KKR & Co. KKR Form 10-Q filing Q2 FY2026

ITEM 1. FINANCIAL STATEMENTS

See notes to financial statements.

KKR & CO. INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED) (CONTINUED)

(Amounts in Thousands)

The following presents the portion of the consolidated balances provided in the consolidated statements of financial

condition attributable to consolidated variable interest entities (“VIEs“). As of June 30, 2026 and December 31, 2025, KKR's

consolidated VIEs consist primarily of (i) certain collateralized financing entities (“CFEs“) including those CFEs holding

collateralized loan obligations (“CLOs“), (ii) certain investment funds, and (iii) certain VIEs formed by Global Atlantic. The

noteholders, creditors, and equity holders of these VIEs have no recourse to the assets of any other KKR entity.

With respect to consolidated CFEs and certain investment funds, the following assets may only be used to settle

obligations of these consolidated VIEs and the following liabilities are only the obligations of these consolidated VIEs and not

generally to KKR. Additionally, KKR has no right to the benefits from, nor does KKR bear the risks associated with, the assets

held by these VIEs beyond KKR's beneficial interest therein and any income generated from the VIEs. There are neither explicit

arrangements nor does KKR hold implicit variable interests that would require KKR to provide any material ongoing financial

support to the consolidated VIEs, beyond amounts previously committed to them, if any.

With respect to certain other VIEs consolidated by Global Atlantic, Global Atlantic has formed certain VIEs to either (i)

hold investments, including fixed maturity securities, consumer and other loans, renewable energy, transportation, and real

estate, or (ii) to conduct certain reinsurance activities with third party commitments. These VIEs issue beneficial interests

primarily to Global Atlantic’s insurance companies.

KKR & CO. INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED) (CONTINUED)

(Amounts in Thousands)

See notes to financial statements.

See notes to financial statements.

See notes to financial statements.

See notes to financial statements.

See notes to financial statements.

KKR & CO. INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

(All Amounts in Thousands, Except Share and Per Share Data, and Except Where Noted)

1. ORGANIZATION

KKR & Co. Inc. (NYSE: KKR), through its subsidiaries (collectively, “KKR“), is a leading global investment firm that offers

alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment

returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in

its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit, and real assets

and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life, and reinsurance

products under the management of The Global Atlantic Financial Group LLC (“TGAFG“ and, together with its insurance

companies and other subsidiaries, “Global Atlantic“).

KKR & Co. Inc. is the parent company of KKR Group Co. Inc., which in turn owns KKR Group Holdings Corp., which is the

general partner of KKR Group Partnership L.P. (“KKR Group Partnership“). KKR & Co. Inc. both indirectly controls KKR Group

Partnership and indirectly holds Class A partner interests in KKR Group Partnership (“KKR Group Partnership Units“)

representing economic interests in KKR's business. As of June 30, 2026, KKR & Co. Inc. held indirectly approximately 97.2% of

the KKR Group Partnership Units. The remaining balance is held indirectly by KKR current and former employees through

restricted holdings units representing an ownership interest in KKR Group Partnership Units, which may be exchanged for

shares of common stock of KKR & Co. Inc. (“exchangeable securities“). As limited partner interests, these KKR Group

Partnership Units are non-voting and do not entitle anyone other than KKR to manage its business and affairs. KKR Group

Partnership also has outstanding limited partner interests that provide for a carry pool provided by KKR Associates Holdings

L.P. (“Associates Holdings“) and outstanding preferred units with economic terms that mirror the KKR & Co. Inc. 6.25% Series

D Mandatory Convertible Preferred Stock (the “Series D Mandatory Convertible Preferred Stock”).

In this report, references to “KKR,“ refer to KKR & Co. Inc. and its subsidiaries, including Global Atlantic, unless the context

requires otherwise, especially in sections where “KKR“ is intended to refer to the asset management and strategic holdings

businesses only. References to our “funds,“ “vehicles“ or “investment vehicles“ refer to a wide array of investment funds,

vehicles, and accounts that are advised, managed or sponsored by one or more subsidiaries of KKR, including collateralized

loan obligations (“CLOs“), certain operating companies and business development companies (“BDCs“), unless the context

requires otherwise.

Reorganization Agreement

On October 8, 2021, KKR entered into a Reorganization Agreement (the “Reorganization Agreement“) with KKR Holdings

L.P. (“KKR Holdings“), KKR Management LLP (which holds the sole outstanding share of Series I preferred stock), Associates

Holdings, and the other parties thereto. Pursuant to the Reorganization Agreement, the parties agreed to undertake a series

of integrated transactions to effect a number of transformative structural and governance changes, some of which were

completed on May 31, 2022, and other changes to be completed in the future. On May 31, 2022, KKR completed the merger

transactions (“Reorganization Mergers“) contemplated by the Reorganization Agreement pursuant to which KKR acquired KKR

Holdings (which changed its name to KKR Group Holdings L.P.) and all of the KKR Group Partnership Units held by it.

Pursuant to the Reorganization Agreement, the following transactions will occur in the future on the Sunset Date (as

defined below):

i.the control of KKR & Co. Inc. by KKR Management LLP and the Series I Preferred Stock held by it will be eliminated,

ii.the voting rights for all common stock of KKR & Co. Inc., including with respect to the election of directors, will be

established on a one vote per share basis, and

iii.KKR will acquire control of Associates Holdings, the entity providing for the allocation of carry proceeds to KKR

employees, also known as the carry pool.

The “Sunset Date” will be the earlier of (i) December 31, 2026 and (ii) the six-month anniversary of the first date on which

the death or permanent disability of both Mr. Henry Kravis and Mr. George Roberts (collectively, “Co-Founders“) has occurred

(or any earlier date consented to by KKR Management LLP in its sole discretion). In addition, KKR Management LLP agreed not to transfer its ownership of the sole share of Series I Preferred Stock, and, the changes to occur effective on the Sunset Date

are unconditional commitments of the parties to the Reorganization Agreement.

Acquisition of Arctos

On May 4, 2026, KKR completed the previously announced acquisition of 100% of Arctos Management Company, LLC

(“Arctos”, and the acquisition, the “Arctos Acquisition”), an investment firm that provides strategic growth capital and

liquidity solutions to sports franchises and fund sponsors. See Note 25 “Acquisition” and Note 19 “Equity-based

Compensation” in our financial statements for further details on the transaction.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited financial statements of KKR & Co. Inc. have been prepared in accordance with accounting

principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions

to this Quarterly Report on Form 10-Q. The condensed consolidated financial statements (referred to hereafter as the

"financial statements"), including these notes, are unaudited and exclude some of the disclosures required in annual financial

statements. Management believes it has made all necessary adjustments (consisting of only normal recurring items) such that

the financial statements are presented fairly and that estimates made in preparing the financial statements are reasonable

and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be

expected for any other interim period or for the entire year. The consolidated balance sheet data as of December 31, 2025

were derived from audited financial statements included in KKR & Co. Inc.'s Annual Report on Form 10-K for the fiscal year

ended December 31, 2025 filed with the U.S. Securities and Exchange Commission (“SEC“) on February 27, 2026 (our “Annual

Report”), and the financial statements should be read in conjunction with the audited financial statements included therein.

Additionally, in the accompanying financial statements, the condensed consolidated statements of financial condition are

referred to hereafter as the “consolidated statements of financial condition”; the condensed consolidated statements of

operations are referred to hereafter as the “consolidated statements of operations”; the condensed consolidated statements

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

the condensed consolidated statements of changes in equity are referred to hereafter as the “consolidated statements of

changes in equity”; and the condensed consolidated statements of cash flows are referred to hereafter as the “consolidated

statements of cash flows."

KKR consolidates the financial results of KKR Group Partnership and its consolidated entities, which include the accounts

of KKR's investment management and capital markets companies, the general partners of certain unconsolidated investment

funds, general partners of consolidated investment funds and their respective consolidated investment funds, Global

Atlantic’s insurance companies and certain other entities including CFEs.

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” of our financial statements), 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 only obligations of the insurance companies that issued or assumed

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 business, Strategic Holdings business and Insurance business

enter into transactions with each other, which may include transactions pursuant to their investment management

agreements and certain financing arrangements. The borrowings from these financing arrangements are non-recourse to KKR

beyond the assets designated to support such borrowings. All of the investment management and financing arrangements

amongst KKR segments are eliminated in consolidation.

All intercompany transactions and balances have been eliminated. When the Insurance business makes an investment in

an entity consolidated by the Asset Management business, the investment is eliminated from the investment balance in the

Insurance tier in the presentation of the consolidated financial statements.

Certain prior period amounts in the accompanying notes have been reclassified to conform to the current period’s

presentation, including the realignment of prior period investment categories to the current year investment category

presentation within Notes 4, 7, 9, and 10.

For a detailed discussion about KKR’s significant accounting policies and for further information on accounting updates

adopted in the prior year, see Note 2 to the financial statements in the Annual Report. Other than the items listed below,

during the six months ended June 30, 2026, there were no significant updates to KKR’s significant accounting policies.

Effective beginning in the first quarter of 2026, the Company changed the presentation of certain operating expenses in

its consolidated statements of operations. Amounts previously presented separately as “Insurance Expenses” and “General,

Administrative and Other” are now presented in a single line item, “Policy and Other Operating Expense”. Prior-period

amounts have been reclassified to conform to the current-period presentation. This change in presentation had no impact on previously reported consolidated total expenses, income before taxes, and net income attributable to KKR.

Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and

assumptions 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.

Certain events particular to each industry and country or region in which the portfolio companies conduct their

operations, as well as general market, economic, political, geopolitical (including uncertainties resulting from changes to U.S.

and global tariff policies, escalating trade tensions, and impacts from the recent conflicts in the Middle East), and regulatory

conditions, and natural disasters and catastrophes, including public health crises, may have a significant negative impact on

KKR’s investments and profitability. Such events are beyond KKR’s control, and the likelihood that they may occur and the

effect on KKR's use of estimates cannot be predicted. Actual results could differ from those estimates, and such differences could be material to the financial statements.

Adoption of New Accounting Pronouncements

Measurement of Credit Losses for Accounts Receivable and Contract Assets

In July 2025, the FASB issued ASU 2025–05, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit

Losses for Accounts Receivable and Contract Assets” (“ASU 2025–05”). ASU 2025–05 simplifies the application of the current

expected credit loss model for current accounts receivable and current contract assets under ASC 606. KKR adopted this

accounting standard effective for the year ended December 31, 2026, and its adoption did not have a material impact on

KKR’s consolidated financial statements.

Future Application of Accounting Standards

Expense Disaggregation Disclosures

In November 2024, the FASB issued ASU 2024–03, “Income Statement—Reporting Comprehensive Income—Expense

Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024–03”). ASU 2024–03

requires a public business entity to provide disaggregated disclosures of certain categories of expenses on an annual and

interim basis including employee compensation, depreciation, and intangible asset amortization for each income statement

expense line item that contains those expenses. The update will be effective for annual periods beginning after December 15,

2026 and interim periods beginning after December 15, 2027. KKR is currently evaluating the impact of adopting this guidance

on its consolidated financial statements and disclosures.

Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity

In May 2025, the FASB issued ASU 2025–03, “Business Combinations (Topic 805) and Consolidation (Topic 810):

Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity” (“ASU 2025–03”). ASU 2025–03 requires

an entity involved in an acquisition transaction effected primarily by exchanging equity interests when the legal acquiree is a

variable interest entity (“VIE”) that meets the definition of a business to consider certain factors to determine which entity is

the accounting acquirer. The update will be effective for annual periods and interim periods in annual reporting periods

beginning after December 15, 2026. KKR does not expect the adoption to have a material impact on its consolidated financial

statements or disclosures.

Targeted Improvements to the Accounting for Internal-Use Software

In September 2025, the FASB issued ASU 2025–06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic

350-40): Targeted Improvements to the Accounting for Internal-Use Software” (“ASU 2025–06”). ASU 2025–06 eliminates

accounting consideration of software project development stages; requires capitalizing software costs when (i) management

has authorized and committed to funding the project and (ii) it is ‘probable’ the project will be completed and the software

used to perform its intended function (the ‘probable-to-complete’ threshold). ASU 2025–06 also enhances the guidance

around the ‘probable-to-complete’ threshold. The update will be effective for annual periods and interim periods in annual

reporting periods beginning after December 15, 2027. KKR is currently evaluating the impact of adopting this guidance on its

consolidated financial statements and disclosures.

Financial Instruments—Credit Losses (Topic 326): Purchased Loans

In November 2025, the FASB issued ASU 2025-08, Financial Instruments - Credit Losses (Topic 326) - Purchased Loans.

ASU 2025-08 expands the population of purchased financial assets subject to the gross-up approach in Topic 326. As a result

of this update, loans (excluding credit cards) acquired without credit deterioration and deemed “seasoned” as defined in the

ASU will follow the gross-up approach at acquisition and the initial allowance for credit losses is added to the purchase price

to determine the amortized cost basis of the loans. The update is effective for fiscal years beginning after December 15, 2026,

including interim periods within those fiscal years, and is to be applied prospectively to loans acquired on or after adoption;

early adoption is permitted. KKR is currently evaluating the impact of adopting this guidance on its consolidated financial

statements and disclosures.

Initial Measurement of Paid-in-Kind Dividends on Equity-Classified Preferred Stock

In April 2026, the FASB issued ASU 2026-01, “Equity: Measurement of Paid-in-Kind Dividends on Equity-Classified

Preferred Stock (Topic 505)” (“ASU 2026-01”), which requires that an issuer initially measure paid-in-kind (“PIK”) dividends on

equity-classified preferred stock on the basis of the PIK dividend rate stated in the preferred stock agreement. The

amendments in ASU 2026-01 are effective for annual and interim reporting periods beginning after December 15, 2026. KKR is

currently evaluating the impact of this guidance on its consolidated financial statements and disclosures.

3. REVENUES – ASSET MANAGEMENT AND STRATEGIC HOLDINGS

For the three and six months ended June 30, 2026 and 2025, respectively, Asset Management and Strategic Holdings revenues consisted of the following:

4. NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES – ASSET MANAGEMENT AND

STRATEGIC HOLDINGS

Net Gains (Losses) from Investment Activities in the consolidated statements of operations consist primarily of the

realized and unrealized gains and losses on investments (including foreign exchange gains and losses attributable to foreign

denominated investments and related activities) and other financial instruments, including those for which the fair value

option has been elected. Unrealized gains or losses result from changes in the fair value of these investments and other

financial instruments during a period. Upon disposition of an investment or financial instrument, previously recognized

unrealized gains or losses are reversed and an offsetting realized gain or loss is recognized in the current period.

The following table summarizes total Net Gains (Losses) from Investment Activities:

(1) See Note 7 “Investments.”

(2) See Note 8 “Derivatives” and Note 14 “Other Assets and Accrued Expenses and Other Liabilities.”

(3) See Note 16 “Debt Obligations.”

(4) For the three and six months ended June 30, 2026 and 2025, net gains (losses) from Equity Method investments were $196.6 million and $291.7 million,

respectively, and $415.3 million and $583.9 million, respectively.

5. NET INVESTMENT INCOME – INSURANCE

Net investment income for our Insurance segment is comprised primarily of (i) interest income, including amortization of

premiums and accretion of discounts, (ii) dividend income from common and preferred stock, (iii) earnings from investments

accounted for under equity method accounting, and (iv) lease income on real assets.

