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1. Company Snapshot

1.a. Company Description

Brookfield Reinsurance Ltd., through its subsidiaries, provides annuity-based reinsurance products to insurance and reinsurance companies in the United States, Canada, and internationally.The company operates in three segments: Direct Insurance, Reinsurance, and Pension Risk Transfer (PRT).The Direct Insurance segment offers a range of insurance products and services including life insurance, annuities, property and casualty insurance, health insurance, credit insurance, and pension products.


The Reinsurance segment provides reinsurance of annuity-based products, such as fixed annuities, fixed index annuities, and payout annuities.The PRT segment provides transfer by a corporate sponsor of the risks associated with the sponsorship and administration of a pension plan.The company was formerly known as Brookfield Asset Management Reinsurance Partners Ltd.


and changed its name to Brookfield Reinsurance Ltd.in December 2022.Brookfield Reinsurance Ltd.


was founded in 1905 and is headquartered in Pembroke, Bermuda.

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1.b. Last Insights on BNRE

Brookfield Reinsurance's recent momentum is driven by strong Q2 2024 earnings, with revenue up 42% year-over-year to $2.90 billion. The company's acquisition of American Equity Life has doubled its asset base, positioning it for growth. Annuity sales are also increasing, and the company has a solid operating performance. Additionally, the company's name change to Brookfield Wealth Solutions reflects its evolving business strategy. The recent shareholder meeting approved all proposed items, including the election of board members, demonstrating shareholder confidence in the company's direction.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Brookfield Reinsurance Second Quarter 2024 Earnings: EPS: US$1.82 (vs US$7.01 in 2Q 2023)

Aug -10

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Brookfield Wealth Solutions Announces Second Quarter Results and Declares Regular Quarterly Distribution

Aug -08

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Brookfield Reinsurance Announces Voting Results from Shareholder Meeting

Jul -22

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Brookfield Reinsurance Announces Details of Upcoming Shareholders Meeting

Jun -27

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Brookfield Reinsurance First Quarter 2024 Earnings: EPS: US$2.30 (vs US$1.89 loss in 1Q 2023)

May -13

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Brookfield Reinsurance Announces First Quarter Results and Declares Regular Quarterly Distribution

May -09

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Brookfield Reinsurance Announces Credit Rating Upgrade of American Equity Investment Life Insurance Company to A

May -07

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Brookfield Reinsurance Completes Acquisition of AEL

May -02

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.49%)

6. Segments

Direct Insurance

Expected Growth: 10.2%

Direct insurance's growth is driven by increasing demand for personalized coverage, competitive pricing, and the need to bypass intermediaries, resulting in a projected 10.2% CAGR.

Pension Risk Transfer

Expected Growth: 8.5%

The pension risk transfer market is driven by companies seeking to reduce balance sheet risk and increase financial flexibility. Brookfield Reinsurance Ltd's solution helps achieve this, leading to a growing demand for pension risk transfer services.

Reinsurance

Expected Growth: 5.5%

Growing demand for reinsurance, increasing adoption of risk management strategies, and expansion of insurance companies' underwriting capacities drive Brookfield Reinsurance Ltd.'s growth.

7. Detailed Products

Reinsurance Solutions

Brookfield Reinsurance Ltd. offers reinsurance solutions to help insurance companies manage their risk and improve their capital efficiency.

Risk Management Services

Brookfield Reinsurance Ltd. provides risk management services to help clients identify, assess, and mitigate risks.

Insurance-Linked Securities (ILS)

Brookfield Reinsurance Ltd. offers insurance-linked securities (ILS) that allow investors to invest in reinsurance risk.

Capital Markets Solutions

Brookfield Reinsurance Ltd. provides capital markets solutions to help clients access capital markets and optimize their capital structure.

Consulting Services

Brookfield Reinsurance Ltd. provides consulting services to help clients improve their operations and performance.

8. Brookfield Reinsurance Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Brookfield Reinsurance Ltd. is medium due to the presence of alternative risk management products and services.

Bargaining Power Of Customers

The bargaining power of customers for Brookfield Reinsurance Ltd. is low due to the company's strong brand reputation and diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Brookfield Reinsurance Ltd. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Brookfield Reinsurance Ltd. is high due to the low barriers to entry and the attractiveness of the reinsurance industry.

Intensity Of Rivalry

The intensity of rivalry for Brookfield Reinsurance Ltd. is high due to the presence of multiple competitors and the highly competitive nature of the reinsurance industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 30.07%
Debt Cost 12.75%
Equity Weight 69.93%
Equity Cost 12.75%
WACC 12.75%
Leverage 43.01%

11. Quality Control: Brookfield Reinsurance Ltd. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Main Street Capital

A-Score: 7.5/10

Value: 4.8

Growth: 6.0

Quality: 7.6

Yield: 9.0

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Conduit Holdings

A-Score: 6.5/10

Value: 6.8

Growth: 10.0

Quality: 6.6

Yield: 9.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
RenaissanceRe

A-Score: 6.0/10

Value: 8.1

Growth: 8.6

Quality: 7.4

Yield: 1.0

Momentum: 2.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
RGA

A-Score: 5.8/10

Value: 7.4

Growth: 6.4

Quality: 5.5

Yield: 4.0

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Everest Group

A-Score: 5.6/10

Value: 6.4

Growth: 6.6

Quality: 5.4

Yield: 4.0

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Brookfield Reinsurance

A-Score: 4.9/10

Value: 8.2

Growth: 6.2

Quality: 6.4

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

63.93$

Current Price

63.93$

Potential

-0.00%

Expected Cash-Flows