KKR & Co. Inc.KKR
KKR & Co. Inc. Fair Value Disclosure
FAIR VALUE MEASUREMENTS
The following tables summarize the valuation of assets and liabilities measured and reported at fair value by the fair value
hierarchy. Investments classified as Equity Method – Other, for which the fair value option has not been elected, and Equity
Method – Capital Allocation-Based Income have been excluded from the tables below.
Assets, at fair value:
December 31, 2025 | |||||||
Level I | Level II | Level III | Total | ||||
Asset Management and Strategic Holdings | |||||||
Private Equity | $1,129,094 | $331,151 | $48,038,163 | $49,498,408 | |||
Credit | — | 3,237,077 | 4,192,312 | 7,429,389 | |||
Investments of Consolidated CFEs | — | 30,673,565 | — | 30,673,565 | |||
Real Assets | 102,510 | 24,262 | 13,577,003 | 13,703,775 | |||
Other Investments | 93,243 | 2,246 | 5,180,933 | 5,276,422 | |||
Total Investments (2) (3) | $1,324,847 | $34,268,301 | $70,988,411 | $106,581,559 | |||
Foreign Exchange Contracts and Options | — | 179,920 | — | 179,920 | |||
Other Derivatives | 36 | 9,869 | — | 9,905 | |||
Total Assets at Fair Value – Asset Management and Strategic Holdings | $1,324,883 | $34,458,090 | $70,988,411 | $106,771,384 | |||
Insurance | |||||||
AFS Fixed Maturity Securities: | |||||||
U.S. Government and Agencies | $— | $411,070 | $— | $411,070 | |||
U.S. State, Municipal and Political Subdivisions | — | 2,447,994 | — | 2,447,994 | |||
Corporate | — | 38,840,214 | 14,664,089 | 53,504,303 | |||
Structured Securities | — | 30,005,461 | 4,218,228 | 34,223,689 | |||
Total AFS Fixed Maturity Securities | $— | $71,704,739 | $18,882,317 | $90,587,056 | |||
Trading Fixed Maturity Securities | — | 21,798,167 | 3,435,792 | 25,233,959 | |||
Mortgage and Other Loan Receivables | — | — | 11,154,547 | 11,154,547 | |||
Real Assets | — | — | 8,696,775 | (1) | 8,696,775 | ||
Other Investments | 1,035,470 | 524,740 | 472,456 | (1) | 2,032,666 | ||
Funds Withheld Receivable at Interest | — | — | 78,858 | 78,858 | |||
Reinsurance Recoverable | — | — | 934,105 | 934,105 | |||
Derivative Assets | 586 | 305,437 | — | 306,023 | |||
Separate Account Assets | 3,841,403 | — | — | 3,841,403 | |||
Total Assets at Fair Value – Insurance | $4,877,459 | $94,333,083 | $43,654,850 | $142,865,392 | |||
Total Assets at Fair Value | $6,202,342 | $128,791,173 | $114,643,261 | $249,636,776 | |||
December 31, 2024 | |||||||
Level I | Level II | Level III | Total | ||||
Asset Management and Strategic Holdings | |||||||
Private Equity | $816,229 | $767,787 | $34,452,417 | $36,036,433 | |||
Credit | — | 3,261,673 | 4,805,417 | 8,067,090 | |||
Investments of Consolidated CFEs | — | 27,488,538 | — | 27,488,538 | |||
Real Assets | 599,496 | 268,963 | 12,589,245 | 13,457,704 | |||
Other Investments | 179,102 | 64,601 | 4,860,219 | 5,103,922 | |||
Total Investments (3) | $1,594,827 | $31,851,562 | $56,707,298 | $90,153,687 | |||
Foreign Exchange Contracts and Options | — | 511,513 | — | 511,513 | |||
Other Derivatives | 42 | 8,402 | — | 8,444 | |||
Total Assets at Fair Value – Asset Management and Strategic Holdings | $1,594,869 | $32,371,477 | $56,707,298 | $90,673,644 | |||
Insurance | |||||||
AFS Fixed Maturity Securities: | |||||||
U.S. Government and Agencies | $— | $2,391,407 | $— | $2,391,407 | |||
U.S. State, Municipal and Political Subdivisions | — | 3,769,461 | — | 3,769,461 | |||
Corporate | — | 32,585,117 | 9,354,150 | 41,939,267 | |||
Structured Securities | — | 25,851,177 | 2,308,644 | 28,159,821 | |||
Total AFS Fixed Maturity Securities | $— | $64,597,162 | $11,662,794 | $76,259,956 | |||
Trading Fixed Maturity Securities | — | 19,337,734 | 2,081,507 | 21,419,241 | |||
Mortgage and Other Loan Receivables | — | — | 1,611,109 | 1,611,109 | |||
Real Assets | — | — | 8,121,139 | (1) | 8,121,139 | ||
Other Investments | 207,281 | 269,250 | 103,823 | (1) | 580,354 | ||
Funds Withheld Receivable at Interest | — | — | 125,887 | 125,887 | |||
Reinsurance Recoverable | — | — | 940,731 | 940,731 | |||
Derivative Assets | 5,316 | 56,035 | — | 61,351 | |||
Separate Account Assets | 3,981,060 | — | — | 3,981,060 | |||
Total Assets at Fair Value – Insurance | $4,193,657 | $84,260,181 | $24,646,990 | $113,100,828 | |||
Total Assets at Fair Value | $5,788,526 | $116,631,658 | $81,354,288 | $203,774,472 | |||
(1)Real assets and other investments excluded from the fair value hierarchy table include certain funds for which fair value is measured at net asset value
per share as a practical expedient. As of December 31, 2025 and December 31, 2024, the fair value of these real assets were $25.3 million and $34.5
million, respectively, and other investments were $334.7 million and $4.3 million, respectively. These fund investments have strategies primarily focused
on real assets (primarily real estate) or other investments and are subject to certain restrictions on redemption. As of both December 31, 2025 and
December 31, 2024, there were $1.3 million of unfunded commitments associated with real assets, and as of December 31, 2025 and December 31,
2024, $5.0 million and $1.5 million associated with these other investments, respectively.
