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August 13, 2024 Reinsurance No comments

Brooke Life Insurance Company 2Q 2024 statutory statement

U.S. Markets via PUBT

QUARTERLY STATEMENT

OF THE

BROOKE LIFE INSURANCE COMPANY

TO THE

Insurance Department

OF THE

STATE OF

Michigan

FOR THE QUARTER ENDED

JUNE 30, 2024

[ X ] LIFE, ACCIDENT AND HEALTH

[ ] FRATERNAL BENEFIT SOCIETIES

2024

.MI

STATEMENT AS OF JUNE 30, 2024 OF THE BROOKE LIFE INSURANCE COMPANY

ASSETS

		Current Statement Date		4
	1	2		3	December 31
				Net Admitted Assets	Prior Year Net
	Assets	Nonadmitted Assets		(Cols. 1 - 2)	Admitted Assets
1. Bonds	................202,080,033	.................................0	................	202,080,033	................212,910,736

2. Stocks:

	2.1 Preferred stocks			0	0	0	0
	2.2 Common stocks			4,764,442,761	0	4,764,442,761	4,652,621,647
3.	Mortgage loans on real estate:
	3.1 First liens				0	0	0	0
	3.2 Other than first liens		0	0	0	0
4.	Real estate:
	4.1 Properties occupied by the company (less $	0
	.......................................................................................encumbrances)			.................................0	.................................0	.................................0	.................................0
	4.2 Properties held for	the production of income (less
	$		0 encumbrances)	.................................0	.................................0	.................................0	.................................0
	4.3 Properties held for sale (less $	0
	encumbrances)			.................................0	.................................0	.................................0	.................................0
5.	Cash ($	(690,356) ), cash equivalents
	($	1,121,418	) and short-term
	investments ($	........................	30,417 )	...................... 461,479	.................................0	...................... 461,479	................... 1,243,962

6.	Contract loans (including $	.................................0	premium notes)	.......................447,700	.................................0	.......................447,700	...................... 474,011
7.	Derivatives				.................................0	.................................0	.................................0	.................................0
8.	Other invested assets			................. 22,150,393	................... 1,211,330	................. 20,939,063	................. 22,436,391
9.	Receivables for securities		........................ 61,170	.................................0	........................ 61,170	........................ 21,007
10.	..............................................Securities lending reinvested collateral assets	.................................0	.................................0	.................................0	.................................0
11.	.........................................................Aggregate write-ins for invested assets	.................................0	.................................0	.................................0	.................................0
12.	.....................................Subtotals, cash and invested assets (Lines 1 to 11)	............ 4,989,643,536	................... 1,211,330	............ 4,988,432,206	............ 4,889,707,754
13.	Title plants less $	0 charged off (for Title insurers
	only)				.................................0	.................................0	.................................0	.................................0
14.	.............................................................Investment income due and accrued	................... 1,378,644	.................................0	................... 1,378,644	...................1,494,480
15.	Premiums and considerations:
	15.1 Uncollected premiums and agents' balances in the course of collection	................... 3,732,421	.................................0	................... 3,732,421	................... 4,036,453
	15.2 Deferred premiums, agents' balances and installments booked but
	deferred and not yet due (including $	0
	............................................................earned but unbilled premiums)	........................ 59,521	.................................0	........................ 59,521	........................ 71,080
	15.3 Accrued retrospective premiums ($	0 ) and
	contracts subject to redetermination ($	0 )	.................................0	0	0	0

