Financial Data and Key Metrics Changes - Distributable earnings before realizations increased 13% year over year to $1,300,000,000, equating to $0.80 per share for the quarter and $5,300,000,000 or $3.36 per share for the last twelve months [5][15] - Total distributable earnings including realizations were $1,400,000,000 or $0.88 per share for the quarter and $5,900,000,000 or $3.71 per share over the last twelve months, with total net income of $2,900,000,000 [15] Business Line Data and Key Metrics Changes - The asset management business generated distributable earnings of $650,000,000 or $0.41 per share in the quarter, and $2,700,000,000 or $1.72 per share over the last twelve months, with inflows during the quarter of $22,000,000,000 [16] - The Wealth Solutions business reported distributable operating earnings of $391,000,000 or $0.25 per share in the quarter and $1,600,000,000 or $1.02 per share over the last twelve months [17] - The operating businesses generated distributable earnings of $350,000,000 or $0.22 per share in the quarter and $1,700,000,000 or $1.07 per share over the last twelve months [18] Market Data and Key Metrics Changes - Global equities hit all-time highs, credit spreads tightened dramatically, and interest rates remained largely unchanged, with expectations of potential cuts on the short end of the curve [6][7] - The company completed GBP55 billion of asset sales this year, including GBP35 billion in the quarter, generating excellent returns [8][21] Company Strategy and Development Direction - The company is focusing on digitalization, deglobalization, and decarbonization as key themes for capital deployment, with a record $177,000,000,000 of deployable capital [8][10] - The launch of an AI infrastructure strategy is underway, aimed at developing AI factories to meet the growing demand for compute capacity [9][10] - The company plans to enhance the efficiency of its capital structure while maintaining a focus on low-risk, long-duration insurance [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment is becoming increasingly constructive, supporting increased monetizations and cash flow growth [6][8] - The company anticipates continued growth in results over the remainder of the year, with strong underlying fundamentals driving performance [25] Other Important Information - The Board of Directors declared a quarterly dividend of $0.09 per share and approved a three-for-two stock split of the outstanding Class A limited voting shares [25] - The company announced an agreement to acquire Just Group for $3,200,000,000, expected to significantly accelerate growth in insurance assets [18] Q&A Session Summary Question: Growth in P&C business and scaling plans - Management indicated that the focus is on low-risk liabilities, particularly in the annuity business, with potential for organic growth in P&C if competitive advantages are identified [27][28] Question: Market conditions and carried interest timing - Management stated that while market conditions are improving, the expected timing for carried interest remains broadly in line with previous plans, with significant contributions expected next year [34][36] Question: Just Group acquisition financing details - Management noted that the acquisition is subject to strict UK takeover rules, limiting the details that can be shared at this stage [40] Question: Evolution of corporate structure with insurance operations - Management emphasized that the insurance business will remain integrated into Brookfield, enhancing returns on capital and providing growth opportunities [44][46] Question: AI infrastructure strategy and investor support - Management confirmed engagement with large clients for potential cornerstone investments in the AI infrastructure strategy, aiming to mitigate technological obsolescence risk through structured investments [49][50]
Brookfield Corporation(BN) - 2025 Q2 - Earnings Call Transcript