| Investments |
2. Investments
Available-For-Sale (AFS) Securities—Our AFS investment portfolio includes bonds, collateralized loan obligations (CLO), asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS) and redeemable preferred stock. Our AFS investment portfolio includes related party investments, primarily consisting of investments over which Apollo can exercise significant influence, which are presented as investments in related parties on the condensed consolidated balance sheets, and are separately disclosed below.
The following table represents the amortized cost, allowance for credit losses, gross unrealized gains and losses and fair value of our AFS investments by asset type: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | (In millions) | Amortized Cost | | Allowance for Credit Losses | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | AFS securities | | | | | | | | | | | US government and agencies | $ | 24,849 | | | $ | — | | | $ | 27 | | | $ | (1,460) | | | $ | 23,416 | | US state, municipal and political subdivisions | 690 | | | — | | | — | | | (164) | | | 526 | | | Foreign governments | 2,384 | | | — | | | 29 | | | (682) | | | 1,731 | | | Corporate | 101,635 | | | (23) | | | 735 | | | (9,422) | | | 92,925 | | | CLO | 21,061 | | | — | | | 362 | | | (91) | | | 21,332 | | | ABS | 36,714 | | | (185) | | | 484 | | | (477) | | | 36,536 | | | CMBS | 12,620 | | | (78) | | | 57 | | | (315) | | | 12,284 | | | RMBS | 8,490 | | | (417) | | | 217 | | | (277) | | | 8,013 | | | Total AFS securities | 208,443 | | | (703) | | | 1,911 | | | (12,888) | | | 196,763 | | | AFS securities – related parties | | | | | | | | | | | Corporate | 3,583 | | | — | | | 23 | | | (28) | | | 3,578 | | | CLO | 6,702 | | | — | | | 71 | | | (27) | | | 6,746 | | ABS | 23,040 | | | (1) | | | 28 | | | (210) | | | 22,857 | | | CMBS | 111 | | | — | | | — | | | — | | | 111 | | | Total AFS securities – related parties | 33,436 | | | (1) | | | 122 | | | (265) | | | 33,292 | | | Total AFS securities, including related parties | $ | 241,879 | | | $ | (704) | | | $ | 2,033 | | | $ | (13,153) | | | $ | 230,055 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | (In millions) | Amortized Cost | | Allowance for Credit Losses | | Gross Unrealized Gains | | Gross Unrealized Losses | |
Fair Value | | AFS securities | | | | | | | | | | | US government and agencies | $ | 18,008 | | | $ | — | | | $ | 116 | | | $ | (1,226) | | | $ | 16,898 | | | US state, municipal and political subdivisions | 954 | | | — | | | — | | | (195) | | | 759 | | | Foreign governments | 2,225 | | | — | | | 32 | | | (598) | | | 1,659 | | | Corporate | 97,166 | | | (105) | | | 1,291 | | | (8,921) | | | 89,431 | | | CLO | 25,730 | | | — | | | 648 | | | (106) | | | 26,272 | | | ABS | 35,275 | | | (171) | | | 823 | | | (465) | | | 35,462 | | | CMBS | 13,351 | | | (70) | | | 120 | | | (317) | | | 13,084 | | | RMBS | 9,407 | | | (411) | | | 300 | | | (264) | | | 9,032 | | | Total AFS securities | 202,116 | | | (757) | | | 3,330 | | | (12,092) | | | 192,597 | | | AFS securities – related parties | | | | | | | | | | | Corporate | 2,663 | | | — | | | 76 | | | (25) | | | 2,714 | | | CLO | 7,103 | | | — | | | 121 | | | (21) | | | 7,203 | | | ABS | 16,500 | | | (1) | | | 45 | | | (178) | | | 16,366 | | | CMBS | 162 | | | — | | | — | | | (1) | | | 161 | | | Total AFS securities – related parties | 26,428 | | | (1) | | | 242 | | | (225) | | | 26,444 | | | Total AFS securities, including related parties | $ | 228,544 | | | $ | (758) | | | $ | 3,572 | | | $ | (12,317) | | | $ | 219,041 | |
