Brookfield Reinsurance presents annual report | Insurance business America
Further details on a major acquisition have been announced
reinsurance
By Kenneth Araullo
Brookfield Reinsurance has filed its 2023 Annual Report, which includes audited financial statements for the year ended December 31, 2023.
The report was filed on Form 20-F with the US Securities and Exchange Commission (SEC) on EDGAR and with Canadian securities regulators on SEDAR.
Brookfield’s acquisition of Argo – in detail
According to the annual report, Brookfield Reinsurance acquired 100% of the issued and outstanding shares of Argo Group International through the acquisition. This all-cash transaction was for $30 per share, valuing the acquisition at $1.1 billion.
Following the Transaction, Argo Group was converted into a U.S. corporation on November 30, 2023 and renamed Argo Group International Holdings, Inc. (“Argo”). Argo specializes in underwriting specialty insurance products in the property and casualty market.
Following completion of the acquisition, Brookfield Reinsurance assumed all of Argo’s assets and liabilities as of the closing date and has since consolidated the acquired company for financial reporting purposes. From November 16 to December 31, 2023, Argo contributed $191 million in revenue and $1 million in net income to Brookfield Reinsurance.
Consolidated annual results
The 2023 annual report also revealed the reinsurer’s consolidated financial results, showing an increase in net premiums from $3.011 billion in 2022 to $4.137 billion in 2023, a significant increase from the $1.016 billion in the year 2021 represents.
Additional revenue sources also saw a significant increase: Other policy revenue increased to $413 million in 2023, up from $224 million in the previous year. The company’s net investment income nearly doubled, reaching $1.809 billion in 2023 compared to $978 million in 2022, a dramatic jump from $76 million in 2021.
Additionally, investment-related gains reversed from a loss of $185 million in 2022 to a profit of $534 million in 2023, indicating a positive shift in investment results.
Total revenue for the year was $7.020 billion, up significantly from $4.309 billion in 2022 and $1.041 billion in 2021.
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2024-03-28 15:39:15
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