Financial Data and Key Metrics Changes - The company reported a 9% growth in profit before tax, supported by a 5% increase in operating income, reaching $5.1 billion [1][2] - Operating expenses increased by 4%, while credit impairment stood at $195 million, leading to a profit before tax of $2 billion [2][4] - The tangible net asset value per share rose by $0.175 year on year, and the return on tangible equity is now expected to be around 13% in 2025, a year earlier than previously guided [2][10] Business Line Data and Key Metrics Changes - Corporate and Institutional Banking (CIB) income was $3 billion, up 2% year on year, driven by a 23% increase in global banking income [7][9] - Wealth and Private Banking (WRB) income increased by 7% to $2.3 billion, with a record performance in wealth solutions, which saw a 27% rise [9][10] - Underlying loans and advances to customers grew by 1% or $2 billion quarter on quarter, primarily from wealth lending and mortgages [5][6] Market Data and Key Metrics Changes - Underlying customer deposits increased by 2% or $11 billion quarter on quarter, largely driven by WRB [6] - Risk-weighted assets decreased by $1 billion in the quarter, with a CET1 ratio of 14.2%, up 32 basis points quarter on quarter [6][7] Company Strategy and Development Direction - The company is focusing on servicing clients' cross-border and affluent banking needs, with a strategic emphasis on wealth management and digitalization [2][10] - The company plans to continue investing in its differentiated areas of strength to drive income growth and improve returns [10][11] - The management highlighted the importance of adapting to a multipolar world and the digitization of money as key trends for future growth [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting strong performance across various business lines and a positive start to Q4 [10][11] - The company is tracking towards the upper end of its income growth guidance for 2025, with expectations of continued strong performance in wealth solutions [10][11] - Management acknowledged the potential challenges posed by interest rate fluctuations but remains focused on managing net interest income effectively [34][39] Other Important Information - The company achieved $566 million in run-rate savings from its Fit for Growth program and has taken $454 million in restructuring charges since its inception [4][5] - The company is committed to maintaining a cost cap of below $12.3 billion on a constant currency basis for 2026 [4][48] Q&A Session Summary Question: Discussion on wealth business margin pickup - Management noted that net new money is migrating into wealth products, and the return on assets has improved due to a conversion from assets under custody to assets under management [13][15][18] Question: Future trends in wealth management - Management discussed the importance of AI and digitization in shaping the future of wealth management, emphasizing the bank's preparedness for these changes [25][26][27] Question: Clarification on net interest income expectations - Management expressed optimism for Q4 net interest income, highlighting better-than-expected performance and effective management of pass-through rates [34][37][38] Question: Insights on Fit for Growth program - Management confirmed that the bulk of cost savings from the Fit for Growth program will be realized in 2026, with a commitment to the cost cap remaining unchanged [48][49] Question: CASA ratio stability - Management explained that the CASA ratio remains stable due to affluent customers moving funds into investment products, which is a positive trend [51][53] Question: Credit impairment and sovereign risks - Management reassured that there are no significant signs of stress in sovereign credit, despite some fluctuations in sovereign ratings [55][56]

Core Insights - Brookfield Corporation completed a three-for-two stock split to enhance accessibility for individual investors and improve trading liquidity [1][6] - The company has delivered a total return exceeding 27,000% over the past 30 years, with a 19% annualized total return compared to 11% for the S&P 500 [2] - Brookfield expects to triple the value of its shares by 2030, with a projected annual growth rate of 16% [2][8] Company Overview - Brookfield is a leading global investment manager with three main businesses: asset management, wealth solutions, and operating businesses [3][7] - The company owns a 73% interest in Brookfield Asset Management, which manages over $1 trillion in assets [7] - Brookfield Wealth Solutions offers investment-led insurance products, while its operating businesses focus on infrastructure, renewable energy, private equity, and real estate [7] Financial Performance - Over the last five years, Brookfield has grown its distributable earnings at a 22% compound annual rate, increasing from $2 billion in 2020 to an expected $5.3 billion this year [4] - The intrinsic value of the company is estimated at $102 per share (pre-split), significantly higher than the recent stock price of less than $70 [4] - In the past year, Brookfield returned $1.5 billion to investors through share repurchases and dividends while retaining capital for reinvestment [4] Future Growth Projections - Brookfield aims for annualized total distributable earnings-per-share growth of 25% over the next five years, with core businesses expected to generate 20% growth [8] - The company anticipates an additional 5% growth from capital allocation activities, projecting share value could rise to $210 (pre-split) by 2030, representing over 200% increase from current levels [8]