The amortized cost and fair value of AFS securities, including related parties, are shown by contractual maturity below: | | | | | | | | | | | | | June 30, 2026 | | (In millions) | Amortized Cost | | Fair Value | | AFS securities | | | | | Due in one year or less | $ | 2,170 | | | $ | 2,163 | | | Due after one year through five years | 26,658 | | | 26,302 | | | Due after five years through ten years | 26,515 | | | 25,488 | | | Due after ten years | 74,215 | | | 64,645 | | | CLO, ABS, CMBS and RMBS | 78,885 | | | 78,165 | | | Total AFS securities | 208,443 | | | 196,763 | | | AFS securities – related parties | | | | | Due in one year or less | 7 | | | 8 | | | Due after one year through five years | 1,133 | | | 1,149 | | | Due after five years through ten years | 844 | | | 849 | | | Due after ten years | 1,599 | | | 1,572 | | | CLO, ABS and CMBS | 29,853 | | | 29,714 | | | Total AFS securities – related parties | 33,436 | | | 33,292 | | | Total AFS securities, including related parties | $ | 241,879 | | | $ | 230,055 | |
Actual maturities can differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Unrealized Losses on AFS Securities—The following summarizes the fair value and gross unrealized losses for AFS securities, including related parties, for which an allowance for credit losses has not been recorded, aggregated by asset type and length of time the fair value has remained below amortized cost: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | Less than 12 months | | 12 months or more | | Total | | (In millions) | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | | AFS securities | | | | | | | | | | | | US government and agencies | $ | 15,091 | | | $ | (502) | | | $ | 3,440 | | | $ | (957) | | | $ | 18,531 | | | $ | (1,459) | | US state, municipal and political subdivisions | 23 | | | (1) | | | 498 | | | (163) | | | 521 | | | (164) | | | Foreign governments | 237 | | | (9) | | | 1,271 | | | (673) | | | 1,508 | | | (682) | | | Corporate | 26,017 | | | (679) | | | 35,199 | | | (8,693) | | | 61,216 | | | (9,372) | | | CLO | 5,379 | | | (39) | | | 1,395 | | | (44) | | | 6,774 | | | (83) | | | ABS | 11,443 | | | (153) | | | 4,339 | | | (246) | | | 15,782 | | | (399) | | CMBS | 3,383 | | | (26) | | | 1,694 | | | (238) | | | 5,077 | | | (264) | | RMBS | 838 | | | (6) | | | 941 | | | (114) | | | 1,779 | | | (120) | | Total AFS securities | 62,411 | | | (1,415) | | | 48,777 | | | (11,128) | | | 111,188 | | | (12,543) | | | AFS securities – related parties | | | | | | | | | | | | | Corporate | 1,712 | | | (26) | | | 86 | | | (2) | | | 1,798 | | | (28) | | | CLO | 1,590 | | | (16) | | | 64 | | | (3) | | | 1,654 | | | (19) | | ABS | 2,582 | | | (14) | | | 1,931 | | | (179) | | | 4,513 | | | (193) | | CMBS | 15 | | | — | | | 3 | | | — | | | 18 | | | — | | | Total AFS securities – related parties | 5,899 | | | (56) | | | 2,084 | | | (184) | | | 7,983 | | | (240) | | | Total AFS securities, including related parties | $ | 68,310 | | | $ | (1,471) | | | $ | 50,861 | | | $ | (11,312) | | | $ | 119,171 | | | $ | (12,783) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Less than 12 months | | 12 months or more | | Total | | (In millions) | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | | AFS securities | | | | | | | | | | | | | US government and agencies | $ | 5,987 | | | $ | (96) | | | $ | 4,068 | | | $ | (1,130) | | | $ | 10,055 | | | $ | (1,226) | | | US state, municipal and political subdivisions | 37 | | | (1) | | | 707 | | | (194) | | | 744 | | | (195) | | | Foreign governments | 84 | | | (11) | | | 1,326 | | | (587) | | | 1,410 | | | (598) | | | Corporate | 13,107 | | | (284) | | | 38,209 | | | (8,602) | | | 51,316 | | | (8,886) | | | CLO | 11,891 | | | (59) | | | 1,017 | | | (45) | | | 