Brookfield Reinsurance is reporting that its net income in Q1 2022 was $128m, up from $3m at the same point in the preceding year.
The firm said in releasing its unaudited results that its highlights for the quarter were seven pension risk transfer transactions, representing $109m of new premiums; adding over $180m of flow premiums from reinsurance treaties at the end of 2021; completing the purchase of 6.77m shares of common stock of AEL; and ‘progressing’ the acquisition of American National, which it anticipated closing in the coming weeks.
Sachin Shah, CEO of Brookfield Reinsurance, said: “We continue to progress our previously announced transactions while maintaining high levels of liquidity within our investment portfolios. Accordingly, as interest rates rise, we have significant financial flexibility to invest for value.”
The firm said it had received over $180m of flow business in Q1 2022 under its existing reinsurance treaty with AEL, bringing total premiums reinsured to date to nearly $5bn under its $10bn reinsurance agreement. It also said that its Canadian PRT business continues to be active in identifying opportunities, successfully bidding on $109m of new transactions in the first quarter.
These latest figures follow the company’s announcement in February that it had seen net income fall in the last quarter of 2021 in a $45m swing from the same period in 2020.
For those not in the know, Brookfield Reinsurance received regulatory approval in January for it to increase the common stock ownership of AEL from 9.75% to 16%. That deal, it seems, has been in the works since October 2020.