Brookfield Wealth Solutions (BNT) Q2 2024 earnings summary

Executive summary

• Completed acquisition of American Equity Investment Life Holdings Company (AEL) in May 2024, significantly expanding scale, doubling the asset base, and boosting annuity sales.

• Realigned reporting segments to Annuity, Life, Property & Casualty, and Corporate & Other, reflecting strategic shift post-acquisition.

• Net income for Q2 2024 was $269 million, down from $360 million in Q2 2023, mainly due to investment losses and higher operating expenses from acquisitions.

• Generated $3 billion in retail annuity sales, including $1.3 billion from AEL, and closed 25 pension risk transfer transactions totaling $450 million in premiums.

• Total assets grew to $130.5 billion as of June 30, 2024, up from $61.6 billion at year-end 2023 and $48.0 billion a year earlier, driven by the AEL acquisition.

Financial highlights

• Q2 2024 revenues rose to $2.9 billion from $2.0 billion in Q2 2023, reflecting contributions from AEL and Argo.

• Net investment income increased by $674 million year-over-year for Q2 2024, due to portfolio growth and higher yields.

• Distributable Operating Earnings (DOE) for Q2 2024 were $298 million, up from $160 million in Q2 2023; six-month DOE was $577 million, up from $305 million.

• Investment-related losses of $114 million in Q2 2024, compared to a $222 million gain in Q2 2023, mainly from mark-to-market movements and a $48 million loss on reinsurance settlement.

• Operating expenses rose to $461 million in Q2 2024 from $141 million in Q2 2023, driven by acquisition-related costs and business growth.

Outlook and guidance

• Management expects continued growth from recent acquisitions and ongoing capital deployment into higher-yielding investments, leveraging the expanded asset base.

• Strategic focus remains on expanding wealth protection and retirement services, leveraging increased scale and diversified offerings.

• Name change to Brookfield Wealth Solutions and share re-designation expected in September 2024.