12,908 | | | (104) | | | ABS | 6,355 | | | (165) | | | 4,873 | | | (263) | | | 11,228 | | | (428) | | | CMBS | 1,663 | | | (20) | | | 1,446 | | | (190) | | | 3,109 | | | (210) | | | RMBS | 217 | | | (2) | | | 839 | | | (90) | | | 1,056 | | | (92) | | | Total AFS securities | 39,341 | | | (638) | | | 52,485 | | | (11,101) | | | 91,826 | | | (11,739) | | | AFS securities – related parties | | | | | | | | | | | | | Corporate | 390 | | | (2) | | | 377 | | | (12) | | | 767 | | | (14) | | | CLO | 4,215 | | | (19) | | | 95 | | | (2) | | | 4,310 | | | (21) | | | ABS | 2,069 | | | (6) | | | 3,076 | | | (162) | | | 5,145 | | | (168) | | | CMBS | 70 | | | (1) | | | 5 | | | — | | | 75 | | | (1) | | | Total AFS securities – related parties | 6,744 | | | (28) | | | 3,553 | | | (176) | | | 10,297 | | | (204) | | | Total AFS securities, including related parties | $ | 46,085 | | | $ | (666) | | | $ | 56,038 | | | $ | (11,277) | | | $ | 102,123 | | | $ | (11,943) | |
The following summarizes the number of AFS securities that were in an unrealized loss position, including related parties, for which an allowance for credit losses has not been recorded: | | | | | | | | | | | | | June 30, 2026 | | Unrealized loss position | | Unrealized loss position 12 months or more | | AFS securities | 6,551 | | | 4,820 | | | AFS securities – related parties | 178 | | | 66 | |
The unrealized losses on AFS securities can primarily be attributed to changes in market interest rates since acquisition of the securities or the application of pushdown accounting associated with our historical merger with Apollo. We did not recognize the unrealized losses in income, unless as required for hedge accounting, as we intend to hold these securities and it is not more likely than not we will be required to sell a security before the recovery of its amortized cost. Allowance for Credit Losses—The following table summarizes the activity in the allowance for credit losses for AFS securities by asset type:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 2026 | | | | Additions | | Reductions | | | | | | (In millions) | Beginning balance | | Initial credit losses | | | | Securities sold during the period | | | | | | | | | | Additions (reductions) to previously impaired securities | | Ending balance | | AFS securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate | $ | 56 | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | (33) | | | $ | 23 | | | | | | | | | | | | | | | | | | | | | | | ABS | 179 | | | — | | | | | — | | | | | | | | | | | 6 | | | 185 | | | CMBS | 91 | | | — | | | | | (24) | | | | | | | | | | | 11 | | | 78 | | | RMBS | 417 | | | 1 | | | | | (4) | | | | | | | | | | | 3 | | | 417 | | | Total AFS securities | 743 | | | 1 | | | | | (28) | | | | | | | | | | | (13) | | | 703 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | AFS securities – related parties, ABS | 1 | | | — | | | | | — | | | | | | | | | | | — | | | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total AFS securities, including related parties | $ | 744 | | | $ | 1 | | | | | $ | (28) | | | | | | | | | | | $ | (13) | | | $ | 704 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 2025 | | | | Additions | | Reductions | | | | | | (In millions) | Beginning balance | | Initial credit losses | | | | Securities sold during the period | | | | Additions (reductions) to previously impaired securities | | Ending balance | | AFS securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate | $ | 174 | | | $ | — | | | | | $ | — | | | | | $ | — | | | $ | 174 | | | | | | | | | | | | | | | | | ABS | 82 | | | 39 | | | | | (2) | | | | | 11 | | | 130 | | | CMBS | 60 | | | — | | | | | — | | | | | 