Brookfield Wealth Q2 net profit falls on mark-to-market losses; distributable operating profit up
BNT•Outlook
- Company says it remains well positioned to deliver stable earnings and continued growth
- Company expects market price of its shares to be impacted by Brookfield Corporation’s performance
Overview
- US retirement services provider's Q2 distributable operating earnings rose yr/yr on Just Group acquisition
- Q2 net income declined yr/yr, reflecting unfavorable unrealized mark-to-market movements
- Company completed Just Group acquisition and received shareholder approval for Brookfield simplification deal
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Net Income | $149 mln |
Result drivers
- Just Group acquisition - Co said Q2 distributable operating earnings benefited from a full quarter of contribution from Just Group
- Asset redeployment - Co attributed higher net investment income in Annuities segment to organic growth and continued asset redeployment into Brookfield strategies
- Mark-to-market losses - Co said net income was offset by unfavorable unrealized mark-to-market movements on inflation derivatives and public equity investment positions
