Brookfield Reinsurance .(BNRE) - 2023 Q2 - Quarterly Report

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$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$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$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]