2 | | | 62 | | | RMBS | 392 | | | 3 | | | | | (3) | | | | | 2 | | | 394 | | | Total AFS securities | 708 | | | 42 | | | | | (5) | | | | | 15 | | | 760 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | AFS securities – related parties, ABS | 1 | | | — | | | | | — | | | | | — | | | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total AFS securities, including related parties | $ | 709 | | | $ | 42 | | | | | $ | (5) | | | | | $ | 15 | | | $ | 761 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six months ended June 30, 2026 | | | | Additions | | Reductions | | | | | | (In millions) | Beginning balance | | Initial credit losses | | | | Securities sold during the period | | | | | | | | | | Additions (reductions) to previously impaired securities | | Ending balance | | AFS securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate | $ | 105 | | | $ | — | | | | | $ | (49) | | | | | | | | | | | $ | (33) | | | $ | 23 | | | | | | | | | | | | | | | | | | | | | | | ABS | 171 | | | — | | | | | — | | | | | | | | | | | 14 | | | 185 | | | CMBS | 70 | | | — | | | | | (24) | | | | | | | | | | | 32 | | | 78 | | | RMBS | 411 | | | 2 | | | | | (18) | | | | | | | | | | | 22 | | | 417 | | | Total AFS securities | 757 | | | 2 | | | | | (91) | | | | | | | | | | | 35 | | | 703 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | AFS securities – related parties, ABS | 1 | | | — | | | | | — | | | | | | | | | | | — | | | 1 | | | | | | | | | | | | | | | | | | | | | | | Total AFS securities, including related parties | $ | 758 | | | $ | 2 | | | | | $ | (91) | | | | | | | | | | | $ | 35 | | | $ | 704 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six months ended June 30, 2025 | | | | Additions | | Reductions | | | | | | (In millions) | Beginning balance | | Initial credit losses | | | | Securities sold during the period | | | | Additions (reductions) to previously impaired securities | | Ending balance | | AFS securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate | $ | 175 | | | $ | — | | | | | $ | — | | | | | $ | (1) | | | $ | 174 | | | | | | | | | | | | | | | | | ABS | 76 | | | 40 | | | | | (3) | | | | | 17 | | | 130 | | | CMBS | 60 | | | — | | | | | — | | | | | 2 | | | 62 | | | RMBS | 397 | | | 5 | | | | | (10) | | | | | 2 | | | 394 | | | Total AFS securities | 708 | | | 45 | | | | | (13) | | | | | 20 | | | 760 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | AFS securities – related parties, ABS | 1 | | | — | | | | | — | | | | | — | | | 1 | | | | | | | | | | | | | | | | | Total AFS securities, including related parties | $ | 709 | | | $ | 45 | | | | | $ | (13) | | | | | $ | 20 | | | $ | 761 | |
Net Investment Income—Net investment income by asset class consists of the following: | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30, | | (In millions) | 2026 | | 2025 | | 2026 | | 2025 | | AFS securities | $ | 3,135 | | | $ | 2,884 | | | $ | 6,200 | | | $ | 5,555 | | | Trading securities | 142 | | | 66 | | | 264 | | | 108 | | | Equity securities | 12 | | | 29 | | | 28 | | | 44 | | | Mortgage loans | 1,588 | | | 1,262 | | | 3,132 | | | 2,385 | | | Investment funds | 16 | | | 129 | | | 12 | | | 169 | | | Funds withheld at interest | 222 | | | 244 | | | 437 | | | 509 | | | Other | 316 | | | 229 | | | 564 | | | 461 | | | Investment revenue | 5,431 | | | 4,843 | | | 10,637 | | | 9,231 | | | Investment expenses | (443) | | | (414) | | | (880) | | | (811) | | | Net investment income | $ | 4,988 | | | $ | 4,429 | | | $ | 9,757 | | | $ | 8,420 | |
