KKR, Brookfield Asset Management report third-quarter earnings

Both KKR and Brookfield Asset Management reported some third-quarter earnings Friday as the firms continue to incorporate strong annuity sales into powerful growth engines.

Investment firm KKR owns Global Atlantic and serves as asset manager for its capital. The 13^th-ranked annuity seller in the most-recent LIMRA data, GA represents one-third of KKR assets and enjoyed a 28% rise in third-quarter operating earnings.

American Equity Investment Life Holding Co. is 20^th in the LIMRA rankings and a subsidiary of BAM.

'An all-time high'

Brookfield set quarterly records in both capital raising of $30 billion and deployment of $23 billion, “driving earnings to an all-time high for our business.” Said Connor Teskey, president of Brookfield Asset Management.

Like their competitors in the asset management space, both KKR and Brookfield are on the hunt for investment opportunities.

Last month, Brookfield announced a deal to acquire the roughly 26% of Oaktree Capital Management that it does not already own. When the transaction closes, expected to be early 2026, Brookfield will own 100% of Oaktree, a global investment manager with over $218 billion in assets under management as of Sept. 30.

BAM reported Q3 earnings of $724 million, or $0.44 per share, up from $544 million or $0.34 per share in the year-ago quarter. Revenue grew to $1.25 billion from $1.11 billion of the previous year.

Fee-related earnings rose 17 percent to $754 million, up from $644 million in Q3 2024.

BAM announced several other recent moves during its Q3 news release:

Angel Oak: In October, BAM completed its acquisition of a majority interest in Angel Oak, a leading asset manager focused on specialty mortgage and consumer credit solutions with $11 billion of fee-bearing capital.

Just Group: In September, Just Group shareholders approved Brookfield Wealth Solution’s acquisition offer. This previously announced acquisition will add about $36 billion of assets to the BWS investment portfolio.

BAM is not contributing capital to the transaction or taking on insurance liabilities, but will become the investment manager for a significant portion of this portfolio. The transaction is expected to close in the first half of 2026.

U.S. Government: In October, BAM announced a strategic partnership with the U.S. Government to accelerate the deployment of nuclear power. The government is investing $80 billion to develop new nuclear power plants across the U.S. utilizing Westinghouse technology.

“This partnership will help unlock the potential that Westinghouse and nuclear energy can play to accelerate the growth of artificial intelligence, while meeting growing electricity demand and energy security needs at scale,” the BAM release said.

KKR beats expectations

KKR reported strong Q3 fundraising, specifically in credit and its insurance unit. Adjusted net income of $1.27 billion, or $1.41 per share, handily beat Wall Street expectations for $1.17 billion, or $1.30 per share, Reuters reported.

Total assets under management of $723 billion rose 16% year-over-year, with $43 billion of organic new capital raised in the quarter and $128 billion in the last 12 months, KKR said.

"Perpetual capital" of $309 billion, was up 19% year-over-year, driven primarily by the organic growth of Global Atlantic and from other inflows. "Dry powder," or capital ready to invest, totaled $126 billion and remains "diversified across the firm’s investment strategies," KKR reported.

KKR’s Global Atlantic segment reported operating earnings of $305 million in the quarter, including a $41 million benefit primarily related to the insurer’s annual actuarial assumption review. In the year-ago quarter, GA’s operating earnings of $239 million included a charge of about $20 million due largely to the actuarial review, the firm said.

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This report compiled by InsuranceNewsNet staff.