The components of net investment income were as follows:

6. NET INVESTMENT-RELATED GAINS (LOSSES) – INSURANCE

Net investment-related gains (losses) from insurance operations primarily consist of (i) realized gains (losses) from the

disposal of investments, (ii) unrealized gains (losses) from investments held for trading, equity securities, real estate

investments accounted for under investment company accounting, and investments with fair value remeasurements

recognized in earnings as a result of the election of a fair-value option, (iii) unrealized gains (losses) on funds withheld

receivable and payable at interest, (iv) unrealized gains (losses) from derivatives (excluding certain derivatives designated as

hedge accounting instruments), and (v) allowances for credit losses, and other impairments of investments.

Net investment-related gains (losses) were as follows:

Allowance for Credit Losses

Available-For-Sale Fixed Maturity Securities

The table below presents a roll-forward of the allowance for credit losses recognized for fixed maturity securities held by

Global Atlantic:

Mortgage and Other Loan Receivables

Changes in the allowance for credit losses on mortgage and other loan receivables held by Global Atlantic are summarized below:

Proceeds and Gross Gains and Losses from Voluntary Sales

The proceeds from voluntary sales and the gross gains and losses on those sales of available-for-sale (“AFS”) fixed maturity securities were as follows:

7. INVESTMENTS

Investments consist of the following:

(1) Amortized cost of $94.7 billion and $96.7 billion, net of credit loss allowances of $277.3 million and $288.7 million as of June 30, 2026, and December 31,

2025, respectively.

(2) Amortized cost of $27.9 billion and $27.2 billion as of June 30, 2026, and December 31, 2025, respectively. Trading fixed maturity securities are primarily

held to back funds withheld payable at interest. The investment performance on these investments is ceded to third-party reinsurers.

(3) Net of accumulated depreciation of $812.4 million and $782.2 million as of June 30, 2026, and December 31, 2025, respectively.

(4) Real assets of $1.1 billion as of both June 30, 2026 and December 31, 2025, respectively, and other investments of $795.0 million and $855.0 million as of

June 30, 2026, and December 31, 2025, respectively, are accounted for using the equity method of accounting. In addition, Global Atlantic has

investments that would otherwise require the equity method of accounting for which the fair value option has been elected. The carrying amount of real

assets and other investments for which the fair value option has been elected was $795.7 million and $641.3 million, respectively, as of June 30, 2026,

and the carrying amount of these investments was $730.7 million and $436.3 million, respectively, as of December 31, 2025. Global Atlantic's maximum

exposure to loss related to equity method investments, including those for which fair value has been elected, is limited to the carrying value of these

investments plus unfunded commitments of $401.9 million and $447.2 million as of June 30, 2026, and December 31, 2025, respectively. Real assets

includes $2.4 billion of certain investments held for sale as of June 30, 2026; the estimated fair value of these assets, less costs to sell, exceeds their

carrying value.

(5) Other investments include equity securities, limited partnership interests, investments in FHLB common stock, and other interests.

(6) From time to time, Global Atlantic makes investments with counterparties that are managed by or are affiliates of KKR. As of June 30, 2026, and

December 31, 2025, the carrying value reflects the elimination for the portion of applicable investments that are held in Asset Management and Strategic

Holdings consolidated investment vehicles and other entities.

(7) As of June 30, 2026, and December 31, 2025, investments of $10.0 billion and $11.5 billion were accounted for using the equity method of accounting

within the asset classes Private Equity, Credit, Real Assets, and Other.

As of June 30, 2026, and December 31, 2025, there were no investments which represented greater than 5% of total

investments.

Fixed Maturity Securities

The cost or amortized cost and fair value for AFS fixed maturity securities were as follows:

(1) Represents the cumulative amount of credit impairments that have been recognized in the consolidated statements of operations (as net investment

gains (losses)) or that were recognized as a gross-up of the purchase price of PCD securities. Amount excludes unrealized losses related to non-credit

impairment.

(2) Includes credit loss allowances on purchase-credit deteriorated fixed maturity securities of $(6.3) million.

(1) Represents the cumulative amount of credit impairments that have been recognized in the consolidated statements of operations (as net investment

gains (losses)) or that were recognized as a gross-up of the purchase price of PCD securities. Amount excludes unrealized losses related to non-credit

impairment.

(2) Includes credit loss allowances on purchase-credit deteriorated fixed maturity securities of $(5.8) million.

The maturity distribution for AFS fixed maturity securities is as follows:

Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay

obligations with or without call or prepayment penalties, or Global Atlantic may have the right to put or sell the obligations

back to the issuers. Structured securities are shown separately as they have periodic payments and are not due at a single

maturity.

Securities in a Continuous Unrealized Loss Position

The following tables provide information about AFS fixed maturity securities that have been continuously in an unrealized loss position:

Unrealized gains and losses can be created by changing interest rates or several other factors, including changing credit

spreads. Global Atlantic had gross unrealized losses on below investment grade AFS fixed maturity securities of $228.1 million

and $279.7 million as of June 30, 2026, and December 31, 2025, respectively. The single largest unrealized loss on AFS fixed

maturity securities was $42.6 million and $43.8 million as of June 30, 2026, and December 31, 2025, respectively. Global

Atlantic had 5,249 and 4,294 securities in an unrealized loss position as of June 30, 2026, and December 31, 2025,

respectively.

As of June 30, 2026, AFS fixed maturity securities in an unrealized loss position for 12 months or more consisted of 2,614

fixed maturity securities. AFS fixed maturity securities in an unrealized loss position for 12 months or more with an allowance

for credit losses had a fair value and gross unrealized losses of $1.1 billion and $105.6 million, respectively, as of June 30,

2026. These fixed maturity securities primarily relate to Corporate, RMBS, and U.S. state, municipal and political subdivisions

fixed maturity securities, which have depressed values due primarily to an increase in interest rates since the purchase of

these securities. Unrealized losses were not recognized in net income on these fixed maturity securities since Global Atlantic

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. For securities with significant declines in value, individual

security level analysis was performed utilizing underlying collateral default expectations, market data, and industry analyst

reports.

Mortgage and Other Loan Receivables

Mortgage and other loan receivables consist of the following:

(1) As of June 30, 2026, other loan receivables consisted primarily of business loans, renewable energy development loans, warehouse facility loans backed

by agricultural mortgages, loans collateralized by aircraft, and loans collateralized by residential mortgages, of $357.3 million, $192.0 million, $191.8

million, $115.9 million and $200.0 million, respectively. As of December 31, 2025, other loan receivables consisted primarily of business loans, warehouse

facility loans backed by agricultural mortgages, renewable energy development loans, loans collateralized by aircraft, and loans collateralized by

residential mortgages, of $415.6 million, $368.5 million, $347.2 million, $245.7 million, and $200.2 million, respectively.

(2) Includes $12.6 billion and $11.2 billion of loans carried at fair value using the fair value option as of June 30, 2026, and December 31, 2025, respectively.

These loans had unpaid principal balances of $12.9 billion and $11.3 billion as of June 30, 2026, and December 31, 2025, respectively.

(3) Includes credit loss allowances on purchase-credit deteriorated mortgage and other loan receivables of $(38.2) million and $(41.6) million as of June 30,

2026, and December 31, 2025, respectively.

The maturity distribution for residential and commercial mortgage loans was as follows as of June 30, 2026:

Actual maturities could differ from contractual maturities because borrowers may have the right to prepay (with or

without prepayment penalties) and loans may be refinanced.

Global Atlantic diversifies its mortgage loan portfolio by both geographic region and property type to reduce

concentration risk. The following tables present the mortgage loans by geographic region and property type:

As of June 30, 2026, and December 31, 2025, Global Atlantic had $296.4 million and $318.4 million of mortgage loans that

were 90 days or more past due or are in the process of foreclosure, respectively, and have been classified as non-income

producing (i.e., in a non-accrual status). Global Atlantic ceases accrual of interest on loans that are more than 90 days past

due or are in the process of foreclosure and recognizes income as cash is received.

Credit Quality Indicators

Mortgage and Consumer Loan Receivable Performance Status

The following table represents the portfolio of mortgage and consumer loan receivables by origination year and performance status as of June 30, 2026, and December 31, 2025:

Loan-to-Value Ratio on Mortgage Loans

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. The following table summarizes Global Atlantic's loan-to-value ratios for its commercial mortgage loans as of June 30, 2026, and December 31, 2025:

Changing economic conditions and updated assumptions affect Global Atlantic's assessment of the collectibility of

commercial mortgage loans. Changing vacancies and rents are incorporated into the analysis that Global Atlantic performs to

measure the allowance for credit losses. In addition, Global Atlantic 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 weighted average loan-to-value ratio for Global Atlantic's residential mortgage loans was 64% as of both June 30,

2026, and December 31, 2025.

Loan Modifications

Global Atlantic may modify the terms of a loan when the borrower is experiencing financial difficulties, as a means to

optimize recovery of amounts due on the loan. Modifications may involve temporary relief, such as payment forbearance for

a short period of time (where interest continues to accrue) or may involve more substantive changes to a loan. Changes to the

terms of a loan, pursuant to a modification agreement, are factored into the analysis of the loan’s expected credit losses,

under the allowance model applicable to the loan.

For commercial mortgage loans, modifications for borrowers experiencing financial difficulty are tailored for individual

loans and may include interest rate relief, maturity extensions or, less frequently, principal forgiveness. For both residential

mortgage loans and consumer loans, the most common modifications for borrowers experiencing financial difficulty, aside

from insignificant delays in payment, typically involve deferral of missed payments to the end of the loan term, interest rate

relief, or maturity extensions.

The tables below present the carrying value of loans to borrowers experiencing financial difficulty, for which modifications have been granted during the six months ended June 30, 2026 and 2025:

(1) Includes modifications involving a combination of deferral of amounts due, interest rate relief, or maturity extension.

(2) Excludes loans that were modified during the year, but were repaid in full by year end.

(1) Includes modifications involving a combination of deferral of amounts due, interest rate relief, or maturity extension.

(2) Excludes loans that were modified during the year, but were repaid in full by year end.

All of the commercial mortgage loans that had a combination of modifications had both interest rate relief and maturity

extensions. For commercial mortgage loans granted interest rate relief, this relief may involve a change from a floating rate to

fixed, a decrease in fixed rate, or a decrease in spread. Interest rate relief provided during the six months ended June 30, 2026

and 2025, was at a weighted average rate of 7.7% and 3.0%, respectively. The maturity extensions for commercial mortgage

loans added a weighted-average of 2.1 years and 2.0 years to the life of the loans, for the six months ended June 30, 2026 and

2025, respectively. As of June 30, 2026, Global Atlantic has commitments to lend additional funds of $42.9 million for the

modified commercial mortgage loans disclosed above.

The table below presents the performance status of the loans modified during the twelve months ended June 30, 2026:

(1) Loans may have been modified more than once during the twelve months period; in this circumstance, the loan is only included once in this table.

Modified loans that were subsequently repaid are excluded.

Repurchase Agreement Transactions

As of June 30, 2026, and December 31, 2025, Global Atlantic participated in repurchase agreements with a notional value

of $501.5 million and $663.8 million, respectively. As collateral for these transactions, Global Atlantic typically posts AFS fixed

maturity securities and/or mortgage and other loan receivables, which are included in Insurance – Investments in the

consolidated statements of financial condition. The gross obligation for repurchase agreements is reported in Other Liabilities

in the consolidated statements of financial condition.

The carrying value of assets pledged for repurchase agreements by type of collateral and remaining contractual maturity of the repurchase agreements as of June 30, 2026, and December 31, 2025 is presented in the following tables:

Other Pledges and Restrictions

Certain Global Atlantic subsidiaries are members of regional banks in the Federal Home Loan Banks (“FHLB”) system and

such membership requires the members to own stock in these FHLBs. Global Atlantic owns an aggregate of $153.9 million and

$122.0 million (accounted for at cost basis) of stock in FHLBs as of June 30, 2026, and December 31, 2025, respectively. In

addition, Global Atlantic insurance company subsidiaries have entered into funding agreements with the FHLB, which require

that Global Atlantic pledge eligible assets, such as fixed maturity securities and mortgage loans, as collateral. Assets pledged

as collateral for these funding agreements had a carrying value of $9.2 billion and $7.1 billion as of June 30, 2026, and

December 31, 2025, respectively.

The capital stock of one of Global Atlantic’s equity method investments has been pledged as collateral security for the

due payment and performance of the debt obligations of the investee. Global Atlantic’s investment subject to this pledge had

a carrying value of $837.7 million and $873.6 million as of June 30, 2026, and December 31, 2025, respectively.

Insurance – Statutory Deposits

As of June 30, 2026, and December 31, 2025, the carrying value of the assets on deposit with various state and U.S.

governmental authorities were $142.3 million and $145.1 million, respectively.

8. DERIVATIVES

Asset Management and Strategic Holdings

KKR and certain of its consolidated funds have entered into derivative transactions as part of the overall risk management

for their investment strategies. These derivative contracts are not designated as hedging instruments for accounting

purposes. Such contracts may include forward, swap, and option contracts related to foreign currencies and interest rates to

manage foreign exchange risk and interest rate risk arising from certain assets and liabilities. All derivatives are recognized in

Other Assets or Accrued Expenses and Other Liabilities and are presented on a gross basis in the consolidated statements of

financial condition and measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment

Activities in the accompanying consolidated statements of operations. KKR's derivative financial instruments contain credit

risk to the extent that its counterparties may be unable to meet the terms of the agreements. KKR attempts to reduce this risk

by limiting its counterparties to major financial institutions with strong credit ratings.

Insurance

Global Atlantic holds derivative instruments that are primarily used in its hedge program. Global Atlantic has established

a hedge program that seeks to mitigate economic impacts primarily from interest rate and equity price movements, while

taking into consideration accounting and capital impacts.

Global Atlantic hedges interest rate and equity market risks associated with its insurance liabilities, including fixed-

indexed annuities, indexed universal life policies, variable annuity policies, and variable universal life policies, among others.

For fixed-indexed annuities and indexed universal life policies, Global Atlantic generally seeks to use static hedges to offset

the exposure primarily created by changes in its embedded derivative balances. Global Atlantic generally purchases options

which replicate the crediting rate strategies, often in the form of call spreads. Call spreads are the purchase of a call option

matched by the sale of a different call option. For variable annuities and variable universal life policies, Global Atlantic

generally seeks to dynamically hedge its exposure to changes in the value of the guarantee it provides to policyholders. Doing so requires the active trading of several financial instruments to respond to changes in market conditions. In addition, Global

Atlantic enters into inflation swaps to manage inflation risk associated with inflation-indexed preneed policies.

In the context of specific reinsurance transactions in the institutional channel or acquisitions, Global Atlantic may also

enter into hedges which are designed to limit short-term market risks to the economic value of the target assets. From time to

time, Global Atlantic also enters into hedges designed to mitigate interest rate and credit risk in investment income, interest

expense, and fair value of assets and liabilities. In addition, Global Atlantic enters into currency swaps and forwards to

manage any foreign exchange rate risks that may arise from investments and policy liabilities denominated in foreign

currencies.

Global Atlantic attempts to mitigate the risk of loss due to ineffectiveness under these derivative investments through a

regular monitoring process which evaluates the program’s effectiveness. Global Atlantic monitors its derivative activities by

reviewing portfolio activities and risk levels. Global Atlantic also oversees all derivative transactions to ensure that the types

of transactions entered into and the results obtained from those transactions are consistent with both Global Atlantic's risk

management strategy and its policies and procedures.

The restricted cash which was held in connection with open derivative transactions with exchange brokers was $41.6

million and $49.9 million as of June 30, 2026, and December 31, 2025, respectively.