Investment Related Gains (Losses)—Investment related gains (losses) by asset class consists of the following: | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30, | | (In millions) | 2026 | | 2025 | | 2026 | | 2025 | AFS securities1 | | | | | | | | | Gross realized gains on investment activity | $ | 745 | | | $ | 1,522 | | | $ | 867 | | | $ | 2,233 | | | Gross realized losses on investment activity | (422) | | | (143) | | | (1,060) | | | (378) | | | Net realized investment gains (losses) on AFS securities | 323 | | | 1,379 | | | (193) | | | 1,855 | | | Net recognized investment gains (losses) on trading securities | 64 | | | 261 | | | (181) | | | 341 | | | Net recognized investment gains (losses) on equity securities | 1 | | | 36 | | | (30) | | | 51 | | | Net recognized investment gains (losses) on mortgage loans | (588) | | | 785 | | | (1,344) | | | 1,799 | | | Net derivative gains (losses) | 2,633 | | | (1,075) | | | 1,692 | | | (2,587) | | | Provision for credit losses | (15) | | | (56) | | | (13) | | | (64) | | | Other gains (losses), net | 571 | | | (1,335) | | | 980 | | | (2,228) | | | Investment related gains (losses) | $ | 2,989 | | | $ | (5) | | | $ | 911 | | | $ | (833) | | | | | | | | | | 1 Includes the effects of recognized gains or losses on AFS securities associated with designated hedges. | | | | |
Proceeds from sales of AFS securities were $10,694 million and $5,865 million for the three months ended June 30, 2026 and 2025, respectively, and $18,462 million and $14,810 million for the six months ended June 30, 2026 and 2025, respectively.
The following table summarizes the change in unrealized gains (losses) on trading and equity securities we held as of the respective period end: | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30, | | (In millions) | 2026 | | 2025 | | 2026 | | 2025 | | Trading securities | $ | 87 | | | $ | 118 | | | $ | (127) | | | $ | 140 | | | Equity securities | 1 | | | 27 | | | (6) | | | 39 | |
Repurchase Agreements—The following table summarizes the remaining contractual maturities of our repurchase agreements:
| | | | | | | | | | | | | | | | | (In millions) | June 30, 2026 | | December 31, 2025 | | | | | | | | | | | | | | Less than 30 days | $ | — | | | $ | 2,796 | | | | | | | | | | | | | | | 91 days to 1 year | 1,269 | | | — | | | | | | | Greater than 1 year | 1,975 | | | 3,247 | | | | | | | Payables for repurchase agreements | $ | 3,244 | | | $ | 6,043 | | | | | |
The following table summarizes the securities pledged as collateral for repurchase agreements: | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | (In millions) | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | | AFS securities | | | | | | | | | US government and agencies | $ | — | | | $ | — | | | $ | 2,780 | | | $ | 2,787 | | | | | | | | | | | Foreign governments | 259 | | | 190 | | | 241 | | | 185 | | | Corporate | 2,102 | | | 1,813 | | | 2,022 | | | 1,785 | | | CLO | 594 | | | 590 | | | 611 | | | 608 | | | ABS | 524 | | | 505 | | | 584 | | | 568 | | | CMBS | 231 | | | 231 | | | 197 | | | 198 | | | RMBS | 87 | | | 88 | | | 93 | | | 94 | | | | | | | | | | | Total securities pledged under repurchase agreements | $ | 3,797 | | | $ | 3,417 | | | $ | 6,528 | | | $ | 6,225 | |
As of December 31, 2025, $907 million of repurchase agreements were presented net of reverse repurchase agreements on the condensed consolidated balance sheets, and the agreements were net settled during the first quarter of 2026.
Reverse Repurchase Agreements—As of June 30, 2026 and December 31, 2025, amounts loaned under reverse repurchase agreements were $142 million and $1,067 million, respectively, and the fair value of the collateral was $787 million of asset-backed securities and $1,822 million of asset-backed securities and short-term investments, respectively.