(2)Certain investments that are measured at fair value using NAV as a practical expedient under ASC 820 have not been categorized in the fair value
hierarchy. As of December 31, 2025, the fair value of these assets is $355.1 million. The fair value amounts presented in this table are intended to permit
reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Financial Condition.
(3)As of December 31, 2025 and December 31, 2024, the fair value of Equity Method investments is $2.3 billion and $1.8 billion, respectively.
(4)Represents netting of derivative exposures covered by qualifying master netting agreements.
Liabilities, at fair value:
December 31, 2025 | |||||||
Level I | Level II | Level III | Total | ||||
Asset Management and Strategic Holdings | |||||||
Securities Sold Short | $134,669 | $— | $— | $134,669 | |||
Foreign Exchange Contracts and Options | — | 1,034,543 | — | 1,034,543 | |||
Unfunded Revolver Commitments | — | — | 93,289 | (1) | 93,289 | ||
Debt Obligations of Consolidated CFEs | — | 30,227,885 | — | 30,227,885 | |||
Total Liabilities at Fair Value – Asset Management and Strategic Holdings | $134,669 | $31,262,428 | $93,289 | $31,490,386 | |||
Insurance | |||||||
Policy Liabilities (Including Market Risk Benefits) | $— | $— | $1,608,580 | (3) | $1,608,580 | ||
Closed Block Policy Liabilities | — | — | 983,855 | 983,855 | |||
Funds Withheld Payable at Interest | — | — | (2,275,854) | (2,275,854) | |||
Derivative Instruments Payable | 918 | 435,327 | — | 436,245 | |||
Embedded Derivative – Interest-Sensitive Life Products | — | — | 485,025 | 485,025 | |||
Embedded Derivative – Annuity Products | — | — | 7,355,480 | 7,355,480 | |||
Total Liabilities at Fair Value – Insurance | $918 | $435,327 | $8,157,086 | $8,593,331 | |||
Total Liabilities at Fair Value | $135,587 | $31,697,755 | $8,250,375 | $40,083,717 | |||
December 31, 2024 | |||||||
Level I | Level II | Level III | Total | ||||
Asset Management and Strategic Holdings | |||||||
Securities Sold Short | $109,168 | $— | $— | $109,168 | |||
Foreign Exchange Contracts and Options | — | 131,339 | — | 131,339 | |||
Unfunded Revolver Commitments | — | — | 96,848 | (1) | 96,848 | ||
Debt Obligations of Consolidated CFEs | — | 27,150,809 | — | 27,150,809 | |||
Total Liabilities at Fair Value – Asset Management and Strategic Holdings | $109,168 | $27,282,148 | $96,848 | $27,488,164 | |||
Insurance | |||||||
Policy Liabilities (Including Market Risk Benefits) | $— | $— | $1,279,794 | (3) | $1,279,794 | ||
Closed Block Policy Liabilities | — | — | 988,320 | 988,320 | |||
Funds Withheld Payable at Interest | — | — | (2,797,544) | (2,797,544) | |||
Derivative Instruments Payable | 438 | 388,749 | — | 389,187 | |||
Embedded Derivative – Interest-Sensitive Life Products | — | — | 491,818 | 491,818 | |||
Embedded Derivative – Annuity Products | — | — | 5,481,063 | 5,481,063 | |||
Total Liabilities at Fair Value – Insurance | $438 | $388,749 | $5,443,451 | $5,832,638 | |||
Total Liabilities at Fair Value | $109,606 | $27,670,897 | $5,540,299 | $33,320,802 | |||
(1)These unfunded revolver commitments are valued using the same valuation methodologies as KKR's Level III credit investments.
(2)Represents netting of derivative exposures covered by qualifying master netting agreements.
(3)Includes market risk benefit of $1.3 billion and $1.0 billion as of December 31, 2025 and December 31, 2024, respectively.
The following tables summarize changes in assets and liabilities measured and reported at fair value for which Level III
inputs have been used to determine fair value for the years ended December 31, 2025 and 2024, respectively.
