BROOKFIELD, NEWS,
| Unaudited As of and for the periods ended (US$ millions, except per share amounts) | Three Months Ended | Year Ended | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Total assets | $ | 140,460 | $ | 61,643 | $ | 140,460 | $ | 61,643 | |||||||
| Adjusted equity1 | 12,872 | 8,969 | 12,872 | 8,969 | |||||||||||
| Distributable operating earnings1 | 427 | 258 | 1,374 | 745 | |||||||||||
| Net income | 576 | 453 | 1,247 | 797 | |||||||||||
| Net income per each class A share | $ | 0.08 | $ | 0.07 | $ | 0.32 | $ | 0.28 | |||||||
1. See Non-GAAP and Performance Measures on page 6 and a reconciliation from net income and reconciliation from equity on page 5.
2024 Highlights
- Completed the acquisition of American Equity Investment Life Holding Company (“AEL”), doubling the size of our business
- Deployed more than
$17 billion across our investment portfolio at strong risk-adjusted returns - Generated
$19 billion in annuity and pension risk transfer (“PRT”) sales across the business, consisting of approximately$14 billion of retail annuity sales, inclusive of a full twelve months of activity at AEL, and$5 billion of PRT deals - We closed our first
U.K. reinsurance transaction, reinsuring £1.0 billion ($1.3 billion ) of pension liabilities
Operating Update
We recognized
We recorded net income of
Today, we are in a strong liquidity position, with approximately
Regular Distribution Declaration
The Board declared a 13% increase in the Company’s quarterly return of capital to
Brookfield Corporation Operating Results
An investment in class A shares of our company is intended to be, as nearly as practicable, functionally and economically, equivalent to an investment in the Brookfield class A shares. A summary of Brookfield Corporation’s fourth quarter and full year operating results is provided below:
| Unaudited For the periods ended (US$ millions, except per share amounts) | Three Months Ended | Years Ended | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income of consolidated business1 | $ | 101 | $ | 3,134 | $ | 1,853 | $ | 5,105 | |||||||
| Net income attributable to Brookfield shareholders2 | 432 | 699 | 641 | 1,130 | |||||||||||
| Distributable earnings before realizations2,3 | 1,498 | 1,209 | 4,871 | 4,223 | |||||||||||
| – Per Brookfield class A share2,3 | 0.94 | 0.76 | 3.07 | 2.66 | |||||||||||
| Distributable earnings2,3 | 1,606 | 1,312 | 6,274 | 4,806 | |||||||||||
| – Per Brookfield class A share2,3 | 1.01 | 0.83 | 3.96 | 3.03 | |||||||||||
1. Consolidated basis – includes amounts attributable to non-controlling interests.
2. Excludes amounts attributable to non-controlling interests.
3. See Reconciliation of Net Income to Distributable Earnings on page 5 and Non-IFRS and Performance Measures section on page 8 of Brookfield Corporation’s press release dated
CONSOLIDATED BALANCE SHEETS
| Unaudited | |||||||||||||||
| (US$ millions) | 2024 | 2023 | |||||||||||||
| Assets | |||||||||||||||
| Insurance invested assets | |||||||||||||||
| Cash and cash equivalents | $ | 12,243 | $ | 4,308 | |||||||||||
| Investments | 92,966 | 39,838 | |||||||||||||
| Reinsurance funds withheld | 1,517 | 7,248 | |||||||||||||
| Accrued investment income | 860 | 107,586 | 280 | 51,674 | |||||||||||