Mortgage Loans, including related parties and consolidated VIEs—Mortgage loans include both commercial and residential loans. We have elected the fair value option on our mortgage loan portfolio. See Note 5 – Fair Value for further fair value option information. The following represents the mortgage loan portfolio, with fair value option loans presented at unpaid principal balance:
| | | | | | | | | | | | | (In millions) | June 30, 2026 | | December 31, 2025 | | Commercial mortgage loans | $ | 48,372 | | | $ | 38,869 | | | Commercial mortgage loans under development | 1,802 | | | 1,787 | | | Total commercial mortgage loans | 50,174 | | | 40,656 | | | Mark to fair value | (1,883) | | | (1,585) | | | Commercial mortgage loans | 48,291 | | | 39,071 | | | Residential mortgage loans | 55,030 | | | 55,613 | | | Mark to fair value | 260 | | | 860 | | | Residential mortgage loans | 55,290 | | | 56,473 | | | Mortgage loans | $ | 103,581 | | | $ | 95,544 | |
We invest in commercial mortgage loans, primarily on income-producing properties including apartments, industrial properties, office buildings, hotels and retail buildings. We diversify the commercial mortgage loan portfolio by geographic region and property type to reduce concentration risk. We evaluate mortgage loans based on relevant current information to confirm whether properties are performing at a consistent and acceptable level to secure the related debt. The distribution of commercial mortgage loans, including those under development, by property type and geographic region, is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | (In millions, except percentages) | Fair Value | | Percentage of Total | | Fair Value | | Percentage of Total | | Property type | | | | | | | | | Apartment | $ | 15,640 | | | 32.4 | % | | $ | 15,458 | | | 39.5 | % | | Industrial | 10,467 | | | 21.6 | % | | 8,778 | | | 22.5 | % | | Office building | 6,367 | | | 13.2 | % | | 4,530 | | | 11.6 | % | | Hotels | 5,072 | | | 10.5 | % | | 2,773 | | | 7.1 | % | | Retail | 2,591 | | | 5.4 | % | | 2,061 | | | 5.3 | % | | Other commercial | 8,154 | | | 16.9 | % | | 5,471 | | | 14.0 | % | | Total commercial mortgage loans | $ | 48,291 | | | 100.0 | % | | $ | 39,071 | | | 100.0 | % | | | | | | | | | | US region | | | | | | | | | East North Central | $ | 2,451 | | | 5.1 | % | | $ | 1,883 | | | 4.8 | % | | East South Central | 381 | | | 0.8 | % | | 447 | | | 1.1 | % | | Middle Atlantic | 10,747 | | | 22.3 | % | | 9,323 | | | 23.9 | % | | Mountain | 1,877 | | | 3.9 | % | | 1,605 | | | 4.1 | % | | New England | 1,184 | | | 2.5 | % | | 1,088 | | | 2.8 | % | | Pacific | 6,143 | | | 12.7 | % | | 6,021 | | | 15.4 | % | | South Atlantic | 8,404 | | | 17.4 | % | | 6,919 | | | 17.7 | % | | West North Central | 787 | | | 1.6 | % | | 842 | | | 2.2 | % | | West South Central | 4,128 | | | 8.5 | % | | 3,175 | | | 8.1 | % | | Total US region | 36,102 | | | 74.8 | % | | 31,303 | | | 80.1 | % | | International region | | | | | | | | | United Kingdom | 5,336 | | | 11.0 | % | | 3,085 | | | 7.9 | % | Other international1 | 6,853 | | | 14.2 | % | | 4,683 | | | 12.0 | % | | Total international region | 12,189 | | | 25.2 | % | | 7,768 | | | 19.9 | % | | Total commercial mortgage loans | $ | 48,291 | | | 100.0 | % | | $ | 39,071 | | | 100.0 | % | | | | | | | | | 1 Represents all other countries, with each individual country comprising less than 5% of the portfolio. |
Our residential mortgage loan portfolio primarily consists of first lien residential mortgage loans collateralized by properties in various geographic locations and is summarized by proportion of the portfolio in the following table: | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | US States | | | | | California | 22.8 | % | | 23.0 | % | | Texas | 15.6 | % | | 15.2 | % | | Florida | 10.5 | % | | 10.6 | % | | | | | Other1 | 42.5 | % | | 42.5 | % | | Total US residential mortgage loan percentage | 91.4 | % | | 91.3 | % | | | | | | | | | | | | | International1 | 8.6 | % | | 8.7 | % | | | | | | Total residential mortgage loan percentage | 100.0 | % | | 100.0 | % | | | | | 1 Represents all other states or countries, with each individual state or country comprising less than 5% of the portfolio. |
