11/08/2025 - Brookfield Corporation: Second Quarter (2025%20 %20Q2%20BWS%20Interim%20Report%20vF)

Available-for-sale fixed maturity securities, at fair value (net of allowance for credit losses of

$3 and $27, respectively; amortized cost of $55,653 and $53,651, respectively)......................

3

$ 56,222

$ 53,802

Equity securities, at fair value.........................................................................................................

4

7,530

3,854

Mortgage loans on real estate, at amortized cost (net of allowance for credit losses of $153 and

$158, respectively)......................................................................................................................

5

11,469

12,426

Private loans, at amortized cost (net of allowance for credit losses of $115 and $97,

respectively) .............................................................................................................................

6

6,752

5,204

Investment real estate, at cost (net of accumulated depreciation of $256 and $232, respectively)

7

2,593

2,366

Real estate partnerships...................................................................................................................

7

4,205

3,438

Investment funds .............................................................................................................................

8

6,421

6,111

Policy loans .....................................................................................................................................

11

257

276

Short-term investments, at estimated fair value..............................................................................

11

4,454

4,400

Other invested assets .......................................................................................................................

11

1,062

1,089

Total investments...........................................................................................................................

100,965

92,966

Cash and cash equivalents...............................................................................................................

11

13,091

12,243

Accrued investment income............................................................................................................

810

860

Deferred policy acquisition costs, deferred sales inducements and value of business acquired.....

14

11,126

10,696

Reinsurance funds withheld ............................................................................................................

11

1,473

1,517

Premiums due and other receivables...............................................................................................

706

647

Ceded unearned premiums..............................................................................................................

475

520

Deferred tax asset............................................................................................................................

22

752

760

Reinsurance recoverables and deposit assets ..................................................................................

17, 19, 20

12,772

13,195

Property and equipment (net of accumulated depreciation of $395 and $377, respectively) .........

268

272

Intangible assets (net of accumulated amortization of $173 and $106, respectively).....................

15

1,682

1,690

Goodwill..........................................................................................................................................

783

783

Other assets .....................................................................................................................................

11, 19

2,668

2,461

Separate account assets ...................................................................................................................

13

1,322

1,343

Total assets ......................................................................................................................................... 148,893 139,953

Liabilities

Future policy benefits......................................................................................................................

17

15,204

14,088

Policyholders' account balances .....................................................................................................

18

86,933

83,079

Policy and contract claims...............................................................................................................

20

7,520

7,659

Deposit liabilities.............................................................................................................................

1,464

1,502

Market risk benefits.........................................................................................................................

19

4,227

3,655

Unearned premium reserve .............................................................................................................

1,604

1,843

Due to related parties.......................................................................................................................

26

2,018

684

Other policyholder funds.................................................................................................................

397

347

Notes payable ..................................................................................................................................

8, 11

200

189

Corporate borrowings......................................................................................................................

21

1,184

1,022

Subsidiary borrowings.....................................................................................................................

21

3,327

3,329

Funds withheld for reinsurance liabilities .......................................................................................

11

3,241

3,392

Other liabilities................................................................................................................................

4,413

4,745

Separate account liabilities..............................................................................................................

13

1,322

1,343

Total liabilities....................................................................................................................................

133,054

126,877

Equity

Class A exchangeable and Class B ($32.92 and $33.10 par value, respectively; 43,515,520 and 43,460,516 issued, respectively; 41,437,496 and 41,460,516 outstanding, respectively)(1) ...........

23

1,435

1,442

Class C ($1 par value; 242,786,723 and 201,116,647 issued and outstanding, respectively) ........

23

10,736

8,526

Retained earnings ............................................................................................................................

2,229

2,054

Accumulated other comprehensive income ....................................................................................

24

673

204

Non-controlling interests.................................................................................................................

766

850

Total equity.........................................................................................................................................

15,839

13,076

Total liabilities and equity................................................................................................................. $ 148,893 $ 139,953

(1) 2,078,024 Class A exchangeable shares were held in treasury as of June 30, 2025 (December 31, 2024 - 2,000,000 Class A exchangeable shares).

FOR THE PERIODS ENDED JUN. 30

Three Mon

ths Ended

Six Mont

hs Ended

US$ MILLIONS, EXCEPT PER SHARE AMOUNTS

Note

2025

2024

2025

2024

Net premiums ...................................................................................

12

$ 1,029

$ 1,516

$ 2,151

$ 3,047

Other policy revenue ........................................................................

12

200

200

379

312

Net investment income ....................................................................

10

1,470

1,118

2,883

1,692

Investment related gains (losses)......................................................

10

328

(114)

225

(70)

Net investment results from reinsurance funds withheld .................

10

182

17

406

Total revenues.................................................................................

3,037

2,902

5,655

5,387

Policyholder benefits and claims incurred........................................

12, 17, 20

(1,079)

(1,515)

(2,186)

(2,929)

Interest sensitive contract benefits....................................................

12, 18

(497)

(422)

(1,021)

(607)

Amortization of deferred policy acquisition costs, deferred sales

inducements and value of business acquired................................

14

(363)

(276)

(702)

(501)

Change in fair value of insurance-related derivatives and

embedded derivatives ...................................................................

9

(131)

13

(331)

57

Change in fair value of market risk benefits.....................................

12, 19

46

(168)

(315)

(199)

Other reinsurance expenses ..............................................................

(1)

(7)

(2)

(14)

Operating expenses...........................................................................

(323)

(461)

(705)

(694)

Interest expense ................................................................................

(82)

(95)

(155)

(167)

Total benefits and expenses ...........................................................

(2,430)

(2,931)

(5,417)

(5,054)

Net income (loss) before income taxes ..........................................

607

(29)

238

333

Income tax recovery (expense).........................................................

22

(91)

298

(4)

273

Net income....................................................................................... $ 516 $ 269 $ 234 $ 606

Attributable to:

Class A exchangeable and Class B shareholders(1).......................

$ 4

$ 3

$ 8

$ 6

Class C shareholder ......................................................................

497

261

167

593

Non-controlling interests ..............................................................

15

5

59

7