Group 1: Safe Stocks Overview - Safe stocks are characterized by a solid balance sheet, consistent earnings, and a compelling business model, making them attractive for risk-averse investors [1][3] - Investing in low-volatility stocks can yield strong results, as they tend to perform well even when the overall market is down [3] Group 2: Methodology for Stock Selection - A list of safe stocks was compiled using the Finviz stock screener, filtering for large-cap stocks with a beta of under 1, a P/E ratio of under 25, a debt-to-equity ratio of under 0.6, and an ROE of over 10% [4] - Stocks are ranked based on the number of hedge fund holdings, utilizing data from Insider Monkey's Q2 2025 database [4][5] Group 3: Company Profiles - **Sun Life Financial Inc. (NYSE:SLF)**: - The company has 15 hedge fund holdings and saw Goldman Sachs increase its stake by 282.5%, now owning shares valued at $159 million [6][7] - Sun Life offers stable income through attractive dividends and solid earnings, with a diversified business model [7][9] - The company is transitioning to a capital-light business model, enhancing its asset management capabilities [8] - **TotalEnergies SE (NYSE:TTE)**: - The company has 23 hedge fund holdings and is expected to see a modest upside of 4.6% according to TD Cowen [10] - TotalEnergies is involved in a significant seawater supply project and the development of the Ratawi oil field, indicating strong future prospects [11] - By 2030, the company anticipates that 50% of its revenue will come from LNG production and 20% from renewable energy [12][13] - **Cincinnati Financial Corporation (NASDAQ:CINF)**: - The company has 27 hedge fund holdings, with Brendel Financial Advisors increasing its position by 729.8% [14][15] - Cincinnati Financial's insurer financial strength ratings were upgraded to 'AA-' from 'A+', reflecting its stability and strong capitalization [15][16] - The company operates in property casualty insurance and maintains an equity holding nearly twice the industry average [16][17]

Core Insights - Brookfield Corporation has delivered impressive wealth-building returns, averaging over 15% annually for the past 30 years, outperforming the S&P 500 and many leading companies [1] - Over the past five years, Brookfield has achieved a robust 19.2% average annual total return, significantly higher than the S&P 500's 13.8% [3] - A $1,000 investment in Brookfield five years ago would be worth over $2,400 today, compared to approximately $1,900 for the same investment in the S&P 500 [3] Financial Performance - The company has an impressive 18% annualized earnings growth rate, driven by the rapid expansion of its wealth solutions business [4] - The wealth solutions platform has grown from about $2 billion in insurance assets under management (AUM) four years ago to over $110 billion today, largely due to strong organic growth and acquisitions [4] - Recent acquisitions include AEL for $4.3 billion in 2023 and American National for $5.1 billion in 2022, contributing to over $2 billion in annual earnings from this business [4] Asset Management Expansion - Brookfield has significantly expanded its alternative investment management platform, which now has over $1 trillion in AUM [5] - The expansion has been achieved through strategic partnerships and the launch of new flagship investment funds, focusing on megatrends such as infrastructure, renewable energy, and private credit [5] Future Outlook - The company anticipates that the next five years will be even better, with ongoing rapid expansion of its wealth solutions and asset management platforms expected to drive higher total returns for investors [6]

Financial Data and Key Metrics Changes - For the full year 2024, the company achieved organic revenue growth of 6% and total revenue growth of 17% [5][20] - Adjusted operating income increased by 17%, leading to a 10% growth in adjusted earnings per share (EPS) [5][20] - Free cash flow reached $2.8 billion, reflecting strong operating income growth and working capital improvements [29][20] Business Line Data and Key Metrics Changes - In Q4, organic revenue growth for commercial risk was 6%, driven by strength in North American core P&C business and international contributions [21][22] - Reinsurance organic revenue also grew by 6% in Q4, supported by strong treaty placements and interest in catastrophe bonds [23] - Health solutions experienced 5% growth in Q4, while wealth solutions delivered 8% organic revenue growth, driven by demand for pension risk transfer consulting [24] Market Data and Key Metrics Changes - The company noted a flat net market impact from growth and exposures in rates, with a modestly negative rate impact in reinsurance [24][25] - The overall market remains under-penetrated, with increasing demand driven by megatrends in trade, technology, weather, and workforce [76] Company Strategy and Development Direction - The company is executing its 3x3 plan, focusing on risk capital and human capital, Aon client leadership, and Aon Business Services [8][15] - The integration of NFP is progressing well, with expectations of achieving $45 million to $60 million in targeted acquired EBITDA in 2025 [19][42] - Continued investment in client-facing talent and innovative technology-driven solutions is prioritized to support growth [15][36] Management's Comments on Operating Environment and Future Outlook - Management highlighted increasing volatility and complexity in client environments, necessitating enhanced risk management solutions [6][7] - The company expects to maintain mid single-digit or greater organic revenue growth, continued margin expansion, and strong adjusted EPS growth in 2025 [5][36] - Management expressed confidence in achieving a double-digit compound annual growth rate (CAGR) in free cash flow from 2023 to 2026 [20][36] Other Important Information - The company paid down $2.1 billion in debt and returned $1.6 billion in capital to shareholders through dividends and share repurchases [19][29] - Adjusted operating margin for Q4 was 33.3%, reflecting a 140 basis point expansion [26] Q&A Session Summary Question: Integration of NFP and future M&A opportunities - Management confirmed that the integration of NFP is on track and expressed confidence in pursuing additional M&A opportunities as the platform becomes more integrated [43][44][46] Question: Growth in Reinsurance Solutions and ILS market - Management noted that the ILS business is a smaller component of reinsurance but is driving growth, with interest in catastrophe bonds and other innovative risk transfer solutions [51][53] Question: Retention improvement efforts and M&A Services rebound - Management highlighted strengthening retention rates, particularly in North America, and noted that M&A services are expected to pick up modestly [60][63] Question: Seasonal expectations for Q1 in commercial risk - Management indicated that there are no specific seasonal expectations for Q1, but they remain committed to achieving mid single-digit growth [72][74] Question: EPS growth guidance - Management provided detailed guidance on organic revenue growth and margin expansion, indicating confidence in achieving strong EPS growth [85][88]