Reinsurer additionally confirms quarterly distribution improve
Brookfield Reinsurance has outlined its monetary outcomes for the quarter and monetary 12 months ending December 31, 2023.
Key achievements for 2023 included producing $8 billion in annuity gross sales, with vital contributions from the retail annuity platform, movement reinsurance premiums, and pension threat switch (PRT) premiums on the North American PRT platform.
The acquisition of Argo Group for roughly $1.1 billion additionally marked a major enlargement of Brookfield’s US property and casualty (P&C) operations. Additionally, the upcoming acquisition of American Equity Life is predicted so as to add over $50 billion in insurance coverage property to the corporate’s portfolio.
Investment methods deployed all year long yielded returns above 9%, enhancing the gross yield throughout the portfolio to five.6%. The firm additionally famous a considerable improve in its fairness base and market capitalization, achieved by a profitable public trade provide that didn’t dilute the holdings of Brookfield Corporation or Brookfield Reinsurance.
Brookfield Reinsurance monetary outcomes
Financial efficiency for the 12 months confirmed distributable working earnings (DOE) of $745 million, up from $388 million within the earlier 12 months, pushed by elevated web funding earnings and the influence of latest annuity enterprise. Net earnings additionally noticed progress, with figures reaching $797 million for the 12 months, in comparison with $501 million within the prior 12 months, bolstered by DOE contributions and favorable market actions.
Brookfield Reinsurance additionally reported a powerful liquidity place, with roughly $27 billion out there throughout company and subsidiary funding portfolios. The forthcoming acquisition of American Equity Life is predicted to additional improve liquidity, supporting the transition to higher-yielding funding methods.
In a strategic transfer to bolster its stability sheet and market presence, Brookfield Reinsurance additionally accomplished a profitable trade provide in November 2023, rising its publicly traded share base considerably. This initiative enhanced the corporate’s fairness base and market capitalization.
The board has declared a quarterly distribution of $0.08 per share throughout numerous courses, aligning with the distribution schedule and quantity of Brookfield Corporation. This distribution is slated for March 28, 2024, to shareholders on report 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 mentioned.
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