Core Insights - The article discusses the author's extensive experience in executive management, particularly in the insurance and reinsurance sectors, as well as knowledge in climate change and ESG [1] Group 1 - The author has 36 years of experience in executive management, focusing on insurance/reinsurance and global markets [1] - The author holds an honours degree in economics and politics, emphasizing economic development [1] - The author invests personally, indicating a hands-on approach to investment [1]

Core Insights - Brookfield Corporation is expected to continue enriching its investors in the coming years, having achieved strong financial performance in 2025 [1][11] Financial Performance - In 2025, Brookfield Corporation grew its distributable earnings by 11% to a record $5.4 billion, outperforming the S&P 500's return of 18% with a total return of 21% [2] - Over the past three decades, Brookfield has delivered a 19% annual return, significantly exceeding the S&P 500's average annual return of 11% [2] Business Segments - The company's asset management business increased its fee-bearing capital to $603 billion, resulting in a 22% rise in fee-related earnings to $3 billion [5] - Brookfield's wealth solutions business saw a 24% growth in earnings, driven by strong investment performance and expansion of its insurance asset base [5] - The operating businesses, including infrastructure, renewable power, industrial services, and real estate, continue to generate increasing cash flows [5] Strategic Actions - Brookfield sold a record $91 billion in assets in the previous year, leveraging favorable market conditions to realize value from its operations-oriented investment strategy [6] - The company deployed $126 billion into new investments and repurchased over $1 billion of its shares at an average price of $36, which is a 50% discount to its estimated intrinsic value of $68 per share [6] - Brookfield recently increased its dividend payout by 17% [6] Thematic Investment Strategy - Brookfield is focusing on large-scale infrastructure investments to support AI growth, estimating a need for $7 trillion in investments over the next decade for data centers, power generation, and related infrastructure [8] - The company is partnering with Nvidia to build AI factories and has secured significant power agreements with Google and Microsoft [9] - This thematic investment strategy positions Brookfield to grow its earnings per share by over 20% annually in the next five years, aiming for total returns exceeding 15% annually [10]

Financial Data and Key Metrics Changes - In 2025, the company achieved record financial results with Distributable Earnings before realizations of $5.4 billion, representing an 11% increase over the prior year, and total Distributable Earnings of $6 billion [7][15] - The total net income for the year was $3.2 billion, with Distributable Earnings per share of $2.27 before realizations and $2.54 including realizations [15] - The company raised $112 billion of capital during the year, with fee-bearing capital increasing by 12% to over $600 billion, driving a 22% increase in Fee-Related Earnings to $3 billion [15][16] Business Line Data and Key Metrics Changes - The Asset Management business generated $2.8 billion of Distributable Earnings, or $1.17 per share, reflecting strong investor demand for fund offerings [15] - The Wealth Solutions business delivered $1.7 billion of Distributable Earnings, a 24% increase over the prior year, driven by $20 billion of annuity sales and improved profitability in the P&C business [16][24] - Operating businesses generated Distributable Earnings of $1.6 billion, supported by strong fundamentals across the platform, with Renewable Power and Transition and Infrastructure businesses seeing a 14% increase in Operating Funds from Operations [17] Market Data and Key Metrics Changes - The market environment showed strong business fundamentals, with improved capital markets and increased transaction activity, leading to expectations that real assets will continue to outperform [8][11] - In the real estate sector, nearly 17 million square feet of office leases were signed globally, with net rents averaging 18% higher than expiring leases [18] - The company’s Super Core and Core Plus portfolios finished the year with over 95% occupancy, poised for robust NOI growth in 2026 [19] Company Strategy and Development Direction - The company is focused on streamlining and consolidating its market capitalizations, with plans to merge Brookfield Corporation with its sister insurance entity, BNT, to enhance growth potential [12][13] - The strategic initiatives advanced in 2025 are expected to fuel meaningful momentum, with a strong capital base of $180 billion and significant access to capital [22][14] - The company aims to maintain a long-term focus on value creation, emphasizing the importance of avoiding disruption to the compounding process [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver financial results and compound value for shareholders, anticipating 2026 to be another strong year [14] - The company highlighted the importance of maintaining excess capital to navigate market cycles and capitalize on investment opportunities [10] - Management noted that the current market sentiment is beginning to realign with strong underlying fundamentals, particularly in real estate [11] Other Important Information - The company returned $1.6 billion to shareholders in 2025 through dividends and share buybacks, repurchasing over $1 billion of Class A shares at a significant discount to intrinsic value [21] - A 17% increase in the quarterly dividend to $0.07 per share was declared, reflecting a commitment to returning capital to shareholders while maintaining a low payout ratio [23][66] Q&A Session Summary Question: Scaling the P&C business and its profitability - Management discussed the repositioning of the P&C business to generate strong profits and the potential for M&A opportunities as markets soften, with a target of $20 billion-$25 billion of float by the end of the decade [32][35] Question: Decision to simplify the structure and collapse BNT - Management explained that the decision to streamline and simplify the structure is based on the evolution of public markets and the growth potential of the insurance business, aiming to fully benefit from the broader capital base [38][41] Question: Outlook for the Carry into 2026 - Management indicated a strong pipeline for monetizations and expects an increase in Carry realizations in the second half of the year, with good valuations for assets being brought to market [62][63] Question: Dividend increase and its implications - Management clarified that the 17% dividend increase is not a shift in strategy but a result of share splits and a low payout ratio, maintaining a focus on reinvesting capital back into the business [66][67]