16. Reinsurance:


	16.1	Amounts recoverable from reinsurers	104,936	0	104,936	67,577
	16.2	..........................Funds held by or deposited with reinsured companies	0	.................................0	.................................0	.................................0
	16.3	........................Other amounts receivable under reinsurance contracts	.................................0	.................................0	.................................0	.................................0
17.	............................................Amounts receivable relating to uninsured plans	.................................0	.................................0	.................................0	.................................0
18.1	Current federal and foreign income tax recoverable and interest thereon ....	.......................767,244	.................................0	.......................767,244	.......................767,244
18.2	Net deferred tax asset	...................................................................................	.................................0	.................................0	.................................0	.................................0
19.	......................................................Guaranty funds receivable or on deposit	.................................0	.................................0	.................................0	.................................0
20.	.....................................Electronic data processing equipment and software	.................................0	.................................0	.................................0	.................................0
21.	Furniture and equipment, including health care delivery assets
	($	0 )	.................................0	.................................0	.................................0	.................................0
22.	Net adjustment in assets and liabilities due to foreign exchange rates	.................................0	.................................0	.................................0	.................................0
23.	.....................................Receivables from parent, subsidiaries and affiliates	.................................0	.................................0	.................................0	.................................0
24.	Health care ($	0 ) and other amounts receivable	.................................0	.................................0	.................................0	.................................0
25.	Aggregate write-ins for other than invested assets	1,561,297	0	1,561,297	1,648,288

26. Total assets excluding Separate Accounts, Segregated Accounts and

	Protected Cell Accounts (Lines 12 to 25)	4,997,247,599	1,211,330	4,996,036,269	4,897,792,876
27.	From Separate Accounts, Segregated Accounts and Protected Cell
	Accounts	.................................0	.................................0	.................................0	.................................0
28.	Total (Lines 26 and 27)	4,997,247,599	1,211,330	4,996,036,269	4,897,792,876
	DETAILS OF WRITE-INS
1101.	......................................................................................................................	....................................	....................................	....................................	....................................
1102.	......................................................................................................................	....................................	....................................	....................................	....................................
1103.	......................................................................................................................	....................................	....................................	....................................	....................................
1198.	Summary of remaining write-ins for Line 11 from overflow page	.................................0	.................................0	.................................0	.................................0
1199.	Totals (Lines 1101 through 1103 plus 1198)(Line 11 above)	0	0	0	0
2501.	Cash held by third party administrator	...................... 662,135	.................................0	...................... 662,135	................... 1,092,238
2502.	Admitted Disallowed IMR	...................... 899,162	.................................0	...................... 899,162	...................... 556,050
2503.	.......................................................................................................................	....................................	....................................	....................................	....................................
2598.	Summary of remaining write-ins for Line 25 from overflow page	.................................0	.................................0	.................................0	.................................0
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)	1,561,297	0	1,561,297	1,648,288

STATEMENT AS OF JUNE 30, 2024 OF THE BROOKE LIFE INSURANCE COMPANY

LIABILITIES, SURPLUS AND OTHER FUNDS

									1	2
									Current	December 31
									Statement Date	Prior Year
1.	Aggregate reserve for life contracts $	................206,453,182	less $	0 included in Line 6.3
	.................(including $	14,093,366	Modco Reserve)				................206,453,182	............... 221,456,820
2.	Aggregate reserve for accident and health contracts (including $	0	Modco Reserve)	.................................0	.................................0
3.	Liability for deposit-type contracts (including $	1,280,702	Modco Reserve)		................... 2,961,741	................... 3,093,613
4.	Contract claims:
	4.1 Life						...................8,558,961	................. 12,512,808
	4.2 Accident and health						.................................0	.................................0
5.	Policyholders' dividends/refunds to members $	0	and coupons $	0	due
	................................................................................................................................................................................and unpaid						.................................0	.................................0
6.	Provision for policyholders' dividends, refunds to members and coupons payable in following calendar year - estimated
	amounts:
	6.1	Policyholders' dividends and refunds to members apportioned for payment (including $	.................................	0

		Modco)						.................................0	.................................0
	6.2	Policyholders' dividends and refunds to members not yet apportioned (including $	0	Modco) ....	..........................8,263	..........................8,602
	6.3	Coupons and similar benefits (including $	0	Modco)		0	0
7.	Amount provisionally held for deferred dividend policies not included in Line 6		0	0

