Brookfield Reinsurance has reported that its net income fell by $43m in the three months ending 2021, a $45m swing from the same period the year before.
Announced in its latest results, the firm said that it had a loss in its net income of $44m over the year, a $46m swing from 2020. Meanwhile, the company’s equity and excess capital rose to $1,435m and $720m between 2020 and 2021.
The company said that its highlights for 2021 include $12bn of large block reinsurance agreements, twenty-six pension risk transfers, and entering an agreement to buy American National Group. The company also said it had bought 6.78m share in American Equity Investment Life Holding Company, bringing its equity in that company to 16%.
Sachin Shah, CEO of Brookfield Reinsurance, said, “We made significant progress in 2021 on our goal of becoming a leading reinsurance business, focused on providing capital-based solutions to insurance companies and their stakeholders. To date, we have entered into agreements to manage approximately $45 billion of insurance assets, and through our strategic relationship with Brookfield, will continue to deploy a significant portion of these assets into proprietary alternative credit strategies.”
In regard to its net losses, the company said: “We recorded a net loss of $43m and $44m for the three months and twelve months ended December 31, 2021, as positive income related to our insurance operations was more than offset by unrealized losses on our corporate hedging activities, as well as corporate operating costs associated with the build out of our business.”
North of the border, the company said it had closed seven pension risk transfers in Canada in 2021, bringing the total of new business to over US$1bn for the year, and representing approximately 20% of the Canadian market in 2021.
Brookfield Reinsurance is a relatively new entrant to the market, having been founded by Brookfield in December 2020, before being spun off in June 2021.