recognized unrealized gains and losses are

reversed and an offsetting realized gain or loss is recognized in the current period. Since our investments are carried at fair

value, fluctuations between periods could be significant due to changes to the inputs to our valuation process over time. For a

further discussion of our fair value measurements and fair value of investments, see above "—Critical Accounting Policies and

Estimates—Fair Value Measurements."

Critical Accounting Policies and Estimates – Insurance

Policy Liabilities

Policy liabilities, or collectively, “reserves,” are the portion of past premiums or assessments received that are set aside to

meet future policy and contract obligations as they become due. Interest accrues on the reserves and on future premiums,

which may also be available to pay for future obligations. Global Atlantic establishes reserves to pay future policy benefits,

claims, and certain expenses for its life policies and annuity contracts.

Global Atlantic’s reserves are estimated based on models that include many actuarial assumptions and projections. These

assumptions and projections, which are inherently uncertain, involve significant judgment, including assumptions as to the

levels and/or timing of premiums, benefits, claims, expenses, interest credits, investment results (including equity market

returns), mortality, longevity, and persistency.

The assumptions on which reserves are based are intended to represent an estimation of experience for the period that

policy benefits are payable. Global Atlantic reviews the adequacy of its reserves and the assumptions underlying those

reserves at least annually. Global Atlantic cannot, however, determine with precision the amount or the timing of actual

benefit payments. If actual experience is better than or equal to the assumptions, then reserves would be adequate to

provide for future benefits and expenses. If experience is worse than the assumptions, additional reserves may be required to

meet future policy and contract obligations. This would result in a charge to Global Atlantic's net income during the period in

which excess benefits are paid or an increase in reserves occurs.

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For a majority of Global Atlantic’s in-force policies, including its interest-sensitive life policies and most annuity contracts,

the base policy reserve is equal to the account value. For these products, the account value represents Global Atlantic’s

obligation to repay to the policyholder the amounts held with Global Atlantic on deposit. However, there are several

significant blocks of business where policy reserves, in addition to the account value, are explicitly calculated, including

variable annuities, fixed-indexed annuities, interest-sensitive life products (including those with secondary guarantees), and

preneed policies.

Market Risk Benefits

Market risk benefits are contracts or contract features that both provide protection to the policyholder from other-than-

nominal capital market risk and expose Global Atlantic to other-than-nominal capital market risk. Market risk benefits include

certain contract features on fixed annuity and variable annuity products, including minimum guarantees to policyholders,

such as guaranteed minimum death benefits ("GMDBs"), guaranteed minimum withdrawal benefits ("GMWBs"), and long-

term care benefits (which are capped at the return of account value plus one or two times the account value).

Some of Global Atlantic's variable annuity and fixed-indexed annuity contracts contain a GMDB feature that provides a

guarantee that the benefit received at death will be no less than a prescribed minimum amount, even if the account balance

is reduced to zero. This amount is based on either the net deposits paid into the contract, the net deposits accumulated at a

specified rate, the highest historical account value on a contract anniversary, or sometimes a combination of these values. If

the GMDB is higher than the current account value at the time of death, Global Atlantic incurs a cost equal to the difference.

Global Atlantic issues fixed-indexed annuity and variable annuity contracts with a guaranteed minimum withdrawal

feature. GMWB are an optional benefit where the contract owner is entitled to withdraw a maximum amount of their benefit

base each year.

Once exercised, living benefit features provide annuity policyholders with a minimum guaranteed stream of income for

life. A policyholder’s annual income benefit is generally based on an annual withdrawal percentage multiplied by the benefit

base. The benefit base is defined in the policy and is generally the initial premium, reduced by any partial withdrawals and

increased by a defined percentage, formula, or index credits. Any living benefit payments are first deducted from the account

value. Global Atlantic is responsible for paying any excess guaranteed living benefits still owed after the account value has

reached zero.

The ultimate cost of these benefits will depend on the level of market returns and the level of contractual guarantees, as

well as policyholder behavior, including surrenders, withdrawals, and benefit utilization. For Global Atlantic's fixed-indexed

annuity products, costs also include certain non-guaranteed terms that impact the ultimate cost, such as caps on crediting

rates that Global Atlantic can, in its discretion, reset annually.

See Note 17 “Policy Liabilities” in our financial statements for additional information.

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As of December 31, 2025, the net market risk liability balance totaled $1.3 billion. As of December 31, 2025, the liability

balances for market risk benefits were $1.1 billion for fixed-indexed annuities and $197.5 million for variable and other

annuities. The increase (decrease) to the net market risk benefit liability balance as a result of hypothetical changes in interest

rates, instrument-specific credit risk, equity market prices, expected mortality, and expected surrenders are summarized in

the table below. This sensitivity considers the direct effect of such changes only and not changes in any other assumptions

used in or items considered in the measurement of such balances.