8. Premiums and annuity considerations for life and accident and health contracts received in advance less

	$	.................................0	discount; including $		.........................0 accident and health premiums	..........................2,114	..........................1,265
9.	Contract liabilities not included elsewhere:
	9.1	Surrender values on canceled contracts					.................................0	.................................0
	9.2	Provision for experience rating refunds, including the liability of $	.................................	0 accident and health
		.................................experience rating refunds of which $	0	is for medical loss ratio rebate per the Public Health
		Service Act						.................................0	.................................0
	......................9.3 Other amounts payable on reinsurance, including $		.................................160,664 assumed and $	0
		ceded						...................... 160,664	........................ 10,409
	9.4 Interest Maintenance Reserve					.................................0	.................................0
10.	Commissions to agents due or accrued-life and annuity contracts $		.................................	0 , accident and health
	$	.................................0	and deposit-type contract funds $	.................................	0			.................................0	.................................0
			..................................................
11.	..............................................................................Commissions and expense allowances payable on reinsurance assumed		.................................0	.................................0
12.	............................................................................................................................................General expenses due or accrued					........................ 48,577	........................ 27,258
13.	Transfers to Separate Accounts due or accrued (net) (including $	...............................	0	accrued for expense

	allowances recognized in reserves, net of reinsured allowances)	..........................................................................................				.................................0	.................................0
14.	Taxes, licenses and fees due or accrued, excluding federal income taxes		.................................0	.................................0
15.1	Current federal and foreign income taxes, including $		..............0 on realized capital gains (losses)	.................................0	.................................0
15.2	.............................................................................................................................................................Net deferred tax liability						.................................0	.................................0
16.	...................................................................................................................................................Unearned investment income					........................ 12,644	........................ 13,023
17.	Amounts withheld or retained by reporting entity as agent or trustee				........................ 36,166	........................ 30,516
18.	Amounts held for agents' account, including $	0	agents' credit balances	.................................0	.................................0
19.	........................................................................................................................................Remittances and items not allocated					........................ 65,272	...................... 185,099
20.	Net adjustment in assets and liabilities due to foreign exchange rates	....................................................................................		.................................0	.................................0
21.	.......................................................................................Liability for benefits for employees and agents if not included above				.................................0	.................................0
22.	Borrowed money $	0 and interest thereon $		.................................	0	.................................0	.................................0

23.	.......................................................................................................................Dividends to stockholders declared and unpaid					.................................0	.................................0
24.	Miscellaneous liabilities:
	24.01 Asset valuation reserve					................... 2,629,708	................... 3,553,210
	24.02 Reinsurance in unauthorized and certified ($		0 ) companies		.................................0	.................................0
	24.03 Funds held under reinsurance treaties with unauthorized and certified ($	.........0 ) reinsurers	.................................0	.................................0
	..................................................................................................................24.04 Payable to parent, subsidiaries and affiliates					........................ 97,240	...................... 117,845
	24.05 Drafts outstanding						.................................0	.................................0
	24.06 Liability for amounts held under uninsured plans					.................................0	.................................0
	........................................................................................................................................24.07 Funds held under coinsurance					.................................0	.................................0
	......................................................................................................................................................................24.08 Derivatives						.................................0	.................................0
	......................................................................................................................................................24.09 Payable for securities						.................................0	.................................0
	24.10 Payable for securities lending					.................................0	.................................0
	24.11 Capital notes $	0 and interest thereon $	.................................	0	.................................0	.................................0
25.	Aggregate write-ins for liabilities					26,777,170	153,196
26.	Total liabilities excluding Separate Accounts business (Lines 1 to 25)	.....................................................................................		247,811,702	241,163,664
27.	From Separate Accounts Statement					0	0
28.	Total liabilities (Lines 26 and 27)					247,811,702	241,163,664
29.	Common capital stock						51,500,000	51,500,000
30.	..............................................................................................................................................................Preferred capital stock						.................................0	.................................0
31.	Aggregate write-ins for other than special surplus funds					.................................0	.................................0
32.	Surplus notes						............ 2,000,000,000	............ 2,000,000,000
33.	.......................................................................................................................................Gross paid in and contributed surplus					............ 1,776,188,014	............ 2,026,188,014
34.	...........................................................................................................................Aggregate write-ins for special surplus funds					...................... 899,162	...................... 556,050
35.	Unassigned funds (surplus)					919,637,391	578,385,148