Global Atlantic also has embedded derivatives related to reinsurance contracts that are accounted for on a modified

coinsurance and funds withheld basis. An embedded derivative exists because the arrangement exposes the reinsurer to

third-party credit risk. These embedded derivatives are included in funds withheld receivable and payable at interest in the

consolidated statements of financial condition.

Credit Risk

Global Atlantic may be exposed to credit-related losses in the event of nonperformance by its counterparties to

derivatives. Generally, the current credit exposure of Global Atlantic’s derivatives is limited to the positive fair value of

derivatives less any collateral received from the counterparty.

Global Atlantic manages the credit risk on its derivatives by entering into derivative transactions with highly rated

financial institutions and other creditworthy counterparties and, where feasible, by trading through central clearing

counterparties. Global Atlantic further manages its credit risk on derivatives via the use of master netting agreements, which

require the daily posting of collateral by the party in a liability position. Counterparty credit exposure and collateral values are

monitored regularly and measured against counterparty exposure limits. The provisions of derivative transactions may allow

for the termination and settlement of a transaction if there is a downgrade to Global Atlantic’s financial strength ratings

below a specified level.

The fair value and notional value of the derivative assets and liabilities were as follows:

(1) Excludes embedded derivatives. The fair value of these embedded derivatives related to assets was $87.8 million and the fair value of these embedded

derivatives related to liabilities was $6.1 billion as of June 30, 2026.

(2) Represents netting of derivative exposures covered by qualifying master netting agreements.

(1) Excludes embedded derivatives. The fair value of these embedded derivatives related to assets was $78.9 million and the fair value of these embedded

derivatives related to liabilities was $5.6 billion as of December 31, 2025.

(2) Represents netting of derivative exposures covered by qualifying master netting agreements.

Derivatives Designated as Accounting Hedges

Where Global Atlantic has derivative instruments that are designated and qualify as accounting hedges, these derivative

instruments receive hedge accounting.

Fair Value Hedges

Global Atlantic has designated foreign exchange derivative contracts, including forwards and swaps, to hedge the foreign

currency risk associated with foreign currency-denominated bonds in fair value hedges. These foreign currency-denominated

bonds are accounted for as AFS fixed maturity securities. Changes in the fair value of the hedged AFS fixed maturity securities

due to changes in spot exchange rates are reclassified from AOCI to earnings, which offsets the earnings impact of the spot

changes of the foreign exchange derivative contracts, both of which are recognized within investment-related gains (losses).

The effectiveness of these hedges is assessed using the spot method. Changes in the fair value of the foreign exchange

derivative contracts related to changes in the spot-forward difference are excluded from the assessment of hedge

effectiveness and are deferred in AOCI and recognized in earnings using a systematic and rational method over the life of the

foreign exchange derivative contracts. The amortized cost of the AFS fixed maturity securities in qualifying foreign exchange

fair value hedges was $5.3 billion and $3.7 billion as of June 30, 2026, and December 31, 2025, respectively.

Global Atlantic has designated foreign exchange swaps to hedge the foreign currency risk associated with certain policy

liabilities in fair value hedges. Changes in the fair value of the hedged policy liabilities due to changes in spot exchange rates

are recognized in earnings and are offset by the earnings impact of the spot changes of the foreign exchange swaps, both of

which are recognized within net policy benefits and claims. The effectiveness of these hedges is assessed using the spot

method. Changes in the fair value of the foreign exchange swaps related to changes in the spot-forward difference are

excluded from the assessment of hedge effectiveness and are deferred in AOCI and recognized in earnings using a systematic

and rational method over the life of the foreign exchange swaps. The carrying value of the policy liabilities in qualifying foreign

exchange fair value hedges was $100 million and nil as of June 30, 2026, and December 31, 2025, respectively.

Global Atlantic has designated interest rate swaps to hedge the interest rate risk associated with certain debt and policy

liabilities. These fair value hedges generally qualify for the shortcut method of assessing hedge effectiveness. The following table presents the financial statement classification, carrying amount, and cumulative fair value hedging adjustments for

qualifying hedged debt and policy liabilities:

(1) Includes $137.2 million and $154.6 million of hedging adjustments on discontinued hedging relationships as of June 30, 2026, and December 31, 2025,

respectively.

Cash Flow Hedges

Global Atlantic has designated bond forwards to hedge the interest rate risk associated with the planned purchase of AFS

fixed maturity securities in cash flow hedges. These arrangements are hedging purchases through December 2036, and are

expected to affect earnings until 2057. Regression analysis is used to assess the effectiveness of these hedges.

As of June 30, 2026, and December 31, 2025, there was a cumulative gain (loss) of $(158.3) million and $(213.9) million,

respectively, on the currently designated bond forwards recorded in accumulated other comprehensive income (loss).

Amounts deferred in accumulated other comprehensive income (loss) are reclassified to net investment income following the

qualifying purchases of AFS securities, as an adjustment to the yield earned over the life of the purchased securities, using the

effective interest method.

Global Atlantic has designated interest rate swaps to hedge the interest rate risk associated with floating rate

investments, including AFS fixed maturity securities and commercial mortgage loans. Regression analysis is used to assess the

effectiveness of these hedges.

As of June 30, 2026, and December 31, 2025, there was a cumulative gain (loss) of $(51.5) million and $(22.3) million on

the currently designated interest rate swaps recorded in accumulated other comprehensive income (loss), respectively.

Amounts deferred in accumulated other comprehensive gain (loss) are reclassified to net investment income in the same

period during which the hedged investments affect earnings.

Global Atlantic has designated foreign exchange swaps to hedge the foreign exchange risk associated with certain policy

liabilities in cash flow hedges. The critical terms of the swaps match those of the hedged liabilities, such that the respective

hedging relationship is expected to be perfectly effective (pursuant to ASC 815-20-25-84).

As of June 30, 2026, there was a cumulative gain (loss) of $13.6 million on the currently designated foreign exchange

swaps recorded in accumulated other comprehensive loss. Amounts deferred in accumulated other comprehensive loss are

reclassified to net policy benefits and claims in the same period during which the hedged policy liabilities affect earnings due

to changes in spot foreign exchange rates. The amount reclassified from accumulated other comprehensive loss for the swap

designated in the hedge comprises changes in its fair value due to changes in spot exchange rates and an allocated portion of

its initial spot-forward difference.

For all cash flow hedges, Global Atlantic estimates that the amount of gains/losses in accumulated other comprehensive

income (loss) to be reclassified into earnings in the next 12 months will not be material.

Net Investment Hedges

Global Atlantic has designated cross currency swaps to hedge the foreign currency risk associated with certain foreign

currency-denominated equity method investments in net investment hedges. The effectiveness of these hedges is assessed

based on changes in spot rates.

Changes in the fair value of the swaps are recognized in other comprehensive income, consistent with the translation

adjustment for the hedged investment. The component comprising the difference between forward rates and spot rates is

amortized to net investment income over the life of the swaps. As of June 30, 2026, and December 31, 2025, the cumulative

foreign currency translation gain (loss) recorded in accumulated other comprehensive income related to net investment

hedges was $(8.5) million and $(14.1) million, respectively.

Derivative Results

The following table presents the financial statement classification and amount of gains (losses) recognized on derivative instruments and related hedged items, where applicable. None of the Asset Management and Strategic Holdings derivatives

are designated as hedge accounting instruments. The table below includes only derivatives held by Global Atlantic.

Collateral

The amount of Global Atlantic's net derivative assets and liabilities after consideration of collateral received or pledged

were as follows:

(1) Represents netting of derivative exposures covered by qualifying master netting agreements.

(1) Represents netting of derivative exposures covered by qualifying master netting agreements.

9. 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:

(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 June 30, 2026, and December 31, 2025, the fair value of these real assets were $16.9 million and $25.3 million,

respectively, and other investments were $292.0 million and $334.7 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 June 30, 2026, and December 31,

2025, there were $1.3 million of unfunded commitments associated with both real asset and 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. 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. As of June 30, 2026, and December 31, 2025, the fair value of these assets is $3.3 billion and $0.4 billion,

respectively.

(3) As of June 30, 2026, and December 31, 2025, the fair value of Equity Method investments is $1.0 billion and $2.3 billion, respectively.

(4) Represented net of derivative exposures covered by qualifying master netting agreements.

Liabilities, at fair value:

(1) These unfunded revolver commitments are valued using the same valuation methodologies as KKR's Level III credit investments.

(2) Represented net of derivative exposures covered by qualifying master netting agreements.

(3) Includes market risk benefit of $1.5 billion and $1.3 billion as of June 30, 2026, and December 31, 2025, 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 three and six months ended June 30, 2026 and 2025, respectively.

(1) As of June 30, 2026, and December 31, 2025, the fair value of Equity Method investments is $0.9 billion and $2.1 billion, respectively.

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 June 30, 2026. 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:

(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.

(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 the Insurance segment’s financial instruments which are not carried at fair value as of June 30, 2026, and December 31, 2025:

10. FAIR VALUE OPTION

The following table summarizes the financial instruments for which the fair value option has been elected:

(1) As of June 30, 2026, and December 31, 2025, the fair value of Equity Method investments was $1.1 billion and $1.3 billion, respectively.

The following table presents the net realized and unrealized gains (losses) on financial instruments for which the fair

value option was elected:

(1) As of June 30, 2026, and December 31, 2025, the net gains (losses) of Equity Method investments was $(12.1) million and $41.7 million, respectively.

11. INSURANCE INTANGIBLE ASSETS AND LIABILITIES

The following reflects the reconciliation of the components of insurance intangible assets to the total balance reported in the consolidated statements of financial condition as of June 30, 2026, and December 31, 2025:

Deferred Acquisition Costs

The following tables reflect the deferred acquisition costs roll-forward by product category for the six months ended

June 30, 2026 and 2025:

Value of Business Acquired

The following tables reflect the value of business acquired, or “VOBA” asset roll-forward by product category for the six months ended June 30, 2026 and 2025:

The following tables reflect the negative value of business acquired, or “negative VOBA” liability roll-forward by product

category for the six months ended June 30, 2026 and 2025:

Deferred Sales Inducements

The following tables reflect the deferred sales inducements roll-forward by product category for the six months ended

June 30, 2026:

Unearned Revenue Reserves and Unearned Front-End Loads

The following tables reflect unearned revenue reserves and unearned front-end loads liability roll-forward by product category for the six months ended June 30, 2026 and 2025:

12. REINSURANCE

Global Atlantic maintains a number of reinsurance treaties with third parties whereby Global Atlantic assumes annuity

and life policies on a coinsurance, modified coinsurance or funds withheld basis. Global Atlantic also maintains other

reinsurance treaties including the cession of certain annuity, life and health policies.

The effects of all reinsurance agreements on the consolidated statements of financial condition were as follows:

(1) Reported within reinsurance recoverable within the consolidated statements of financial condition.

A key credit quality indicator is a counterparty’s A.M. Best financial strength rating. A.M. Best ratings are an independent

opinion of a reinsurer’s ability to meet ongoing obligations to policyholders. Global Atlantic mitigates counterparty credit risk

by requiring collateral and credit enhancements in various forms including engaging in funds withheld at interest and

modified coinsurance transactions. The following shows the amortized cost basis of Global Atlantic’s reinsurance recoverable and funds withheld receivable at interest by credit quality indicator and any associated credit enhancements Global Atlantic

has obtained to mitigate counterparty credit risk:

(1) Ratings are periodically updated (at least annually) as A.M. Best issues new ratings.

(2) Credit enhancements primarily include funds withheld payable at interest.

(3) Includes credit loss allowance of $23.8 million and $25.6 million as of June 30, 2026, and December 31, 2025, respectively, held against reinsurance

recoverable and funds withheld receivable at interest.

(4) Includes $45.8 billion and $43.0 billion as of June 30, 2026, and December 31, 2025, respectively, associated with cessions to certain sponsored

investment vehicles that participate in qualifying institutional and individual market activities sourced by Global Atlantic.

As of June 30, 2026, and December 31, 2025, Global Atlantic had $2.2 billion and $2.3 billion, respectively, of funds

withheld receivable at interest with six counterparties related to modified coinsurance and funds withheld contracts. The

assets supporting the funds withheld receivable at interest balance are held in trusts for the benefit of Global Atlantic.

The effects of reinsurance on the consolidated statements of operations were as follows:

Global Atlantic holds collateral for, and provides collateral to, its reinsurance clients. Global Atlantic held $52.0 billion and

$49.0 billion, respectively, of collateral in the form of funds withheld payable at interest on behalf of its reinsurers as of

June 30, 2026, and December 31, 2025. As of both June 30, 2026, and December 31, 2025, reinsurers held collateral of $1.1

billion on behalf of Global Atlantic. A significant portion of the collateral that Global Atlantic provides to its reinsurance clients

is provided in the form of assets held in a trust for the benefit of the counterparty. As of June 30, 2026, and December 31,

2025, these trusts held in excess of the $106.5 billion and $107.3 billion of assets they are required to hold in order to support

reserves of $103.0 billion and $104.1 billion, respectively. Of the cash held in trust, Global Atlantic classified $49.3 million and

$139.1 million as restricted as of June 30, 2026, and December 31, 2025, respectively.

13. NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF COMMON

STOCK

For the three and six months ended June 30, 2026 and 2025, basic and diluted Net Income (Loss) attributable to KKR &

Co. Inc. per share of common stock were calculated as follows:

(1) For the six months ended June 30, 2025, Net Income (Loss) Available to KKR & Co. Inc. Common Stockholders – Basic reflects the accumulated undeclared

dividends on Series D Mandatory Convertible Preferred Stock of $13.5 million.

(2) For the three and six months ended June 30, 2026 and 2025, the impact of Series D Mandatory Convertible Preferred Stock calculated under the if-

converted method was not dilutive.

(3) For the three and six months ended June 30, 2026 and 2025, Weighted Average Shares of Common Stock Outstanding – Diluted includes unvested equity

grants, including certain equity grants that have met their market price-based vesting condition but have not satisfied their service-based vesting

condition. Vesting of these equity awards dilute equity holders of KKR Group Partnership, including KKR & Co. Inc. and holders of exchangeable securities

pro rata in accordance with their respective ownership interests in KKR Group Partnership.

Exchangeable Securities

For the three and six months ended June 30, 2026, and 2025, vested restricted holdings units (as defined in Note 19

“Equity-based Compensation”) have been excluded from the calculation of Net Income (Loss) Attributable to KKR & Co. Inc.

Per Share of Common Stock – Diluted since the exchange of these units would not dilute KKR & Co. Inc.’s ownership interests

in KKR Group Partnership. See Note 1 “Organization” in our financial statements.

Market-Condition and Performance-Condition Grants

KKR also grants restricted stock units and restricted holdings units that are subject to either (i) both a service-based

vesting condition and a market-price based vesting condition (referred to hereafter as “Market-Condition Grants”), or (ii) both

a service-based vesting condition and certain performance-based conditions (referred to hereafter as “Performance-Condition

Grants”). For the three and six months ended June 30, 2026, 27.6 million and 13.9 million, respectively, of unvested Market-

Condition Grants, and 1.8 million and 1.4 million, respectively, of unvested Performance-Condition Grants, were excluded

from the calculation of Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock – Diluted because the

applicable market-price and performance-based vesting conditions were not satisfied.

Also see Note 19 “Equity-based Compensation” in our financial statements.

14. OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES

Other Assets consist of the following:

(1) Primarily includes amounts due from third parties for investments sold for which cash settlement has not yet occurred.

(2) Represents amounts held at clearing brokers resulting from securities transactions.