Financial Data and Key Metrics Changes - In 2025, the company achieved record financial results with distributable earnings before realizations of $5.4 billion, representing an 11% increase over the prior year, and total distributable earnings of $6 billion [7][15] - The total net income for the year was $3.2 billion, with a fee-related earnings increase of 22% to $3 billion [15][21] - The company raised $112 billion of capital during the year, reflecting continued investor demand for its fund offerings [15][21] Business Line Data and Key Metrics Changes - The asset management business generated $2.8 billion of distributable earnings, or $1.17 per share, while the wealth solutions business delivered $1.7 billion of distributable earnings, representing a 24% increase over the prior year [15][16] - The operating businesses generated distributable earnings of $1.6 billion, or $0.68 per share, supported by strong underlying fundamentals [17] - The insurance asset base grew to $145 billion, with $20 billion of annuity sales during the year [6][16] Market Data and Key Metrics Changes - The market environment showed strong business fundamentals, with improved capital markets and a return of liquidity in both debt and equity markets [8] - The company signed nearly 17 million square feet of office leases globally, with net rents averaging 18% higher than expiring leases [18] - In major global markets, tenant demand has continued to grow, translating into strong leasing activity and meaningful rent growth for high-quality assets [19] Company Strategy and Development Direction - The company is focused on streamlining and consolidating its market capitalizations, with plans to merge Brookfield Corporation with its paired sister insurance entity, BNT [12][13] - The strategic initiatives advanced in 2025 are expected to fuel meaningful momentum, with a strong liquidity position and multiple avenues for growth [22] - The company aims to maintain excess capital to navigate market cycles and focus on long-term value creation [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue delivering financial results and compounding value for shareholders, anticipating 2026 to be another strong year [14] - The company highlighted the importance of avoiding disruption to the compounding process and maintaining a long-term investment mindset [9][10] - Management noted that the real estate market is beginning to realign with fundamentals, with muted new supply and growing demand [11] Other Important Information - The company returned $1.6 billion to shareholders in 2025 through dividends and share buybacks, repurchasing more than $1 billion of Class A shares [21] - A 17% increase in the quarterly dividend to $0.07 per share was declared, reflecting a commitment to returning capital to shareholders [23] Q&A Session Summary Question: Scaling the P&C business and its profitability - Management discussed the challenges of acquiring businesses in a hard market and the strategy to reposition them for future growth, indicating a strong outlook for the protection business [32][34] Question: Decision to simplify the structure and collapse BNT - Management explained that the decision to streamline was based on the evolution of public markets and the growth potential of the insurance business, aiming for a single listed entity [38][41] Question: Outlook for the P&C business and its size relative to life and annuity - Management indicated a path to significantly increase the float of the protection business, projecting growth to $20 billion-$25 billion by the end of the decade [35] Question: Dividend increase and its implications - Management clarified that the dividend increase was not a shift in strategy but a result of share splits and a low payout ratio, maintaining a focus on reinvesting capital [66][67] Question: Growth initiatives in Asia and Europe - Management highlighted ongoing efforts in Japan and other Asian markets, while noting the regulatory challenges in Europe that would require a cautious approach [59][60]

