Brookfield Wealth Solutions Ltd.

Data conventions. FY2021–FY2022 use the US GAAP recast figures from the 6-K that restated Brookfield Reinsurance results (the original IFRS 20-F FY2022 showed different values: FY2022 net income 492, FY2021 −44, total assets 43,499 / 11,493).

Income statement

Notes: - FY2023 premiums combine net premiums (4,137) and other policy revenue (413).

• FY2021–FY2023 net investment income combines NII and funds-withheld results as reported.

• FY2022 premiums exclude "other policy revenue", which was not separately extracted.

• Traditional gross profit, operating income and EBITDA are not reported by insurers. The EBITDA proxy is an analyst construct; depreciation was 135 in FY2024 and 233 in FY2025 per the DOE reconciliation.

Per-share data (class A)

FY2024–FY2025 EPS are adjusted for the 9 Oct 2025 3-for-2 split; FY2021–FY2022 are as reported in pre-split, pre-arrangement releases and are not comparable. Class A earnings are effectively set equal to distributions because the class C shares absorb residual economics, so per-class-A EPS is not an economic earnings measure. Distributions mirror BN dividends: FY2025 = 4 × US$0.06 split-adjusted. The FY2026 run-rate is US$0.28 (4 × US$0.07).

Margins and growth (analyst-computed)

CAGRs. Revenue FY2021–FY2025 ≈ 83% p.a. DOE FY2022–FY2025 ≈ 64% p.a. Both are acquisition-driven.

Balance sheet

Group capital comes from the 9 Apr 2026 release (insurance subsidiaries 5.1/7.5/13.5/14.4 plus holding companies 0.7/1.5/2.6/5.3 for 2022–2025). The company rounds the 2025 total to US$19.8bn. Working capital and net debt are not meaningful for an insurer, since cash is held largely for policyholder obligations.

Latest interim balance sheet (30 Jun 2026, Q2 2026 release).

The jump in future policy benefits (+US$36.8bn) and investments (+US$47.7bn) reflects the consolidation of Just Group. The Dec 2025 policyholder balance is shown as 94,411 in the Q2 2026 release versus 92,992 in the FY2025 release, apparently because deposit liabilities (1,419) were reclassified into it.

Cash flow

FY2025 OCF is from an EDGAR data aggregator (edgar.tools), drawn from the 20-F cash-flow statement and not independently re-checked. Class A/B distributions are approximated by net income attributable to class A/B, which equals distributions by design. No buyback program for class A shares was identified; exchanges into BN shares are the main liquidity mechanism.

Key ratios (analyst-computed, FY2024–FY2025)

FY2024 ROA uses average assets of (61,643 + 139,953)/2. As of 30 Jun 2026, total borrowings/equity had risen to ~54% (9,630 / 17,851). Current ratio, ROIC, net debt/EBITDA and cash conversion cycle are not meaningful for an insurer and are not reported. Simply Wall St shows a 96.1% debt/equity ratio, which likely includes other funding liabilities; treat it as a methodology difference.

Interim performance (2025–2026)

*Q1 2025 revenue = H1 2025 (5,655) − Q2 2025 (3,037). Q1 2026 revenue = H1 2026 (5,873) − Q2 2026 (4,217). Q1 2026 total assets were reported by one trade publication as US$156.1bn, which conflicts with YE2025 of US$157.2bn per the 20-F

Commentary on trends and inflections

1. Hyper-growth by acquisition. Assets grew about 18x in five years: American National (2022), Argo (2023), AEL (2024), Just (2026). Each deal stepped up DOE as acquired portfolios were rotated into Brookfield-originated private assets. In 2025 BWS deployed US$13bn into Brookfield strategies; the Q3 2025 deployment was at a 9% average yield.

2. DOE vs. GAAP divergence. FY2025 DOE rose 24% while GAAP net income fell 31%. The drivers were mark-to-market losses on insurance contracts and other net assets (US$1.23bn), changes in market-risk-benefit fair value (−US$725m) and unrealized investment gains. In H1 2026 GAAP swung to a US$453m loss, attributed to inflation derivatives and public equity marks, while DOE grew 11%.

3. Revenue volatility. FY2025 revenue fell 17.5% because FY2024 premiums included large single-premium institutional deals. Revenue is therefore a poor growth metric here.

4. Leverage creeping up. Corporate borrowings went from US$17m (2024) to US$628m (2025) to US$2.65bn (Jun 2026), and non-recourse borrowings rose to US$7.0bn. Q2 2026 interest expense of US$154m nearly doubled year on year.

5. Capital build. Group capital nearly quadrupled, from US$5.8bn (2022) to US$19.7–19.8bn (2025), supported by Brookfield capital contributions (e.g., the US$1bn of assets in Dec 2024) and retained earnings.