(3) Net of accumulated depreciation and amortization of $427.9 million and $383.1 million as of June 30, 2026, and December 31, 2025, respectively.

Depreciation and amortization expense of $22.6 million and $19.6 million for the three months ended June 30, 2026, and 2025, respectively, and $44.7

million and $38.2 million, for the six months ended June 30, 2026 and 2025, respectively, are included in General, Administrative and Other in the

accompanying consolidated statements of operations. Additionally, KKR’s fixed assets are predominantly located in the United States.

(4) Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign currency denominated investments. Such

instruments are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying

consolidated statements of operations. See Note 4 “Net Gains (Losses) from Investment Activities – Asset Management and Strategic Holdings” in our

financial statements for the net changes in fair value associated with these instruments.

(5) As of June 30, 2026, the carrying value of goodwill is recorded and assessed for impairment at the reporting unit.

(6) See Note 25 “Acquisition” for additional information relating to goodwill and intangibles recognized related to the Arctos Acquisition. On January 2, 2026,

KKR acquired control of an aviation finance business, Altavair, and recognized goodwill of $167 million allocated to the Asset Management segment,

intangible assets of $46 million, and redeemable noncontrolling interests of $60 million. In July 2025, KKR acquired HealthCare Royalty Management, LLC

and recognized goodwill of $8.6 million allocated to the Asset Management segment, intangible assets of $141.6 million, and noncontrolling interests of

$28.3 million.

(7) For Asset Management, the carrying amount of indefinite-lived intangible assets was approximately $1.5 billion as of June 30, 2026, and the remaining

useful lives of finite-lived intangible assets ranged from 6 to 15 years.

(8) For Asset Management, non-cancelable operating leases consist of leases for office space in North America, Europe, Asia, and Australia. KKR is the lessee

under the terms of the operating leases. The operating lease cost was $28.4 million and $26.5 million for the three months ended June 30, 2026 and 2025

respectively, and $56.3 million and $53.6 million for the six months ended June 30, 2026 and 2025, respectively. For Insurance, non-cancelable operating

leases consist of leases for office space and land in North America. For the three months ended June 30, 2026 and 2025, the operating lease cost was $2.7

million and $5.0 million, respectively, and for the six months ended June 30, 2026 and 2025, the operating lease cost was $6.6 million and $10.1 million,

respectively.

(9) The definite life intangible assets are amortized using the straight-line method over the useful life of the assets which is an average of 8.0 years. The

indefinite life intangible assets are not subject to amortization. The amortization expense of definite life intangible assets was $4.4 million and $4.7 million

for the three months ended June 30, 2026 and 2025, respectively, and $18.6 million and $9.4 million for the six months ended June 30, 2026 and 2025,

respectively.

Accrued Expenses and Other Liabilities consist of the following:

(1) Represents the amount of carried interest payable to current and former KKR employees arising from KKR's investment funds and co-investment vehicles

that provide for carried interest.

(2) Primarily includes amounts owed to third parties for investment purchases for which cash settlement has not yet occurred.

(3) Represents the obligations of KKR to deliver a specified security at a future point in time. Such securities are measured at fair value with changes in fair

value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. See Note 4 “Net Gains

(Losses) from Investment Activities – Asset Management and Strategic Holdings” in our financial statements for the net changes in fair value associated

with these instruments.

(4) Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign currency denominated investments. Such

instruments are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying

consolidated statements of operations. See Note 4 “Net Gains (Losses) from Investment Activities – Asset Management and Strategic Holdings” in our

financial statements for the net changes in fair value associated with these instruments.

(5) For Asset Management, operating leases for office space have remaining lease terms that range from approximately 1 year to 16 years, some of which

include options to extend the leases from 2 years to 10 years. The weighted average remaining lease terms were 12.1 years and 12.7 years as of June 30,

2026, and December 31, 2025, respectively. The weighted average discount rates were 3.7% and 3.8% as of June 30, 2026, and December 31, 2025,

respectively. For Insurance, operating leases for office space have remaining lease terms that range from approximately 1 year to 9 years, some of which

include options to extend the leases for up to 10 years. The weighted average remaining lease terms were 6.5 years and 6.8 years as of June 30, 2026, and

December 31, 2025, respectively. The weighted average discount rates were 4.9% and 3.8% as of June 30, 2026 and December 31, 2025, respectively. The

weighted average remaining lease terms for land were 41.1 years and 42.0 years as of June 30, 2026, and December 31, 2025, respectively. For Asset

Management and Strategic Holdings and Insurance, non-cash right of use assets obtained in exchange for new operating lease liabilities were $8.7 million

and $21.1 million for the three and six months ended June 30, 2026, respectively. For Asset Management, Strategic Holdings and Insurance, non-cash

right of use assets obtained in exchange for new operating lease liabilities were $80.6 million and $86.4 million for the three and six months ended June

30, 2025, respectively.

15. VARIABLE INTEREST ENTITIES

Consolidated VIEs

KKR consolidates certain VIEs in which it is determined that KKR is the primary beneficiary. The consolidated VIEs are

predominately CLOs and certain investment funds sponsored by KKR. The primary purpose of these VIEs is to provide strategy

specific investment opportunities to earn investment gains, current income or both in exchange for management fees and

performance income. KKR's investment strategies differ for these VIEs; however, the fundamental risks have similar

characteristics, including loss of invested capital and loss of management fees and performance income. KKR does not provide

performance guarantees and has no other financial obligation to provide funding to these consolidated VIEs, beyond amounts

previously committed, if any. Furthermore, KKR consolidates certain VIEs that are formed by Global Atlantic to either (i) hold

investments, including fixed maturity securities, consumer and other loans, renewable energy, transportation and real estate,

or (ii) to conduct certain reinsurance activities with third party commitments.

Unconsolidated VIEs

KKR holds variable interests in certain VIEs which are not consolidated as it has been determined that KKR is not the

primary beneficiary. VIEs that are not consolidated predominantly include certain investment funds sponsored by KKR as well

as certain investment partnerships where Global Atlantic retains an economic interest. KKR's investment strategies differ by

investment fund; however, the fundamental risks have similar characteristics, including loss of invested capital and loss of

management fees and performance income. KKR's maximum exposure to loss as a result of its investments in the

unconsolidated investment funds is the carrying value of such investments, including KKR's capital interest and any unrealized

carried interest. Accordingly, disaggregation of KKR's involvement by type of unconsolidated investment fund would not

provide more useful information. For these unconsolidated investment funds in which KKR is the sponsor, KKR may have an

obligation as general partner to provide commitments to such investment funds. As of June 30, 2026, KKR's commitments to

these unconsolidated investment funds were $2.9 billion. KKR generally has not provided any financial support other than its

obligated amount as of June 30, 2026. Additionally, Global Atlantic has unfunded commitments of $368.2 million as of

June 30, 2026.

As of June 30, 2026, and December 31, 2025, the maximum exposure to loss, before allocations to the carry pool and noncontrolling interests, if any, for those VIEs in which KKR is determined not to be the primary beneficiary but in which it has

a variable interest is as follows:

16. DEBT OBLIGATIONS

KKR enters into credit agreements and issues debt for its general operating and investment purposes.

KKR's Asset Management and Strategic Holdings debt obligations consisted of the following:

(1) Financing available is reduced by the dollar amounts specified in any issued letters of credit.

(2) Carrying value includes: (i) unamortized note discount (net of premium), as applicable and (ii) unamortized debt issuance costs, as applicable. Financing

costs related to the issuance of the notes have been deducted from the note liability and are being amortized over the life of the notes.

(3) Interest rates of the notes are fixed and the weighted average interest rates are the following:

(4) These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit

investments.

(5) The notes are classified as Level II within the fair value hierarchy and fair value is determined by third party broker quotes.

(6) The notes are classified as Level I within the fair value hierarchy and fair value is determined by quoted prices in active markets since the debt is publicly

listed.

(7) As of June 30, 2026, and December 31, 2025, the principal value, carrying value and fair value reflects the elimination for the portion of applicable debt

obligations that are held by Global Atlantic.

Fourth Amended & Restated Credit Agreement

On July 30, 2026, KKR Group Partnership L.P. and Kohlberg Kravis Roberts & Co. L.P. (collectively, the “Borrowers”),

entered into a Fourth Amended and Restated Credit Agreement (the “Corporate Credit Agreement”) by and among the

Borrowers, the guarantors from time to time party thereto (together with the Borrowers, the “Loan Parties”), the lending

institutions from time to time party thereto, and HSBC Bank USA, National Association, as administrative agent, which amends

and restates in its entirety the Third Amended and Restated Credit Agreement, dated as of July 3, 2024, by and among the

Loan Parties, the lending institutions from time to time party thereto and the administrative agent.

The Corporate Credit Agreement provides the Borrowers with a senior unsecured multicurrency revolving credit facility

(the “Corporate Credit Facility”) in an aggregate principal amount of $3.0 billion, with the option to request an increase in the

facility amount of up to an additional $750 million, subject to certain conditions, including the consent of the lenders. The

Corporate Credit Facility is a five-year facility, scheduled to mature on July 30, 2031, with the Borrowers’ option to request an

extension of the maturity date, subject to the consent of the lenders, and the Borrowers may prepay, terminate or reduce the

commitments under the Corporate Credit Facility at any time without penalty. Borrowings under the Corporate Credit Facility

are available for general corporate purposes and available in U.S. dollars and other currencies. Interest on borrowings in U.S.

dollars under the Corporate Credit Facility will be based on either term Secured Overnight Financing Rate (SOFR) or alternate

base rate, with the applicable margin per annum based on a corporate ratings-based grid ranging from 57.5 basis points to

112.5 basis points for term SOFR borrowings. The Borrowers have agreed to pay a facility fee on the total commitments at a

rate per annum also based on a corporate ratings-based grid ranging from 5 basis points to 12.25 basis points. Borrowings

under the Corporate Credit Facility are guaranteed by KKR & Co. Inc.

Certain other terms of the Corporate Credit Agreement include: (i) financial covenants that require KKR to maintain a

maximum leverage ratio (excluding the indebtedness of The Global Atlantic Financial Group LLC and its subsidiaries) of not

greater than 4.0x covenant EBITDA and to maintain at least $195 billion in fee paying assets under management; (ii)

customary affirmative covenants and certain negative covenants, including a limitation on the ability of the Loan Parties to,

among other things, pledge the stock of their subsidiaries; and (iii) customary events of default, upon the occurrence of which

the lenders will have the ability to accelerate all outstanding loans thereunder and terminate the commitments.

KCM 364-Day Revolving Credit Facility

On March 27, 2026, KKR Capital Markets Holdings L.P. and certain other capital markets subsidiaries (the “KCM

Borrowers”) replaced their existing 364-day revolving credit agreement with a new 364-day revolving credit agreement (the

“KCM 364-Day Revolving Credit Facility”) with Mizuho Bank, Ltd., as administrative agent, and one or more lenders party

thereto. The KCM 364-Day Revolving Credit Facility replaced the prior 364-day revolving credit facility, dated as of April 2,

2025, between the KCM Borrowers and the administrative agent, and one or more lenders party to the prior facility, which

was terminated according to its terms on March 27, 2026. The KCM 364-Day Revolving Credit Facility provides for revolving

borrowings up to $750 million, expires on March 26, 2027, and ranks pari passu with the existing $750 million 5-year revolving

credit facility provided by them for KKR's capital markets business (the “KCM Five-Year Revolving Credit Facility”). If a

borrowing is made under the KCM 364-Day Revolving Credit Agreement, the interest rate will vary depending on the type of

drawdown requested. As with the KCM Five-Year Revolving Credit Facility, borrowings under the KCM 364-Day Revolving

Credit Facility may only be used for KKR’s capital markets business. This facility’s only obligors are entities involved in KKR’s

capital markets business, and its liabilities are non-recourse to other parts of KKR’s business. The KCM 364-Day Revolving

Credit Facility contains customary representations and warranties, events of default, and affirmative and negative covenants, including a financial covenant providing for a maximum debt to equity ratio for the KCM Borrowers, which are substantially

similar to those found in the KCM Five-Year Revolving Credit Facility. The KCM Borrowers' obligations under the KCM 364-Day

Revolving Credit Facility are secured by certain assets of the KCM Borrowers, including a pledge of equity interests of certain

subsidiaries of the KCM Borrowers.

Other Asset Management and Strategic Holdings Debt Obligations

Certain of KKR's consolidated investment funds have entered into financing arrangements with financial institutions,

generally to provide liquidity to such investment funds. These financing arrangements are generally not direct obligations of

the general partners of KKR's investment funds (beyond KKR's capital interest) or its management companies. Such

borrowings have varying maturities and bear interest at floating rates. Borrowings are generally secured by the investment

purchased with the proceeds of the borrowing and/or the uncalled capital commitment of each respective fund. When an

investment vehicle borrows, the proceeds are available only for use by that investment vehicle and are not available for the

benefit of other investment vehicles or KKR. Collateral within each investment vehicle is also available only against borrowings

by that investment vehicle and not against the borrowings of other investment vehicles or KKR.

In certain other cases, investments and other assets held directly by majority-owned consolidated levered investment

vehicles and other entities have been funded with borrowings that are collateralized by the investments and assets they own.

These borrowings are non-recourse to KKR beyond the investments or assets serving as collateral or the capital that KKR has

committed to fund such investment vehicles. Such borrowings have varying maturities and generally bear interest at fixed

rates.

In addition, consolidated CFEs issue debt securities to third-party investors which are collateralized by assets held by the

CFE. Debt securities issued by CFEs are supported solely by the assets held at the CFEs and are not collateralized by assets of

any other KKR entity. CFEs also may have warehouse facilities with banks to provide liquidity to the CFE. The CFE's debt

obligations are non-recourse to KKR beyond the assets of the CFE.

As of June 30, 2026, other debt obligations consisted of the following:

(1) Includes borrowings collateralized by fund investments, fund co-investments, and other assets held by levered investment vehicles of $4.5 billion.

(2) The senior notes of the consolidated CFEs had a weighted average interest rate of 4.97%. The subordinated notes of the consolidated CLOs do not have

contractual interest rates but instead receive a pro rata amount of the net distributions from the excess cash flows of the respective CLO vehicle.

Accordingly, weighted average borrowing rates for the subordinated notes are based on cash distributions during the period, if any.

Debt obligations of consolidated CLOs are collateralized by assets held by each respective CLO vehicle and assets of one

CLO vehicle may not be used to satisfy the liabilities of another. As of June 30, 2026, the fair value of the consolidated CLO

assets was $34.1 billion. This collateral consisted of Cash and Cash Equivalents, Investments, and Other Assets.

Global Atlantic's debt obligations consisted of the following:

(1) Carrying value of debt as of June 30, 2026, and December 31, 2025, includes purchase accounting adjustments of $23.4 million and $26.9 million,

respectively, net debt issuance costs of $(53.6) million and $(54.2) million, respectively, and cumulative fair value loss on hedged debt obligations of

$(176.1) million and $(123.5) million, respectively. The amortization of the purchase accounting adjustments was $1.8 million for both the three months

ended June 30, 2026 and 2025, and $3.6 million for both the six months ended June 30, 2026 and 2025, respectively.

(2) These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit

investments.

(3) These debt obligations primarily include debt obligations of consolidated co-investment vehicles that are not guaranteed by KKR or Global Atlantic.

