Brookfield Reinsurance has recorded a net income of $337 million for Q1 2024, up considerably compared to a net loss of $93 million in the opening quarter of 2023, driven by strong operating performance as well as favourable mark-to-market movement on the firm’s derivatives and funds withheld insurance reserves.
Also contributing to this increase in net income in Q1 was distributable operating earnings (DOE), which grew to $279 million compared to $145 million in the prior year’s quarter.
According to Brookfield Re, the increase in earnings for the current period reflects strong annuity sales and other premium growth over the last twelve months, as well as higher spread earnings on its existing business.
“Our first quarter earnings also benefited from strong performance in our P&C businesses, which included a full quarter of earnings contribution from Argo Group, the U.S. specialty P&C platform we acquired in late 2023,” the firm added.
Brookfield Re also boasted of a strong liquidity position across its portfolio, with over $25 billion of cash and short-term liquid investments across its investment portfolios, and another $25 billion of long-term liquid investments, inclusive of the firm’s recently acquired assets with the acquisition of AEL.
Brookfield Re explained that these liquid assets will facilitate the ongoing rotation of its investment portfolio into higher-yielding investment strategies, while also continuing to ensure it has sufficient liquidity coverage for its liabilities in the case of any stress events across the broader market.
Sachin Shah, CEO of Brookfield Reinsurance, commented, “Our business continued to deliver strong financial results for the first quarter of 2024.
“With our recent acquisition of American Equity Life now complete, we’ve reached a significant milestone as one of the largest providers of annuities in North America.
“We are well positioned to scale our existing platform and offerings, diversify our retirement services capabilities, and lay the groundwork for the next phase of growth for our company.”
