Brookfield Reinsurance .(BNRE) - 2024 Q2 - Quarterly Report

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$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$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$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$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$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]