Brookfield's Flatt on Insurance, Private Markets and AI

Core Insights - Brookfield is positioning itself for growth in the insurance sector, aiming to leverage its investment management expertise to enhance its insurance business, which is seen as a pivotal evolution for the company [1][2] - The company is focused on balancing risk and growth, emphasizing a strategy that prioritizes not losing money in insurance while generating returns through investments [3][4] Group 1: Investment Strategy - Brookfield is integrating its capital into insurance annuities, applying traditional investment strategies to the insurance sector, which is well-suited for long-tail liabilities [2][4] - The company sees itself as a hybrid between credit-led and investment-led insurance businesses, positioning closer to Berkshire Hathaway's model [4][5] - There is a significant opportunity in the retail investment market, which is currently under-allocated to alternatives compared to institutional management [7][11] Group 2: Market Potential - The retail investment market is estimated at $20 trillion, with Brookfield having a 20-year runway to capture this opportunity as allocations to alternatives in retail are currently at zero [7][8] - The growth of private markets is expected to continue, driven by increasing allocations from institutional investors, while retail markets remain largely untapped [10][11] Group 3: Infrastructure and AI - Brookfield is uniquely positioned in the infrastructure and energy sectors, with a focus on building the backbone of the global economy, particularly in artificial intelligence and data centers [12][14] - The company anticipates significant capital investment in AI infrastructure, which is expected to drive productivity and economic growth globally [15][20] Group 4: Government Involvement - Increased government involvement in infrastructure projects is seen as a necessary evolution, with the U.S. government actively supporting American businesses and infrastructure development [22][28] - The company believes that government strategies will facilitate the build-out of necessary infrastructure to support economic growth and technological advancements [24][29] Group 5: Long-term Outlook - Brookfield maintains a long-term perspective, focusing on infrastructure investments that will span the next 40 to 50 years, regardless of short-term economic fluctuations [30][31] - The U.S. economy is viewed as strong, with Brookfield committed to investing substantial capital in the country, estimating investments of $30 to $50 billion in the current year [31]