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]

Core Points - Brookfield Reinsurance will hold its annual general and special meeting of shareholders on July 22, 2024, in a virtual format [1][4] - The company seeks shareholder approval to change its name to "Brookfield Wealth Solutions" and to simplify its capital structure [2][3] - Proposed changes include re-designating class A-1 exchangeable non-voting shares into class A exchangeable limited voting shares, limiting voting power to 9.9% for any shareholder [2][3] - The company has experienced significant growth since its inception in 2021, offering a diverse range of wealth and retirement solutions [3] Company Information - Brookfield Reinsurance is a leading provider of wealth solutions, focusing on financial security for individuals and institutions through wealth protection and retirement services [5] - Each class A exchangeable limited voting share and class A-1 exchangeable non-voting share can be exchanged on a one-for-one basis with a class A limited voting share of Brookfield Corporation [5]

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].

Financial Performance - Net income for Q2 2023 reached $360 million, a significant increase from $25 million in Q2 2022, representing a growth of 1,340%[75] - Total revenues for the first half of 2023 were $3,243 million, up from $1,558 million in the same period of 2022, marking a 108% increase[74] - Net investment income for Q2 2023 was $440 million, compared to $195 million in Q2 2022, reflecting a growth of 125%[74] - Basic net income per Class C share for Q2 2023 was $8.07, compared to $0.53 in Q2 2022, representing a significant increase of 1,425%[74] - Net income for the six months ended June 30, 2023, was $267 million, up from $181 million in 2022, representing a 47.5% increase[81] - Cash flows from operating activities increased to $762 million in 2023 from $389 million in 2022, a growth of 96.2%[81] - The company reported a total comprehensive loss of $523 million for the period ended June 30, 2023, primarily due to unrealized depreciation on investments[194] Revenue and Premiums - Total benefits and expenses for the first half of 2023 were $2,974 million, compared to $1,375 million in the same period of 2022, reflecting a 116% increase[74] - For the six months ended June 30, 2023, gross premiums from Direct Insurance amounted to $292 million, while Pension Risk Transfer gross premiums were $675 million[200] - Net premiums and other policy-related revenues for the six months ended June 30, 2023, were $2,099 million, up from $1,342 million in the same period of 2022, indicating a 56.5% growth[210] - The office segment contributed $1,296 million, accounting for 58% of total revenue, up from 23% in the previous year[130] - The apartment segment revenue increased to $420 million, representing 19% of total revenue, compared to 25% in the previous year[130] Investment Performance - Investment-related gains for Q2 2023 were $292 million, a recovery from a loss of $135 million in Q2 2022[74] - The company recognized credit losses of $(36) million on securities for the six months ended June 30, 2023[92] - The company reported net investment results from funds withheld of $27 million for the three months ended June 30, 2023, compared to $(6) million in the same period of 2022[135] - The company experienced net investment-related gains of $292 million in the quarter, compared to a loss of $135 million in the prior year quarter, mainly due to higher unrealized mark-to-market gains on equity securities[233] Assets and Liabilities - Total assets increased to $1,337 million as of June 30, 2023, compared to $1,144 million at December 31, 2022, representing a growth of 16.9%[130] - Cash and cash equivalents at the end of the period were $2,893 million, up from $2,084 million in 2022, reflecting a 38.7% increase[82] - Policyholder liabilities rose significantly to $1,755 million in 2023 compared to $708 million in 2022, marking an increase of 147.5%[81] - The total balance of reinsurance at the end of the period was $6,993 million, up from $5,833 million, indicating a growth of 19.9%[171] Operational Metrics - The company completed a record level of sales during the quarter, representing over $3 billion of new policies, with 26 Pension Risk Transfer (PRT) deals totaling $530 million in premiums[232] - Interest sensitive contract benefits and commissions for acquiring and servicing policies increased by $298 million and $151 million, respectively, driven by increased sales and premiums[235] - Operating expenses for the quarter were $186 million, significantly higher than $75 million in the prior year quarter, primarily due to the acquisition of American National[235] - The company had $417 million drawn on its $550 million bilateral revolving credit facilities as of June 30, 2023[184] Acquisitions and Commitments - The acquisition of American National was valued at $4.3 billion, with each shareholder receiving $55.00 per share, consisting of $38.85 in cash and $16.15 in Brookfield Asset Management Ltd shares[221] - The company has an outstanding equity commitment of $2.0 billion from Brookfield to fund future growth, with no amounts drawn as of June 30, 2023[203] - The company had investment commitment agreements totaling approximately $6.2 billion as of June 30, 2023, up from $5.4 billion at the end of 2022[217] Segment Performance - Distributable Operating Earnings (DOE) is the key measure used by the company's chief operating decision maker to assess performance across its three segments: Reinsurance, Direct Insurance, and Pension Risk Transfer[205] - Distributable Operating Earnings increased by $114 million to $160 million for the quarter, driven by contributions from American National and higher net investment income[235] - The Reinsurance segment's DOE rose to $28 million in Q2 2023, up from $6 million in Q2 2022, driven by an increase in interest income of $11 million due to market rates[261] - The Pension Risk Transfer (PRT) segment's DOE was $10 million in Q2 2023, compared to $5 million in Q2 2022, with a total of 26 PRT deals closed in the US and Canada, representing $530 million in premiums[267]