For the Year Ended December 31, 2025 | ||||||||||
Balance, Beg. of Period | Transfers In / (Out) - Changes in Consolidation | Transfers In | Transfers Out | Net Purchases/ Issuances/ Sales/ Settlements | Net Unrealized and Realized Gains (Losses) | Balance, End of Period | Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | ||
Assets (1) | ||||||||||
Asset Management and Strategic Holdings | ||||||||||
Private Equity | $34,452,418 | $2,267,408 | $— | $(14,136) | $7,158,457 | $4,174,016 | $— | $48,038,163 | $4,216,130 | $— |
Credit | 4,805,417 | — | 48,211 | — | (608,890) | (52,426) | — | 4,192,312 | 9,205 | — |
Real Assets | 12,589,245 | — | — | — | 726,212 | 261,546 | — | 13,577,003 | 259,828 | — |
Other Investments | 4,860,219 | — | 29,648 | (24,594) | 124,814 | 190,846 | — | 5,180,933 | 183,691 | — |
Total Assets – Asset Management and Strategic Holdings | $56,707,299 | $2,267,408 | $77,859 | $(38,730) | $7,400,593 | $4,573,982 | $— | $70,988,411 | $4,668,854 | $— |
Insurance | ||||||||||
AFS Fixed Maturity Securities: | ||||||||||
$9,354,150 | $— | $366,857 | $(8,653) | $4,710,642 | $116,570 | $124,523 | $14,664,089 | $— | $88,090 | |
Structured Securities | 2,308,644 | — | 12,296 | (79,818) | 1,881,689 | 28,692 | 66,725 | 4,218,228 | — | 57,830 |
Total AFS Fixed Maturity Securities | $11,662,794 | $— | $379,153 | $(88,471) | $6,592,331 | $145,262 | $191,248 | $18,882,317 | $— | $145,920 |
2,081,507 | — | 117,248 | (26,817) | 1,283,809 | (19,955) | — | 3,435,792 | (19,626) | — | |
Mortgage and Other Loan Receivables | 1,611,109 | — | — | — | 9,348,963 | 194,475 | — | 11,154,547 | 136,953 | — |
Real Assets | 8,121,139 | — | — | — | 466,127 | 109,509 | — | 8,696,775 | 89,511 | — |
Other Investments | 103,823 | — | — | — | 389,842 | (21,209) | — | 472,456 | (32,107) | — |
Funds Withheld Receivable at Interest | 125,887 | — | — | — | — | (47,029) | — | 78,858 | — | — |
Reinsurance Recoverable | 940,731 | — | — | — | (5,779) | (847) | — | 934,105 | — | — |
Total Assets – Insurance | $24,646,990 | $— | $496,401 | $(115,288) | $18,075,293 | $360,206 | $191,248 | $43,654,850 | $174,731 | $145,920 |
Total | $81,354,289 | $2,267,408 | $574,260 | $(154,018) | $25,475,886 | $4,934,188 | $191,248 | $114,643,261 | $4,843,585 | $145,920 |
For the Year Ended December 31, 2024 | ||||||||||
Balance, Beg. of Period | Transfers In / (Out) - Changes in Consolidation | Transfers In | Transfers Out | Net Purchases/ Issuances/ Sales/ Settlements | Net Unrealized and Realized Gains (Losses) | Balance, End of Period | Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | ||
Assets (1) | ||||||||||
Asset Management and Strategic Holdings | ||||||||||
Private Equity | $32,358,353 | $(1,064,234) | $9,042 | $(473,452) | $1,501,319 | $2,121,390 | $— | $34,452,418 | $2,085,020 | $— |
Credit | 5,452,923 | 151,713 | 185,716 | (115,891) | (589,788) | (279,256) | — | 4,805,417 | (131,728) | — |
Real Assets | 11,365,233 | 934,530 | — | (2,077) | 180,419 | 111,140 | — | 12,589,245 | 16,955 | — |
Other Investments | 4,297,344 | — | — | (8,106) | 637,033 | (66,229) | 177 | 4,860,219 | (162,034) | 177 |
Total Assets – Asset Management and Strategic Holdings | $53,473,853 | $22,009 | $194,758 | $(599,526) | $1,728,983 | $1,887,045 | $177 | $56,707,299 | $1,808,213 | $177 |
Insurance | ||||||||||
AFS Fixed Maturity Securities: | ||||||||||
Corporate Fixed Maturity Securities | $8,571,003 | $— | $— | $(301) | $822,496 | $(144,561) | $105,513 | $9,354,150 | $— | $39,834 |
Structured Securities | 1,830,000 | — | 95,965 | (53,297) | 347,284 | 36,153 | 52,539 | 2,308,644 | — | 68,924 |
Total AFS Fixed Maturity Securities | $10,401,003 | $— | $95,965 | $(53,598) | $1,169,780 | $(108,408) | $158,052 | $11,662,794 | $— | $108,758 |
Trading Fixed Maturity Securities | 1,250,161 | — | 124,982 | (66,767) | 675,686 | 97,445 | — | 2,081,507 | 39,464 | — |
Mortgage and Other Loan Receivables | 697,402 | — | — | — | 877,418 | 36,289 | — | 1,611,109 | 44,887 | — |
Real Assets | 4,815,265 | — | — | — | 3,412,986 | (107,112) | — | 8,121,139 | (117,906) | — |
Other Investments | 126,008 | — | — | — | 4,067 | (26,252) | — | 103,823 | (52,911) | — |
Funds Withheld Receivable at Interest | 88,661 | — | — | — | — | 37,226 | — | 125,887 | — | — |
Reinsurance Recoverable | 926,035 | — | — | — | (4,514) | 19,210 | — | 940,731 | — | — |
Total Assets – Insurance | $18,304,535 | $— | $220,947 | $(120,365) | $6,135,423 | $(51,602) | $158,052 | $24,646,990 | $(86,466) | $108,758 |
Total | $71,778,388 | $22,009 | $415,705 | $(719,891) | $7,864,406 | $1,835,443 | $158,229 | $81,354,289 | $1,721,747 | $108,935 |
(1)As of December 31, 2025 and December 31, 2024, the fair value of Equity Method investments is $2.1 billion and $1.4 billion, respectively.