Investment Funds—Our investment fund portfolio strategy primarily focuses on core holdings of origination and retirement services platforms, equity and credit, and other funds. Origination platforms include investments sourced by affiliated platforms that originate loans to third parties and in which we gain exposure directly to the loan or indirectly through our ownership of the origination platform and/or securitizations of assets originated by the origination platform. Retirement services platforms include investments in equity of financial services companies. Our credit strategy comprises direct origination, asset-backed, multi-credit and opportunistic credit funds focused on generating excess returns through high-quality credit underwriting and origination. Our equity strategy comprises private equity, hybrid value, secondaries equity, real estate equity, infrastructure and clean transition equity funds that raise capital from investors to pursue control-oriented investments across the universe of private assets. Our investment funds can meet the definition of a VIE, which are discussed further in Note 4 – Variable Interest Entities. Our investment funds do not specify timing of distributions on the funds’ underlying assets. The following summarizes our investment funds, including related parties and consolidated VIEs: | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | (In millions, except percentages) | Carrying value | | Percentage of total | | Carrying value | | Percentage of total | | Investment funds | | | | | | | | | Equity | $ | 276 | | | 0.9 | % | | $ | 108 | | | 0.4 | % | | | | | | | | | | | | | | | | | | | | | | | | | Investment funds – related parties | | | | | | | | | Origination platforms | 37 | | | 0.1 | % | | 33 | | | 0.1 | % | | Retirement services platforms | 2,533 | | | 8.4 | % | | 1,538 | | | 5.9 | % | | Equity | 238 | | | 0.8 | % | | 260 | | | 1.0 | % | | Credit | 346 | | | 1.1 | % | | 313 | | | 1.2 | % | | Other | 89 | | | 0.3 | % | | 5 | | | — | % | | Total investment funds – related parties | 3,243 | | | 10.7 | % | | 2,149 | | | 8.2 | % | | Investment funds – consolidated VIEs | | | | | | | | | Origination platforms | 9,868 | | | 32.5 | % | | 9,067 | | | 34.4 | % | | | | | | | | | | Equity | 11,164 | | | 36.9 | % | | 9,735 | | | 37.0 | % | | Credit | 3,526 | | | 11.6 | % | | 3,682 | | | 14.0 | % | | Other | 2,240 | | | 7.4 | % | | 1,586 | | | 6.0 | % | | Total investment funds – consolidated VIEs | 26,798 | | | 88.4 | % | | 24,070 | | | 91.4 | % | | Total investment funds, including related parties and consolidated VIEs | $ | 30,317 | | | 100.0 | % | | $ | 26,327 | | | 100.0 | % |
Non-Consolidated Securities and Investment Funds
Fixed maturity securities – We invest in securitization entities as a debt holder or an investor in the residual interest of the securitization vehicle. These entities are deemed VIEs due to insufficient equity within the structure and lack of control by the equity investors over the activities that significantly impact the economics of the entity. In general, we are a debt investor within these entities and, as such, hold a variable interest; however, due to the debt holders’ lack of ability to control the decisions within the structure that significantly impact the entity, and the fact the debt holders are protected from losses due to the subordination of the equity tranche, the debt holders are not deemed the primary beneficiary. Securitization vehicles in which we hold the residual tranche are not consolidated because we do not unilaterally have substantive rights to remove the general partner, or when assessing related party interests, we are not under common control, as defined by US GAAP, with the related parties, nor are substantially all of the activities conducted on our behalf; therefore, we are not deemed the primary beneficiary. Debt investments and investments in the residual tranche of securitization entities are considered debt instruments and are held at fair value and classified as AFS or trading securities on the condensed consolidated balance sheets.
