Financial Reporting Standards - Brookfield Corporation's financial information is presented in U.S. dollars and prepared in accordance with U.S. GAAP[31]. - Financial information is presented in U.S. dollars and prepared in accordance with U.S. GAAP, with all figures being unaudited unless otherwise indicated[31]. - The annual report includes audited consolidated statements of financial position for the fiscal years ended December 31, 2024, and 2023[14]. - The annual report for the fiscal year ended December 31, 2024, will include audited consolidated statements and management's discussion and analysis[17]. Key Financial Metrics - Distributable Operating Earnings (DOE) is a key measure of financial performance, defined as net income after applicable taxes excluding certain costs and adjustments[33]. - Distributable Operating Earnings (DOE) is a key measure of financial performance, defined as net income after applicable taxes excluding certain impacts[33]. - Adjusted equity represents the total economic equity of the company through its class A, B, and C shares, excluding accumulated other comprehensive income[33]. - Corporate liquidity includes cash and cash equivalents, undrawn revolving credit facilities, and liquid financial assets held by non-regulated corporate entities[33]. - Total liquidity includes liquidity within regulated insurance entities, providing a comprehensive view of the company's liquidity position[33]. Non-GAAP Measures - The company emphasizes the importance of non-GAAP measures for assessing overall business performance, including adjusted equity and total liquidity[32]. - The company emphasizes the importance of non-GAAP measures for assessing overall business performance, which should not be considered in isolation from U.S. GAAP measures[32]. Forward-Looking Statements - Forward-looking statements reflect management's estimates and beliefs regarding future financial results and market conditions[25]. - Forward-looking statements are based on management's current estimates and beliefs regarding future results and conditions, subject to significant uncertainties[25]. Acquisitions - AEL Holdings was acquired for approximately $4.3 billion at a price of $55.00 per share, completed on May 2, 2024[1]. - The acquisition of Argo Group was completed for approximately $1.1 billion at a price of $30 per share on November 16, 2023[1]. Risk Factors - The report includes risk factors that could adversely affect future results, urging readers to consider these uncertainties[27]. - Historical performance and market data may not be indicative of future results, emphasizing the need for cautious interpretation[30]. Support Agreements - The company has a support agreement with Brookfield Corporation, which was amended and restated on March 21, 2023, and October 29, 2024[22].

Financial Performance - Net income for the period was $269 million for the three months ended June 30, 2024, compared to $360 million in the same period of 2023, indicating a decrease of 25%[2] - Comprehensive income for Q2 2024 reached $767 million, significantly up from $142 million in Q2 2023[4] - Net income for Q2 2024 was $269 million, a decrease of 25.3% compared to $360 million in Q2 2023[3] - For the six months ended June 30, 2024, net income was $606 million, up from $267 million in the same period of 2023, indicating a significant increase of approximately 127.3%[132] - The company reported a net loss of $285 million for the three months ended June 30, 2024, compared to a net income of $1,512 million for the same period in 2023[187] - Distributable Operating Earnings (DOE) for the three months ended June 30, 2024, was $298 million, compared to $270 million for the same period in 2023, reflecting an increase of approximately 10.4%[137] - Distributable Operating Earnings (DOE) increased by $138 million to $298 million for the three months ended June 30, 2024, driven by new business and higher spread earnings[158] Revenue Growth - Net premiums for the three months ended June 30, 2024, were $1,516 million, a 38% increase compared to $1,099 million in the same period of 2023[2] - Total revenues for the six months ended June 30, 2024, reached $5,387 million, up 71% from $3,149 million in the same period of 2023[2] - Total segment revenues of $2.913 billion for the three months ended June 