Brookfield Wealth Solutions (BNT) Q3 2024 earnings summary

Executive summary

• Completed acquisition of American Equity Investment Life Holdings (AEL) in May 2024, significantly expanding scale and diversifying insurance offerings.

• Achieved strong Q3 2024 returns, driven by $5B of investment redeployment at accretive risk-adjusted yields and robust annuity sales totaling $4B for the quarter and $12B year-to-date.

• Net income for Q3 2024 was $65 million, down from $77 million in Q3 2023, while nine-month net income rose to $671 million from $344 million year-over-year.

• Total assets increased to $137.1 billion as of September 30, 2024, up from $61.6 billion at year-end 2023 and $51.2 billion a year earlier, primarily due to the AEL acquisition and capital deployment.

• Reporting segments realigned to Annuity, Life, Property & Casualty (P&C), and Corporate & Other following strategic shift.

Financial highlights

• Q3 2024 revenues were $2.97 billion, up from $1.53 billion in Q3 2023; nine-month revenues reached $8.36 billion, up from $4.68 billion year-over-year.

• Net investment income for Q3 2024 was $1.26 billion, up from $442 million in Q3 2023; nine-month net investment income was $2.96 billion, up from $1.28 billion.

• Distributable Operating Earnings (DOE) for Q3 2024 were $370 million, up from $182 million in Q3 2023; nine-month DOE was $947 million, up from $487 million.

• Adjusted Equity as of September 30, 2024 was $11.4 billion, up from $7.3 billion a year earlier.

• Quarterly return of capital of $0.08 per class A and B share declared, payable December 31, 2024.

Outlook and guidance

• Management expects continued growth from integration of AEL and Argo, leveraging strong investment capabilities and retail annuities platform.

• Ongoing rotation of investment portfolio into higher-yielding strategies supported by ample liquidity.

• Liquidity remains strong, with $52.5 billion in total liquidity and $1.4 billion in corporate liquidity as of September 30, 2024.

• Anticipates closing the U.K. reinsurance transaction in the coming weeks, subject to regulatory approval.

• Regulatory and tax changes, including Bermuda’s new corporate income tax regime, are being closely monitored for future impact.