36. Less treasury stock, at cost:

	36.1	0	shares common (value included in Line 29	$	.................................0	)	.................................0	.................................0
	36.2	0	shares preferred (value included in Line 30	$	.................................0	)	0	.................................0
37.	Surplus (Total Lines 31+32+33+34+35-36) (including $	0 in Separate Accounts Statement)	4,696,724,567	4,605,129,212
38.	Totals of Lines 29, 30 and 37	...................................................................................................................................................			4,748,224,567	4,656,629,212
39.	Totals of Lines 28 and 38 (Page 2, Line 28, Col. 3)				4,996,036,269	4,897,792,876
	DETAILS OF WRITE-INS
2501.	..........................................................................................................................................Interest payable on death claims			...................... 123,694	...................... 153,196
2502.	..........................................................................................................................................Interest payable on surplus note			................. 26,488,222	.................................0
2503.	.............................................................................................................................Investment escrow & unallocated proceeds			........................ 60,001	.................................0
2598.	..............................................................................................Summary of remaining write-ins for Line 25 from overflow page			...................... 105,253	.................................0
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)				26,777,170	153,196
3101	....................................	....................................
3102	....................................	....................................
3103	....................................	....................................
3198.	..............................................................................................Summary of remaining write-ins for Line 31 from overflow page			.................................0	.................................0
3199.	Totals (Lines 3101 through 3103 plus 3198)(Line 31 above)
			0	0
3401.	Admitted Disallowed IMR					899,162	556,050

3402	....................................	....................................
3403	....................................	....................................
3498.	Summary of remaining write-ins for Line 34 from overflow page	.................................0	.................................0
3499.	Totals (Lines 3401 through 3403 plus 3498)(Line 34 above)	899,162	556,050

STATEMENT AS OF JUNE 30, 2024 OF THE BROOKE LIFE INSURANCE COMPANY

SUMMARY OF OPERATIONS

		1	2	3
		Current Year	Prior Year	Prior Year Ended
		To Date	To Date	December 31
1.	Premiums and annuity considerations for life and accident and health contracts	................... 7,772,872	................... 9,032,453	................. 17,413,243
2.	Considerations for supplementary contracts with life contingencies	.................................0	.................................0	.................................0
3.	Net investment income	................182,503,461	................408,953,912	................393,784,790
4.	Amortization of Interest Maintenance Reserve (IMR)	.....................(164,973)	...................... 122,247	...................... 122,863
5.	Separate Accounts net gain from operations excluding unrealized gains or losses	.................................0	.................................0	.................................0
6.	Commissions and expense allowances on reinsurance ceded	........................ 36,269	........................ 39,054	........................ 76,956
7.	Reserve adjustments on reinsurance ceded	.....................(296,680)	.....................(373,279)	.....................(994,386)
8.	Miscellaneous Income:
	8.1 Income from fees associated with investment management, administration and contract
	guarantees from Separate Accounts	.................................0	.................................0	.................................0
	8.2 Charges and fees for deposit-type contracts	..........................3,026	........................ 20,377	........................ 35,233
	8.3 Aggregate write-ins for miscellaneous income	0	0	2,732
9.	Totals (Lines 1 to 8.3)	189,853,975	417,794,764	410,441,431
10.	Death benefits	7,975,585	................. 10,286,918	................. 15,092,566
11.	Matured endowments (excluding guaranteed annual pure endowments)	.................................0	.................................0	.................................0
12.	Annuity benefits	................... 4,038,922	................... 3,938,180	................... 9,245,575
13.	Disability benefits and benefits under accident and health contracts	.................................0	.................................0	.................................0
14.	Coupons, guaranteed annual pure endowments and similar benefits	.................................0	.................................0	.................................0
15.	Surrender benefits and withdrawals for life contracts	................. 13,112,816	................. 24,032,481	................. 43,037,507
16.	Group conversions	.................................0	.................................0	.................................0
17.	Interest and adjustments on contract or deposit-type contract funds	..........................6,027	.....................(185,995)	.....................(205,613)
18.	Payments on supplementary contracts with life contingencies	.................................0	.................................0	.................................0
19.	Increase in aggregate reserves for life and accident and health contracts	(15,003,638)	(25,682,476)	(43,039,546)
20.	Totals (Lines 10 to 19)	................. 10,129,712	................. 12,389,108	................. 24,130,489
21.	Commissions on premiums, annuity considerations, and deposit-type contract funds (direct
	business only)	..........................9,580	........................ 11,039	........................ 21,118
22.	Commissions and expense allowances on reinsurance assumed	............................. 443	............................. 487	..........................1,300
23.	General insurance expenses and fraternal expenses	.......................388,247	.......................308,701	...................... 610,117
24.	Insurance taxes, licenses and fees, excluding federal income taxes	.......................... 3,343	..........................2,465	..........................2,715
25.	Increase in loading on deferred and uncollected premiums	............................(355)	............................(817)	............................(335)
26.	Net transfers to or (from) Separate Accounts net of reinsurance	.................................0	.................................0	.................................0
27.	Aggregate write-ins for deductions	0	0	0
28.	Totals (Lines 20 to 27)	10,530,970	12,710,983	24,765,404
29.	Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus
	Line 28)	179,323,005	405,083,781	385,676,027
30.	Dividends to policyholders and refunds to members	4,241	5,171	8,828
31.	Net gain from operations after dividends to policyholders, refunds to members and before federal
	income taxes (Line 29 minus Line 30)	179,318,764	405,078,610	385,667,199
32.	Federal and foreign income taxes incurred (excluding tax on capital gains)	(28,263)	84,491	(5,862)

