Latest news with #BrookfieldWealthSolutions
Bloomberg
5 days ago
- Business
- Bloomberg
Brookfield's Insurer Trims Private Credit, Citing Crowded Trade
Brookfield Corp. 's insurance unit has pulled back from investments in private credit as surging demand from rival bidders pushes yields down. Brookfield Wealth Solutions started to reduce its allocation to private credit six months ago, and is almost no longer investing in the asset class now, Chief Executive Officer Sachin Shah said at the Global Insurance Summit hosted by the Financial Times Wednesday in London. Demand has compressed yields, even as the underlying credit risk is the same and the covenants that protect creditors have become weaker.
Associated Press
08-05-2025
- Business
- Associated Press
Brookfield Wealth Solutions Announces First Quarter Results and Declares Quarterly Distribution
BROOKFIELD, NEWS, May 08, 2025 (GLOBE NEWSWIRE) -- Brookfield Wealth Solutions (NYSE, TSX: BNT) today announced financial results for the three months ended March 31, 2025. Sachin Shah, CEO of Brookfield Wealth Solutions, stated, 'Our business is off to a strong start in 2025. We have entered the U.K. market and begun offering new products that expand our asset base while maintaining our fundamental objective of generating high-quality earnings and durable risk-adjusted returns within our business.' 1. See Non-GAAP and Performance Measures on page 6 and a reconciliation from net income on page 5. First Quarter Highlights Operating Update We recognized $437 million of distributable operating earnings ('DOE') for the three months ended March 31, 2025, compared to $279 million in the prior year period. The increase in earnings for the current period reflects contributions from AEL, which we acquired in May 2024, as well as higher net investment income resulting from progress made in repositioning assets into higher yielding investment strategies. We recorded a net loss of $282 million for the three months ended March 31, 2025, compared to net income of $337 million in the prior year period. The net loss in the current period is primarily the result of unrealized movements on reserves due to interest rate and equity market movements, which more than offset our strong operating performance. Net income in the prior year period resulted from our DOE and favorable mark-to-market on derivatives. Today, we are in a strong liquidity position, with approximately $25 billion of cash and short-term liquid investments across our investment portfolios, and another $22 billion of long-term liquid investments. These liquid assets position us well to mitigate current market volatility and support the ongoing rotation of our portfolio into higher yielding investment strategies. Regular Distribution Declaration The Board declared a quarterly return of capital of $0.09 per class A share and class B share payable on June 30, 2025 to shareholders of record as at the close of business on June 13, 2025. This distribution is identical in amount per share and has the same payment date as the quarterly distribution announced today by Brookfield Corporation on the Brookfield class A shares. 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 first quarter operating results is provided below: 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 May 8, 2025. Brookfield Corporation net income above is presented under IFRS. Given the economic equivalence, we expect that the market price of the class A shares of our company will be impacted significantly by the market price of the Brookfield class A shares and the business performance of Brookfield as a whole. In addition to carefully considering the disclosure made in this news release in its entirety, shareholders are strongly encouraged to carefully review Brookfield Corporation's letter to shareholders, supplemental information and its other continuous disclosure filings. Investors, analysts and other interested parties can access Brookfield Corporation's disclosure on its website under the Reports & Filings section at CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF OPERATIONS 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 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 ended March 31, 2025, which have been prepared using generally accepted accounting principles in the United States of America ('US GAAP' or 'GAAP'). 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. Brookfield Wealth Solutions Ltd. (NYSE, TSX: BNT) is focused on securing the financial futures of individuals and institutions through a range of retirement services, wealth protection products and tailored capital solutions. Each class A exchangeable limited voting share of Brookfield Wealth Solutions is exchangeable on a one-for-one basis with a class A limited voting share of Brookfield Corporation (NYSE, TSX: BN). For more information, please visit our website at or contact: 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 provide additional information on key terms and non-GAAP measures in our filings available at Notice to Readers Brookfield Wealth Solutions Ltd. ('Brookfield Wealth Solutions' or 'our' or 'we') is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement. 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 U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, and 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, 'forward-looking statements'). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management's current estimates, assumptions and expectations regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of Brookfield Wealth Solutions, Brookfield Corporation and their respective subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods. Particularly, statements regarding international expansion plans and future capital markets initiatives, including statements relating to the redeployment of capital into higher yielding investments constitute forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as 'expects,' 'anticipates,' 'plans,' 'believes,' 'estimates,' 'seeks,' 'intends,' 'targets,' 'projects,' 'foresees,' 'forecasts' or negative versions thereof and other similar expressions, or future or conditional verbs such as 'may,' 'will,' 'should,' 'would' and 'could.' In particular, the forward-looking statements contained in this news release include statements referring to the growth of our business, international expansion, investment opportunities and expected future deployment of capital and financial earnings. Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable estimates, assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Brookfield Wealth Solutions or Brookfield Corporation to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information. 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 Canada and the United States. 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, Brookfield Wealth Solutions undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise. 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).
