BNT · Brookfield Wealth Solutions Ltd.

Brookfield Wealth Solutions’ Q1 2026 results reflect pronounced pressure on investment performance and balance sheet valuations. The $602 million net loss—more than double the prior-year loss—was driven not by operational weakness but by a sharp reversal in investment-related gains: $696 million in losses versus a $103 million loss in Q1 2025, indicating heightened volatility or impairment recognition across fixed maturity, equity, and private loan portfolios. This was compounded by a $414 million other comprehensive loss, overwhelmingly due to $736 million in net unrealized investment losses—suggesting broad-based mark-to-market declines in fair-valued assets amid rising rates or credit concerns. While net investment income rose modestly ($1,456M vs. $1,413M), it was insufficient to offset these valuation hits. Operationally, policyholder benefits and interest-sensitive contract benefits remained stable year-over-year, but the change in fair value of market risk benefits ($139M loss vs. $361M loss in 2025) signals some stabilization in derivative hedges. Liquidity remains adequate but under pressure: cash and equivalents fell $2.8 billion to $10.2 billion, largely due to $4.2 billion in net investing outflows—primarily short-term investment maturities ($448M) failing to offset massive purchases ($544M) and large-scale fixed maturity security acquisitions ($4,696M). The $0.07 return of capital to Class A/B shareholders—unchanged in nominal terms post–three-for-two stock split—confirms continued capital return discipline despite earnings stress. Management’s MD&A (p. 52) is not provided in full, but the absence of forward guidance in Exhibit 99.1 implies no revision to full-year expectations at this time.