Alternative asset management company Brookfield Asset Management has announced the launch of a new reinsurance entity that will enable it to grow its reinsurance business “in the most efficient fashion.”
Brookfield Asset Management Reinsurance Partners (BAM Reinsurance) will operate as a ‘paired’ entity to Brookfield, meaning shareholders will have flexibility in their interest in the company.
“BAM Reinsurance is intended to provide our shareholders with a choice of holding either shares of Brookfield or the new shares of BAM Reinsurance, depending on what is most attractive to them based on their own circumstances,” explained Nick Goodman, Chief Financial Officer of Brookfield.
“The very positive market reception, including in the case of the most recent listing of Brookfield Renewable Corporation, has encouraged us to offer a similar structure for our own shareholders, enhancing shareholders’ ability to meet their own financial planning objectives, while also facilitating the growth of our overall organization.”
In accordance with the launch, Brookfield will distribute a special dividend in the first half of 2021 worth approximately $500 million, or 33 cents per share.
As with Brookfield’s other paired entities – Brookfield Renewable Corporation and Brookfield Infrastructure Corporation – the Class A shares of BAM Reinsurance will be structured with the intention of being economically equivalent to the Class A shares of Brookfield.