For the Year Ended December 31, 2025 | |||||
Purchases | Issuances | Sales | Settlements | Net Purchases/ Issuances/Sales/ Settlements | |
Assets (1) | |||||
Asset Management and Strategic Holdings | |||||
Private Equity | $8,833,839 | $— | $(1,675,382) | $— | $7,158,457 |
Credit | 1,329,753 | — | (1,772,556) | (166,087) | (608,890) |
Real Assets | 1,415,178 | — | (688,966) | — | 726,212 |
Other Investments | 707,702 | — | (507,742) | (75,146) | 124,814 |
Total Assets – Asset Management and Strategic Holdings | $12,286,472 | $— | $(4,644,646) | $(241,233) | $7,400,593 |
Insurance | |||||
AFS Fixed Maturity Securities: | |||||
Corporate Fixed Maturity Securities | $7,612,518 | $— | $(994,037) | $(1,907,839) | $4,710,642 |
Structured Securities | 2,929,768 | — | (108,161) | (939,918) | 1,881,689 |
Total AFS Fixed Maturity Securities | $10,542,286 | $— | $(1,102,198) | $(2,847,757) | $6,592,331 |
Trading Fixed Maturity Securities | 1,927,807 | — | (371,940) | (272,058) | 1,283,809 |
Mortgage and Other Loan Receivables | 12,669,707 | — | (2,914,971) | (405,773) | 9,348,963 |
Real Assets | 523,583 | — | (57,456) | — | 466,127 |
Other Investments | 419,576 | — | (29,546) | (188) | 389,842 |
Reinsurance Recoverable | — | — | — | (5,779) | (5,779) |
Total Assets – Insurance | $26,082,959 | $— | $(4,476,111) | $(3,531,555) | $18,075,293 |
Total | $38,369,431 | $— | $(9,120,757) | $(3,772,788) | $25,475,886 |
For the Year Ended December 31, 2024 | |||||
Purchases | Issuances | Sales | Settlements | Net Purchases/ Issuances/Sales/ Settlements | |
Assets (1) | |||||
Asset Management and Strategic Holdings | |||||
Private Equity | $2,818,931 | $— | $(1,317,612) | $— | $1,501,319 |
Credit | 1,501,342 | — | (1,695,730) | (395,400) | (589,788) |
Real Assets | 1,956,315 | — | (1,775,896) | — | 180,419 |
Other Investments | 3,638,756 | — | (2,909,514) | (92,209) | 637,033 |
Total Assets – Asset Management and Strategic Holdings | $9,915,344 | $— | $(7,698,752) | $(487,609) | $1,728,983 |
Insurance | |||||
AFS Fixed Maturity Securities: | |||||
Corporate Fixed Maturity Securities | $3,852,070 | $— | $(1,239,285) | $(1,790,289) | $822,496 |
Structured Securities | 995,608 | — | (11,931) | (636,393) | 347,284 |
Total AFS Fixed Maturity Securities | $4,847,678 | $— | $(1,251,216) | $(2,426,682) | $1,169,780 |
Trading Fixed Maturity Securities | 1,488,323 | — | (433,882) | (378,755) | 675,686 |
Mortgage and Other Loan Receivables | 1,065,772 | — | (2,487) | (185,867) | 877,418 |
Real Assets | 3,431,726 | — | (18,740) | — | 3,412,986 |
Other Investments | 4,465 | — | — | (398) | 4,067 |
Reinsurance Recoverable | — | — | — | (4,514) | (4,514) |
Total Assets – Insurance | $10,837,964 | $— | $(1,706,325) | $(2,996,216) | $6,135,423 |
Total | $20,753,308 | $— | $(9,405,077) | $(3,483,825) | $7,864,406 |
(1)As of December 31, 2025 and December 31, 2024, the Net Purchase/Issuance/Sales/Settlements of Equity Method investments is $688.1 million and
($51.4) million, respectively.
