Brookfield Corp.

’s profit rose in the fourth quarter as the company reported record earnings from its asset manager and strong growth in its wealth business.

The money manager, which keeps its books in U.S. dollars, also said it will now pay a quarterly dividend of seven U.S.cents per share, up from six U.S. cents per share.

Brookfield reported distributable earnings of US$1.5 billion, or 63 cents U.S. a share, excluding gains on asset sales, according to a statement Thursday.

The financial results were “supported by our asset management business recording US$112 billion of inflows, the continued growth of our wealth solutions business, and our operating businesses generating resilient and growing cash flows,” Brookfield Corp. president Nick Goodman said in the statement.

The parent company owns a majority stake in

Brookfield Asset Management Ltd.

The asset manager’s distributable earnings grew 7.5 per cent during the quarter to US$746 million, with the wealth unit’s profit jumping 24 per cent, “supported by strong investment performance and continued expansion of the insurance asset base,” the firm said in the statement. This more than offset the 18 per cent drop in earnings from the operating businesses.

The Canadian company is pressing ahead with plans to morph into an investment-led insurer. Last week, Bruce Flatt stepped down as the chief executive officer of the asset manager as he turns his attention to Brookfield Corp., which he continues to run.

Flatt intends to merge Brookfield Corp. shares with those of Brookfield Wealth Solutions into a single listed entity, to simplify the structure and “support the next evolution of Brookfield, with one entity conducting all of our insurance and balance sheet investment activities,” he said in a letter to shareholders.

The merger will add capital to the insurance operations, which will drive growth of the “overall business and the advancement of our real asset focused investment strategy,” he said.

  • Brookfield names Connor Teskey new CEO of flagship asset management arm
  • Brookfield’s buyout CEO chases triple-digit growth in bleak era

Brookfield Corp. and the wealth arm would continue to operate under existing management teams, investment processes, and risk frameworks, according to a person familiar with the matter.

Last year, the company combined Brookfield Business Partners and its sister entity, Brookfield Business Corporation, into a single publicly traded vehicle, eliminating the dual-listed structure.

Brookfield will assess making similar changes to its other listed entities, including infrastructure, Flatt said.

Bloomberg.com