KKR Reports Net Loss and Revenue Decline for Quarter Ended March 31, 2025

KKR & Co. Inc. reported a net loss for the quarter ended March 31, 2025, in contrast to a net income of $682.2 million for the same period in 2024. Total revenues decreased to $3.1 billion from $9.7 billion, primarily due to a significant drop in insurance revenues, which fell to $1.1 billion from $7.7 billion. This decrease was largely attributed to a reduction in net premiums and investment-related gains, partially offset by an increase in net investment income. Asset management and strategic holdings revenues increased by $89.4 million to $2.0 billion.

Expenses also decreased significantly, falling to $3.8 billion from $9.3 billion. The reduction in insurance expenses, which decreased by $5.5 billion, was the primary driver. This was primarily due to a decrease in net policy benefits and claims. Asset management expenses increased by $49.9 million to $1.7 billion. The company's investment income (loss) from asset management and strategic holdings increased by $472.6 million to $1.5 billion, primarily due to higher net gains from investment activities.

A significant development during the quarter was the acquisition of the remaining minority interests in Global Atlantic for approximately $2.6 billion in cash and $41 million in exchangeable securities. This acquisition resulted in Global Atlantic becoming a wholly-owned subsidiary of KKR. The company also noted the issuance of 51,750,000 shares of Series D Mandatory Convertible Preferred Stock with a $2.59 billion aggregate liquidation preference. Additionally, KKR repurchased no shares of common stock but retired 4,232 equity awards during the quarter.

Key operational developments included the declaration of a $0.185 per share dividend on common stock and a $0.7292 per share dividend on Series D Mandatory Convertible Preferred Stock. Assets under management (AUM) increased across all segments, reaching $664.3 billion at March 31, 2025, up from $637.6 billion at December 31, 2024. Capital invested also increased significantly, reaching $19 billion during the quarter. The company's filing also detailed various legal proceedings and regulatory matters, including a settlement with the SEC regarding recordkeeping violations.

KKR's outlook was not explicitly stated in the 10-Q filing beyond mentioning pending transactions expected to generate at least $800 million in realized performance income and realized investment income, with at least $250 million expected in the second quarter of 2025. The company also noted ongoing legal proceedings and the potential for future impacts from the Bermuda CIT and OECD Pillar Two Model Rules.