Management guidance

Management offers qualitative guidance only. It expects stable earnings and continued growth, international expansion, and continued deployment of capital into Brookfield strategies from a "meaningful pipeline" (Q2 2026). The simplification is expected to close by year-end 2026, subject to regulatory approvals.

Consensus

No standalone consensus exists. A simple annualization of H1 2026 (US$926m) gives about US$1.85bn of DOE. Q2 2026's US$488m, the first full quarter with Just, implies a run-rate near US$1.95bn. These are analyst extrapolations, not guidance.

Bull case

1. Earnings compounding. DOE grew 24% in FY2025 and 23% YoY in Q2 2026, with Just contributing fully from Q2 2026. The run-rate of about US$1.9–2.0bn is roughly 15% above FY2025.

2. Structural tailwinds. Record US annuity sales of US$464bn, UK PRT at about £40bn per year and a US$6tn Japan market give a long runway, and BWS is now present in all three.

3. Capital and liquidity. US$19.8bn of group capital and about US$78bn of liquid assets support growth and rating stability. Deployment at 7–9% yields should keep widening spreads.

Bear case

1. Earnings quality. GAAP net income lags DOE badly (H1 2026 loss of US$453m), so DOE's exclusions deserve scrutiny. GAAP ROE was only about 5.6% in FY2025.

2. Leverage and costs. Corporate borrowings rose about 4x in six months to US$2.65bn; interest expense is up 88% YoY; Corporate & Other DOE drag reached −US$516m in FY2025.

3. Concentration and regulation. Heavy reliance on affiliated Brookfield-originated private assets invites regulatory pushback (PRA Matching Adjustment, NAIC) and is exposed to a turn in the credit cycle. UK PRT pricing is at record competitiveness.

Catalysts and monitorables (next 12 months)

Analyst verdict

Brookfield Wealth Solutions has executed one of the fastest insurance build-outs of the decade. Assets went from about US$11.6bn in 2021 to US$205.7bn in mid-2026, and DOE from US$30m to an annualized run-rate approaching US$2bn. It got there through four acquisitions and a disciplined policy of rotating acquired portfolios into Brookfield-originated assets. The operating evidence is strong. Annuities DOE nearly tripled in two years, P&C was turned around to US$399m, group capital quadrupled to US$19.8bn, and the platform now spans the three most attractive retirement markets: US annuities, UK PRT and Japanese reinsurance.

Three caveats temper the picture. First, GAAP earnings are volatile and well below DOE (H1 2026: −US$453m vs +US$926m), so the gap between economic and accounting earnings is wide and depends on Brookfield's private-asset valuations. Second, holding-company leverage and corporate costs are rising quickly following the Just transaction. Third, the business is inseparable from Brookfield, in its asset management, its governance (class B and class C control) and its listed-share economics, which are pegged one-for-one to BN.

That last point is decisive for investors. The BNT class A share was never a standalone bet on the insurer; it is an economically equivalent BN share with Bermuda tax and structural wrinkles. With shareholders' approval of the fold-in to Brookfield Corporation Ltd. and closing expected by year-end 2026, BNT as a listed security is approaching its end. Investors should analyze Brookfield Corporation's valuation, in which Wealth Solutions is now a core earnings pillar (its distributable earnings grew about 23% YoY in Q2 2026), and should monitor post-closing disclosure to make sure segment-level insurance metrics remain transparent. Verdict: operationally strong and strategically central to Brookfield, but as a security BNT is a transitional instrument; the investment decision is effectively a decision on BN.

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Source list (principal)

• Brookfield Wealth Solutions Form 20-F FY2025 (SEC, filed 26 Mar 2026) and FY2024; Brookfield Reinsurance Form 20-F FY2022 and US GAAP recast 6-K

• BWS 6-K press releases: Q3 2025 (13 Nov 2025), FY2025 (12 Feb 2026), Just completion (1 Apr 2026), Group Capital (9 Apr 2026), Q1 2026 (14 May 2026), Board approval (26 May 2026), AGM (16 Jul 2026), Q2 2026 (13 Aug 2026)

• BWS press release: Dai-ichi Frontier Life reinsurance (30 Sep 2025); company governance page and FAQ (bnt.brookfield.com)

• Brookfield Corporation Q4 2025, Q1 2026 and Q2 2026 releases

• AM Best / Business Wire (Nov 2024); American National newsroom (2024); BNRE release on S&P upgrade of AEL (7 May 2024)

• LIMRA annuity sales releases (12 Feb 2026; 23 Mar 2026); IPE (H1 2026 UK PRT); Milliman (UK bulk annuity H1 2025); S&P Global Market Intelligence (Aug 2025)

• Pensions Age; Mortgage Solutions; Canadian Lawyer; ai-CIO; Reinsurance News; Simply Wall St; Yahoo Finance; Stockanalysis.com; edgar.tools (market data and aggregator figures flagged inline)