30, 2024, compared to $2.913 billion for the same period in 2023, indicating stable revenue performance[137] - For the six months ended June 30, 2024, total net premiums and other policy-related revenues increased to $3,359 million, with segment revenues totaling $5,281 million[140] Asset and Liability Changes - Total assets increased to $130,533 million as of June 30, 2024, up from $61,643 million on December 31, 2023, representing a growth of 111%[1] - Total liabilities increased to $118,767 million as of June 30, 2024, up from $52,794 million on December 31, 2023, representing a growth of 125%[1] - The company reported a total equity of $9,015 million as of June 30, 2024, an increase from $1,685 million as of June 30, 2023[5] - The total financial liabilities as of June 30, 2024, were $10,870 million, slightly up from $6,137 million as of December 31, 2023[69] Investment Performance - Net investment income for the three months ended June 30, 2024, was $1,118 million, significantly higher than $444 million in the same period of 2023, marking a 151% increase[2] - The company reported a total of $3,384 million in fair value for U.S. states and political subdivisions, with unrealized gains of $85 million[20] - The fair value of available-for-sale fixed maturity securities as of June 30, 2024, was $52,597 million, up from $18,777 million as of December 31, 2023[69] - The company reported a total of $94,514 million in financial assets as of June 30, 2024, compared to $46,389 million as of December 31, 2023[69] Acquisition Impact - The company acquired a subsidiary for $10,843 million, marking a substantial investment in growth[10] - The acquisition of American Equity Investment Life Holdings Company (AEL) was completed for approximately $4.0 billion, consisting of $2.5 billion in cash and $1.1 billion in stock consideration[99] - AEL contributed revenues of $564 million and a net loss of $15 million for the period from May 2, 2024, to June 30, 2024[99] - The Company acquired Argo Group International Holdings, Inc. for $1.1 billion, paying $30 per share in an all-cash transaction[101] Policyholder Accounts and Benefits - Policyholders' account balances rose to $80,489 million as of June 30, 2024, compared to $24,939 million on December 31, 2023, reflecting a growth of 223%[1] - Future policy benefits increased to $10,920 million as of June 30, 2024, up from $9,813 million at December 31, 2023[105] - The total expected future gross premiums for life policies were $14,649 million for 2024, compared to $8,507 million for 2023, representing an increase of approximately 72%[108] Operating Expenses - Operating expenses increased to $461 million for the three months ended June 30, 2024, compared to $141 million in the prior year quarter, reflecting expenses from Argo and AEL as well as one-time transaction costs[158] - The company’s operating expenses excluding transaction costs for the six months ended June 30, 2024, were $516 million[140] Cash Flow and Liquidity - Cash flows from operating activities totaled $1,439 million in 2024, compared to $762 million in 2023, indicating an increase of 89%[10] - As of June 30, 2024, total liquidity was $48.8 billion, including $14.3 billion in cash and cash equivalents, up from $4.3 billion at the end of 2023[177] - Cash generated from operating activities for the six months ended June 30, 2024, was $1.4 billion, a 89% increase from $762 million in the same period of 2023[179] Tax and Regulatory Compliance - The effective tax rate for the three months ended June 30, 2024, was 1251%, significantly differing from the statutory tax rate of 23% due to international operations and new tax legislation[124] - The Company is in compliance with all capital requirements as of June 30, 2024, and December 31, 2023[186] Segment Reporting - The company has reorganized its internal segments to include Annuity, Life, Property and Casualty, and Corporate and Other, following the acquisition of American Equity Investment Life Holdings Company[12] - The company’s segment reporting has been reorganized into Annuity, Life, Property and Casualty (P&C), and Corporate and Other, following the AEL acquisition[136]