Note: Hypothetical changes to the market risk benefits liability balance do not reflect the impact of related hedges.

Policy Liabilities Accounted for Under a Fair Value Option

Variable annuity contracts offered and assumed by Global Atlantic provide the contractholder with a GMDB. The liabilities

for these benefits are included in policy liabilities. Global Atlantic elected the fair value option to measure the liability for

certain of these variable annuity contracts valued at $258.8 million as of December 31, 2025. Fair value is calculated as the

present value of the estimated death benefits less the present value of the GMDB fees, using 1,000 risk neutral scenarios.

Global Atlantic discounts the cash flows using the U.S. Treasury rates plus an adjustment for instrument-specific credit risk in

the consolidated statement of financial condition. The change in the liabilities for these benefits is included in policy benefits

and claims in the consolidated statement of operations.

As of December 31, 2025, variable annuities accounted for using the fair value option totaled $258.8 million. The increase

(decrease) in the reserves for variable annuities accounted for using the fair value option as a result of hypothetical changes in

interest rates, instrument-specific credit risk, equity market prices, expected mortality, and expected surrenders are

summarized in the table below. This sensitivity considers the direct effect of such changes only and not changes in any other

assumptions used in or items considered in the measurement of such balances.

Note: Hypothetical changes to the liability balances do not reflect the impact of related hedges.

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Liability for Future Policyholder Benefits

A liability for future policy benefits, which is the present value of estimated future policy benefits to be paid to or on

behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected

from policyholders, is accrued as premium revenue is recognized. The liability is estimated using current assumptions that

include mortality, morbidity, lapses, and expenses. These current assumptions are based on judgments that consider Global

Atlantic’s historical experience, industry data, and other factors, and are updated quarterly and the current period change in

the liability is recognized as a separate component of benefit expense in the consolidated income statement.

As of December 31, 2025, the liability for future policy benefits totaled $14.3 billion, net of reinsurance, split between

$12.4 billion associated with payout annuity products, and $1.9 billion of life and other insurance products (including assumed

long-term care insurance where Global Atlantic retroceded mortality and morbidity risks to a third-party reinsurer). The

increase (decrease) as a result of hypothetical changes in interest rates, credit spreads, expected mortality, and expected

surrenders and lapses are summarized in the table below. This sensitivity considers the direct effect of such changes only and

not changes in any other assumptions used in or items considered in the measurement of such balances.

Note: Hypothetical changes to the liability for future policy benefits balance do not reflect the impact of related hedges.

(1)Includes decrements for terminations of disability insurance.

Additional Liability for Annuitization, Death, or Other Insurance Benefits: No-Lapse Guarantees

Global Atlantic has in-force interest-sensitive life contracts where it provides a secondary guarantee to the policyholder.

The policy can remain in-force, even if the base policy account value is zero, as long as contractual secondary guarantee

requirements have been met. The primary risk to Global Atlantic is that the premium collected under these policies, together

with the investment return Global Atlantic earns on that premium, is ultimately insufficient to pay the policyholder’s benefits

and the expenses associated with issuing and administering these policies. Global Atlantic holds an additional reserve in

connection with these guarantees.

The additional reserves related to interest-sensitive life products with secondary guarantees are calculated using

methods similar to those described above under “—Critical Accounting Policies and Estimates – Insurance—Policy Liabilities—

Market Risk Benefits.” The costs related to these secondary guarantees are recognized over the life of the contracts through

the accrual and subsequent release of a reserve which is revalued each period. The reserve is calculated based on

assessments, over a range of economic scenarios to incorporate the variability in the obligation that may occur under

different environments. The change in the reserve is included in policy benefits and claims in the consolidated statements of

operations.

As of December 31, 2025, the additional liability balance of primarily interest-sensitive life totaled $6.2 billion, net of

reinsurance. The increase (decrease) to the additional liability balance, as a result of hypothetical changes in interest rates,

equity market prices, annual equity growth, expected mortality, and expected surrenders are summarized in the table below.

This sensitivity considers the direct effect of such changes only and not changes in any other assumptions used in or items

considered in the measurement of the interest-sensitive life no-lapse guarantee liability balance.

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Note: Hypothetical changes to the interest-sensitive life additional liability for annuitization, death, or other insurance benefits balance do not reflect the

impact of related hedges.

Embedded Derivatives in Policy Liabilities and Funds Withheld

Global Atlantic's fixed-indexed annuity, variable annuity, and indexed universal life products contain equity-indexed

features, which are considered embedded derivatives and are required to be measured at fair value.