For the Year Ended December 31, 2025 | |||||||||
Balance, Beg. of Period | Transfers In / (Out) - Changes in Consolidation | Transfers In | Transfers Out | Net Purchases/ Sales/ Settlements/ Issuances | Net Unrealized and Realized Gains (Losses) | Balance, End of Period | Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | ||
Liabilities | |||||||||
Asset Management and Strategic Holdings | |||||||||
Unfunded Revolver Commitments | $96,848 | $— | $— | $— | $— | $(3,559) | $— | $93,289 | $(3,559) |
Total Liabilities – Asset Management and Strategic Holdings | $96,848 | $— | $— | $— | $— | $(3,559) | $— | $93,289 | $(3,559) |
Insurance | |||||||||
Policy Liabilities | $1,279,794 | $— | $— | $— | $97,058 | $194,503 | $37,225 | $1,608,580 | $— |
Closed Block Policy Liabilities | 988,320 | — | — | — | 8,211 | (11,071) | (1,605) | 983,855 | — |
Funds Withheld Payable at Interest | (2,797,544) | — | — | — | — | 521,690 | — | (2,275,854) | — |
Embedded Derivative – Interest- Sensitive Life Products | 491,818 | — | — | — | (122,969) | 116,176 | — | 485,025 | — |
Embedded Derivative – Annuity Products | 5,481,063 | — | — | — | 682,301 | 1,192,116 | — | 7,355,480 | — |
Total Liabilities – Insurance | $5,443,451 | $— | $— | $— | $664,601 | $2,013,414 | $35,620 | $8,157,086 | $— |
Total | $5,540,299 | $— | $— | $— | $664,601 | $2,009,855 | $35,620 | $8,250,375 | $(3,559) |
For the Year Ended December 31, 2024 | |||||||||
Balance, Beg. of Period | Transfers In / (Out) - Changes in Consolidation | Transfers In | Transfers Out | Net Purchases/ Sales/ Settlements/ Issuances | Net Unrealized and Realized Gains (Losses) | Balance, End of Period | Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | ||
Liabilities | |||||||||
Asset Management and Strategic Holdings | |||||||||
Unfunded Revolver Commitments | $94,683 | $— | $— | $— | $— | $2,165 | $— | $96,848 | $2,165 |
Total Liabilities – Asset Management and Strategic Holdings | $94,683 | $— | $— | $— | $— | $2,165 | $— | $96,848 | $2,165 |
Insurance | |||||||||
Policy Liabilities | $1,474,970 | $— | $— | $— | $44,891 | $(268,545) | $28,478 | $1,279,794 | $— |
Closed Block Policy Liabilities | 968,554 | — | — | — | 5,652 | 16,870 | (2,756) | 988,320 | — |
Funds Withheld Payable at Interest | (2,447,303) | — | — | — | — | (350,241) | — | (2,797,544) | — |
Embedded Derivative – Interest- Sensitive Life Products | 458,302 | — | — | — | (100,797) | 134,313 | — | 491,818 | — |
Embedded Derivative – Annuity Products | 3,587,371 | — | — | — | 1,109,304 | 784,388 | — | 5,481,063 | — |
Total Liabilities – Insurance | $4,041,894 | $— | $— | $— | $1,059,050 | $316,785 | $25,722 | $5,443,451 | $— |
Total | $4,136,577 | $— | $— | $— | $1,059,050 | $318,950 | $25,722 | $5,540,299 | $2,165 |
Year Ended December 31, 2025 | |||
Issuances | Settlements | Net Issuances/Settlements | |
Liabilities | |||
Asset Management and Strategic Holdings | |||
Unfunded Revolver Commitments | $— | $— | $— |
Total Liabilities – Asset Management and Strategic Holdings | $— | $— | $— |
Insurance | |||
Policy Liabilities | $113,802 | $(16,744) | $97,058 |
Closed Block Policy Liabilities | 8,211 | — | 8,211 |
Embedded Derivative – Interest-Sensitive Life Products | — | (122,969) | (122,969) |
Embedded Derivative – Annuity Products | 1,053,194 | (370,893) | 682,301 |
Total Liabilities – Insurance | $1,175,207 | $(510,606) | $664,601 |
Total | $1,175,207 | $(510,606) | $664,601 |
Year Ended December 31, 2024 | |||
Issuances | Settlements | Net Issuances/Settlements | |
Liabilities | |||
Asset Management and Strategic Holdings | |||
Unfunded Revolver Commitments | $— | $— | $— |
Total Liabilities – Asset Management and Strategic Holdings | $— | $— | $— |
Insurance | |||
Policy Liabilities | $59,211 | $(14,320) | $44,891 |
Closed Block Policy Liabilities | 5,652 | — | 5,652 |
Embedded Derivative – Interest-Sensitive Life Products | — | (100,797) | (100,797) |
Embedded Derivative – Annuity Products | 1,375,081 | (265,777) | 1,109,304 |
Total Liabilities – Insurance | $1,439,944 | $(380,894) | $1,059,050 |
Total | $1,439,944 | $(380,894) | $1,059,050 |
Total realized and unrealized gains and losses recorded for Asset Management and Strategic Holdings – Level III assets
and liabilities are reported in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of
operations while Insurance – Level III assets and liabilities are reported in Net Investment Gains and Policy Benefits and Claims
in the accompanying consolidated statements of operations.