Core Points - Brookfield Reinsurance has successfully held its annual general and special meeting of shareholders, with all proposed business items approved [1] - The company plans to change its name from "Brookfield Reinsurance" to "Brookfield Wealth Solutions" at a time determined by the board [4] - Shareholders approved amendments to the bye-laws aimed at simplifying and enhancing the capital structure, including a re-designation of class A-1 shares into class A shares [5] Election of Directors - All five nominees for the board of directors from class A shares were elected with high approval rates, including Soonyoung Chang at 99.60% and Michele Coleman Mayes at 99.28% [3] - The holder of class B shares voted for all five nominees proposed for election, which included Barry Blattman and Gregory Morrison [3] Capital Structure Changes - The bye-law amendments will ensure no shareholder can vote more than 9.9% of class A shares, regardless of economic ownership [5] - The implementation of these amendments is anticipated during the third fiscal quarter of 2024, with at least 5 days' notice to be provided [5] Escrowed Stock Plan - Shareholders approved an escrowed stock plan, with Brookfield Reinsurance and Brookfield Corporation receiving exemptive relief from the Ontario Securities Commission for its implementation [6] Additional Information - A summary of all votes cast at the meeting is available on the SEC's EDGAR website and Brookfield Reinsurance's SEDAR profile [7] - Brookfield Reinsurance is positioned as a leading wealth solutions provider, focusing on financial futures through wealth protection and retirement services [8]

BROOKFIELD, NEWS, June 27, 2024 (GLOBE NEWSWIRE) -- Brookfield Reinsurance (NYSE, TSX: BNRE, BNRE.A) today announced that its upcoming annual general and special meeting of shareholders will be held on July 22, 2024 at 10:30 a.m. (Eastern Daylight Time), in a virtual format whereby holders may attend and participate in the meeting via live webcast. At the meeting, in addition to more routine matters, we will be seeking approval from shareholders to change the name of our company from "Brookfield Reinsurance ...

Financial Performance - Net income for the three months ended March 31, 2024, was $337 million, a significant increase of $430 million compared to a net loss of $93 million in the prior year quarter [94]. - Distributable Operating Earnings (DOE) rose by $134 million to $279 million for the three months ended March 31, 2024, primarily due to new business and a full quarter of earnings contribution from Argo [95]. - Revenues for Brookfield for the three months ended March 31, 2024, were $22.9 billion, with net income of $519 million, compared to $23.3 billion and $424 million in the same period of 2023 [144]. - For the three months ended March 31, 2024, net income was $337 million compared to a net loss of $93 million in the same period of 2023 [154]. - Distributable Operating Earnings (DOE) for Q1 2024 was $279 million, up from $145 million in Q1 2023, reflecting a significant increase in operating performance [154]. Asset and Liability Management - Total assets increased by $1.5 billion to $63.1 billion, driven by capital deployment from annuity sales and new Pension Risk Transfer (PRT) deals [97]. - Total liabilities increased to $53.9 billion from $52.8 billion, reflecting growth in policyholder account balances and future policy benefits [102]. - Adjusted Equity rose to $9.3 billion from $4.7 billion, indicating strong capital growth [93]. - Cash and cash equivalents decreased by $1.7 billion to $2.6 billion, primarily due to redeployment into short-term investments [97]. - Corporate and subsidiary borrowings decreased by $24 million from December 31, 2023 to March 31, 2024, as corporate borrowings repayment offset additional subsidiary borrowings [106]. Investment Performance - Net investment income increased by $174 million to $574 million, driven by growth in the investment portfolio and rotation into higher yielding investment strategies [94]. - Investment related gains were $145 million, an increase of $251 million compared to a loss of $106 million in the prior year quarter, driven by mark-to-market movements [94]. - The company reported net investment gains and losses of $(259) million for Q1 2024, compared to $145 million in Q1 2023, highlighting volatility in investment performance [154]. - The investment portfolio's total value increased to $42,565 million in Q1 2024, up from $39,838 million in Q4 2023, which is a 6.1% rise [174]. - Total investment-related gains for the three months ended March 31, 2024, were $145 million, compared to a loss of $106 million in the same period of 2023 [239]. Cash Flow and Liquidity - As of March 31, 2024, total liquidity was $27.6 billion, including $2.574 billion in cash and cash equivalents, and $24.3 billion in liquid financial assets [127]. - The company generated $232 million from operating activities for the three months ended March 31, 2024, compared to $198 million in the same period of 2023, reflecting business growth and increased PRT deals [133]. - Investing activities resulted in a net cash deployment of $2.3 billion during the current quarter, a significant increase from $74 million in the prior year quarter [134]. - Financing activities yielded a net cash inflow of $333 million for the three months ended March 31, 2024, up from $86 million in the same period of 2023, driven by policyholder deposits and reduced repayment activity [135]. - The company maintains a revolving credit facility of $400 million with Brookfield and $750 million with external banks, providing flexibility for working capital and growth investments [131]. Policyholder and Premiums - Net premiums and other policy revenue reached $1.6 billion, up $746 million from $897 million in the prior year quarter, primarily due to a higher number of PRT deals closed [94]. - Future policy benefits and policyholders' account balances increased by $778 million from December 31, 2023 to March 31, 2024, driven by new premiums and interest-sensitive contract benefits [106]. - Ceded unearned premiums increased by $165 million, primarily due to additional reinsurance agreements in the Direct Insurance segment [106]. - Direct Insurance segment DOE increased by $122 million to $232 million for the three months ended March 31, 2024, compared to $110 million in the prior year [109][110]. - Pension Risk Transfer segment DOE increased to $14 million for the three months ended March 31, 2024, compared to $11 million in the prior year, driven by 16 PRT deals representing $776 million of premiums [113][114]. Credit and Risk Management - The allowance for credit losses on available-for-sale securities was concentrated within the financials sector as of March 31, 2024, indicating potential risks in that area [159]. - The company utilized various derivative financial instruments to manage risks associated with assets and liabilities, ensuring stability in financial performance [165]. - The total gross unrealized losses for corporate debt securities were $680 million as of March 31, 2024, indicating significant market pressures [200]. - The company recognized a gain of $41 million on hedged items and a corresponding loss of $(41) million on derivatives designated as hedging instruments for the three months ended March 31, 2024 [228]. - The company reported no interest income recognized on loans in non-accrual status for the three months ended March 31, 2024 [212]. Future Outlook - Forward-looking statements indicate the company anticipates continued growth and operational improvements, although actual results may vary due to unforeseen factors [155]. - The company has an undrawn equity commitment of $2.0 billion from Brookfield, available for future growth initiatives [131]. - The company’s liquidity position is supported by $615 million in undrawn commitments related to the Federal Home Loan Bank program [131]. - The company experienced a significant increase in policyholders' account deposits, totaling $992 million in Q1 2024, compared to $725 million in Q1 2023 [187]. - The company reported comprehensive income of $141 million for the three months ended March 31, 2023, compared to a comprehensive loss of $99 million in the same period of 2022 [182].

BROOKFIELD, NEWS, May 07, 2024 (GLOBE NEWSWIRE) -- Brookfield Reinsurance ((NYSE, TSX:BNRE, BNRE.A)) today announced that its wholly-owned operating subsidiary American Equity Investment Life Insurance Company ("AEL") has received an upgrade to its Insurer Financial Strength ("IFS") rating from S&P Global Ratings ("S&P") to "A" from "A-". The upgrade reflects AEL being core to the overall Brookfield Reinsurance group and benefitting from the strong capital position and earnings profile of Brookfield Reinsur ...