Investment funds – Investment funds include non-fixed income, alternative investments in the form of limited partnerships or similar legal structures.
Equity securities – We invest in preferred equity securities issued by entities deemed to be VIEs due to insufficient equity within the structure.
Our risk of loss associated with our non-consolidated investments depends on the investment. Investment funds, equity securities and trading securities are limited to the carrying value plus unfunded commitments. AFS securities are limited to amortized cost plus unfunded commitments.
The following summarizes the carrying value and maximum loss exposure of these non-consolidated investments: | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | (In millions) | Carrying Value | | Maximum Loss Exposure | | Carrying Value | | Maximum Loss Exposure | | Investment funds | $ | 276 | | | $ | 596 | | | $ | 108 | | | $ | 458 | | | Investment in related parties – investment funds | 3,243 | | | 4,463 | | | 2,149 | | | 5,859 | | | Assets of consolidated VIEs – investment funds | 26,798 | | | 31,300 | | | 24,070 | | | 29,991 | | | Investment in fixed maturity securities | 78,757 | | | 80,860 | | | 84,397 | | | 87,995 | | | Investment in related parties – fixed maturity securities | 30,047 | | | 30,914 | | | 24,184 | | | 26,717 | | | Investment in related parties – equity securities | — | | | — | | | 266 | | | 266 | | | Total non-consolidated investments | $ | 139,121 | | | $ | 148,133 | | | $ | 135,174 | | | $ | 151,286 | |
Concentrations—The following table represents our investment concentrations in excess of 10% of AHL stockholders’ equity:
| | | | | | | (In millions) | June 30, 2026 | Investments in Athora Holding Ltd.1 | $ | 3,191 | | | Investment-grade ABS debt issued by Fox Hedge L.P. | 3,150 | | Investment-grade ABS debt issued by Apollo Multi-Asset Prime Securities (AMAPS) 2, LLC1 | 3,000 | | Investment-grade ABS debt issued by AMAPS 3, LLC1 | 2,995 | | | Investment-grade ABS debt issued by AP Alkaios (Luxembourg) S.à.r.l. | 2,775 | | Investment-grade ABS debt issued by AMAPS 4, LLC1 | 2,571 | | Investment-grade ABS debt issued by AMAPS 1, LLC1 | 2,544 | | Investment-grade ABS debt issued by AMAPS 5, LLC1 | 2,405 | | | Investment-grade ABS debt issued by SVF II Finco Cayman L.P. | 2,064 | | Investments in Atlas Securitized Products Holdings L.P. (Atlas)1 | 1,974 | | | Investment in Atlas Secured Advance Funding L.P. | 1,973 | | | Investment-grade corporate debt issued by Électricité de France SA | 1,955 | | | | | | | December 31, 2025 | Investment-grade ABS debt issued by AP Grange Holdings, LLC (AP Grange)2 | $ | 5,080 | | Investments in Atlas1 | 3,304 | | | Investment-grade ABS debt issued by Fox Hedge L.P. | 3,171 | | Investment-grade ABS debt issued by AMAPS 2, LLC1 | 3,000 | | | Investment-grade ABS debt issued by AP Alkaios (Luxembourg) S.à.r.l. | 2,791 | | Investment-grade ABS debt issued by AMAPS 1, LLC1 | 2,550 | | | Investment-grade ABS debt issued by SVF II Finco Cayman L.P. | 2,186 | | | Investment-grade corporate debt issued by Électricité de France SA | 2,068 | | | | 1 Amounts are representative of single issuer risk and may only include a portion of the total investments associated with a related party. For Atlas and Athora Holding Ltd. (together with its subsidiaries, Athora), see Note 11 – Related Parties for additional information. | 2 During the second quarter of 2026, AP Grange called the ABS debt outstanding and, as a result, we recognized a gain of $673 million. | | |
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