Reinsurance News

Brookfield Re sees total assets escalate

12th August 2022 - Author: Pete Carvill

Brookfield Reinsurance has reported that its total assets rose from $2,640m at the end of Q2 2021 to $41,019m at the end of Q2 2022.

The news come months after the firm said it had seen a huge increase in its net income throughout Q1 2022. Back then, it had said its net income in Q1 2022 was $128m, up from $3m at the same point in the preceding year.

Sachin Shah, CEO of Brookfield Reinsurance, stated, “With the closing of American National, we now manage over $40bn of assets, a substantial portion of which are in cash and short-dated liquid securities. Our focus now shifts to investing these assets for value in a rising rate environment.”

The firm also announced the appointments of Thomas Corbett as chief financial officer and Lorenzo Lorilla as chief investment officer.

Corbett joined Brookfield in 2008 and since then has held several senior finance positions in Brookfield’s Asset Management and Renewable Power groups including chief financial officer of its Brazilian renewable power operations, holding the same position in Brookfield’s energy marketing group. He was most recently a managing director of Brookfield, responsible for the global accounting and financial reporting functions.

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Meanwhile, Lorilla joined Brookfield in 2021 and was most recently a managing partner and deputy chief investment officer responsible for asset allocation and execution of investment strategy for Brookfield Reinsurance. Prior to joining Brookfield, he was deputy chief investment officer of Kuvare Insurance Services, and previously, head of credit investments at Global Atlantic Financial Group as well as its predecessor, the Goldman Sachs Reinsurance Group.

Shah added: “We’re excited to welcome Tom and Lorenzo in their new roles. Tom and Lorenzo bring extensive financial, operational, and strategic experience and have been valuable members of the leadership team responsible for the buildout of Brookfield’s insurance platform to date. We look forward to continuing the growth of our business with their support.”

In putting out these most-recent numbers, Brookfield Reinsurance said: “During the quarter, we received over $200m of flow business under our existing reinsurance treaty with AEL, bringing total premiums reinsured to date to $5bn under our $10bn reinsurance agreement. Our Canadian PRT business continues to be active in identifying opportunities, successfully securing $1bn of new transactions in the second quarter.”

Meanwhile, the parent company, asset manager Brookfield, said it had seen inflows of $56bn since the last quarter. However, the released results indicate that net income between Q2 2021 and Q2 2022 fell from $2,429m to $1,475m.

It said that of the $56bn in inflows, $41bn was raised during the quarter.

Nick Goodman, chief financial officer of the asset manager Brookfield, said: “We delivered strong results in the second quarter, supported by our resilient global portfolio of inflation protected real assets and record levels of fundraising. We have a record of $111bn of cash and capital available for investment after generating $1.5bn of net income and $1.2bn of cash flow. We had asset sales of $21bn and deployed $20bn into new investments. The scale, stability and diversity of our business continues to differentiate our franchise with our investors and clients.”

He added: “We remain on track to complete the distribution to shareholders and listing of a 25% interest in our asset management business by year end.”

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