Brookfield Wealth Solutions Announces Year End 2024 Results and Declares Quarterly Distribution Increase

Rhea-AI Summary

Brookfield Wealth Solutions (NYSE, TSX: BNT) reported strong financial results for Q4 and full-year 2024. The company's total assets doubled to $140.4 billion, with net income reaching $576 million in Q4 and $1.2 billion for the full year. Key highlights include:

The company completed the acquisition of American Equity Investment Life Holding Company, deployed over $17 billion across their investment portfolio, and generated $19 billion in annuity and pension risk transfer sales. They also executed their first UK reinsurance transaction worth £1.0 billion.

Distributable operating earnings increased to $427 million in Q4 and $1.4 billion for the year. The Board declared a 13% increase in quarterly distribution to $0.09 per share. The company maintains strong liquidity with $31 billion in cash and short-term investments, plus $21 billion in long-term liquid investments.

Positive

• Total assets doubled to $140.4 billion from $61.6 billion YoY
• Net income increased to $576M in Q4 2024 (vs $453M in Q4 2023)
• Distributable operating earnings grew to $1.4B in 2024 (vs $745M in 2023)
• 13% increase in quarterly distribution to $0.09 per share
• Strong liquidity position with $52B in combined liquid investments

Negative

• None.

Insights

Financial Analyst

Brookfield Wealth Solutions delivered exceptional financial performance in 2024, marked by strategic expansion and robust operational execution. The doubling of business size through the AEL acquisition represents a transformative move that has immediately enhanced earnings power, with distributable operating earnings surging 66% year-over-year to $1.4 billion.

The company's deployment of $17 billion across investment portfolios at strong risk-adjusted returns demonstrates skilled capital allocation, while the $19 billion in combined annuity and pension risk transfer sales reflects growing market penetration. The successful execution of their first UK reinsurance transaction, valued at £1.0 billion, signals promising international expansion potential.

Particularly noteworthy is the company's robust liquidity position, with $52 billion in combined liquid assets. This substantial buffer not only provides flexibility for portfolio optimization but also ensures resilience against market stress scenarios - a important consideration given the current economic climate.

The 13% increase in quarterly distribution reflects management's confidence in sustainable earnings growth. However, the real story lies in the company's strategic positioning: the scalable North American annuity platform, combined with established investment capabilities, creates a powerful foundation for international expansion in 2025. This positions Brookfield Wealth Solutions to capture growing global demand for retirement solutions while maintaining pricing discipline and risk management.

BROOKFIELD, NEWS, Feb. 13, 2025 (GLOBE NEWSWIRE) -- Brookfield Wealth Solutions (NYSE, TSX: BNT) today announced financial results for the three months and year ended December 31, 2024.

Sachin Shah, CEO of Brookfield Wealth Solutions, stated, “Our strong results for 2024 underscore our growth over the past year having doubled the size of the business in that time. Our scalable North American annuity platform, coupled with our leading investment capabilities, will serve as the foundation for our business as we expand internationally in 2025.”

Unaudited As of and for the periods ended December 31 (US$ millions, except per share amounts)	Three Months Ended								Year Ended
		2024				2023				2024				2023
Total assets	$	140,460			$	61,643			$	140,460			$	61,643
Adjusted equity1		12,872				8,969				12,872				8,969
Distributable operating earnings1		427				258				1,374				745
Net income		576				453				1,247				797
Net income per each class A share	$	0.08			$	0.07			$	0.32			$	0.28

^{1.   See Non-GAAP and Performance Measures on page 6 and a reconciliation from net income and reconciliation from equity on page 5.}

2024 Highlights

• Completed the acquisition of American Equity Investment Life Holding Company (“AEL”), doubling the size of our business
  
  
• Deployed more than $17 billion across our investment portfolio at strong risk-adjusted returns
  
  
• Generated $19 billion in annuity and pension risk transfer (“PRT”) sales across the business, consisting of approximately $14 billion of retail annuity sales, inclusive of a full twelve months of activity at AEL, and $5 billion of PRT deals
  
  
• We closed our first U.K. reinsurance transaction, reinsuring £1.0 billion ($1.3 billion) of pension liabilities
  

Operating Update
We recognized $427 million and $1.4 billion of distributable operating earnings (“DOE”) for the three months and year ended December 31, 2024, respectively, compared to $258 million and $745 million in the prior year periods. The increase in earnings for the current period reflects contributions from our acquisition of AEL as well as higher net investment income resulting from progress made in repositioning assets into higher yielding investment strategies. DOE further benefitted from strong annuity sales during the year.

