Brookfield Reinsurance has outlined its financial results for the quarter and fiscal year ending December 31, 2023.
Key achievements for 2023 included generating $8 billion in annuity sales, with significant contributions from the retail annuity 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 US property and casualty (P&C) operations. Additionally, the impending acquisition of American Equity Life is expected to add over $50 billion in insurance assets to the company’s portfolio.
Investment strategies deployed throughout the year yielded returns above 9%, enhancing the gross yield across the portfolio to 5.6%. The company also noted a substantial increase in its equity base and market capitalization, achieved through a successful public exchange offer that did not dilute the holdings of Brookfield Corporation or Brookfield Reinsurance.
Financial performance for the year showed distributable operating earnings (DOE) of $745 million, up from $388 million in the previous year, driven by increased net investment income and the impact of new annuity business. Net income also saw growth, with figures reaching $797 million for the year, compared to $501 million in the prior year, bolstered by DOE contributions and favorable market movements.
Brookfield Reinsurance also reported a strong liquidity position, with approximately $27 billion available across corporate and subsidiary investment portfolios. The forthcoming acquisition of American Equity Life is expected to further enhance liquidity, supporting the transition to higher-yielding investment strategies.
In a strategic move to bolster its balance sheet and market presence, Brookfield Reinsurance also completed a successful exchange offer in November 2023, increasing its publicly traded share base significantly. This initiative enhanced the company’s equity base and market capitalization.
The board has declared a quarterly distribution of $0.08 per share across various classes, aligning with the distribution schedule and amount of Brookfield Corporation. This distribution is slated for March 28, 2024, to shareholders on record as of March 13, 2024.
“Our strong results for 2023 reflect the continued growth of our annuity sales platform, our broadening credit origination capabilities, and the repositioning of recently acquired assets that have contributed to increased investment returns. As we enter 2024, we continue to focus on scaling our business in a disciplined manner, focusing on our competitive advantages to grow our core business lines and delivering strong risk-adjusted returns,” Brookfield Reinsurance CEO Sachin Shah said.
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