| Reinsurance recoverables and deposit assets | 13,195 | 3,388 | |||||||||||||
| 120,781 | 55,062 | ||||||||||||||
| Deferred policy acquisition costs | 10,696 | 2,468 | |||||||||||||
| Other assets | 8,983 | 4,113 | |||||||||||||
| Total assets | 140,460 | 61,643 | |||||||||||||
| Liabilities and equity | |||||||||||||||
| Policy and contract claims | 7,659 | 7,288 | |||||||||||||
| Future policy benefits | 14,088 | 9,813 | |||||||||||||
| Policyholders’ account balances | 83,079 | 24,939 | |||||||||||||
| Deposit liabilities | 1,502 | 1,577 | |||||||||||||
| Market risk benefits | 3,655 | 89 | |||||||||||||
| Unearned premium reserve | 1,843 | 2,056 | |||||||||||||
| 111,826 | 45,762 | ||||||||||||||
| Corporate borrowings | 1,022 | 1,706 | |||||||||||||
| Subsidiary borrowings | 3,329 | 1,863 | |||||||||||||
| Funds withheld for reinsurance liabilities | 3,392 | 83 | |||||||||||||
| Other liabilities | 7,815 | 3,380 | |||||||||||||
| Junior preferred shares | — | 2,694 | |||||||||||||
| Non-controlling interest | 850 | 146 | |||||||||||||
| Class A and class B | 1,470 | 1,591 | |||||||||||||
| Class C | 10,756 | 13,076 | 4,418 | 6,155 | |||||||||||
| Total liabilities and equity | $ | 140,460 | $ | 61,643 | |||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
| Unaudited For the periods ended US$ millions | Three Months Ended | Year Ended | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net premiums and other policy revenue | $ | 4,307 | $ | 1,432 | $ | 9,048 | $ | 4,550 | |||||||
| Net investment income, including funds withheld | 1,325 | 621 | 4,440 | 2,121 | |||||||||||
| Net investment gains (losses), including funds withheld | 115 | 176 | 615 | 241 | |||||||||||
| Total revenues | 5,747 | 2,229 | 14,103 | 6,912 | |||||||||||
| Benefits and claims paid on insurance contracts | (4,003 | ) | (1,194 | ) | (8,162 | ) | (3,939 | ) | |||||||
| Interest sensitive contract benefits | (710 | ) | (355 | ) | (1,874 | ) | (687 | ) | |||||||
| Amortization of deferred policy acquisition costs | (370 | ) | (180 | ) | (1,237 | ) | (632 | ) | |||||||
| Changes in fair value of insurance-related derivatives and embedded derivatives | 396 | 210 | 234 | 41 | |||||||||||
| Changes in fair value of market risk benefits | 299 | 85 | (107 | ) | 166 | ||||||||||
| Other reinsurance expenses | (6 | ) | (5 | ) | (26 | ) | (21 | ) | |||||||
| Operating expenses | (332 | ) | (244 | ) | (1,356 | ) | (777 | ) | |||||||
| Interest expense | (96 | ) | (68 | ) | (362 | ) | (249 | ) | |||||||
| Total benefits and expenses | (4,822 | ) | (1,751 | ) | (12,890 | ) | (6,098 | ) | |||||||
| Net income before income taxes | 925 | 478 | 1,213 | 814 | |||||||||||
| Income tax recovery (expense) | (349 | ) | (25 | ) | 34 | (17 | ) | ||||||||
| Net income for the period | $ | 576 | $ | 453 | $ | 1,247 | $ | 797 | |||||||
| Attributable to: | |||||||||||||||
| Class A and class B shareholders1 | $ | 4 | $ | 2 | $ | 14 | $ | 5 | |||||||
| Class C shareholder | 559 | 453 | 1,200 | 791 | |||||||||||
| Non-controlling interest | 13 | (2 | ) | 33 | 1 | ||||||||||
| $ | 576 | $ | 453 | $ | 1,247 | $ | 797 | ||||||||
1. Class A shares receive distributions at the same amount per share as the cash dividends paid on each Brookfield class A share.