The following table presents additional information about valuation methodologies and significant unobservable inputs
used for the consolidated financial assets and liabilities that are measured and reported at fair value and categorized within
Level III as of December 31, 2025. Because input information includes only those items for which information is reasonably
available, balances shown below may not equal total amounts reported for such Level III assets and liabilities:
Level III Assets | Fair Value December 31, 2025 | Valuation Methodologies & Inputs | Unobservable Input(s) (1) | Weighted Average (2) | Range | Impact to Valuation from an Increase in Input (3) | ||||||
ASSET MANAGEMENT AND STRATEGIC HOLDINGS | ||||||||||||
Private Equity | $48,038,163 | Inputs to market comparables, discounted cash flow and transaction price | Illiquidity Discount | 5.9% | 5.0% - 20.0% | Decrease | ||||||
Weight Ascribed to Market Comparables | 28.5% | 0.0% - 100.0% | (4) | |||||||||
Weight Ascribed to Discounted Cash Flow | 60.5% | 0.0% - 100.0% | (5) | |||||||||
Weight Ascribed to Transaction Price/Other | 11.0% | 0.0% - 100.0% | (6) | |||||||||
Market comparables | Enterprise Value/LTM EBITDA Multiple | 16.6x | 5.9x - 40.1x | Increase | ||||||||
Enterprise Value/Forward EBITDA Multiple | 14.3x | 7.4x - 23.2x | Increase | |||||||||
Discounted cash flow | Discount Rate | 9.5% | 5.6% - 15.0% | Decrease | ||||||||
Enterprise Value/EBITDA Exit Multiple | 14.7x | 7.0x - 27.6x | Increase | |||||||||
Credit | $4,192,312 | Yield Analysis | Yield | 10.5% | 3.0% - 23.3% | Decrease | ||||||
Net Leverage | 6.2x | 0.7x -18.5x | Decrease | |||||||||
EBITDA Multiple | 8.9x | 5.8x - 14.3x | Increase | |||||||||
Real Assets | $13,577,003 | |||||||||||
Inputs to market comparables, discounted cash flow and transaction price | Illiquidity Discount | 10.6% | 5.0% - 15.0% | Decrease | ||||||||
Weight Ascribed to Direct Income Capitalization | 6.2% | 0.0% - 100.0% | (7) | |||||||||
Weight Ascribed to Discounted Cash Flow | 82.4% | 0.0% - 100.0% | (5) | |||||||||
Weight Ascribed to Market Comparables/Other | 11.4% | 0.0% - 100.0% | (4) (6) | |||||||||
Market comparables | Enterprise Value/LTM EBITDA Multiple | 6.6x | 4.3x - 12.7x | Increase | ||||||||
Enterprise Value/Forward EBITDA Multiple | 10.4x | 4.3x - 20.4x | Increase | |||||||||
Direct income capitalization | Current Capitalization Rate | 5.4% | 3.4% - 7.2% | Decrease | ||||||||
Discounted cash flow | Exit Capitalization Rate | 5.7% | 3.1% - 8.8% | Decrease | ||||||||
Unlevered Discount Rate | 7.2% | 2.8% - 10.3% | Decrease | |||||||||
Discount Rate | 9.7% | 5.9% - 12.7% | Decrease | |||||||||
Enterprise Value/EBITDA Exit Multiple | 16.3x | 10.0x - 22.0x | Increase | |||||||||
Other Investments | $5,180,933 | (8) | Inputs to market comparables, discounted cash flow and transaction price | Illiquidity Discount | 9.0% | 5.0% - 15.0% | Decrease | |||||
Weight Ascribed to Market Comparables | 32.0% | 0.0% - 100.0% | (4) | |||||||||
Weight Ascribed to Discounted Cash Flow | 55.0% | 0.0% - 100.0% | (5) | |||||||||
Weight Ascribed to Transaction Price | 13.0% | 0.0% - 100.0% | (6) | |||||||||
Market comparables | Enterprise Value/LTM EBITDA Multiple | 11.4x | 3.3x - 21.0x | Increase | ||||||||
Enterprise Value/Forward EBITDA Multiple | 10.6x | 4.0x - 16.0x | Increase | |||||||||
Discounted cash flow | Discount Rate | 13.2% | 3.5% - 43.7% | Decrease | ||||||||
Enterprise Value/EBITDA Exit Multiple | 10.5x | 8.3x - 12.5x | Increase | |||||||||
INSURANCE(9) | ||||||||||||
Corporate Fixed Maturity Securities | $17,185,841 | Discounted cash flow | Discount Spread | 2.7% | 0.3% - 5.2% | Decrease | ||||||
Structured Securities | $5,132,268 | Discounted cash flow | Discount Spread | 2.2% | 1.4% - 5.2% | Decrease | ||||||
Mortgage and Other Loan Receivables | $11,154,547 | Discounted cash flow | Discount Spread | 2.6% | 0.6% - 4.5% | Decrease | ||||||
Real Assets | $8,696,775 | Discounted cash flow | Discount Rate | 7.2% | 6.5% - 8.2% | Decrease | ||||||
Terminal Capitalization Rate | 5.8% | 5.0% - 7.3% | Decrease | |||||||||
Reinsurance Recoverable | $934,105 | Present value of expenses paid from the open block plus the cost of capital held in support of the liabilities. | Expense Assumption | $17.3 | The average expense assumption is between $8.2 and $78.0 per policy, increased by inflation. The annual inflation rate was increased by | Increase | ||||||
Unobservable inputs are a market participant’s view of the expenses, a risk margin on the uncertainty of the level of expenses and a cost of capital on the capital held in support of the liabilities. | Expense Risk Margin | 9.4% | Decrease | |||||||||
Cost of Capital | 9.5% | 3.7% - 13.9% | Increase | |||||||||
Discounted cash flow | Mortality Rate | 5.7% | Increase | |||||||||
Surrender Rate | 2.0% | Increase |
(1)In determining certain of these inputs, management evaluates a variety of factors including economic conditions, industry and market developments,
market valuations of comparable companies and company specific developments including exit strategies and realization opportunities. KKR has
determined that market participants would take these inputs into account when valuing the investments and debt obligations. "LTM" means last twelve
months, and "EBITDA" means earnings before interest, taxes, depreciation, and amortization.
(2)Inputs were weighted based on the fair value of the investments included in the range.
(3)Unless otherwise noted, this column represents the directional change in the fair value of the Level III investments that would result from an increase to
the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these
inputs in isolation could result in significantly higher or lower fair value measurements.
(4)The directional change from an increase in the weight ascribed to the market comparables approach would increase the fair value of the Level III
investments if the market comparables approach results in a higher valuation than the discounted cash flow approach and transaction price. The opposite
would be true if the market comparables approach results in a lower valuation than the discounted cash flow approach and transaction price.