Global Atlantic calculates the embedded derivative as the present value of future projected benefits in excess of the

projected guaranteed benefits, using an option budget as the indexed account value growth rate. In addition, the fair value of

the embedded derivative is reduced to reflect instrument specific credit risk on Global Atlantic's obligation (that is, Global

Atlantic's own credit risk).

Changes in interest rates, future index credits, instrument-specific credit risk, projected withdrawal and surrender

activity, and mortality on fixed-indexed annuity and interest-sensitive life products can have a significant impact on the value

of the embedded derivative.

Valuation of Embedded Derivatives – Fixed-Indexed Annuities

Fixed-indexed annuity contracts allow the policyholder to elect a fixed interest rate of return or a market indexed strategy

where interest credited is based on the performance of an index, such as the S&P 500 Index, or other indexes. The market

indexed strategy is an embedded derivative, similar to a call option. The fair value of the embedded derivative is computed as

the present value of benefits attributable to the excess of the projected policy contract values over the projected minimum

guaranteed contract values. The projections of policy contract values are based on assumptions for future policy growth,

which include assumptions for expected index credits, future equity option costs, volatility, interest rates, and policyholder

behavior. The projections of minimum guaranteed contract values include the same assumptions for policyholder behavior as

are used to project policy contract values. The embedded derivative cash flows are discounted using a risk-free interest rate

increased by instrument-specific credit risk tied to Global Atlantic's own credit rating.

Valuation of Embedded Derivatives – Interest-Sensitive Life Products

Interest-sensitive life products allow a policyholder’s account value to grow based on the performance of certain equity

indexes, which results in an embedded derivative similar to a call option. The embedded derivative related to the index is

bifurcated from the host contract and measured at fair value. The valuation of the embedded derivative is the present value

of future projected benefits in excess of the projected guaranteed benefits, using the option budget as the indexed account

value growth rate and the guaranteed interest rate as the guaranteed account value growth rate. Present values are based on

discount rate curves determined at the valuation date or issue date as well as assumed lapse and mortality rates. The discount

rate equals the forecast treasury rate increased by instrument-specific credit risk tied to Global Atlantic’s own credit rating.

Changes in discount rates and other assumptions such as spreads and/or option budgets can have a substantial impact on the

embedded derivative.

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Valuation of Embedded Derivatives in Modified Coinsurance or Funds Withheld

Global Atlantic's reinsurance agreements include modified coinsurance and coinsurance with funds withheld

arrangements that include terms that require payment by the ceding company of a principal amount plus a return that is

based on a proportion of the ceding company’s return on a designated portfolio of assets. Because the return on the funds

withheld receivable or payable is not clearly and closely related to the host insurance contract, these contracts are deemed to

contain embedded derivatives, which are measured at fair value. Global Atlantic is exposed to both the interest rate and

credit risk of the assets. Changes in discount rates and other assumptions can have a significant impact on this embedded

derivative. The fair value of the embedded derivatives is included in the funds withheld receivable at interest and funds

withheld payable at interest line items on our consolidated statement of financial condition. The change in the fair value of

the embedded derivatives is recorded in net investment-related gains (losses) in the consolidated statement of operations.

As of December 31, 2025, the embedded derivative liability balance totaled $7.4 billion for fixed-indexed annuities, and

$485.0 million for interest-sensitive life. The increase (decrease) to the embedded derivatives on fixed-indexed annuity and

indexed universal life as a result of hypothetical changes in interest rates, credit spreads, and equity market prices are

summarized in the table below. This sensitivity considers the direct effect of such changes only and not changes in any other

assumptions used in or items considered in the measurement of such balances.

Note: Hypothetical changes to the market risk benefits liability balance do not reflect the impact of related hedges.

As of December 31, 2025, the embedded derivative balance for modified coinsurance or funds withheld arrangements

was a $2.4 billion net asset ($78.9 million in funds withheld receivables at interest, and $(2.3) billion in funds withheld payable

at interest). The increase (decrease) to the embedded derivatives on fixed-indexed annuity and interest-sensitive life products

as a result of hypothetical changes in interest rates and investment credit spreads are summarized in the table below. This

sensitivity considers the direct effect of such changes only and not changes in any other assumptions used in or items

considered in the measurement of such balances.

Note: Hypothetical changes to the funds withheld receivable and payable embedded derivative balances do not reflect the impact of related hedges or trading

assets which back the funds withheld at interest.

Recently Issued Accounting Pronouncements

For a full discussion of recently issued accounting pronouncements, see Note 2 "Summary of Significant Accounting

Policies" in our financial statements included in this report.

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