Brookfield Reinsurance posts Q1’23 net loss vs year-ago net income

Brookfield Reinsurance reported a net loss of $93 million in the first-quarter of 2023, compared to a net income of $156 million in Q1’22.

This loss was driven largely by unrealized mark-to-market impacts on investments and insurance reserves, partially offset by the contribution of Distributable operating earnings (DOE), the company said.

The company posted $145 million of DOE in Q1’23, compared to $13 million in the prior year period. This increase was driven by contributions from American National, which we acquired at the end of May 2022, as well as higher net investment income from reinsurance treaties closed in late 2021, Brookfield Reinsurance stated.

Sachin Shah, CEO of Brookfield Reinsurance, said: “Our results for the quarter were strong and reflect the significant growth of our business and investment portfolio redeployment activities over the past year. We continue to prioritize sourcing high value investment opportunities, whilst scaling the overall business. Our high levels of liquidity give us substantial flexibility in that regard.”

On April 19, Bermuda-based specialty P&C insurer Argo announced that its shareholders have voted to approve an agreement for the company to be acquired by Brookfield Reinsurance. The transaction remains subject to other customary closing conditions, including receipt of required regulatory approvals and is expected to close in the second half of 2023.

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The company’s board declared a quarterly dividend distribution of $0.07 per Class A and B share, payable on June 30, 2023 to shareholders of record as at the close of business on June 15, 2023.

It has nearly $2 billion of corporate liquidity, with an additional $20 billion of cash and liquid assets within our insurance portfolios, the company said.

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