33. Net gain from operations after dividends to policyholders, refunds to members and federal income

	taxes and before realized capital gains or (losses) (Line 31 minus Line 32)	.....................................	179,347,027	404,994,119	385,673,061
34.	Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital
	gains tax of $	304,063 (excluding taxes of $	(275,800)
	transferred to the IMR)		(304,063)	(285,483)	(496,011)
35.	Net income (Line 33 plus Line 34)	179,042,964	404,708,636	385,177,050
		CAPITAL AND SURPLUS ACCOUNT
36.	Capital and surplus, December 31, prior year	4,656,629,212	5,965,253,311	5,965,253,311
37.	Net income (Line 35)		179,042,964	................404,708,636	................385,177,050
38.	Change in net unrealized capital gains (losses) less capital gains tax of $	................... 150,590	................161,488,283	.......... (2,528,779,498)	.......... (1,183,940,464)
39.	Change in net unrealized foreign exchange capital gain (loss)	.................................0	.................................0	.................................0
40.	......................................................................................................Change in net deferred income tax	...................... 150,590	...................... 190,710	...................... 214,253
41.	Change in nonadmitted assets	........................ (9,984)	...................... (12,902)	...................... (49,549)
42.	Change in liability for reinsurance in unauthorized and certified companies	.................................0	.................................0	.................................0
43.	Change in reserve on account of change in valuation basis, (increase) or decrease	.................................0	.................................0	.................................0
44.	.......................................................................................................Change in asset valuation reserve	...................... 923,502	.......................(87,297)	.......................(25,389)
45.	Change in treasury stock		.................................0	.................................0	.................................0
46.	Surplus (contributed to) withdrawn from Separate Accounts during period	.................................0	.................................0	.................................0
47.	Other changes in surplus in Separate Accounts Statement	.................................0	.................................0	.................................0
48.	Change in surplus notes		.................................0	.................................0	.................................0
49.	........................................................................Cumulative effect of changes in accounting principles	.................................0	.................................0	.................................0
50.	Capital changes:
	50.1 Paid in		.................................0	.................................0	.................................0
	50.2 Transferred from surplus (Stock Dividend)	.................................0	.................................0	.................................0
	50.3 Transferred to surplus		.................................0	.................................0	.................................0
51.	Surplus adjustment:
	51.1 Paid in		..............(250,000,000)	..............(150,000,000)	..............(150,000,000)
	51.2 Transferred to capital (Stock Dividend)	.................................0	.................................0	.................................0
	51.3 Transferred from capital		.................................0	.................................0	.................................0
	...............................................................................51.4 Change in surplus as a result of reinsurance	.................................0	.................................0	.................................0
52.	Dividends to stockholders		.................................0	..............(360,000,000)	..............(360,000,000)
53.	Aggregate write-ins for gains and losses in surplus	0	0	0
54.	Net change in capital and surplus for the year (Lines 37 through 53)	91,595,355	(2,633,980,351)	(1,308,624,099)
55.	Capital and surplus, as of statement date (Lines 36 + 54)		4,748,224,567	3,331,272,960	4,656,629,212
	DETAILS OF WRITE-INS
..........................................................................................................................08.301. Miscellaneous income		.................................0	.................................0	.......................... 2,732
08.302.	..............................................................................................................................................................		....................................	....................................	....................................
08.303.	..............................................................................................................................................................		....................................	....................................	....................................
........................................................08.398. Summary of remaining write-ins for Line 8.3 from overflow page	.................................0	.................................0	.................................0
08.399. Totals (Lines 08.301 through 08.303 plus 08.398) (Line 8.3 above)		0	0	2,732
2701	....................................	....................................	....................................

