Brookfield Wealth Solutions reported its financial results for the quarter ending Sept. 30, highlighting significant developments in its re/insurance, investment, and annuity businesses.
The company announced its first UK reinsurance transaction, covering £1.08 billion (US$1.4 billion) in pension liabilities through its subsidiary, American National Insurance Company. The transaction is expected to close in the coming weeks, pending customary regulatory approvals.
During the quarter, Brookfield originated approximately US$4 billion in proprietary investment strategies, achieving returns exceeding 8%. The company also generated US$4 billion in annuity sales, bringing the year-to-date total to US$12 billion. Additionally, it reinsured a portion of its life insurance business, a move aimed at locking in returns and releasing capital to support growth.
Brookfield recorded distributable operating earnings (DOE) of US$370 million for the quarter and US$947 million for the first nine months of 2024, up from US$182 million and US$487 million in the same periods of 2023.
The increase was attributed to recent acquisitions, including the first full quarter of ownership of American Equity Investment Life (AEL), strong annuity sales, and improved spread earnings driven by higher net investment income from repositioned assets.
Net income for the quarter was US$65 million, with US$671 million reported for the nine-month period, compared to US$77 million and US$344 million, respectively, in the prior year. The current period results were supported by strong operational performance and contributions from DOE, as well as unrealized gains on equity securities.
These gains were partially offset by adverse reserve movements linked to interest rate and equity market volatility.
The company reported a robust liquidity position, with US$31 billion in cash and short-term liquid investments, alongside US$21 billion in long-term liquid assets. These funds will support the ongoing rotation of Brookfield’s investment portfolio into higher-yielding strategies while maintaining sufficient coverage for liabilities in potential market stress scenarios.
Brookfield's board declared a quarterly return of capital of US$0.08 per class A and class B share. The payment will be made on Dec. 31 to shareholders of record as of 16 December 2024. This distribution mirrors that declared by Brookfield Corporation for its class A shares.
Sachin Shah (pictured above), CEO, stated that the company achieved US$5 billion in investment redeployment during the quarter at risk-adjusted yields, underscoring its investment capabilities.
“Our investment capabilities combined with our strong retail annuities platform position us well for future growth,” Shah said.
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