Financial Data and Key Metrics Changes - In 2025, the company raised $112 billion of capital and generated record financial results with distributable earnings before realizations of $5.4 billion, representing an 11% increase over the prior year [5][13] - Total distributable earnings reached $6 billion, or $2.54 per share, with total net income of $3.2 billion for the year [13] - Fee-bearing capital increased by 12% to over $600 billion, driving a 22% increase in fee-related earnings to $3 billion [14] Business Line Data and Key Metrics Changes - The asset management business generated $2.8 billion of distributable earnings, or $1.17 per share, while the wealth solutions business delivered $1.7 billion of distributable earnings, representing a 24% increase over the prior year [14][22] - Operating businesses generated distributable earnings of $1.6 billion, or $0.68 per share, supported by strong underlying fundamentals [15] Market Data and Key Metrics Changes - The real estate business saw strong leasing activity, signing nearly 17 million sq ft of office leases globally, with net rents averaging 18% higher than expiring leases [16] - In major markets like New York, Canada, and London, leasing activity resulted in rents significantly higher than those expiring, indicating strong demand from credit-worthy tenants [17] Company Strategy and Development Direction - The company is focused on streamlining its structure by merging Brookfield Corporation with its paired sister insurance entity, BNT, to enhance growth potential and simplify access for investors [11][12] - The strategy emphasizes long-term value creation, maintaining excess capital to navigate market cycles, and investing in high-quality real estate and other assets [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted that business fundamentals are strong, with improved capital markets and liquidity, leading to increased transaction activity [7] - The company is confident in its ability to deliver financial results and compound value for shareholders, projecting 2026 to be another strong year [12] Other Important Information - The company returned $1.6 billion to shareholders in 2025 through dividends and share buybacks, repurchasing over $1 billion of Class A shares at a significant discount to intrinsic value [19] - The board declared a 17% increase in the quarterly dividend to $0.07 per share, reflecting confidence in future cash flow growth [21] Q&A Session Summary Question: Scaling the P&C business and its profitability - Management discussed the strong outlook for the protection business, emphasizing the potential for M&A and organic growth as markets soften [31][34] Question: Decision to simplify the structure and collapse BNT - Management explained that the decision to streamline was based on the evolution of public markets and the growth potential of the insurance business, which has become more integrated with the corporation [37][40] Question: Outlook for the protection franchise and ROE - Management highlighted the focus on diversifying product types and geographic expansion to maintain strong returns on equity [41][42] Question: Implications of P&C growth on the overall platform - Management noted that while the P&C business requires capital to grow, it does not have the same operating leverage as the annuity business, allowing for strategic capital allocation [46][48] Question: Performance of the North American residential portfolio - Management indicated that Q4 performance was influenced by seasonality and a one-time gain, with expectations for improved performance as housing shortages persist [70][72] Question: Dividend increase and its implications - Management clarified that the dividend increase was not a shift in strategy but a result of share splits and a low payout ratio [63][64]

PERFORMANCE UPDATE 2025 Full Year Highlights We generated $1.6 billion ($0.67/share) of Distributable Earnings ("DE") during the quarter and $6.0 billion ($2.54/share) for the year. Record Deployable Capital $6B 11% $188B Annual Growth in DE Before Realizations Distributable Earnings ("DE") DE before realizations were $1.5 billion ($0.63/share) for the quarter and $5.4 billion ($2.27/share) for the year, representing growth of 11% per share over the prior year. Asset Management Wealth Solutions Operating Bu ...