We recorded net income of $576 million and $1.2 billion for the three months and year ended December 31, 2024, respectively, compared to net income of $453 million and $797 million in the prior year periods. Net income in the current period is the result of strong operating performance and contributions from our DOE, as well as favorable movement on reserves due to interest rate and equity market movements.

Today, we are in a strong liquidity position, with approximately $31 billion of cash and short-term liquid investments across our investment portfolios, and another $21 billion of long-term liquid investments. These liquid assets will support the ongoing rotation of our portfolio into higher yielding investment strategies, while ensuring we have sufficient liquidity coverage for our liabilities in the case of any stress events impacting the broader market.

Regular Distribution Declaration
The Board declared a 13% increase in the Company’s quarterly return of capital to $0.09 per class A share and class B share (representing $0.36 per annum), payable on March 31, 2025 to shareholders of record as at the close of business on March 14, 2025. This distribution is identical in amount per share and has the same payment date as the quarterly distribution announced today by Brookfield Corporation on the Brookfield class A shares.

Brookfield Corporation Operating Results
An investment in class A shares of our company is intended to be, as nearly as practicable, functionally and economically, equivalent to an investment in the Brookfield class A shares. A summary of Brookfield Corporation’s fourth quarter and full year operating results is provided below:

Unaudited For the periods ended December 31 (US$ millions, except per share amounts)	Three Months Ended								Years Ended
		2024				2023				2024				2023
Net income of consolidated business1	$	101			$	3,134			$	1,853			$	5,105
Net income attributable to Brookfield shareholders2		432				699				641				1,130
Distributable earnings before realizations2,3		1,498				1,209				4,871				4,223
– Per Brookfield class A share2,3		0.94				0.76				3.07				2.66
Distributable earnings2,3		1,606				1,312				6,274				4,806
– Per Brookfield class A share2,3		1.01				0.83				3.96				3.03

^{1.   Consolidated basis – includes amounts attributable to non-controlling interests.
2.   Excludes amounts attributable to non-controlling interests.
3.   See Reconciliation of Net Income to Distributable Earnings on page 5 and Non-IFRS and Performance Measures section on page 8 of Brookfield Corporation’s press release dated February 13, 2025.}

Brookfield Corporation net income above is presented under IFRS. Given the economic equivalence, we expect that the market price of the class A shares of our company will be impacted significantly by the market price of the Brookfield class A shares and the business performance of Brookfield as a whole. In addition to carefully considering the disclosure made in this news release in its entirety, shareholders are strongly encouraged to carefully review Brookfield Corporation’s letter to shareholders, supplemental information and its other continuous disclosure filings. Investors, analysts and other interested parties can access Brookfield Corporation’s disclosure on its website under the Reports & Filings section at bn.brookfield.com.

CONSOLIDATED BALANCE SHEETS

Unaudited					December 31								December 31
(US$ millions)						2024								2023
Assets
Insurance invested assets
Cash and cash equivalents	$	12,243							$	4,308
Investments		92,966								39,838
Reinsurance funds withheld		1,517								7,248
Accrued investment income		860				107,586				280				51,674
Reinsurance recoverables and deposit assets						13,195								3,388
						120,781								55,062
Deferred policy acquisition costs						10,696								2,468
Other assets						8,983								4,113
Total assets						140,460								61,643
Liabilities and equity
Policy and contract claims						7,659								7,288
Future policy benefits						14,088								9,813
Policyholders’ account balances						83,079								24,939
Deposit liabilities						1,502								1,577
Market risk benefits						3,655								89
Unearned premium reserve						1,843								2,056
						111,826								45,762
Corporate borrowings						1,022								1,706
Subsidiary borrowings						3,329								1,863
Funds withheld for reinsurance liabilities						3,392								83
Other liabilities						7,815								3,380
Junior preferred shares						—								2,694
Non-controlling interest		850								146
Class A and class B		1,470								1,591
Class C		10,756				13,076				4,418				6,155
Total liabilities and equity					$	140,460							$	61,643

CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited For the periods ended December 31 US$ millions	Three Months Ended								Year Ended
		2024				2023				2024				2023
Net premiums and other policy revenue	$	4,307			$	1,432			$	9,048			$	4,550
Net investment income, including funds withheld		1,325				621				4,440				2,121
Net investment gains (losses), including funds withheld		115				176				615				241
Total revenues		5,747				2,229				14,103				6,912
Benefits and claims paid on insurance contracts		(4,003	)			(1,194	)			(8,162	)			(3,939	)
Interest sensitive contract benefits		(710	)			(355	)			(1,874	)			(687	)
Amortization of deferred policy acquisition costs		(370	)			(180	)			(1,237	)			(632	)
Changes in fair value of insurance-related derivatives and embedded derivatives		396				210				234				41
Changes in fair value of market risk benefits		299				85				(107	)			166
Other reinsurance expenses		(6	)			(5	)			(26	)			(21	)
Operating expenses		(332	)			(244	)			(1,356	)			(777	)
Interest expense		(96	)			(68	)			(362	)			(249	)
Total benefits and expenses		(4,822	)			(1,751	)			(12,890	)			(6,098	)
Net income before income taxes		925				478				1,213				814
Income tax recovery (expense)		(349	)			(25	)			34				(17	)
Net income for the period	$	576			$	453			$	1,247			$	797
Attributable to:
Class A and class B shareholders1	$	4			$	2			$	14			$	5
Class C shareholder		559				453				1,200				791
Non-controlling interest		13				(2	)			33				1
	$	576			$	453			$	1,247			$	797

^{1.   Class A shares receive distributions at the same amount per share as the cash dividends paid on each Brookfield class A share.}

SUMMARIZED FINANCIAL RESULTS

RECONCILIATION OF NET INCOME TO DISTRIBUTABLE OPERATING EARNINGS

Unaudited For the periods ended December 31 US$ millions	Three Months Ended								Year Ended
		2024				2023				2024				2023
Net income	$	576			$	453			$	1,247			$	797
Unrealized net investment gains, including funds withheld		(115	)			(176	)			(615	)			(241	)
Mark-to-market on insurance contracts and other net assets		(367	)			(104	)			589				105
		94				173				1,221				661
Deferred income tax expense (recovery)		260				47				(195	)			14
Transaction costs		32				24				213				40
Depreciation		41				14				135				30
Distributable operating earnings1	$	427			$	258			$	1,374			$	745

RECONCILIATION OF EQUITY TO ADJUSTED EQUITY

Unaudited As of December 31 US$ millions		2024				2023
Equity	$	13,076			$	6,155
Add:
Accumulated other comprehensive (income) loss		(204	)			120
Junior preferred shares		—				2,694
Adjusted equity1	$	12,872			$	8,969

^{1.   Non-GAAP measure – see Non-GAAP and Performance Measures on page 6.}

Additional Information

The statements contained herein are based primarily on information that has been extracted from our financial statements for the quarter and year ended December 31, 2024, which have been prepared using generally accepted accounting principles in the United States of America (“US GAAP” or “GAAP”).

Brookfield Wealth Solutions’ Board of Directors have reviewed and approved this document, including the summarized unaudited consolidated financial statements prior to its release.

Information on our distributions can be found on our website under Stock & Distributions/Distribution History.

Brookfield Wealth Solutions Ltd. (NYSE, TSX: BNT) is focused on securing the financial futures of individuals and institutions through a range of wealth protection and retirement services, and tailored capital solutions. Each class A exchangeable limited voting share of Brookfield Wealth Solutions is exchangeable on a one-for-one basis with a class A limited voting share of Brookfield Corporation (NYSE, TSX: BN). For more information, please visit our website at bnt.brookfield.com or contact:

Communications & Media: Kerrie McHugh Tel: (212) 618-3469 Email: kerrie.mchugh@brookfield.com

Investor Relations: Rachel Schneider Tel: (416) 369-3358 Email: rachel.schneider@brookfield.com

Non-GAAP and Performance Measures

This news release and accompanying financial statements are based on US GAAP, unless otherwise noted.