Yahoo
03-03-2025
- Business
- Yahoo
Brookfield Sees £500 Billion Opportunity in UK Pensions Foray
(Bloomberg) -- Brookfield Wealth Solutions has entered the UK insurance market, in a long-anticipated foray into the country's pension risk-transfer industry. Cuts to Section 8 Housing Assistance Loom Amid HUD Uncertainty Remembering the Landscape Architect Who Embraced the City NYC Office Buildings See Resurgence as Investors Pile Into Bonds Hong Kong Joins Global Stadium Race With New $4 Billion Sports Park NJ Transit to Deploy Customer-Service Teams After Record Delays The move will see the business, which was spun out of Brookfield Corp. in 2021, bid to take over liabilities from UK pension plans. With over £500 billion ($630 billion) of demand for pension buyouts expected over the next decade, 'the UK represents a significant opportunity to grow, create employment and invest domestically,' the firm said in a statement on Monday. Employers worldwide are trying to get traditional pensions off their books as workers live longer and markets remain in flux. By turning to so-called pension risk transfers, firms pay insurers to take on their financial obligations to pensioners. In Britain, the market is largely dominated by domestic players like Legal & General Group Plc, Phoenix Group Holdings Plc, Aviva Plc and Pension Insurance Corp. The Brookfield business is expected to start operations later in the first quarter, subject to final regulatory approvals, according to the statement. Rich People Are Firing a Cash Cannon at the US Economy—But at What Cost? Trump's SALT Tax Promise Hinges on an Obscure Loophole Walmart Wants to Be Something for Everyone in a Divided America Warner Bros. Movie Heads Are Burning Cash, and Their Boss Is Losing Patience OXO Fought Back Against the Black Spatula Panic. People Defected Anyway ©2025 Bloomberg L.P. Sign in to access your portfolio
Zawya
03-03-2025
- Business
- Zawya
Brookfield to enter UK pension insurance market this month
LONDON - Brookfield Wealth Solutions said on Monday it was entering the UK pension insurance market, as Canadian financial giant Brookfield looks to tap into strong demand from companies to offload their pension scheme risks to insurers. The move marks a rare new entrant into the UK pension insurance market, and one armed with Brookfield's sizeable financial firepower. Brookfield Wealth Solutions, which was spun out of the sprawling Brookfield Corporation in 2021, expects to begin operations later this quarter under the Blumont Annuity UK brand, it said in a statement. Bulk annuities are a form of insurance whereby a company's pension plan offloads liabilities to an insurer. Reuters reported in 2023 that Brookfield was considering entering the UK market and scanning the sector for potential deals to access bulk annuities. The bulk annuities market has been growing in recent years, although growth has plateaued more recently. British pension insurance deals totalled 45 billion pounds in 2024, with 40 billion to 50 billion pounds in deals expected this year along with new entrants into the sector, adviser LCP said in a report last month. Life insurers such as Aviva, Legal & General , and Phoenix, have expanded in recent years into the profitable but competitive market with companies eager to offload pension scheme risk from their balance sheets. "With more than $140 billion in total assets, we look forward to serving the retirement needs of UK pensioners for the long term," said Sachin Shah, CEO, Brookfield Wealth Solutions. "Our group-wide commitment is to provide long-term financial security for our policyholders and clients, serviced by strong, well capitalized companies with high quality investment portfolios," Shah added in the statement. The launch is subject to final regulatory approvals, Brookfield said. (Reporting by Tommy Reggiori Wilkes, Editing by Iain Withers)
Reuters
03-03-2025
- Business
- Reuters
Brookfield to enter UK pension insurance market this month
LONDON, March 3 (Reuters) - Brookfield Wealth Solutions (BNT.N), opens new tab said on Monday it was entering the UK pension insurance market, as Canadian financial giant Brookfield looks to tap into strong demand from companies to offload their pension scheme risks to insurers. The move marks a rare new entrant into the UK pension insurance market, and one armed with Brookfield's sizeable financial firepower. Brookfield Wealth Solutions, which was spun out of the sprawling Brookfield Corporation ( opens new tab in 2021, expects to begin operations later this quarter under the Blumont Annuity UK brand, it said in a statement. Bulk annuities are a form of insurance whereby a company's pension plan offloads liabilities to an insurer. Reuters reported in 2023 that Brookfield was considering entering the UK market and scanning the sector for potential deals to access bulk annuities. The bulk annuities market has been growing in recent years, although growth has plateaued more recently. British pension insurance deals totalled 45 billion pounds in 2024, with 40 billion to 50 billion pounds in deals expected this year along with new entrants into the sector, adviser LCP said in a report last month. Life insurers such as Aviva (AV.L), opens new tab, Legal & General (LGEN.L), opens new tab, and Phoenix (PHNX.L), opens new tab, have expanded in recent years into the profitable but competitive market with companies eager to offload pension scheme risk from their balance sheets. "With more than $140 billion in total assets, we look forward to serving the retirement needs of UK pensioners for the long term," said Sachin Shah, CEO, Brookfield Wealth Solutions. "Our group-wide commitment is to provide long-term financial security for our policyholders and clients, serviced by strong, well capitalized companies with high quality investment portfolios," Shah added in the statement. The launch is subject to final regulatory approvals, Brookfield said.