2702	....................................	....................................	....................................
2703	....................................	....................................	....................................
2798.	Summary of remaining write-ins for Line 27 from overflow page	.................................0	.................................0	.................................0
2799.	Totals (Lines 2701 through 2703 plus 2798)(Line 27 above)	0	0	0
5301	....................................	....................................	....................................

5302
5303
5398.	Summary of remaining write-ins for Line 53 from overflow page	0	.................................0	.................................0
5399.	Totals (Lines 5301 through 5303 plus 5398)(Line 53 above)	0	0	0

STATEMENT AS OF JUNE 30, 2024 OF THE BROOKE LIFE INSURANCE COMPANY

CASH FLOW

			1	2	3
			Current Year	Prior Year	Prior Year Ended
			To Date	To Date	December 31
	Cash from Operations
1.	Premiums collected net of reinsurance
...................8,089,668	................... 9,740,185	................. 18,386,037
2.	Net investment income	................209,105,936	................409,001,771	................367,715,331
3.	Miscellaneous income	36,269	39,054	79,688
4.	Total (Lines 1 to 3)	217,231,873	418,781,010	386,181,056
5.	Benefit and loss related payments	................. 29,225,686	................. 46,287,499	................. 70,115,383
6.	.................Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts	.................................0	.................................0	.................................0
7.	...............................................Commissions, expenses paid and aggregate write-ins for deductions	.......................378,663	...................... 309,599	...................... 648,955
8.	Dividends paid to policyholders	..........................4,579	..........................5,095	..........................8,945
9.	Federal and foreign income taxes paid (recovered) net of $	0 tax on capital
	gains (losses)	0	0	0
10.	Total (Lines 5 through 9)	29,608,928	46,602,193	70,773,283
11.	Net cash from operations (Line 4 minus Line 10)	187,622,945	372,178,817	315,407,773