(4) Interest rates of the notes are fixed and the weighted average interest rates are the following:

Global Atlantic Insurance Operating Company Revolving Credit Facility

On January 16, 2026, Global Atlantic Limited (Delaware) and GA FinCo (together, the “GA Guarantors”) and certain direct

and indirect insurance company subsidiaries of the Guarantors (such insurance company subsidiaries, the “GA OpCo

Borrowers”, and together with the Guarantors, the “GA OpCo Credit Parties”) entered into a credit agreement (the “GA OpCo

Credit Agreement”) with Wells Fargo Bank, N.A., as administrative agent (the “GA Administrative Agent”) and other lenders

from time to time party thereto.

The GA OpCo Credit Agreement provides the GA OpCo Borrowers with an unsecured revolving credit facility (the “GA

OpCo Credit Facility”) in an aggregate principal amount of $3.0 billion as of January 16, 2026, with the option to request an

increase in the facility amount of up to an additional $500 million, for an aggregate principal amount of $3.5 billion, subject to

certain conditions, including obtaining new or increased commitments from new or existing lenders. The GA OpCo Credit

Facility is a 364-day facility, scheduled to mature on January 15, 2027, which may from time to time be extended for

additional 364-day periods at the GA OpCo Borrowers’ option, subject to the consent of the applicable lenders, and the GA

OpCo Borrowers may prepay, terminate or reduce the commitments under the GA OpCo Credit Facility at any time without

penalty. Borrowings under the GA OpCo Credit Facility are available for general corporate purposes including working capital.

Interest on borrowings under the GA OpCo Credit Facility will be based on either (i) the term Secured Overnight Financing

Rate (SOFR), plus a margin based on a corporate ratings-based grid ranging from 1.10% to 1.375%, or (ii) an alternate base

rate, plus a margin based on a corporate ratings-based grid ranging from 0.10% to 0.375%.

Certain other terms of the GA OpCo Credit Agreement include: (i) financial covenants that require GALD and certain of its

consolidated subsidiaries not to exceed a specified debt-to-total-capitalization ratio and to satisfy a net worth threshold; (ii) customary representations, affirmative covenants and certain negative covenants; and (iii) customary events of default, upon

the occurrence of which the lenders will have the ability to accelerate all outstanding loans under the GA OpCo Credit Facility

and terminate the commitments.

Debt Covenants

Borrowings of KKR (including Global Atlantic) contain various debt covenants. These covenants do not, in management's

opinion, materially restrict KKR's operating business or investment strategies as of June 30, 2026. KKR (including Global

Atlantic) was in compliance with such debt covenants in all material respects as of June 30, 2026.

17. POLICY LIABILITIES

The following reflects the reconciliation of the components of policy liabilities to the total balance reported in the ### consolidated statements of financial condition as of June 30, 2026, and December 31, 2025:

(1) Other policy-related liabilities as of June 30, 2026, and December 31, 2025 primarily consist of embedded derivatives associated with contractholder

deposit funds ($8.5 billion and $7.8 billion, respectively), cost-of-reinsurance liabilities (both $3.1 billion), policy liabilities accounted under a fair value

option (both $1.1 billion), negative VOBA ($643.4 million and $678.4 million, respectively) and outstanding claims ($331.5 million and $355.8 million,

respectively).

Policyholders’ Account Balances

The following reflects the policyholders’ account balances roll-forward for the six months ended June 30, 2026 and 2025, and the policyholders’ account balances weighted average interest rates, net amount at risk, and cash surrender value as of

those dates:

(1)“Other” consists of activity related to payout annuities without life contingencies, preneed, variable annuities, and life products.

(2) Interest includes interest credited to policyholders’ account values, and interest accreted in other components of the policyholder account balance,

including investment-type contract values, host amounts for contractholder deposits with embedded derivatives, funding agreements, and other

associated reserves.

(3) “Other activity” includes policy charges, fees and commissions, transfers, assumption changes, fair value changes, and the impact of hedge fair value

adjustments.

(4) Net amount at risk represents the difference between the face value of the insurance policy and the reserve accumulated under that same policy.

(5) Cash surrender values are reported net of any applicable surrender charges, net of reinsurance.

(1)“Other” consists of activity related to payout annuities without life contingencies, preneed, variable annuities, and life products.

(2) Interest includes interest credited to policyholders’ account values, and interest accreted in other components of the policyholder account balance,

including investment-type contract values, host amounts for contractholder deposits with embedded derivatives, funding agreements, and other

associated reserves.

(3)“Other activity” includes policy charges, fees and commissions, transfers, assumption changes, fair value changes, and the impact of hedge fair value

adjustments.

(4) Net amount at risk represents the difference between the face value of the insurance policy and the reserve accumulated under that same policy.

(5) Cash surrender values are reported net of any applicable surrender charges, net of reinsurance.

The following table presents the account values by range of guaranteed minimum crediting rates and the related range of differences, in basis points, between rates being credited to policyholders and the respective guaranteed minimums. Account

values, as disclosed below, differ from policyholder account balances as they exclude balances associated with index credits,

contractholder deposit fund host balances, funding agreements, and other associated reserves. In addition, policyholder

account balances include discounts and premiums on assumed business which are not reflected in account values.

Liability for Future Policy Benefits

The following tables summarize the balances of, and changes in, the liability for future policy benefits for traditional and limited-payment contracts for the six months ended June 30, 2026 and 2025:

(1) Payout annuities generally only have a single premium received at contract inception. As a result, the liability for future policy benefits generally would

not reflect a present value for future premiums for payout annuities.

(2)“Other” consists of activity related to long-term care insurance, variable annuities, traditional life insurance, preneed insurance, and fixed-rate annuity

products. Mortality and morbidity risks associated with the long-term care insurance have been ceded to a third-party reinsurer.

(3) Reinsurance recoverables associated with the liability for future policy benefits is net of the effect of changes in discount rate assumptions of

$(166.9) million and $215.0 million for the six months ended June 30, 2026 and 2025, respectively.

The following table summarizes the amount of gross premiums related to traditional and limited-payment contracts

recognized in the consolidated statements of operations for the six months ended June 30, 2026 and 2025:

The following table reflects the weighted-average duration and weighted-average interest rates of the future policy

benefit liability as of June 30, 2026, and December 31, 2025:

The following reflects the undiscounted ending balance of expected future gross premiums and expected future benefits

and payments for traditional and limited-payment contracts, as of June 30, 2026, and December 31, 2025:

For the six months ended June 30, 2026 and 2025, Global Atlantic recognized $243.2 million and $(272.2) million in other

comprehensive income (loss) (gross of the impact of reinsurance), respectively, due to changes in the future policy benefits

estimate from updating discount rates. During the six months ended June 30, 2026 and 2025, there were no changes to the

methods used to determine the discount rates.

Additional Liability for Annuitization, Death, or Other Insurance Benefits

The following tables reflect the additional liability for annuitization, death, or other insurance benefits roll-forward for the six months ended June 30, 2026 and 2025:

The additional liability for annuitization, death, or other insurance benefits relates primarily to secondary guarantees on

certain interest-sensitive life products, and preneed insurance.

The following reflects the amount of gross assessments recognized for the additional liability for annuitization, death, or other insurance benefits in the consolidated statements of operations for the six months ended June 30, 2026 and 2025:

The following reflects the weighted average duration and weighted average interest rate for the additional liability for

annuitization, death, or other insurance benefits as of June 30, 2026, and December 31, 2025:

Market Risk Benefits

The following table presents the balances of, and changes in, market risk benefits:

The following reflects the reconciliation of the market risk benefits reflected in the preceding table to the amounts

reported in an asset and liability position, respectively, in the consolidated statements of financial condition as of June 30,

2026, and December 31, 2025:

Significant Inputs, Judgments, and Assumptions Used in Measuring Market Risk Benefits

Significant policyholder behavior and other assumption inputs to the calculation of the market risk benefits include

interest rates, instrument-specific credit risk, mortality rates, surrender rates, and utilization rates. Global Atlantic reviews its

assumptions at least annually, and more frequently if necessary. Accordingly, as part of the review conducted during the six

months ended June 30, 2025, assumptions for fixed-indexed annuities activations were updated, which resulted in a $43.9

million increase to net income before taxes.

Separate Account Liabilities

Separate account assets and liabilities consist of investment accounts established and maintained by Global Atlantic for

certain variable annuity and interest-sensitive life insurance contracts. Some of these contracts include minimum guarantees

such as GMDBs and GMWBs that guarantee a minimum payment to the policyholder.

The assets that support these variable annuity and interest-sensitive life insurance contracts are measured at fair value

and are reported as separate account assets on the consolidated statements of financial condition. An equivalent amount is

reported as separate account liabilities. Market risk benefit assets and liabilities for minimum guarantees are valued and

presented separately from separate account assets and separate account liabilities. For more information on market risk

benefits see “—Market risk benefits” in this footnote. Policy charges assessed against the policyholders for mortality,

administration and other services are included in “Policy fees” in the consolidated statements of operations.

The following table presents the balances of and changes in separate account liabilities:

(1) Cash surrender value attributed to the separate accounts does not reflect the impact of surrender charges; surrender charges are attributed to

policyholder account balances recorded in the general account.

The following table presents the aggregate fair value of assets, by major investment asset type, supporting separate accounts:

18. INCOME TAXES

KKR & Co. Inc. is a domestic corporation for U.S. federal income tax purposes and is subject to U.S. federal, state and local

income taxes at the corporate level on its share of taxable income. In addition, KKR Group Partnership and certain of its

subsidiaries operate as partnerships for U.S. federal tax purposes but as taxable entities for certain state, local or non-U.S. tax

purposes. Moreover, certain corporate subsidiaries of KKR, including certain subsidiaries of Global Atlantic, are domestic

corporations for U.S. federal income tax purposes and are subject to U.S. federal, state, and local income taxes.

For the three months ended June 30, 2026 and 2025, the effective tax rates for KKR & Co. Inc. were 17.9% and 11.4%,

respectively, and for the six months ended June 30, 2026 and 2025, the effective tax rates were 23.5% and 11.3%,

respectively. The effective tax rate differs from the 21% U.S. federal income tax rate for the three and six months ended

June 30, 2026 and 2025 primarily due to the portion of the reported net income (loss) before taxes not being attributable to

KKR but rather being attributable to (i) third-party limited partner interests in consolidated investment funds which are not

subject to taxes that are payable by KKR & Co. Inc. and its subsidiaries and (ii) exchangeable securities representing ownership

interests in KKR Group Partnership until they are exchanged for common stock of KKR & Co. Inc.

Each reporting period, KKR assesses available positive and negative evidence to estimate whether sufficient future

taxable income will be generated to realize existing deferred tax assets. There were no changes in the assessment of the

realizability of its deferred tax assets during the six months ended June 30, 2026. It is reasonably possible that prolonged

market volatility may negatively affect Global Atlantic's operating results and its ability to realize its tax planning strategies

and may warrant the establishment of a valuation allowance on a portion of its deferred tax assets within the next 12 months.

19. EQUITY-BASED COMPENSATION

The following table summarizes the expense associated with equity-based compensation for the three and six months ended June 30, 2026 and 2025, respectively:

(1) For the three and six months ended June 30, 2026, KKR recorded acquisition-related stock consideration of $22.8 million and $25.8 million, respectively.

Under KKR's equity incentive plan, KKR is permitted to grant equity awards representing ownership interests in

KKR & Co. Inc. common stock. On March 29, 2019, the Amended and Restated KKR & Co. Inc. 2019 Equity Incentive Plan (the

“2019 Equity Incentive Plan”) became effective. Following the effectiveness of the 2019 Equity Incentive Plan, KKR no longer

makes further grants under the Amended and Restated KKR & Co. Inc. 2010 Equity Incentive Plan, and the 2019 Equity

Incentive Plan became KKR's only plan for providing new equity awards by KKR & Co. Inc. The total number of equity awards

representing shares of common stock that may be issued under the 2019 Equity Incentive Plan is equivalent to 15% of the

aggregate number of the shares of common stock and KKR Group Partnership Units (excluding KKR Group Partnership Units

held by KKR & Co. Inc. or its wholly-owned subsidiaries), subject to annual adjustment. As of June 30, 2026, 27,810,041 shares

may be issued under the 2019 Equity Incentive Plan. KKR has also issued equity grants in the form of restricted holdings units

through KKR Holdings III L.P. (“KKR Holdings III”), which are not issued under the 2019 Equity Incentive Plan and are currently

held by certain current and former KKR employees. Equity grants generally consist of (i) restricted stock units that convert into

shares of common stock of KKR & Co. Inc. (or cash equivalent) upon vesting and (ii) restricted holdings units that are

exchangeable into shares of common stock of KKR & Co. Inc. upon vesting and certain other conditions, including those

described below.

In April 2026, KKR granted equity awards under the 2019 Equity Incentive Plan representing approximately 29 million

shares of common stock, which awards are subject to market price and cliff service vesting conditions based on average prices

of common stock ranging from $150 to $250 and the recipient’s continued service through May 1, 2031, subject to certain

exceptions (including if the market price conditions are satisfied between May 1, 2031, and May 1, 2033, with continued

service through such date). Additionally, in April 2026, KKR granted equity awards under the 2019 Equity Incentive Plan

representing approximately 2 million shares of common stock, which are subject to time-based vesting conditions based on

the recipient’s continued service for five years, subject to certain exceptions. These grants also have transfer restrictions

ranging from 1 to 5 years following vesting.

Equity Granted In Connection with Arctos Acquisition

In connection with the Arctos Acquisition (as defined in Note 25 “Acquisitions” below), KKR granted equity to certain

sellers of Arctos that is subject to continued service following the closing of the acquisition. Because these equity grants

require post-combination service they are accounted for as post-combination compensation expense. These equity grants

included restricted holdings units issued by KKR Holdings III and restricted stock units. The restricted stock units were issued

under the 2019 Equity Incentive Plan.

KKR also committed to grant equity in the form of restricted holdings units under the 2019 Equity Incentive Plan but has

not yet identified the specific recipients (the “Unallocated Units”). Because a grant date has not been established for these

Unallocated Units, no grant-date fair value has been determined and no compensation expense has yet been recognized. KKR

is required to allocate these Unallocated Units no later than December 31, 2028.

The granted equity and Unallocated Units include 5.6 million Service-Vesting Grants (as defined below) and 1.8 million

Market-Condition Grants (as defined above), respectively. A portion of the Service-Vesting Grants vest each year through

2033, while the Market-Condition Grants vest on December 31, 2030, conditioned on achieving specified KKR stock price

targets ranging from $150 to $225 by, and continued service through, such date, subject to certain extensions with respect to

the continued service condition.

In addition, KKR has committed to pay up to $150 million in restricted holdings units, subject to both continued service

and the achievement of certain management fee revenue targets measured through December 31, 2028, subject to certain

exceptions. Because these Performance-Condition Grants (as defined above) will be settled in a variable number of KKR restricted holdings units determined by reference to the price of KKR's common stock at settlement, the units are liability-

classified. The associated liability is measured at fair value and remeasured at each reporting period until settlement, with

changes in fair value recognized in compensation expense over the requisite service period.

Please see additional information on Service-Vesting, Market-Condition and Performance-Condition Grants below.

Service-Vesting Grants

KKR grants restricted stock units and restricted holdings units that are subject to service-based vesting, typically over a

three to five-year period from the date of grant (referred to hereafter as “Service-Vesting Grants”). In certain cases, these

Service-Vesting Grants may have a percentage that vests immediately upon grant, and certain Service-Vesting Grants may

have vesting periods longer than five years. Additionally, some but not all Service-Vesting Grants are subject to transfer

restrictions and/or minimum retained ownership requirements. Generally, the transfer restriction period, if applicable, lasts

for (i) one year with respect to one-half of the grants vesting on any vesting date and (ii) two years with respect to the other

one-half of the grants vesting on such vesting date. While providing services to KKR, some but not all of these grants are also

subject to minimum retained ownership rules requiring the award recipient to continuously hold shares of common stock

equivalents equal to at least 15% of their cumulatively vested grants that have or had the minimum retained ownership

requirement. Holders of the Service-Vesting Grants do not participate in dividends until such grants have met their vesting

requirements.

