Brookfield Reinsurance has announced its financial results for the second quarter of 2023 with a net income of $360 million, which compares to the $25 million reported in the same period last year.
According to the firm, this figure was the result of unrealized mark-to-market gains on its investments and insurance reserves.
Additionally, net income also continues to benefit from the repositioning of assets across Brookfield’s insurance accounts into higher yielding investments, according to the announcement.
The firm also recognized $160 million of Distributable operating earnings (DOE) for the second quarter of 2023, compared to the $46 million reported in the same period the year prior.
Sachin Shah, CEO of Brookfield Reinsurance, commented: “The strength of our second quarter results are underpinned by significant investment portfolio redeployment and the execution of strategic initiatives post the acquisition of American National one year ago.
“Following the close of our announced transactions, our total insurance assets will be over $100 billion, representing an important milestone in the continued growth of a diversified insurance business of scale.”
Subsequent to quarter-end, Brookfield announced a definitive agreement to acquire American Equity Investment Life Holding Company (AEL), in a transaction valuing the company at $4.3 billion. The firm currently holds a ~20% interest.
Brookfield stated: “Following the completion of the transaction, together with our existing, complementary annuity platform in American National, Brookfield Reinsurance will have the foundation to become a leading U.S. annuity originator.
“Through product and distribution synergies, we expect to increase new business origination to over $10 billion of policies in aggregate annually. The transaction is subject to customary closing conditions, including receipt of regulatory approvals.”
Additionally, the firm’s previously announced the acquisition of Argo Group, an U.S. specialty property and casualty (P&C) platform, remains on track to close in the second half of 2023, according to the announcement.
“Upon closing of the Argo Group and AEL transactions, we will have deployed approximately $10 billion of capital within Brookfield Reinsurance since its inception, and our total insurance assets are expected to exceed $100 billion,” Brookfield added.
“By leveraging Brookfield’s investment capabilities, these assets will be redeployed at attractive risk-adjusted returns, driving increasing spread earnings and delivering significant returns to our shareholders.”