(5)The directional change from an increase in the weight ascribed to the discounted cash flow approach would increase the fair value of the Level III
investments if the discounted cash flow approach results in a higher valuation than the market comparables approach, transaction price and direct
income capitalization approach. The opposite would be true if the discounted cash flow approach results in a lower valuation than the market
comparables approach, transaction price and direct income capitalization approach.
(6)The directional change from an increase in the weight ascribed to the transaction price or milestones would increase the fair value of the Level III
investments if the transaction price or milestones results in a higher valuation than the market comparables and discounted cash flow approach. The
opposite would be true if the transaction price or milestones results in a lower valuation than the market comparables approach and discounted cash flow
approach.
(7)The directional change from an increase in the weight ascribed to the direct income capitalization approach would increase the fair value of the Level III
investments if the direct income capitalization approach results in a higher valuation than the discounted cash flow approach. The opposite would be true
if the direct income capitalization approach results in a lower valuation than the discounted cash flow approach.
(8)Consists primarily of investments in common stock, preferred stock, warrants and options of companies that are not private equity, real assets, credit,
equity method - other, or investments of consolidated CFEs.
(9)The funds withheld receivable at interest has been excluded from the above table. As discussed in Note 12 – Reinsurance, the funds withheld receivable
at interest is created through funds withheld contracts. The assets supporting these receivables were held in trusts for the benefit of Global Atlantic.
Accordingly, the unobservable inputs utilized in the valuation of the embedded derivative are a component of the invested assets supporting the funds
withheld reinsurance agreements.
Level III Liabilities | Fair Value December 31, 2025 | Valuation Methodologies | Unobservable Input(s) (1) | Weighted Average (2) | Range | Impact to Valuation from an Increase in Input (3) | ||||||
ASSET MANAGEMENT AND STRATEGIC HOLDINGS | ||||||||||||
Unfunded Revolver Commitments | $93,289 | Yield Analysis | Discount Rate | 7.6% | 0.1% - 14.8% | Decrease | ||||||
INSURANCE(4) | ||||||||||||
Policy Liabilities | $1,608,580 | Policy liabilities under fair value option: | ||||||||||
Present value of best estimate liability cash flows. Unobservable inputs include a market participant view of the risk margin included in the discount rate which reflects the variability of the cash flows. | Risk Margin Rate | 0.6% | 0.4% - 0.7% | Decrease | ||||||||
Policyholder behavior is also a significant unobservable input, including lapse, surrender and mortality. | Surrender Rate | 6.4% | 4.2% - 7.9% | Decrease | ||||||||
Mortality Rate | 4.9% | 3.5% - 9.1% | Increase | |||||||||
Market risk benefit: | ||||||||||||
Fair value using a non-option and option valuation approach | Instrument-specific Credit Risk (10 and 30 Year) | 0.6% / 0.6% | Decrease | |||||||||
Policyholder behavior is also a significant unobservable input, including lapse, surrender, and mortality. | Mortality Rate | 2.6% | 0.5% - 28.0% | Decrease | ||||||||
Surrender Rate | 3.7% | 0.1% - 36.0% | Decrease | |||||||||
Closed Block Policy Liabilities | $983,855 | Present value of expenses paid from the open block plus the cost of capital held in support of the liabilities. | Expense Assumption | $17.3 | The average expense assumption is between $8.2 and $78.0 per policy, increased by inflation. The annual inflation rate was increased by | Increase | ||||||
Instrument-Specific Credit Risk | 0.5% | 0.4% - 0.6% | Decrease | |||||||||
Unobservable inputs are a market participant’s view of the expenses, a risk margin on the uncertainty of the level of expenses and a cost of capital on the capital held in support of the liabilities. | Expense Risk Margin | 9.4% | Decrease | |||||||||
Cost of Capital | 9.5% | 3.7% - 13.9% | Increase | |||||||||
Discounted cash flow | Mortality Rate | 5.7% | Increase | |||||||||
Surrender Rate | 2.0% | Increase | ||||||||||
Level III Liabilities | Fair Value December 31, 2025 | Valuation Methodologies | Unobservable Input(s) (1) | Weighted Average (2) | Range | Impact to Valuation from an Increase in Input (3) | ||||||
Embedded Derivative – Interest-Sensitive Life Products | $485,025 | Policy persistency is a significant unobservable input. | Lapse Rate | 3.2% | Decrease | |||||||
Mortality Rate | 0.9% | Decrease | ||||||||||
Option Budget Assumption | 3.5% | Increase | ||||||||||
Instrument-Specific Credit Risk | 0.5% | 0.4% - 0.6% | Decrease | |||||||||
Embedded Derivative – Annuity Products | $7,355,480 | Policyholder behavior is a significant unobservable input, including utilization and lapse. | Utilization: | |||||||||
Fixed-Indexed Annuity | 96.5% | Increase | ||||||||||
Surrender Rate: | ||||||||||||
Retail FIA | 13.4% | Increase | ||||||||||
Institutional FIA | 20.5% | Decrease | ||||||||||
Mortality Rate: | ||||||||||||
Retail FIA | 2.8% | Decrease | ||||||||||
Institutional FIA | 1.7% | Decrease | ||||||||||
Future costs for options used to hedge the contract obligations | Option Budget Assumption: | |||||||||||
Retail FIA | 3.1% | Increase | ||||||||||
Institutional FIA | 3.9% | Increase | ||||||||||
Instrument-Specific Credit Risk | 0.5% | 0.4% - 0.6% | Decrease |
(1)In determining certain of these inputs, management evaluates a variety of factors including economic conditions, industry and market developments,
market valuations of comparable companies and company specific developments including exit strategies and realization opportunities. KKR has
determined that market participants would likely take these inputs into account when valuing the investments and debt obligations. "LTM" means last
twelve months, and "EBITDA" means earnings before interest, taxes, depreciation and amortization.