We make reference to Distributable operating earnings. We define distributable operating earnings as net income after applicable taxes excluding the impact of depreciation and amortization, deferred income taxes related to basis and other changes, and breakage and transaction costs, as well as certain investment and insurance reserve gains and losses, including gains and losses related to asset and liability matching strategies, non-operating adjustments related to changes in cash flow assumptions for future policy benefits, and change in market risk benefits, and is inclusive of returns on equity invested in certain variable interest entities and our share of adjusted earnings from our investments in certain associates. Distributable operating earnings is a measure of operating performance. We use distributable operating earnings to assess our operating results. We also make reference to Adjusted equity. Adjusted equity represents the total economic equity of our Company through our class A, B and C shares, excluding Accumulated other comprehensive income, and the junior preferred shares issued by our Company. We use adjusted equity to assess our return on our equity.

We provide additional information on key terms and non-GAAP measures in our filings available at bnt.brookfield.com.

Notice to Readers

Brookfield Wealth Solutions Ltd. (“Brookfield Wealth Solutions” or “our” or “we”) is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement.

This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws, “forward-looking statements” within the meaning of Canadian provincial securities laws, “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, and “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, assumptions and expectations regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of Brookfield Wealth Solutions, Brookfield Corporation and their respective subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods. Particularly, statements regarding international expansion plans and future capital markets initiatives, including statements relating to the redeployment of capital into higher yielding investments constitute forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “foresees,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” In particular, the forward-looking statements contained in this news release include statements referring to the growth of our business, international expansion, investment opportunities and expected future deployment of capital and financial earnings. Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable estimates, assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Brookfield Wealth Solutions or Brookfield Corporation to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: (i) investment returns that are lower than target; (ii) the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; (iii) the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures; (iv) global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; (v) strategic actions including acquisitions and dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; (vi) changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); (vii) the ability to appropriately manage human capital; (viii) the effect of applying future accounting changes; (ix) business competition; (x) operational and reputational risks; (xi) technological change; (xii) changes in government regulation and legislation within the countries in which we operate; (xiii) governmental investigations and sanctions; (xiv) litigation; (xv) changes in tax laws; (xvi) ability to collect amounts owed; (xvii) catastrophic events, including but not limited to, earthquakes, hurricanes, epidemics and pandemics; (xviii) the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; (xix) the introduction, withdrawal, success and timing of business initiatives and strategies; (xx) the failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks; (xxi) health, safety and environmental risks; (xxii) the maintenance of adequate insurance coverage; (xxiii) the existence of information barriers between certain businesses within our asset management operations; (xxiv) risks specific to our business segments; and (xxv) factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.

We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the foregoing risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information. Except as required by law, Brookfield Wealth Solutions undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to the historic investments discussed herein, that targeted returns, growth objectives, diversification or asset allocations will be met or that an investment strategy or investment objectives will be achieved (because of economic conditions, the availability of investment opportunities or otherwise).

Certain of the information contained herein is based on or derived from information provided by independent third-party sources. While Brookfield Wealth Solutions believes that such information is accurate as of the date it was produced and that the sources from which such information has been obtained are reliable, Brookfield Wealth Solutions does not make any assurance, representation or warranty, express or implied, with respect to the accuracy, reasonableness or completeness of any of the information or the assumptions on which such information is based, contained herein, including but not limited to, information obtained from third parties, and undue reliance should not be put on them.

FAQ

What was Brookfield Wealth Solutions (BNT) net income for Q4 2024?

Brookfield Wealth Solutions reported a net income of $576 million for Q4 2024, compared to $453 million in Q4 2023.

How much did BNT increase its quarterly distribution in 2024?

BNT announced a 13% increase in quarterly distribution to $0.09 per class A and class B share, representing $0.36 per annum.

What was BNT's total asset value at the end of 2024?

BNT's total assets reached $140.46 billion as of December 31, 2024, up from $61.64 billion at the end of 2023.

How much did BNT deploy in investments during 2024?

BNT deployed more than $17 billion across their investment portfolio during 2024.

What was BNT's annuity and pension risk transfer sales volume in 2024?

BNT generated $19 billion in total sales, comprising $14 billion in retail annuity sales and $5 billion in pension risk transfer deals.