Brookfield Corp Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mario Saric - Scotiabank GBM - Analyst : Hi, good morning, and thank you for taking my questions. My first one, just on capital allocation on page 5 of the supplemental, I noticed that you've changed the disclosure in terms of capital return to common shareholders, changing it to capital return as opposed to distributions. The stocks moved up nicely this year, part of which perhaps relates to a pretty active NCIB. Should we infer from the disclosure change that you expect share repurchases to be a structurally bigger part of returning capital to shareholders than it has been four to five years out of this year, or am I reading a bit too much into it?

Question: Mario Saric - Scotiabank GBM - Analyst : Okay. And then my second one, just pertaining to the wealth solutions business, the 180 basis points spread to liability costs was up 10 basis points quarter over quarter, but still below and near target, 200 basis points. I appreciate it takes time to redeploy the AUM into higher-yielding private funds, but how would you define your $2 billion annualized DE target? You mentioned it was in the short term. How would you define short term

Question: Mario Saric - Scotiabank GBM - Analyst : Okay, those are my two. Thank you.

Question: Sohrab Movahedi - BMO Capital Markets - Analyst : Okay, thanks. Nick, just looking at the real estate portfolio, I mean, I think over the past year, maybe the transition and development bucket is down about [$1 billion] or so. I think if I've got my numbers right, maybe about 13 properties -- a number of properties kind of disposed of. Can you REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 3:00PM, BN.N - Q3 2024 Brookfield Corp Earnings Call remind us what's the eventual plan with that lump sum? And then secondarily, given where the rates have moved, is there any thought as to changing the discount rates you're using to come up with the value of these portfolios?

Question: Sohrab Movahedi - BMO Capital Markets - Analyst : It was just around the discount rates you're using for the various portfolios and whether --

Question: Sohrab Movahedi - BMO Capital Markets - Analyst : Okay, thank you very much.

Question: Cherilyn Radbourne - TD Cowen - Analyst : Thanks very much and good morning. First, in terms of the structural changes that are being made to improve BAM eligibility for US index inclusion, a related question that I get a lot is, how you can improve the liquidity of the public flow of BAM? And related to that, what is the desired stake in BAM longer term?

Question: Cherilyn Radbourne - TD Cowen - Analyst : Okay, and then on the insurance side, I was hoping you could go into a bit more detail on the international expansion, including today's announcement, and just how competitive you see the UK. And I believe it's Japan that you're targeting and Asia. How competitive are those markets relative to North America?

Question: Cherilyn Radbourne - TD Cowen - Analyst : That's all from me. Thank you.

Question: Robert Kwan - RBC Capital Markets - Analyst : Great. Thank you. Good morning. I just wanted to ask a little bit more around the asset transaction environments from the BAM call. There was the statement that it's a good environment to be a buyer and a seller, and we've heard that with a bunch of the affiliates too. But just from the top of the house, what business segments do you think offer the best opportunities for asset monetization activity? And similarly, where are you seeing the best value for acquisitions?

Question: Robert Kwan - RBC Capital Markets - Analyst : Thanks, Nick. And just as the second question related to that, just with your expectation of increased monetization activity, what are you thinking about with respect to the realized carried interest, say, over the next 12 months?

Question: Robert Kwan - RBC Capital Markets - Analyst : That's great. Thank you very much.

Question: Dean Wilkinson - CIBC Capital Markets - Analyst : Thanks. God morning. Just first question is on sort of the discount to plan value. I think, historically, the market or investors may have erroneously described the discount as purely real estate. But when I look at it, Brookfield Property Group, wealth solutions, and the target carry are almost equal components of plan value. Which one of those buckets do you think that the market most misunderstands, and how do we close that gap?

Question: Dean Wilkinson - CIBC Capital Markets - Analyst : No, fair enough. And then just a question on, I'll call it the sort of reallocation of how you will hold the BAM shares. Is there anything that comes

Question: Dean Wilkinson - CIBC Capital Markets - Analyst : Right. So it's just the IFRS book value that changes?

Question: Dean Wilkinson - CIBC Capital Markets - Analyst : Okay. Perfect. All right, thanks. Appreciate it.

Question: Alex Bernstein - JPMorgan Chase & Co. - Analyst : Hi, this is Alex Bernstein on for Ken. Thanks so much for taking our questions. We first want to touch on insurance. We appreciate you've narrowed your focus to the annuities business, with annuities now accounting for 91% of total insurance liabilities, up from 88% the quarter prior. But we wanted to touch on the P&C business as well and check if there were any negative impacts on results from hurricane or other weather-related events in Q3, just given some of the prominent headlines there; and if so, if there are any expectations on what that hurricane activity may look like for Q4 as well. Thanks.

Question: Alex Bernstein - JPMorgan Chase & Co. - Analyst : Great, that's great to hear. And maybe one more broader question, just thinking about the US election, the Trump victory, and what increasingly looks like a red wave that's happening here. You mentioned earlier on the call today that the energy transition business could become one of your largest over time. I appreciate that it's a global mandate and Brookfield in particular is a global investor, so I presume you're to some degree insulated from what happens just in the US specifically. But I wanted to check if you anticipate any regulatory changes or in general any changes as relating to the opportunity here in energy. Thank you.

Question: Alex Bernstein - JPMorgan Chase & Co. - Analyst : Understood. I appreciate the responses. Thanks again.