Financial Reporting - Brookfield Reinsurance Ltd. filed its report under Form 20-F for the fiscal year ending March 2024[5] - The report includes a press release dated March 27, 2024, detailing financial performance and strategic initiatives[3] - The Chief Financial Officer, Thomas Corbett, signed the report, indicating the company's commitment to transparency and compliance[8]

Acquisition and Valuation - The company is proposing to acquire AEL Holdings for a total consideration of $55.00 per share, valuing AEL Holdings at approximately $4.3 billion[12] - The acquisition of Argo Group International Holdings, Inc. was completed on November 16, 2023, at a price of $30 per share, totaling approximately $1.1 billion[48] - The company has reinsurance agreements covering up to $10 billion of annuity products issued by AEL Holdings[48] Corporate Governance - The Compensation Committee ensures that executive compensation does not encourage excessive risk-taking behavior by senior management[362] - The Audit Committee is responsible for monitoring the company's financial reporting systems and internal controls[357] - The Governance and Nominating Committee oversees the company's approach to ESG matters and reviews current and proposed ESG initiatives[358] - All directors, officers, and employees are required to comply with the company's Code of Business Conduct and Ethics[369] - The company conducts annual evaluations of its board and committees to improve overall performance[364] - The Compensation Committee reviews the performance of senior management against written objectives and reports thereon[360] Employee and Management Structure - The company has over 4,000 full-time employees primarily located in Canada, the U.S., the United Kingdom, the Cayman Islands, and Bermuda[371] - The company internalized the services of its Chief Executive Officer, Chief Financial Officer, and Chief Investment Officer effective March 22, 2024[372] - As of March 25, 2024, directors and officers beneficially owned approximately 5% of the outstanding class A exchangeable shares and less than 1% of the outstanding class A-1 exchangeable shares[376] Financial Performance and Reporting - Distributable Operating Earnings (DOE) is a key financial performance measure, defined as net income excluding certain costs and adjustments[46] - The company emphasizes the importance of adjusted equity, which represents total economic equity excluding accumulated other comprehensive income and Junior Preferred Shares[46] - Total liquidity includes cash, undrawn credit facilities, and liquid financial assets held by non-regulated corporate entities[46] - The financial information is presented in U.S. dollars and prepared in accordance with U.S. GAAP, with all figures being unaudited unless otherwise indicated[43] - Non-GAAP financial measures are disclosed to assist investors in assessing overall performance, but should not be considered in isolation from GAAP measures[45] Forward-Looking Statements - Forward-looking statements regarding the company's outlook and anticipated events are included, but should not be relied upon as representing future views[40] - The company cautions that historical performance and market data may not be indicative of future results[42] - The company has a commitment to update forward-looking statements only as required by applicable law[40]

Impairment and Asset Valuation - As of December 31, 2022, the company recorded a $28.5 million impairment charge related to Syndicate 1200, consisting of $17.3 million of indefinite-lived intangible assets and $11.2 million of goodwill[7]. - The impairment recorded from the sale of Argo Underwriting Agency Limited amounted to $28.5 million, consisting of $17.3 million of indefinite lived intangible assets and $11.2 million of goodwill[32]. - The sale of Argo Seguros Brasil S.A. resulted in a loss of $33.8 million, which included $27.3 million from historical foreign currency translation[37][38]. - The fair value of total fixed maturities was $2,675.5 million as of December 31, 2022, with gross unrealized losses of $340.2 million[46]. - As of December 31, 2022, total fixed maturities amounted to $3,016.4 million in amortized cost and $2,675.5 million in fair value, reflecting a decrease in fair value of approximately 11.3%[48]. - The carrying value of other investments as of December 31, 2022, was $323.2 million, down from $387.2 million in 2021, primarily due to changes in hedge funds and private equity investments[50]. - The total fair value of fixed maturities was $2,675.5 million as of December 31, 2022, compared to $4,223.3 million on December 31, 2021, reflecting a decline of 36.6%[81]. - The fair value of corporate bonds was reported at $1,234.1 million in 2022, a decrease from $1,983.3 million in 2021, representing a decline of 37.7%[83]. Financial Performance - Total interest paid for the year ended December 31, 2022, was $24.1 million, an increase from $21.8 million in 2021[29]. - Income taxes paid for the year ended December 31, 2022, were $26.2 million, down from $43.0 million