SUMMARIZED FINANCIAL RESULTS
RECONCILIATION OF NET INCOME TO DISTRIBUTABLE OPERATING EARNINGS
| Unaudited For the periods ended US$ millions | Three Months Ended | Year Ended | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income | $ | 576 | $ | 453 | $ | 1,247 | $ | 797 | |||||||
| Unrealized net investment gains, including funds withheld | (115 | ) | (176 | ) | (615 | ) | (241 | ) | |||||||
| Mark-to-market on insurance contracts and other net assets | (367 | ) | (104 | ) | 589 | 105 | |||||||||
| 94 | 173 | 1,221 | 661 | ||||||||||||
| Deferred income tax expense (recovery) | 260 | 47 | (195 | ) | 14 | ||||||||||
| Transaction costs | 32 | 24 | 213 | 40 | |||||||||||
| Depreciation | 41 | 14 | 135 | 30 | |||||||||||
| Distributable operating earnings1 | $ | 427 | $ | 258 | $ | 1,374 | $ | 745 | |||||||
RECONCILIATION OF EQUITY TO ADJUSTED EQUITY
| Unaudited As of US$ millions | 2024 | 2023 | |||||
| Equity | $ | 13,076 | $ | 6,155 | |||
| Add: | |||||||
| Accumulated other comprehensive (income) loss | (204 | ) | 120 | ||||
| Junior preferred shares | — | 2,694 | |||||
| Adjusted equity1 | $ | 12,872 | $ | 8,969 | |||
1. Non-GAAP measure – see Non-GAAP and Performance Measures on page 6.
Additional Information
The statements contained herein are based primarily on information that has been extracted from our financial statements for the quarter and year ended
Brookfield Wealth Solutions’ Board of Directors have reviewed and approved this document, including the summarized unaudited consolidated financial statements prior to its release.
Information on our distributions can be found on our website under Stock & Distributions/Distribution History.
| Communications & Media: Tel: (212) 618-3469 Email: [email protected] | Investor Relations: Tel: (416) 369-3358 Email: [email protected] |
Non-GAAP and Performance Measures
This news release and accompanying financial statements are based on US GAAP, unless otherwise noted.
We make reference to Distributable operating earnings. We define distributable operating earnings as net income after applicable taxes excluding the impact of depreciation and amortization, deferred income taxes related to basis and other changes, and breakage and transaction costs, as well as certain investment and insurance reserve gains and losses, including gains and losses related to asset and liability matching strategies, non-operating adjustments related to changes in cash flow assumptions for future policy benefits, and change in market risk benefits, and is inclusive of returns on equity invested in certain variable interest entities and our share of adjusted earnings from our investments in certain associates. Distributable operating earnings is a measure of operating performance. We use distributable operating earnings to assess our operating results. We also make reference to Adjusted equity. Adjusted equity represents the total economic equity of our Company through our class A, B and C shares, excluding Accumulated other comprehensive income, and the junior preferred shares issued by our Company. We use adjusted equity to assess our return on our equity.
We provide additional information on key terms and non-GAAP measures in our filings available at bnt.brookfield.com.
Notice to Readers
This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws, “forward-looking statements” within the meaning of Canadian provincial securities laws, “forward-looking statements” within the meaning of the
Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: (i) investment returns that are lower than target; (ii) the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; (iii) the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures; (iv) global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; (v) strategic actions including acquisitions and dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; (vi) changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); (vii) the ability to appropriately manage human capital; (viii) the effect of applying future accounting changes; (ix) business competition; (x) operational and reputational risks; (xi) technological change; (xii) changes in government regulation and legislation within the countries in which we operate; (xiii) governmental investigations and sanctions; (xiv) litigation; (xv) changes in tax laws; (xvi) ability to collect amounts owed; (xvii) catastrophic events, including but not limited to, earthquakes, hurricanes, epidemics and pandemics; (xviii) the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; (xix) the introduction, withdrawal, success and timing of business initiatives and strategies; (xx) the failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks; (xxi) health, safety and environmental risks; (xxii) the maintenance of adequate insurance coverage; (xxiii) the existence of information barriers between certain businesses within our asset management operations; (xxiv) risks specific to our business segments; and (xxv) factors detailed from time to time in our documents filed with the securities regulators in
We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the foregoing risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information. Except as required by law,
Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to the historic investments discussed herein, that targeted returns, growth objectives, diversification or asset allocations will be met or that an investment strategy or investment objectives will be achieved (because of economic conditions, the availability of investment opportunities or otherwise).
Certain of the information contained herein is based on or derived from information provided by independent third-party sources. While
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