Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeFinanceInsuranceBrookfield merges insurance unit as Flatt’s overhaul takes holdFirm is pushing ahead with plans to transform itself into an investment-led insurerAuthor of the article:Last updated 1 day ago You can save this article by registering for free here. Or sign-in if you have an account.The change with the insurance unit is the latest move in Brookfield Corp.’s plan to simplify its corporate structure. Photo by BLOOMBERG FILESBrookfield Corp. is merging its shares with those of its insurance business as the firm pushes ahead with plans to transform itself into an investment-led insurer.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe merger of the parent company and the insurance business will improve Brookfield’s overall capital structure and give it access to the combined group’s asset base to pursue growth, chief executive Bruce Flatt said in a letter accompanying its first-quarter earnings statement on Thursday.The asset manager’s distributable earnings before realizations rose to US$1.4 billion in the first quarter, a seven per cent increase from the prior year, according to the statement. Profits from the wealth business, which includes insurance, were US$430 million — unchanged from a year ago — while its property group’s fell to US$120 million during the quarter, down from US$215 million.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThe change with the insurance unit is the latest move in Brookfield’s plan to simplify its corporate structure. The firm earlier combined Brookfield Business Partners and its sister entity, Brookfield Business Corp., into a single publicly traded vehicle, eliminating the dual-listed structure.“This combination is expected to allow us to fully utilize our permanent capital base — an incremental approximately US$145 billion of cash, equities, real estate, and other investments — to support the growth of our insurance operations,” Flatt said in the letter.Brookfield has raised US$67 billion since the start of the year, including US$23 billion for investment strategies and US$44 billion of insurance capital. After the acquisition of pension-risk-transfer company Just Group, Brookfield’s insurance assets grew to US$180 billion.Brookfield said that it also plans to adopt U.S. generally accepted accounting principles starting from the first quarter of 2027, to “allow greater comparability to peers,” according to the statement.On the broader macroeconomic environment, Flatt said that while markets generally become focused on such developments as geopolitics, inflation and recession risk, those events are also “the most observable and widely discussed aspects of investing — and therefore tend to attract disproportionate attention relative to their long-term impact.”The “dominance” of index investing and shareholder support have reinforced the firm’s view that simpler structures with larger market capitalizations are now the most effective way to position these businesses, Flatt said in the letter. Brookfield will approach both boards for approval in the next two months.Flatt stepped down from his role as CEO of Brookfield Asset Management earlier this year as he turns his attention to transform the parent company into an investment-led insurer. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.