(2)Inputs were weighted based on the fair value of the investments included in the range.
(3)Unless otherwise noted, this column represents the directional change in the fair value of the Level III investments that would result from an increase to
the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these
inputs in isolation could result in significantly higher or lower fair value measurements.
(4)The fair value of the embedded derivative component of the funds withheld payable at interest has been excluded from the above table. The investments
supporting the funds withheld payable at interest balance are held in a trust by Global Atlantic. Accordingly, the unobservable inputs utilized in the
valuation of the embedded derivative are a component of the investments supporting the reinsurance cession agreements.
In the table above, certain private equity investments may be valued at cost for a period of time after an acquisition as
the best indicator of fair value. In addition, certain valuations of private equity investments may be entirely or partially
derived by reference to observable valuation measures for a pending or consummated transaction.
The various unobservable inputs used to determine the Level III valuations may have similar or diverging impacts on
valuation. Significant increases and decreases in these inputs in isolation and interrelationships between those inputs could
result in significantly higher or lower fair value measurements as noted in the table above.
Financial Instruments Not Carried At Fair Value
Asset management and strategic holdings financial instruments are primarily measured at fair value on a recurring basis,
except as disclosed in Note 16 "Debt Obligations."
The following tables present carrying amounts and fair values of Global Atlantic’s financial instruments which are not
carried at fair value as of December 31, 2025 and 2024:
Fair Value Hierarchy | |||||||||
As of December 31, 2025 | Carrying Value | Level I | Level II | Level III | Fair Value | ||||
($ in thousands) | |||||||||
Financial Assets: | |||||||||
Insurance | |||||||||
Mortgage and Other Loan Receivables | $42,484,070 | $— | $— | $41,892,590 | $41,892,590 | ||||
Policy Loans | 1,651,870 | — | — | 1,622,702 | 1,622,702 | ||||
FHLB Common Stock and Other Investments | 165,117 | — | — | 165,117 | 165,117 | ||||
Funds Withheld Receivables at Interest | 2,245,488 | — | 2,245,488 | — | 2,245,488 | ||||
Cash and Cash Equivalents | 7,511,273 | 7,511,273 | — | — | 7,511,273 | ||||
Restricted Cash and Cash Equivalents | 211,610 | 211,610 | — | — | 211,610 | ||||
Total Financial Assets | $54,269,428 | $7,722,883 | $2,245,488 | $43,680,409 | $53,648,780 | ||||
Financial Liabilities: | |||||||||
Insurance | |||||||||
Policy Liabilities – Policyholder Account Balances | $66,755,852 | $— | $53,979,665 | $12,388,101 | $66,367,766 | ||||
Funds Withheld Payables at Interest | 49,098,598 | — | 49,098,598 | — | 49,098,598 | ||||
Debt Obligations | 3,820,407 | — | — | 3,886,916 | 3,886,916 | ||||
Securities Sold Under Agreements to Repurchase | 664,249 | — | 664,249 | — | 664,249 | ||||
Total Financial Liabilities | $120,339,106 | $— | $103,742,512 | $16,275,017 | $120,017,529 | ||||
Fair Value Hierarchy | |||||||||
As of December 31, 2024 | Carrying Value | Level I | Level II | Level III | Fair Value | ||||
($ in thousands) | |||||||||
Financial Assets: | |||||||||
Insurance | |||||||||
Mortgage and Other Loan Receivables | $51,139,968 | $— | $— | $49,542,913 | $49,542,913 | ||||
Policy Loans | 1,622,958 | — | — | 1,557,776 | 1,557,776 | ||||
FHLB Common Stock and Other Investments | 166,919 | — | — | 166,919 | 166,919 | ||||
Funds Withheld Receivables at Interest | 2,411,971 | — | 2,411,971 | — | 2,411,971 | ||||
Cash and Cash Equivalents | 6,343,445 | 6,343,445 | — | — | 6,343,445 | ||||
Restricted Cash and Cash Equivalents | 350,512 | 350,512 | — | — | 350,512 | ||||
Total Financial Assets | $62,035,773 | $6,693,957 | $2,411,971 | $51,267,608 | $60,373,536 | ||||
Financial Liabilities: | |||||||||
Insurance | |||||||||
Policy Liabilities – Policyholder Account Balances | $59,880,083 | $— | $51,914,709 | $7,088,877 | $59,003,586 | ||||
Funds Withheld Payables at Interest | 46,759,454 | — | 46,759,454 | — | 46,759,454 | ||||
Debt Obligations | 3,713,336 | — | — | 3,682,060 | 3,682,060 | ||||
Securities Sold Under Agreements to Repurchase | 261,396 | — | 261,396 | — | 261,396 | ||||
Total Financial Liabilities | $110,614,269 | $— | $98,935,559 | $10,770,937 | $109,706,496 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.