Expense associated with the vesting of these Service-Vesting Grants is based on the closing price of KKR & Co. Inc.

common stock on the date of grant, discounted for the lack of participation rights in the expected dividends on unvested

equity grants. Expense is recognized on a straight line basis over the life of the grant and assumes a forfeiture rate of up to 7%

annually based upon expected turnover by class of recipient.

As of June 30, 2026, there was approximately $1.1 billion of total estimated unrecognized expense related to unvested

Service-Vesting Grants, which is expected to be recognized over the weighted average remaining requisite service period of

2.9 years.

A summary of the status of unvested Service-Vesting Grants from January 1, 2026, through June 30, 2026, is presented below:

(1) Includes 4.2 million acquisition-related share grants.

Market-Condition Grants

KKR also grants restricted stock units and restricted holdings units that are subject to both a service-based vesting

condition and a market price based vesting condition. The following is a discussion of the Market-Condition Grants, excluding

the Co-CEO Awards (as defined and discussed below).

The number of Market-Condition Grants (other than the Co-CEO awards described below) that will vest depend upon (i)

the market price of KKR common stock reaching certain price targets that range from $65.00 to $250.00 and (ii) the employee

being employed by KKR on a certain date, which typically ranges from five to six years from the date of grant (with exceptions

for involuntary termination without cause, death and permanent disability). The market price vesting condition is met when

the average closing price of KKR common stock during 20 consecutive trading days meets or exceeds the stock price targets.

Holders of the Market-Condition Grants do not participate in dividends until such units have met both their service-based and

market-price based vesting requirements. Additionally, these grants are subject to additional transfer restrictions and

minimum retained ownership requirements after vesting.

Due to the existence of the service requirement, the vesting period for these Market-Condition Grants (other than the

Co-CEO awards) is explicit, and as such, compensation expense will be recognized on (i) a straight-line basis over the period from the date of grant through the date the award recipient is required to be employed by KKR and (ii) assumes a forfeiture

rate of up to 7% annually based upon expected turnover. The fair value of the awards granted is based on a Monte Carlo

simulation valuation model. In addition, the grant date fair value assumes that holders of the Market-Condition Grants will

not participate in dividends until such units have met all of their vesting requirements.

Below is a summary of the grant date fair value based on the Monte Carlo simulation valuation model and the significant assumptions used to estimate the grant date fair value of these Market-Condition Grants:

As of June 30, 2026, there was approximately $1.4 billion of total estimated unrecognized expense related to these

unvested Market-Condition Grants, which is expected to be recognized over the weighted average remaining requisite service

period of approximately 3.8 years.

A summary of the status of unvested Market-Condition Grants from January 1, 2026, through June 30, 2026, is presented below:

(1)29.9 million shares granted, which includes 1.4 million acquisition-related grants, have stock price targets that range from $150.00 to $250.00.

As of June 30, 2026, 18 million of these Market-Condition Grants have met their market price based vesting condition.

These Market-Condition Grants remain unvested until their service conditions (as described above) are satisfied.

Performance-Condition Grants

KKR also grants restricted stock units and restricted holdings units subject to both performance and service-based vesting

conditions. The performance-based vesting conditions are primarily based on the achievement of certain business and

operating targets. Compensation expense is recognized over the performance period based upon the probable outcome of

the performance condition. The Performance-Condition Grants are liability-classified since the number of shares that may vest

is variable, and therefore, the fair value of these grants is remeasured each reporting period. As of June 30, 2026, none of the

performance-based conditions have been met.

As of June 30, 2026, there was approximately $180.0 million of total estimated unrecognized expense related to these

unvested Performance-Condition Grants, which is expected to be recognized over the weighted average remaining requisite

service period of approximately 4.5 years. Additionally, these grants are subject to additional transfer restrictions and

minimum retained ownership requirements after vesting.

Co-CEO Awards

On December 9, 2021, the Board of Directors approved grants of 7.5 million restricted holdings units to each of KKR’s Co-

Chief Executive Officers that are subject to both a service-based vesting condition and a market price based vesting condition

(referred to hereafter as “Co-CEOs Awards”). For both Co-Chief Executive Officers, 20% of the Co-CEOs Awards are eligible to

vest at each of the following KKR common stock price targets: $95.80, $105.80, $115.80, $125.80 and $135.80. The market price based vesting condition is met when the average closing price of KKR common stock during 20 consecutive trading days

meets or exceeds the stock price targets. In addition to the market price based vesting conditions, in order for the award to

vest, the Co-Chief Executive Officer is required to be employed by KKR on December 31, 2026 (with exceptions for involuntary

termination without cause, death and permanent disability).

These awards will be automatically canceled and forfeited upon the earlier of a Co-Chief Executive Officer’s termination

of service (except for involuntary termination without cause, death or permanent disability) or the failure to meet the market

price based vesting condition by December 31, 2028 (for which continued service is required if the market price vesting

condition is met after December 31, 2026). Co-CEO Awards do not participate in dividends until such awards have met both

their service-based and market price based vesting requirements. Additionally, these awards are subject to additional transfer

restrictions and minimum retained ownership requirements after vesting.

Due to the existence of the service requirement, the vesting period for these Co-CEO Awards is explicit, and as such,

compensation expense will be recognized on a straight-line basis over the period from the date of grant through December

31, 2026 given the derived service period is less than the explicit service period. The fair value of the awards granted is based

on a Monte Carlo simulation valuation model. In addition, the grant date fair value assumes that these Co-CEO Awards will

not participate in dividends until such awards have met all of their vesting requirements.

Below is a summary of the grant date fair value based on the Monte Carlo simulation valuation model and the significant assumptions used to estimate the grant date fair value of these Co-CEO Awards:

As of June 30, 2026, there was approximately $73 million of total estimated unrecognized expense related to these

unvested Co-CEO Awards, which is expected to be recognized ratably from July 1, 2026, to December 31, 2026. As of June 30,

2026, all Co-CEO Awards have met their market price based vesting condition. The Co-CEO Awards remain unvested until their

service conditions (as described above) are satisfied.

20. RELATED PARTY TRANSACTIONS

Due from Affiliates consists of:

Due to Affiliates consists of:

21. SEGMENT REPORTING

KKR operates through three reportable segments which are presented below and reflect how its chief operating decision-

makers, who are the Co-Chief Executive Officers, allocate resources and assess performance:

• Asset Management – The asset management business offers a broad range of investment management services to

investment funds, vehicles and accounts (including the Insurance and Strategic Holdings segments) and provides

capital markets services to portfolio companies and third parties. This reportable segment also reflects how its

business lines operate collaboratively with predominantly a single expense pool.

• Insurance – The insurance business is operated by Global Atlantic, which is a leading U.S. retirement and life

insurance company that provides a broad suite of protection, legacy and savings products and reinsurance solutions

to clients across individual and institutional markets. Global Atlantic primarily generates income by earning a spread

between its investment income and the cost of policyholder benefits.

• Strategic Holdings – The strategic holdings business acquires and manages interests in operating companies that are

owned by KKR. This segment primarily generates income from dividends from these businesses. Dividends are

presented net of management fees paid to the Asset Management segment. If KKR were to sell a portion or all of a

business reported in Strategic Holdings, the realized gain or loss would be presented as realized investment income,

net of a performance fee paid to the Asset Management segment.

KKR’s segment profitability measures used to make operating decisions and assess performance across KKR’s reportable

segments are presented prior to giving effect to the allocation of income (loss) among KKR & Co. Inc. and holders of any

exchangeable securities, and the consolidation of the investment funds, vehicles and accounts that KKR advises, manages or

sponsors (including CFEs). For each segment, the chief operating decision makers use the key measure of segment earnings to

allocate resources to that segment in the annual budget and forecasting process. KKR's segment profitability measures

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 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 the Asset

Management segment as the investment adviser for Global Atlantic’s insurance companies, (ii) management and performance

fees earned by the Asset Management segment from the Strategic Holdings segment, and (iii) interest income and expense

based on lending arrangements where the Asset Management segment borrows from the 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 gain or loss 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 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 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 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.

KKR disclosed all the segment expenses under the significant expense principle for each reportable segment. There are no

expenses to be disclosed in the other segment category, because segment revenues minus segment expenses equals the

segment measure of profit of each reportable segment.

Effective beginning in the first quarter of 2026, the information regularly provided to KKR’s chief operating decision

makers for the Insurance Segment was changed to reclassify certain operating expenses from “General, Administrative and

Other” to “Net Cost of Insurance.” Prior period segment information has been recast to conform to the current period

presentation. This reclassification had no impact on Insurance Operating Earnings.

Effective beginning in the second quarter of 2026, performance revenues from KKR’s K-Series Private Equity vehicles of

approximately $160 million were reported in fee related performance revenues in fee related earnings. For both the three

and six months ended June 30, 2025, performance revenues from its K-Series Private Equity vehicles of approximately

$80 million were reported in net realized performance income. This change in classification reflects how KKR’s chief operating

decision makers currently manage the business and aligns KKR's presentation with the prevailing classification disclosed by

other publicly listed alternative asset managers. KKR has not recast prior-period amounts, as the impact of the reclassification

is not material to previously reported results. Additionally, the change in classification had no impact on total segment

revenues, total segment earnings, or consolidated net income.

Segment Presentation

The following tables set forth information regarding KKR's segment results:

(1) Includes intersegment management fees of $175.0 million and $165.5 million earned by the Asset Management segment from the Insurance segment for

the three months ended June 30, 2026 and 2025, respectively, and $350.8 million and $325.2 million for the six months ended June 30, 2026 and 2025,

respectively.

(2) Includes intersegment management fees of $11.0 million and $9.3 million earned by the Asset Management segment from the Strategic Holdings

segment for the three months ended June 30, 2026 and 2025, respectively, and $21.9 million and $17.2 million for the six months ended June 30, 2026

and 2025, respectively.

(3) Includes intersegment performance fees of $5.3 million earned by the Asset Management segment from the Strategic Holdings segment for both the

three and six months ended June 30, 2026. There were no performance fees earned for both the three and six months ended June 30, 2025.

(4) Includes intersegment interest expense of $5.5 million and $2.8 million for the three months ended June 30, 2026 and 2025, respectively, and $9.1 million

and $7.7 million for the six months ended June 30, 2026 and 2025, respectively.

Reconciliations of Total Segment Amounts

The following tables reconcile Segment Revenues, Expenses, Earnings, and Assets to their equivalent GAAP measure:

(1) Total Segment Revenues is comprised of (i) Management Fees, (ii) Transaction and Monitoring Fees, Net, (iii) Fee Related Performance Revenues, (iv)

Realized Performance Income, (v) Realized Investment Income, (vi) Net Investment Income, and (vii) Dividends, Net.

(1) Total Segment Expenses is comprised of (i) Fee Related Compensation, (ii) Realized Performance Income Compensation, (iii) Realized Investment Income

Compensation, (iv) Net Cost of Insurance, (v) General, Administrative and Other, and (vi) Other Operating Expenses.

(1) For the three and six months ended June 30, 2026, Transaction-related and Other Non-operating items include (i) $55 million and $77 million related to

transaction-related costs and other corporate actions, respectively, (ii) $6 million and $24 million of costs associated with certain integration and

restructuring initiatives across our Asset Management and Insurance businesses, respectively, and (iii) $32 million and $40 million of acquisition-related

stock consideration and other, respectively.

22. EQUITY

Stockholders' Equity

Common Stock

The common stock of KKR & Co. Inc. is entitled to vote as provided by its certificate of incorporation, Delaware General

Corporation Law and the rules of the New York Stock Exchange (“NYSE”). Subject to preferences that apply to any shares of

preferred stock outstanding at the time on which dividends are payable, the holders of common stock are entitled to receive

dividends out of funds legally available if the Board of Directors, in its discretion, determines to declare dividends and then

only at the times and in the amounts that the Board of Directors may determine. The common stock is not entitled to

preemptive rights and is not subject to conversion, redemption or sinking fund provisions.

Series I Preferred Stock

Except for any distribution required by Delaware law to be made upon a dissolution event, the holders of Series I

preferred stock do not have any economic rights to receive dividends. Series I preferred stock is entitled to vote on various

matters that may be submitted to vote of the stockholders and the other matters as set forth in the certificate of

incorporation. Upon a dissolution event, each holder of Series I preferred stock will be entitled to a payment equal to $0.01 per share of Series I preferred stock. The Series I preferred stock will be eliminated on the Sunset Date (as defined in Note 1

“Organization”), which is scheduled to occur not later than December 31, 2026.

Series D Mandatory Convertible Preferred Stock

On March 7, 2025, KKR & Co. Inc. issued 51,750,000 shares, or $2.59 billion aggregate liquidation preference, of Series D

Mandatory Convertible Preferred Stock.

Subject to certain exceptions, so long as any share of Series D Mandatory Convertible Preferred Stock remains

outstanding, no dividend or distributions will be declared or paid on shares of KKR & Co. Inc.’s common stock, par value $0.01

per share, or any other class or series of stock ranking junior to the Series D Mandatory Convertible Preferred Stock, and no

common stock or any other class or series of stock ranking junior to the Series D Mandatory Convertible Preferred Stock will

be purchased, redeemed, or otherwise acquired for consideration by KKR & Co. Inc. or any of its subsidiaries unless, in each

case, all accumulated and unpaid dividends for all preceding dividend periods have been declared and paid in cash, shares of

common stock or a combination thereof, or a sufficient sum of cash or number of shares of common stock has been set aside

for the payment of such dividends, on all outstanding shares of Series D Mandatory Convertible Preferred Stock. In addition,

when dividends on shares of the Series D Mandatory Convertible Preferred Stock (i) have not been declared and paid in full on

any dividend payment date (or, in the case of any parity stock having dividend payment dates different from such dividend

payment dates on a dividend payment date falling within a regular dividend period related to such dividend payment date), or

(ii) have been declared but a sum of cash or number of shares of Common Stock sufficient for payment thereof has not been

set aside for the benefit of the holders thereof on the applicable regular record date, no dividends may be declared or paid on

any parity stock unless dividends are declared on the shares of Series D Mandatory Convertible Preferred Stock such that the

respective amounts of such dividends declared on the shares of Series D Mandatory Convertible Preferred Stock and such

shares of parity stock shall be allocated pro rata among the holders of the shares of Series D Mandatory Convertible Preferred

Stock and the holders of any shares of parity stock then outstanding.

Unless converted earlier, each share of the Series D Mandatory Convertible Preferred Stock will automatically convert on

the mandatory conversion date, which is expected to be March 1, 2028, into between 0.3312 shares and 0.4140 shares of

common stock, in each case, subject to customary anti-dilution adjustments described in the certificate of designations

setting forth the terms of the Series D Mandatory Convertible Preferred Stock. The number of shares of common stock

issuable upon conversion will be determined based on the average volume weighted average price per share of common

stock over the 20 consecutive trading day period beginning on, and including, the 21st scheduled trading day immediately

prior to March 1, 2028.