Core Insights - Brookfield Corporation reported strong financial results for the year ended December 31, 2025, with significant inflows and growth across its asset management and wealth solutions businesses [2][5] - The company achieved record monetizations of $91 billion and deployed $126 billion of capital, while also repurchasing over $1 billion of shares [2][17] - A quarterly dividend was raised by 17% to $0.07 per share, reflecting the company's commitment to returning value to shareholders [7] Financial Performance - Total net income for the fourth quarter was $1.7 billion, with net income attributable to Brookfield shareholders at $743 million [4][21] - Distributable earnings before realizations increased by 11% year-over-year, reaching $1.5 billion for the quarter and $5.4 billion for the year [3][8] - Total distributable earnings for the quarter were $1.6 billion ($0.67/share) and $6.0 billion ($2.54/share) for the year [6][8] Asset Management - The asset management segment delivered record distributable earnings, with fee-bearing capital increasing to $603 billion and fee-related earnings rising by 22% to $3.0 billion [5][13] - Fundraising efforts totaled $112 billion for the year, driven by strong performance across various investment strategies [13] Wealth Solutions - Wealth solutions reported a 24% increase in distributable earnings compared to the previous year, supported by strong investment performance and growth in insurance assets [5][13] - Retail and institutional annuity sales reached $20 billion, increasing insurance assets to $143 billion [13] Operating Businesses - Operating businesses generated resilient cash flows, with earnings from realizations amounting to $88 million for the quarter and $622 million for the year [6][12] - The company maintained strong occupancy rates in its real estate portfolio, with super core assets at 96% occupancy [13] Capital Deployment - Brookfield ended the year with a record $188 billion of deployable capital, including $77 billion in cash and financial assets [14][17] - The company executed approximately $175 billion of financings, demonstrating strong access to capital markets [17]

Group 1 - The French Ministry of Health reported three infant deaths linked to recalled infant formula, with approximately 50 related reports received, including 14 hospitalizations due to suspected consumption of the affected products [1] - Lactalis, a French dairy company, announced a recall of multiple batches of infant formula in 18 countries due to potential contamination with Bacillus cereus toxin, which can cause diarrhea and vomiting [1] - The UK Food Standards Agency highlighted that Bacillus cereus is highly heat-resistant, making it difficult to eliminate during cooking or preparation of infant formula [1] Group 2 - The Singapore Food Agency recalled Danone's Dumex infant formula on January 17 due to quality issues with a supplier's arachidonic acid oil, which may lead to Bacillus cereus contamination [2] - Nestlé issued a recall for certain batches of infant formula in 31 countries due to similar contamination concerns [2] - Danone announced targeted recalls of a limited number of infant formula batches in specific markets, aligning with updated regulatory requirements [4] Group 3 - The General Administration of Customs in China issued consumer alerts regarding the absence of Lactalis' Picot brand infant formula imports and advised consumers to stop using potentially affected products [4] - The Hong Kong Food Safety Center and the Macau Municipal Bureau reported recalls of Babybio and Neoangelac infant formulas due to potential Bacillus cereus contamination [5][6]

Group 1 - The French Ministry of Health reported that three infants have died after consuming recalled infant formula, prompting an official investigation [1] - Approximately 50 reports related to the recalled infant formula have been received by health authorities in France, with 14 cases resulting in hospitalization due to suspected consumption of the affected products [1] - Recent global recalls of infant formula have raised concerns in the dairy industry, primarily due to potential contamination with Bacillus cereus toxins [1] Group 2 - The Singapore Food Agency announced a recall of infant formula produced by Danone, a French food company, on January 17 [1] - In early January, Nestlé's subsidiaries in Europe also announced recalls of certain batches of infant formula sold in various markets [1]

Core Viewpoint - The article discusses investment strategies and insights from a contributor with a background in finance and investment, emphasizing the importance of thorough analysis in identifying long/short investment opportunities in North America [1]. Group 1 - The contributor has a Master's degree in Finance and a Bachelor's degree in Economics, indicating a strong academic background relevant to investment analysis [1]. - Prior experience includes working at an Investment Fund in the United Kingdom, which adds credibility to the contributor's insights [1]. Group 2 - The article does not provide specific stock recommendations or investment advice, maintaining a neutral stance on the suitability of investments for individual investors [2][3]. - It highlights that past performance is not indicative of future results, reinforcing the need for careful consideration in investment decisions [3].