Brookfield Asset Management Reinsurance Partners (Brookfield Reinsurance) has revealed its financial results for the third quarter of 2021.
During the quarter, the company entered into an agreement to reinsure US$1.6 billion of deferred annuities. The transaction closed on September 03, 2021, and Brookfield Reinsurance has been focused on reposition the portfolio into its “higher-yielding investment strategies.”
Brookfield Reinsurance’s Canadian pension risk transfer business successfully closed on 11 transactions during the quarter, capturing more than 20% of the Canadian market. As of September 30, 2021, the company had over 9,000 in-pay PRT annuitants – this represents a 35% year-over-year increase.
The company noted that subsequent to quarter end, it had entered into an additional two pension risk transfer transactions, reaching year to date sales of more than CA$1 billion.
Brookfield Reinsurance has approximately US$900 million of available corporate liquidity following the close of its reinsurance transaction with American Equity Investment Life Insurance Company, it said in a release. It added that it would use this liquidity to fund investments and working capital needs, which includes US$350 million of undrawn credit facilities.
The firm posted $3 million and $9 million of funds from operations for Q3 2021 and for the nine months ended September 30, 2021, respectively. Brookfield Reinsurance also said that it saw a net loss of $6 million and $1 million for the three and nine months ended September 30, 2021, respectively. This was driven primarily by non-cash adjustments to the value of its investments and losses.
“We continue to make significant progress in advancing our priorities with a focus on executing our previously announced transactions. Since we last reported, we have closed on a number of reinsurance and pension risk transfer opportunities, increasing our assets under management to $8 billion,” said Brookfield Reinsurance CEO Sachin Shah. “Through our strategic partnership with Brookfield, we have successfully redeployed a significant portion of these assets into proprietary alternative credit strategies.”
In addition to revealing its financial results, Brookfield Reinsurance also announced that it has made several new appointments to its board of directors – selecting Lars Rodert, Dr. Soon Young Chang, Barry Blattman and Jay Wintrob.
Rodert is the founder and CEO of ÖstVäst Capital Management. He has held a number of senior roles across the investment management industry, such as serving as global investment manager for IKEA Treasury.
Chang serves as the senior advisor to the Investment Corporation of Dubai, and has lent his expertise to the investment arm of the Dubai Government.
Blattman is vice chair of Brookfield Asset Management, focusing on senior, strategic client and business relationships.
Wintrob is the CEO of Oaktree Capital Management, and, prior to joining Oaktree, served as the president and CEO of AIG Life and Retirement.
“We are thrilled to welcome the new directors to the board of Brookfield Reinsurance,” commented Shah. “As accomplished business leaders with decades of experience across the insurance, credit, and investment management industries, we look forward to the vast knowledge and significant experience that they will bring to Brookfield Reinsurance’s board of directors.”