Dividends on the Series D Mandatory Convertible Preferred Stock will be payable on a cumulative basis when, as and if

declared by KKR & Co. Inc.’s board of directors, or an authorized committee thereof (which will be influenced by receipt of

distributions from KKR Group Partnership in respect of our Series D mirrored preferred units that we hold in KKR Group

Partnership) at an annual rate of 6.25% on the liquidation preference of $50.00 per share of Series D Mandatory Convertible

Preferred Stock, and may be paid in cash or, subject to certain limitations, in shares of common stock or, subject to certain

limitations, any combination of cash and shares of common stock.

If declared, dividends on the Series D Mandatory Convertible Preferred Stock will be payable quarterly on March 1, June

1, September 1 and December 1 of each year to, and including, March 1, 2028, commencing on June 1, 2025.

Upon KKR & Co. Inc.’s voluntary or involuntary liquidation, winding-up or dissolution, each holder of the Series D

Mandatory Convertible Preferred Stock will be entitled to receive a liquidation preference in the amount of $50.00 per share

of Series D Mandatory Convertible Preferred Stock, plus an amount equal to accumulated and unpaid dividends on such

shares, whether or not declared, to, but excluding, the date fixed for liquidation, winding-up or dissolution, such amount to be

paid out of KKR & Co. Inc.’s assets legally available for distribution to its stockholders after satisfaction of debt and other

liabilities owed to KKR & Co. Inc.’s creditors and holders of shares of its stock ranking senior to the Series D Mandatory

Convertible Preferred Stock and before any payment or distribution is made to holders of any stock ranking junior to the

Series D Mandatory Convertible Preferred Stock, including, without limitation, Common Stock.

Share Repurchase Program

Under KKR's repurchase program, shares of common stock of KKR & Co. Inc. may be repurchased from time to time in

open market transactions, in privately negotiated transactions or otherwise. The timing, manner, price and amount of any

repurchases will be determined by KKR in its discretion and will depend on a variety of factors, including legal requirements,

price and economic and market conditions. In addition to the repurchases of common stock, the repurchase program will be

used for the retirement (by cash settlement or the payment of tax withholding amounts upon net settlement) of equity grants pursuant to our 2019 Equity Incentive Plan representing the right to receive common stock. KKR expects that the program will

be in effect until the maximum approved dollar amount has been used. The program does not require KKR to repurchase or

retire any specific number of shares of common stock or equity grants, respectively, and the program may be suspended,

extended, modified or discontinued at any time. In March 2026, the share repurchase program was amended such that when

the remaining available amount under the share repurchase program becomes $50 million or less, the total available amount

under the share repurchase program will automatically increase by an additional $500 million to the then remaining available

amount (the “Share Repurchase Program Increase Threshold”). As of July 24, 2026, there was approximately $87 million

remaining under the program. Any additional increases to the total available amount after the Share Repurchase Program

Increase Threshold is reached would require a separate approval by the Board of Directors of KKR & Co. Inc. The repurchase

program does not have an expiration date.

The following table presents the shares of KKR & Co. Inc. common stock that have been repurchased or equity grants retired under the repurchase program:

Change in KKR & Co. Inc.'s Ownership Interest

Vesting of restricted holdings units results in a change in ownership in KKR Group Partnership, while KKR retains a

controlling interest, and is accounted for as an equity transaction between the controlling and noncontrolling interests.

Noncontrolling Interests

Noncontrolling interests in consolidated entities represent the non-redeemable ownership interests in KKR that are held

primarily by:

(i)third party fund investors in KKR's consolidated funds and certain other entities;

(ii)third parties in KKR's Capital Markets business line;

(iii)certain current and former employees who hold exchangeable securities; and

(iv)third-party investors in certain of Global Atlantic's consolidated entities.

The following table presents the balances of, and changes in, Noncontrolling Interests:

23. REDEEMABLE NONCONTROLLING INTERESTS

Redeemable noncontrolling interests primarily represents noncontrolling interests of certain KKR investment funds and

vehicles that are subject to periodic redemption by fund investors following the expiration of a specified period of time, or

may be withdrawn subject to a redemption fee during the period when capital may not be otherwise withdrawn.

Consolidated fund investor's interests subject to redemption as described above are presented as Redeemable Noncontrolling

Interests in the accompanying consolidated statements of financial condition and presented as Net Income (Loss) Attributable

to Redeemable Noncontrolling Interests in the accompanying consolidated statements of operations. When redeemable

amounts become legally payable to fund investors, they are classified as a liability and included in Accounts Payable, Accrued

Expenses, and Other Liabilities in the accompanying consolidated statements of financial condition.

The following table presents the balances of, and changes in, Redeemable Noncontrolling Interests:

24. COMMITMENTS AND CONTINGENCIES

Funding Commitments and Others

As of June 30, 2026, KKR had unfunded commitments consisting of $11.1 billion to its investment funds and vehicles.

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 vehicles, KKR has

entered into contractual commitments primarily with respect to underwriting transactions, debt financing, revolving credit

facilities, and syndications in KKR's Capital Markets business line. As of June 30, 2026, these capital markets commitments

amounted to $0.6 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. 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 June 30, 2026,

have been reduced to reflect the amount expected to be funded by such third parties. As of June 30, 2026, KKR's capital

markets business line has entered into such arrangements representing a total notional amount of $5.0 billion.

Global Atlantic has commitments to purchase or fund investments of $6.1 billion as of June 30, 2026. These commitments

include those related to mortgage loans, other lending facilities, and real assets. For those commitments that represent a

contractual obligation to extend credit, Global Atlantic has recorded a liability of $24.7 million for current expected credit

losses as of June 30, 2026.

In addition, Global Atlantic has entered into agreements to purchase loans. Global Atlantic's obligations under these

agreements are subject to change, curtailment, and cancellation based on various provisions including repricing mechanics,

due diligence reviews, and performance or pool quality, among other factors.

Global Atlantic has certain contingent funding obligations related to development-stage renewable energy projects in the

amount of $322.2 million as of June 30, 2026, with expiration dates occurring between March 2027 and September 2027. For

accounting purposes, these contingent funding obligations are considered guarantees of the obligations of the development-

stage renewable energy projects.

Non-cancelable Operating Leases

KKR's non-cancelable operating leases consist of leases of office space around the world. There are no material rent

holidays, contingent rent, rent concessions, or leasehold improvement incentives associated with any of these property

leases. In addition to base rentals, certain lease agreements are subject to escalation provisions and rent expense is

recognized on a straight‑line basis over the term of the lease agreement. Global Atlantic also enters into land leases for its

consolidated investments in renewable energy.

Contingent Repayment Guarantees

The partnership documents governing KKR's carry-paying investment funds and vehicles generally include a “clawback”

provision that, if triggered, may give rise to a contingent obligation requiring the general partner to return amounts to the

fund for distribution to the fund investors at the end of the life of the fund. Under a clawback obligation, upon the liquidation

of a fund, the general partner is required to return, typically on an after-tax basis, previously distributed carry to the extent

that, due to the diminished performance of later investments, the aggregate amount of carry distributions received by the

general partner during the term of the fund exceed the amount to which the general partner was ultimately entitled,

including the effects of any performance thresholds. KKR has guaranteed its general partners' clawback obligations.

As of June 30, 2026, approximately $180 million of carried interest was subject to this clawback obligation, assuming that

all applicable carry-paying investment funds were liquidated at their June 30, 2026 fair values. Although KKR would be

required to remit the entire amount to fund investors that are entitled to receive the clawback payment, KKR would be

entitled to seek reimbursement of approximately $79 million of that amount from Associates Holdings, which is not a KKR

subsidiary. As of June 30, 2026, Associates Holdings had access to cash reserves sufficient to reimburse the full $79 million

that would be due to KKR. If the investments in all carry-paying funds were to be liquidated at zero value, a possibility that

management views to be remote, the clawback obligation would have been approximately $5.1 billion as of June 30, 2026.

KKR will acquire control of Associates Holdings when KKR acquires its general partner upon the closing of the transactions

contemplated to occur on the Sunset Date (as defined in Note 1 “Organization”), which will occur not later than December 31,

Carried interest is recognized in the consolidated statements of operations based on the contractual conditions set forth

in the agreements governing the fund as if the fund were terminated and liquidated at the reporting date and the fund's

investments were realized at the then estimated fair values. Amounts earned pursuant to carried interest are earned by the

general partner of those funds to the extent that cumulative investment returns are positive and where applicable, preferred

return thresholds have been met. If these investment amounts earned decrease or turn negative in subsequent periods,

recognized carried interest will be reversed and to the extent that the aggregate amount of carry distributions received by the general partner during the term of the fund exceed the amount to which the general partner was ultimately entitled, and a

clawback obligation would be recorded. For funds that are consolidated, this clawback obligation, if any, is reflected as an

increase in noncontrolling interests in the consolidated statements of financial condition. For funds that are not consolidated,

this clawback obligation, if any, is reflected as a reduction of KKR's investment balance as this is where carried interest is

initially recorded.

Indemnifications and Other Guarantees

KKR may incur contingent liabilities for claims that may be made against it in the future. KKR enters into contracts that

contain a variety of representations, warranties and covenants, including indemnifications. KKR and certain of KKR's

consolidated investment funds have provided, and are expected to continue to provide, certain credit support, such as

indemnities and guarantees relating to a variety of matters, including (i) guarantees of KKR’s corporate debt obligations and

other capital obligations, (ii) non-recourse carve-out guarantees for fraud, willful misconduct and other wrongful acts,

including in connection with the financing of KKR's corporate real estate, (iii) in connection with certain investment vehicles

sponsored or managed by KKR, and (iv) certain other guarantees arising from the investment activities of KKR and its

investment vehicles.

The types of credit support provided by KKR include providing guarantees or other credit support:

i.in connection with its subsidiaries' funding obligations to certain investment vehicles that KKR manages or

sponsors,

ii.in connection with repayment and funding obligations to third-party lenders on behalf of certain employees,

excluding its executive officers, in connection with their personal investments in KKR investment funds and a

levered multi-asset investment vehicle, and

iii.in connection with certain of investment vehicles’ obligations to fund or otherwise be liable for a portion of

their investment losses, including the obligation to provide these investment vehicles with liquidity upon

certain termination events.

In addition, KKR has agreed to tender to one of its consolidated investment vehicles up to a fixed number of shares that

KKR owns in it if the net asset value of such shares is less than an agreed upon value on June 1, 2027.

KKR may also become liable for certain amounts payable to sellers of businesses or assets if a transaction does not close,

subject to certain conditions, if any, specified in the acquisition agreements for such businesses or assets.

Unless otherwise stated above, KKR's maximum exposure under the arrangements described under this section “—

Indemnifications and Other Guarantees” are currently unknown as there are no stated or notional amounts included in these

arrangements and KKR's liabilities for these matters would require a claim to be made against KKR in the future.

Legal Proceedings

From time to time, KKR is involved in various legal proceedings, requests for information, lawsuits, arbitration, and claims

incidental to the conduct of KKR's businesses. KKR's businesses are also subject to extensive regulation, which may result in

regulatory or other legal proceedings against them. Moreover, in the ordinary course of business, KKR is and can be the

defendant or the plaintiff in numerous lawsuits with respect to acquisitions, bankruptcy, insolvency and other events. Such

lawsuits may involve claims, or may be resolved on terms, that adversely affect the value of certain investments owned by

KKR's funds and Global Atlantic's insurance companies.

Kentucky Matter

In December 2017, KKR & Co. L.P. (which is now KKR Group Co. Inc.) and its then Co-Chief Executive Officers, Henry Kravis

and George Roberts, were named as defendants in a lawsuit filed in Kentucky state court (the “2017 Action”) alleging, among

other things, the violation of fiduciary and other duties in connection with certain separately managed accounts that Prisma

Capital Partners LP, a former subsidiary of KKR, manages for the Kentucky Retirement Systems. Also named as defendants in

the lawsuit are certain current and former trustees and officers of the Kentucky Retirement Systems, Prisma Capital Partners

LP, and various other service providers to the Kentucky Retirement Systems and their related persons. The 2017 Action was

dismissed at the direction of the Supreme Court of Kentucky for lack of Kentucky constitutional standing. This dismissal

became final on February 16, 2024.

On July 21, 2020, the Office of the Attorney General, on behalf of the Commonwealth of Kentucky (the “Kentucky AG”),

filed a new lawsuit in the same Kentucky state court (the “2020 AG Action”) making essentially the same allegations as those

raised in the 2017 Action, including against what was then KKR & Co. Inc. (now KKR Group Co. Inc.) and Messrs. Kravis and

Roberts. On May 1, 2024, the trial court denied motions to dismiss the 2020 AG Action filed by KKR & Co. Inc. and Messrs.

Kravis and Roberts.

On April 8, 2024, after receiving permission from the Kentucky trial court in the 2020 AG Action, the Kentucky AG

amended its complaint in the 2020 AG Action to add a claim for breach of contract. The Kentucky AG also filed an action (the

“2024 AG Action”) substantially identical to the 2020 AG Action, including the new claim for breach of contract. On April 23,

2024, KKR & Co. Inc., Messrs. Kravis and Roberts and other defendants moved to strike the Kentucky AG's amended complaint

in the 2020 AG Action, to stay consideration of the breach of contract claim and the 2024 AG Action until after the trial court's

ruling on the motions to dismiss the 2020 AG Action, and to deny a motion by the Kentucky AG to consolidate the 2020 AG

Action and the 2024 AG Action. These motions were denied, and the trial court consolidated the 2020 AG Action with the

2024 AG Action. On June 17, 2024, KKR & Co. Inc., Messrs. Kravis and Roberts and other defendants filed new motions to

dismiss the consolidated 2020 AG Action and 2024 AG Action.

In January 2021, some of the attorneys for the plaintiffs in the 2017 Action filed a new lawsuit on behalf of a new set of

plaintiffs, who claim to be “Tier 3” members of Kentucky Retirement Systems (the “Tier 3 Plaintiffs”), alleging substantially the

same allegations as in the 2017 Action. On July 9, 2021, the Tier 3 Plaintiffs served an amended complaint, which purports to

assert, on behalf of a class of beneficiaries of Kentucky Retirement Systems, direct claims for breach of fiduciary duty and civil

violations under the Racketeer Influenced and Corrupt Organizations Act (“RICO”). This complaint was removed to the U.S.

District Court for the Eastern District of Kentucky, which has entered an order staying this case until the completion of the

2020 AG Action. On August 20, 2021, the Tier 3 Plaintiffs and other individual plaintiffs filed a second complaint in Kentucky

state court (the “Second Tier 3 Action”), purportedly on behalf of Kentucky Retirement Systems’ funds, alleging the same

claims against what was then KKR & Co. Inc. (now KKR Group Co. Inc.) and Messrs. Kravis and Roberts as in the July 9th

amended complaint but without the RICO or class action allegations. On May 1, 2024, the trial court denied motions to

dismiss the Second Tier 3 Action filed by KKR & Co. Inc. and Messrs. Kravis and Roberts. On July 3, 2024, KKR & Co. Inc.,

Messrs. Kravis and Roberts and other defendants filed a writ of prohibition asking the Kentucky Court of Appeals to order the

trial court to dismiss the Second Tier 3 Action. On November 12, 2024, the Court of Appeals denied the request for a writ of

prohibition. Defendants have appealed that denial by petitioning the Kentucky Supreme Court for a writ of prohibition. The

Second Tier 3 Action is stayed pending the outcome of this petition.