Cash from Investments

12. Proceeds from investments sold, matured or repaid:

12.1	Bonds	................. 11,258,276	................. 19,984,873	................. 41,707,653
12.2	Stocks	............ 1,919,833,927	............... 150,000,000	............... 150,000,000
12.3	Mortgage loans	.................................0	.................................0	.................................0
12.4	Real estate	.................................0	.................................0	.................................0
12.5	Other invested assets	................... 1,362,432	................... 2,184,347	................... 3,641,748
12.6	Net gains or (losses) on cash, cash equivalents and short-term investments	.................................0	.................................0	.................................0
12.7	Miscellaneous proceeds	0	0	0
12.8 Total investment proceeds (Lines 12.1 to 12.7)	............ 1,932,454,635	................172,169,220	................195,349,401
13. Cost of investments acquired (long-term only):
13.1	Bonds	...................1,211,886	.................................0	.................................0
13.2	Stocks	............ 1,869,833,927	.................................0	.................................0
13.3	Mortgage loans	.................................0	.................................0	.................................0
13.4	Real estate	.................................0	.................................0	.................................0
13.5	Other invested assets	........................ 57,327	...................... 229,003	...................... 409,271
13.6	Miscellaneous applications	40,163	4,313	21,007
13.7	Total investments acquired (Lines 13.1 to 13.6)	1,871,143,303	233,316	430,278
14. Net increase (or decrease) in contract loans and premium notes	(26,311)	13,268	(130,113)
15. Net cash from investments (Line 12.8 minus Line 13.7 and Line 14)	61,337,643	171,922,636	195,049,236

Cash from Financing and Miscellaneous Sources

16. Cash provided (applied):

16.1	Surplus notes, capital notes	.................................0	.................................0	.................................0
16.2	Capital and paid in surplus, less treasury stock	..............(250,000,000)	..............(150,000,000)	..............(150,000,000)
16.3	Borrowed funds	.................................0	.................................0	.................................0
16.4	Net deposits on deposit-type contracts and other insurance liabilities	.....................(201,457)	.......................292,327	.....................(349,038)
16.5 Dividends to stockholders	.................................0	................360,000,000	................360,000,000
16.6 Other cash provided (applied)	458,386	539,457	9,068
17. Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5
plus Line 16.6)	(249,743,071)	(509,168,216)	(510,339,970)

	RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
18.	Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17) .	(782,483)	..................34,933,237
19.	Cash, cash equivalents and short-term investments:
	19.1 Beginning of year	................... 1,243,962	................... 1,126,923
	19.2 End of period (Line 18 plus Line 19.1)	461,479	36,060,160

.......................117,039

................... 1,126,923

1,243,962

Note: Supplemental disclosures of cash flow information for non-cash transactions:

20.0001.	Debt	& equity securities	acquired from exchange transactions	................... 1,322,238	.................................0	.................................0
20.0002.	Debt	& equity securities	disposed from exchange transactions	................. (1,322,238)	.................................0	.................................0
20.0003.	...........................................................Non-cashexchange of financial assets with subsidiary	................197,655,526	.................................0	.................................0

STATEMENT AS OF JUNE 30, 2024 OF THE BROOKE LIFE INSURANCE COMPANY

EXHIBIT 1

DIRECT PREMIUMS AND DEPOSIT-TYPE CONTRACTS

		1	2	3
		Current Year	Prior Year	Prior Year Ended
		To Date	To Date	December 31
1.	Individual life	..........................1,120	..........................1,164	..........................1,846
2.	Group life
.................................0	.................................0	.................................0
3.	Individual annuities	........................ 67,648	........................ 92,234	...................... 165,498

4.	Group annuities	.................................0	.................................0	.................................0
5.	Accident & health	.................................0	.................................0	.................................0
6.	Fraternal	.................................0	.................................0	.................................0
7.	Other lines of business	.................................0	.................................0	.................................0
8.	Subtotal (Lines 1 through 7)	........................ 68,768	........................ 93,398	.......................167,344
9.	Deposit-type contracts	.................................0	.................................0	.................................0
10.	Total (Lines 8 and 9)	68,768	93,398	167,344

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NOTES TO FINANCIAL STATEMENTS