in 2021[29]. - The company reported net investment and other losses of $105.3 million in 2022, a significant decline from net gains of $26.4 million in 2021[63]. - Realized gains on fixed maturities decreased to $20.5 million in 2022 from $30.6 million in 2021[63]. - Total unrealized losses on fixed maturities as of December 31, 2022, were $340.2 million, with corporate bonds contributing $160.0 million to this total[51]. - The company reported a total of 22,317 claims for the accident year 2013, with incurred losses of $334.3 million[137]. - The incurred losses for the year 2022 were $439.5 million, reflecting an increase from previous years[137]. - The company did not incur net losses attributed to the COVID-19 pandemic for the year ended December 31, 2022, contrasting with $12.4 million in losses for 2021[107]. Reserves and Liabilities - The company’s reserves for losses and loss adjustment expenses include estimates of IBNR claims and are recognized as liabilities on the balance sheet[14]. - Net reserves at the end of 2022 were $2,213.1 million, down from $3,123.2 million in 2021, representing a decrease of 29.0%[105]. - The gross reserves at the end of 2022 were $5,051.6 million, a decrease of 9.7% from $5,595.0 million in 2021[105]. - The total outstanding liabilities for unpaid losses and ALAE, net of reinsurance, amount to $1,219.8 million[138]. - The total gross liability for unpaid losses and ALAE was $5,051.6 million[158]. - The total liabilities related to the held-for-sale business were reported at $1,914.5 million as of December 31, 2022[35]. Reinsurance and Recoverables - The company’s reinsurance recoverables are estimated based on the associated claim liability and are net of an allowance for estimated uncollectible reinsurance[2]. - Reinsurance recoverables increased from $2,966.4 million as of December 31, 2021, to $3,029.1 million as of December 31, 2022[92]. - The collateral held for reinsurance recoverables was $1,299.3 million as of December 31, 2022, compared to $1,085.5 million in 2021[99]. - Reinsurance recoverables on unpaid losses and LAE at the end of 2022 were $2,838.5 million, up from $2,471.8 million in 2021, reflecting a 14.8% increase[105]. Investment Portfolio - The company held 1,593 fixed maturity securities as of December 31, 2022, with 1,060 in an unrealized loss position for less than one year[55]. - The allowance for credit losses on available-for-sale fixed maturities was evaluated quarterly, with a focus on credit-related factors impacting fair value[57]. - The company’s commercial mortgage loan investments totaled $159.9 million as of December 31, 2022, with apartments making up 54.5% of the portfolio[61]. - The company maintained $149.3 million in cash and securities on deposit for regulatory purposes as of December 31, 2022, down from $195.6 million in 2021[69]. - The total fair value of foreign currency exchange forward contracts was $5.2 million as of December 31, 2022, up from $(0.6) million in 2021[68]. Claims and Loss Development - The cumulative number of reported claims as of December 31, 2022, is 11,011, with incurred losses of $439.5 million for that year[137]. - The expected development on reported claims for 2022 is $354.3 million, indicating ongoing claims processing[137]. - The company uses various actuarial methods to project loss reserves, which may vary by product line and coverage[132]. - Adjustments to previously estimated reserves are reflected in the results of operations in the year they are made[132]. - The company reported cumulative paid losses and ALAE, net of reinsurance, totaling $2,449.7 million[137]. Underwriting and Operational Changes - The company has discontinued active underwriting of certain lines of business, focusing on claims management and administrative functions[163]. - Underwriting losses for Run-off Lines in 2022 were reported at $3.6 million, a significant decrease from $44.7 million in 2021[167]. - The company entered into a loss portfolio transfer agreement on August 8, 2022, covering U.S. casualty insurance reserves for accident years 2011 to 2019[131]. Debt and Interest Rates - The principal amount of senior unsecured fixed rate notes is $143.8 million, with a carrying value of $140.5 million after accounting for unamortized debt issuance costs as of December 31, 2022[170]. - The interest rate for the acquired junior subordinated debentures was 7.92% as of December 31, 2022, compared to 3.35% in the previous year[178]. - The interest rate structure for the junior subordinated debentures is based on 3-month LIBOR plus a margin, with the margin being 3.15% for the acquired debt[178].

The gross unrealized losses and fair value of available-for-sale fixed maturity securities, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position due to market factors are shown below: Allowance for Credit Losses No accrued interest receivables were written off as of June 30, 2023. NOTE 4. EQUITY SECURITIES NOTE 5. MORTGAGE LOANS ON REAL ESTATE Allowance for Credit Losses | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-- ...