On March 24, 2022, in a separate declaratory judgment action brought by the Commonwealth of Kentucky regarding the

enforceability of certain indemnification provisions available to what was then KKR & Co. Inc. (now KKR Group Co. Inc.) and

Prisma Capital Partners LP, the Kentucky state court concluded that it has personal jurisdiction over KKR & Co. Inc. in that

action, and that the indemnification provisions violated the Kentucky Constitution and were therefore unenforceable. On

December 1, 2023, the Kentucky Court of Appeals reversed the trial court’s summary judgment on the issue of personal

jurisdiction over KKR & Co. Inc., but affirmed the trial court’s rulings that the indemnification provisions violated the Kentucky

Constitution and were unenforceable. On February 5, 2024, the Kentucky Court of Appeals denied the petitions of KKR & Co.

Inc. and others for rehearing. On April 8, 2024, KKR & Co. Inc. and other defendants in the declaratory judgment case filed

motions with the Supreme Court of Kentucky for discretionary review of the Court of Appeals' December 1, 2023 decision. On

August 14, 2024, the Kentucky Supreme Court granted discretionary review in the Kentucky AG’s declaratory judgment case of

both personal jurisdiction over KKR & Co. Inc. and the enforceability and constitutionality of the indemnification provisions

and, on September 22, 2025, opening briefs were filed by KKR & Co. Inc. and other defendants. The Commonwealth of

Kentucky filed its response briefs on November 21, 2025, and KKR & Co. Inc. and other defendants filed their reply briefs on

December 15, 2025. The Kentucky Supreme Court heard oral arguments on June 17, 2026.

On January 8, 2025, KKR, Messrs. Kravis and Roberts, Prisma Capital Partners L.P., and certain other defendants entered

into an agreement with the Commonwealth of Kentucky, Kentucky Public Pensions Authority, County Employees Retirement

System and Kentucky Retirement Systems (the “KPPA Entities”) to settle the 2020 AG Action and the 2024 AG Action. On May

12, 2025, the Kentucky trial court entered an order declining to enter the parties’ jointly proposed order approving the

settlement. Because the receipt of the court’s approval was a contractual condition to the settlement becoming final, the

settlement agreement terminated. KKR, Messrs. Kravis and Roberts, Prisma Capital Partners L.P., and the other defendants

that were party to the settlement agreement continue to deny any liability, wrongdoing, or damage, maintain that the

settlement was not an admission of any fault, liability, wrongdoing or damage, and maintain that they entered into the

settlement solely to avoid further legal expense, inconvenience, and the distraction of burdensome and protracted litigation.

KKR intends to continue to vigorously defend against all claims against KKR and Messrs. Kravis and Roberts.

On November 19, 2025, the Kentucky Public Pensions Authority (“KPPA”) filed a motion to intervene in the consolidated

2020 AG Action and 2024 AG Action to assert claims against KKR & Co. Inc., Prisma Capital Partners LP, and Prisma Capital

Partners LLC. On December 8, 2025, the court entered an agreed order tendered by the parties granting KPPA’s motion to

intervene and ordering that all briefing and deadlines relating to KPPA’s intervening complaint are stayed pending decision by

the Kentucky Supreme Court in the appeals arising out of the Kentucky AG’s declaratory judgment action.

Shareholder Derivative Litigation

On July 30, 2024, a shareholder derivative complaint was filed in Delaware Chancery Court and was subsequently

amended on August 7, 2024 (first amended complaint) and further amended on August 19, 2025 (second amended

complaint). The operative second amended complaint claims, among other matters, that the Co-Founders and various current

and former executive officers and directors of KKR & Co. Inc. breached fiduciary duties and wasted corporate assets in

connection with transactions contemplated by the Reorganization Agreement pursuant to which, among other things, the Co-

Founders, certain current and former executive officers, and other senior executives of KKR received common stock from KKR.

The suit seeks to recover on behalf of KKR & Co. Inc. a cancellation of shares issued in the reorganization, monetary damages,

injunctive relief, restitution, and other remedies. KKR & Co. Inc. and other defendants filed a motion to dismiss the operative

second amended complaint on October 6, 2025. On December 18, 2025, plaintiffs filed their opposition to the motion to

dismiss the second amended complaint. Defendants filed their response on February 13, 2026.

Regulatory Matters

KKR currently is, and expects to continue to become from time to time, subject to various examinations, inquiries and

investigations by various U.S. and non-U.S. governmental and regulatory agencies. Such examinations, inquiries and

investigations may result in the commencement of civil, criminal or administrative proceedings, or the imposition of fines,

penalties, or other remedies, against KKR and its personnel. KKR is subject to periodic examinations of its regulated businesses

by various U.S. and non-U.S. governmental and regulatory agencies, including but not limited to the Securities and Exchange

Commission (“SEC”), Financial Industry Regulatory Authority (“FINRA”), the U.K. Financial Conduct Authority, Central Bank of

Ireland, Monetary Authority of Singapore, U.S. state insurance regulatory authorities, and the Bermuda Monetary Authority.

KKR may also become subject to civil, criminal, administrative, or other inquiries or investigations (through a request for

information, civil investigative demand, subpoena or otherwise) by any of the foregoing governmental and regulatory

agencies as well as by any other U.S. or non-U.S. governmental or regulatory agency, including but not limited to the SEC, U.S.

Department of Justice (“DOJ”), U.S. state attorney generals, and similar non-U.S. governmental or regulatory agencies.

Since 2022, as previously disclosed, KKR has been subject to investigations by the Antitrust Division of the DOJ (the “DOJ”)

related to the accuracy and completeness of certain filings made by KKR pursuant to the premerger notification requirements

under the Hart‐Scott‐Rodino Act of 1976 (“HSR”) for certain transactions in 2021 and 2022. On January 14, 2025, the DOJ filed

a civil antitrust complaint (the “DOJ Complaint”) in the U.S. District Court for the Southern District of New York against KKR

and various KKR-sponsored investment entities (the “KKR Defendants”) alleging violations of the HSR Act. The DOJ Complaint

requests various relief for the alleged violations of the HSR Act by the KKR Defendants, including civil penalties in an amount

to be determined and various equitable relief, including potential disgorgement and injunctive relief against future violations

of the HSR Act. On January 14, 2025, KKR filed a complaint (the “KKR Complaint”) in the U.S. District Court for the District of

Columbia against Doha Mekki in her official capacity as Acting Assistant Attorney General of the United States for the

Antitrust Division, the DOJ, the Federal Trade Commission (“FTC”), and the United States of America pertaining to the HSR-

related investigations conducted by the DOJ. On January 16, 2025, KKR voluntarily dismissed the KKR Complaint filed in the

U.S. District Court for the District of Columbia and re-filed it in the U.S. District Court for the Southern District of New York as

related to the DOJ Complaint. The KKR Complaint requests various forms of relief, including declaratory judgments that: (i)

KKR did not violate the HSR Act; (ii) the DOJ’s and FTC’s interpretations of the HSR Act are unconstitutionally vague; and (iii)

the DOJ seeks an excessive fine in violation of the U.S. Constitution. KKR intends to vigorously defend against the DOJ

Complaint and filed a motion to dismiss the DOJ Complaint on April 17, 2025. The DOJ filed its motion to dismiss the KKR

Complaint on April 23, 2025, and KKR and the DOJ agreed to dismiss one count of the KKR Complaint and to stay the rest of

the DOJ’s motion to dismiss pending resolution of KKR’s motion to dismiss the DOJ Complaint. The DOJ has continued its

investigations into certain of KKR’s past HSR filings, and KKR continues to cooperate in connection with these investigations.

The DOJ may initiate additional civil or criminal proceedings or take other actions against KKR, its employees or portfolio

companies, which could include further antitrust investigations into past HSR filings or transactions or other purported

violations of law. There can be no certainty as to the possible outcome of the DOJ Complaint, the KKR Complaint, the DOJ’s

investigations, or such other proceedings or other actions, any of which could result in a range of adverse financial and non‐

financial consequences to KKR. Even in the event that the parties are able to settle the pending litigation, it is possible that

any such settlement could involve significant monetary penalties and/or other possible remedial measures. In addition, KKR is

currently, and may from time to time become, subject to other investigations by the Antitrust Division of the DOJ and other

U.S. or non-U.S. governmental authorities related to antitrust matters, including the European Commission’s investigation

relating to the acquisition of certain infrastructure assets of Telecom Italia S.p.A. and FiberCop S.p.A. KKR is currently

cooperating in connection with these other investigations.

Loss Contingencies

KKR establishes an accrued liability for legal or regulatory proceedings only when those matters present loss

contingencies that are both probable and reasonably estimable. KKR includes in its financial statements the amount of any

reserve for regulatory, litigation and related matters that Global Atlantic includes in its financial statements. No loss

contingency is recorded for matters where such losses are either not probable or reasonably estimable (or both) at the time

of determination. Such matters also have the possibility of resulting in losses in excess of any amounts accrued. To the extent

KKR can in any particular period estimate an aggregate range of reasonably possible losses, these decisions involve significant

judgment given that it is inherently difficult to determine whether any loss for a matter is probable or even possible or to

estimate the amount of any loss in many legal, governmental and regulatory matters.

Estimating an accrued liability or a reasonably possible loss involves significant judgment due to many uncertainties,

including among others: (i) the proceeding may be in early stages; (ii) damages sought may be unspecified, unsupportable,

unexplained or uncertain; (iii) discovery may not have been started or is incomplete; (iv) there may be uncertainty as to the

outcome of pending appeals or motions; (v) there may be significant factual issues to be resolved; (vi) there may be novel

legal issues or unsettled legal theories to be presented or a large number of parties; or (vii) the proceeding relates to a

regulatory examination, inquiry, or investigation. It is not possible to predict the ultimate outcome of all pending litigations,

arbitrations, claims, and governmental or regulatory examinations, inquiries, investigations and proceedings, and some of the

matters discussed above seek or may seek potentially large or indeterminate relief. Consequently, management is unable as

of the date of filing of this report to estimate an amount or range of reasonably possible losses related to matters pending

against KKR. In addition, any amounts accrued as loss contingencies or disclosed as reasonably possible losses may be, in part

or in whole, subject to insurance or other payments such as contributions and indemnity, which may reduce any ultimate loss.

As of the date of filing this report, management does not believe, based on currently available information, that the

outcomes of the matters pending against KKR will have a material adverse effect upon its financial statements. However,

given the potentially large and/or indeterminate relief sought or that may be sought in certain of these matters and the

inherent unpredictability of litigations, arbitrations, claims, and governmental or regulatory examinations, inquiries,

investigations and proceedings, it is possible that an adverse outcome in certain matters could have a material adverse effect

on KKR's financial results in any future period. In addition, there can be no assurance that material losses will not be incurred

from claims that have not yet been asserted or those where potential losses have not yet been determined to be probable or

possible and reasonably estimable.

Other Financing Arrangements

Global Atlantic has financing arrangements with unaffiliated third parties to support the reserves of its affiliated special

purpose reinsurers. Total fees associated with these financing arrangements were $4.7 million and $4.5 million for the three

months ended June 30, 2026 and 2025, respectively, and $9.4 million and $9.1 million for the six months ended June 30, 2026

and 2025, respectively, and are included in insurance expenses in the consolidated statements of operations. As of both

June 30, 2026, and December 31, 2025, the total capacity of the financing arrangements with third parties was $2.6 billion.

Other than the matters disclosed above, there were no outstanding or unpaid balances from the financing arrangements

with unaffiliated third parties as of both June 30, 2026, and December 31, 2025.

25. ACQUISITION

Acquisition of Arctos

On May 4, 2026, KKR completed the Arctos Acquisition, which was announced on February 4, 2026. Arctos is an

investment firm that provides strategic growth capital and liquidity solutions to sports franchises and to private investment

fund sponsors.

Under the transaction agreement, KKR agreed to pay (i) $1.4 billion in initial consideration to acquire 100% of the equity

interests of Arctos, consisting of cash and equity securities of KKR, and (ii) up to $550 million of additional equity securities

based on KKR's share price and Arctos-specific performance targets. The number of shares and units issuable in connection

with the initial equity consideration was calculated using a contractual reference price of $130.62 per share of common stock of KKR & Co. Inc. This reference price was a contractual term used solely to determine the number of shares and units issuable

under the transaction agreement and does not represent the accounting value of the consideration transferred.

KKR accounted for the Arctos Acquisition as a business combination under FASB Accounting Standards Codification Topic

805, Business Combinations (“Topic 805”), which requires the consideration transferred to be measured at acquisition-date

fair value. The consideration transferred under Topic 805 differs from the contractual terms described above for two reasons.

First, the equity securities issued as consideration for purposes of Topic 805 were measured at their fair value on the May 4,

2026 acquisition date, on which the closing price per share of common stock of KKR & Co. Inc. was $103.33. Second, the

equity that is contingent on continued service is recognized and reported as a post-combination compensation expense over

the requisite service period. See Note 19 “Equity-based Compensation” for additional information regarding these equity

grants.

After giving effect to these adjustments, total consideration transferred, measured in accordance with Topic 805, was

$560 million, consisting of $253 million in cash (including $100 million of deferred cash consideration), $160 million in shares

of KKR & Co. Inc. common stock, and $147 million of securities exchangeable into shares of KKR & Co. Inc. common stock.

The fair value of assets acquired and liabilities assumed represents a provisional value, because the Company's evaluation

of the facts and circumstances of the Arctos Acquisition is ongoing. Pursuant to Topic 805, the financial statements will not be

retrospectively adjusted for changes to the provisional values of assets acquired and liabilities assumed that occur in

subsequent periods. Rather, KKR will recognize any adjustments as it obtains information that was not available as of the

completion of this preliminary fair value calculation. KKR will also record, in the same period as the financial statement effect

on earnings, any changes in depreciation, amortization, or other income effects resulting from a change to the provisional

amounts, calculated as if the accounting had been completed at the acquisition date. KKR expects to finalize the purchase

price allocation as soon as practicable, but no later than one year from the acquisition date of May 4, 2026.

KKR allocated a provisional amount of $331 million to the fair value of identifiable intangible assets acquired in the Arctos

Acquisition, consisting of $310 million of investment management contracts and $21 million of investor relationships.

Intangible assets are based on third-party valuations. The investment management contracts were valued using the excess

earnings method, which derives value from the present value of the cash flows attributable to the investment management

contracts, less returns for contributory assets. The carried interest acquired by KKR was valued based on the present value of

the net carried interest expected to be received. Investor relationships were valued using the excess earnings method. The

significant assumptions used in the valuation of the intangible assets acquired were unobservable and include (i) assets'

estimated useful lives, (ii) projected assets under management, (iii) projected revenue growth rates, (iv) projected carried

interest, and (v) discount rates. The carrying value of goodwill associated with the Arctos Acquisition was $162 million as of

the acquisition date and has been allocated entirely to the Asset Management segment. The goodwill recorded is not

expected to be deductible for tax purposes and includes benefits anticipated as a result of synergies from combining KKR’s

and Arctos' businesses.

Revenues and earnings attributable to Arctos following the completion of the Arctos Acquisition were determined to be

immaterial for the three and six months ended June 30, 2026. As a result, pro forma results of operations are not presented

because they would not be materially different.

26. SUBSEQUENT EVENTS

Dividends

A dividend of $0.195 per share of common stock of KKR & Co. Inc. has been declared and was announced on July 30,

2026. This dividend will be paid on August 25, 2026 to common stockholders of record as of the close of business on August

10, 2026.

A dividend of $0.78125 per share of Series D Mandatory Convertible Preferred Stock has been declared and was

announced on July 30, 2026 and set aside for payment. This dividend will be paid on September 1, 2026 to holders of record

of Series D Mandatory Convertible Preferred Stock as of the close of business on August 15, 2026.