Brookfield Reinsurance Reports Year-End 2023 Results | Insurance business America
Reinsurer also confirms quarterly distribution increase
reinsurance
By Kenneth Araullo
Brookfield Reinsurance has reported its financial results for the quarter and fiscal year ended December 31, 2023.
Key achievements for 2023 included generating $8 billion in pension revenue, with significant contributions from the retail pension platform, flow reinsurance premiums and pension risk transfer (PRT) premiums on the North American PRT platform.
The acquisition of Argo Group for approximately $1.1 billion also marked a significant expansion of Brookfield’s U.S. property and casualty (P&C) insurance business. Additionally, the pending acquisition of American Equity Life is expected to expand the company’s portfolio of insurance assets by over $50 billion.
The investment strategies used during the year achieved returns of over 9%, increasing the gross return across the portfolio to 5.6%. The Company also experienced a significant increase in its equity base and market capitalization, achieved through a successful public exchange offer that did not dilute the shares of Brookfield Corporation or Brookfield Reinsurance.
Brookfield Reinsurance financial results
Financial performance for the year showed distributable operating income (DOE) of $745 million, an increase from $388 million a year earlier, driven by increased net investment income and the impact of the new annuity business. Net income also saw growth, reaching $797 million for the year compared to $501 million a year ago, supported by DOE contributions and favorable market movements.
Brookfield Reinsurance also reported a strong liquidity position with approximately $27 billion available in corporate and subsidiary investment portfolios. The pending acquisition of American Equity Life is expected to further increase liquidity and support the transition to higher-yield investment strategies.
In a strategic move to strengthen its balance sheet and market presence, Brookfield Reinsurance also completed a successful exchange offer in November 2023, significantly increasing its listed share base. This initiative strengthened the company’s equity base and market capitalization.
The Board of Directors has declared a quarterly distribution of $0.08 per share across classes, consistent with Brookfield Corporation’s distribution schedule and level. This distribution is scheduled for March 28, 2024 to shareholders of record as of March 13, 2024.
“Our strong 2023 results reflect the continued growth of our fixed income sales platform, our expanded lending capabilities and the repositioning of recently acquired assets that have contributed to higher investment returns. As we enter 2024, we remain focused on scaling our business in a disciplined manner, focusing on our competitive advantages to grow our core businesses and deliver strong risk-adjusted returns,” said Sachin Shah, CEO of Brookfield Reinsurance.
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2024-02-09 14:28:21
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