No. of Recommendations: 4
The letter points readers to evidence that since Brookfield Reinsurance acquired American National in May 2022, the insurer has placed its entire bond portfolio up for sale, has sold billions of dollars of 'safer, easier-to sell securities,' and has reinvested primarily in complex and illiquid securities, including commercial real estate debt and private credit. Many of these investments were purchased from other Brookfield affiliates. The letter asserts that related-party transactions normally require disclosure, but most of these investments were listed as 'unaffiliated' in American National's sworn annual statement.
UNITE HERE highlighted specific investments pertaining to Brookfield Property Partners (BPY), which Brookfield took private in 2021 after it took $2 billion in losses in 2020; and Canary Wharf Investment Holdings, a joint venture between Brookfield and the government of Qatar which owns Canary Wharf, the London development that has recently made international headlines for financial distress.
'Current and future American National policyholders may not know that their insurance company has undergone such a dramatic shift in its investment strategy, or that their policies are now backed by investments in the 'inherently risky' private credit industry or the 'office real estate apocalypse,'' the letter argues.
https://www.businesswire.com/news/home/20230727589... 