Brookfield Re net income drops in second quarter
Bermuda-based Brookfield Re - which will soon change its name to Brookfield Wealth Solutions - said net income for the second quarter dropped 25% to $269 million.
The re/insurer, which owns life and annuity insurers and property casualty re/insurer Argo, attributed the drop in profit to transaction costs related to the closing of the purchase of American Equity Life and a rise in unrealised investment gains in the same period in 2023.
The company also said it recognised distributable operating earnings of $298 million compared to $160 million in the second quarter of 2023.
"The increase in earnings for the current period reflect contributions from our recent acquisitions, notably two months of ownership of AEL And a full period of Argo Group, which closed in late 2023," management said.
The company, led by chief executive officer Sachin Shah and part of global investment giant Brookfield, said the results reflected strong annuity earnings and other premium growth and higher net investment income due to repositioning of assets into higher yielding investment strategies.
"Today, we are in a strong liquidity position across the portfolio, with over $25 billion of cash and short-term liquid investments across our investment portfolios and another $22 billion of long-term liquid investments.
"These liquid assets will facilitate the ongoing rotation of our investment portfolio inti higher yielding strategies while also continuing to ensure we have sufficient liquidity coverage for our liabilities in the case of any stress events across the broader market."
The company also said it expects to change its name to Brookfield Wealth Solutions on September 6.
Net premiums and other policy revenue rose to $1.7 billion from $1.2 billion in the same period in 2023 while net investment income more than doubled to $1.16 billion from $517 million, while net investment gains dropped to $24 million from $255 million.
Benefits and claims paid on insurance contracts increased to $1.5 billion from $1.1 billion while operating expenses rose from $141 million to $461 million.
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