Brookfield Asset Management Reinsurance Partners Ltd. (Brookfield Reinsurance) has posted a net loss of $6 million for the third quarter of 2021, despite closing a number of significant transactions during the period.
The company also reported a net loss of $1 million for the first nine months of the year, but attributed the performance mainly to non-cash adjustments to the value of its investments and losses on an equity accounted investment.
During the quarter, Brookfield Reinsurance entered into an agreement to reinsure $1.6 billion of deferred annuities, and has since been focused on repositioning the portfolio into its higher-yielding investment strategies.
The company’s Canadian pension risk transfer (PRT) business also closed on eleven transactions, capturing over 20% of the Canadian market in the quarter.
As of September 30, 2021, it had over 9,000 in-pay PRT annuitants, representing a 35% increase from same period in the prior year, and has already we entered into an additional two PRT transactions, reaching year to date sales of over CAD 1 billion.
Following the close of its reinsurance transaction with AEILIC in early October, BAM Re has approximately $900 million of available corporate liquidity to fund potential investments and working capital needs, including $350 million of undrawn credit facilities.
“We continue to make significant progress in advancing our priorities with a focus on executing our previously announced transactions,” said Sachin Shah, CEO of Brookfield Reinsurance.
“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,” Shah added.
“Through our strategic partnership with Brookfield, we have successfully redeployed a significant portion of these assets into proprietary alternative credit strategies.”