Brookfield Re posts $492m profits
Brookfield Reinsurance, the island-domiciled organisation buying Bermudian-based Argo Group in a $1.1 billion transaction, has recorded net income of $140 million (2021: $43 million loss) and $492 million (2021: $44 million loss) for the three months and year ended December 31, 2022.
Sachin Shah, the chief executive of Brookfield Re, said: “Our results for the year were excellent and reflect the diversification and significant growth of our business over the last 12 months.
“Our earnings continue to grow as we reposition our investment portfolios into higher-yielding opportunities, and with over $20 billion of cash and highly liquid assets across our portfolios, we are in a very strong liquidity position to further capitalise on accretive investment opportunities which will lead to further earnings growth in 2023.”
The company said it diversified its product lines and scaled its US platform in 2022 through the acquisition of American National Group Inc last May, which has since contributed $1.7 billion of new premiums and more than $375 million of distributable operating earnings.
During the year, it closed 28 pension risk transfer transactions, its most active year to date, representing $1.6 billion of premiums, a 50 per cent increase over the prior year and inclusive of its first PRT transaction in the US market, where it expects to continue to be active in 2023.
Brookfield said it added approximately $1 billion of flow premiums to its reinsurance treaties during the year and continued to reposition these portfolios, driving a step up in its reinsurance business spread earnings.
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