1a . Summary of Significant Accounting Policies and Going Concern

Accounting Practices
The financial statements of Brooke Life Insurance Company (the "Company") are presented on the basis of accounting practices prescribed or permitted by the Michigan Department of Insurance and Financial Services.
The Department of Insurance and Financial Services recognizes statutory accounting practices prescribed or permitted by the state of Michigan for determining and reporting the financial condition and results of operations of an insurance company, and for determining its solvency under Michigan Insurance Law. The Department of Insurance and Financial Services has adopted the National Association of Insurance Commissioners' ("NAIC") Accounting Practices and Procedures Manual ("NAIC SAP") to the extent that the accounting practices, procedures, and reporting standards are not modified by the Michigan Insurance Code. The commissioner of insurance has the right to permit other specific practices that deviate from prescribed practices.
In accordance with SSAP No. 97, the Company's investment in a U.S. insurance subsidiary should be recorded based on the underlying audited statutory equity of the subsidiary's financial statements, adjusted for any unamortized goodwill as provided for in SSAP No. 68. In the absence of audited statutory financials, the Company's investment in subsidiary is not an admitted asset. However, the Company received approval from the Department of Insurance and Financial Services regarding the use of a permitted practice, which allows the Company to report its investment in Brooke Life Reinsurance Company, a subsidiary, at the lower of net contributed capital or total equity on a modified GAAP basis, subject to a floor of zero. As shown in the table below, this permitted practice has no impact on net income, but increased capital and surplus by $698,933,927 as of June 30, 2024.
A reconciliation of the Company's net income and capital and surplus between NAIC SAP and practices prescribed or permitted by the state of Michigan is shown below:

			F/S		F/S
	SSAP #		Page		Line #	6/30/2024			12/31/2023
Net Income
Brooke Life Insurance Company, Michigan basis				$	179,042,964	$	385,177,050
Michigan Prescribed Practices that are an increase/(decrease) from NAIC SAP:								-		-
Michigan Permitted Practices that are an increase/(decrease) from NAIC SAP:								-		-
NAIC SAP
			$	179,042,964	$	385,177,050
Capital and Surplus

Brooke Life Insurance Company, Michigan basis				$	4,748,224,567	$	4,656,629,212
Michigan Prescribed Practices that are an increase/(decrease) from NAIC SAP:								-		-
Michigan Permitted Practices that are an increase/(decrease) from NAIC SAP:								-		-
Subsidiary valuation - Brooke Life Reinsurance Company	97	2	2.2			698,933,927			-
NAIC SAP
			$	4,049,290,640	$	4,656,629,212

Significant changes have not occurred since 12/31/2023 that warrant disclosure in Note 1, item B.

Accounting Policy
1. Bonds not backed by other loans are stated at amortized cost except those with an NAIC rating of "6," which are stated at the lower of amortized cost or fair value. Acquisition premiums and discounts are amortized into investment income through call or maturity dates using the interest method.

Loan-backedand structured securities, hereafter collectively referred to as "loan-backed securities", are stated at amortized cost except those with an NAIC carry rating of "6," which are carried at the lower of amortized cost or fair value. The retrospective adjustment method is used to value loan-backed securities where the collection of all contractual cash flows is probable. For loan-backed securities where the collection of all contractual cash flows is not probable, the Company:
- Recognizes the accretable yield over the life of the loan-backed security as determined at the acquisition or transaction date,
- Continues to estimate cash flows expected to be collected at least quarterly, and
- Recognizes an other-than-temporary impairment loss if the loan-backed security is impaired (i.e., the fair value is less than the amortized cost basis) and if the Company does not expect to recover the entire amortized cost basis when compared to the present value of cash flows expected to be collected.

Investments are reduced to estimated fair value (discounted cash flows for loan-backed securities) for declines in value that are determined to be other-than-temporary. In determining whether an other-than-temporary impairment has occurred, the Company considers a security's forecasted cash flows as well as the severity and duration of depressed fair values.

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NOTES TO FINANCIAL STATEMENTS

If the Company intends to sell an impaired loan-backed security or does not have the intent and ability to retain the impaired loan-backed security for a period of time sufficient to recover the amortized cost basis, an other-than- temporary impairment has occurred. In these situations, the other-than-temporary impairment loss recognized is the difference between the amortized cost basis and fair value. For loan-backed securities, the credit portion of the recognized loss is recorded to the asset valuation reserve ("AVR") and the non-credit portion is recorded to the interest maintenance reserve ("IMR"). If the Company does not expect to recover the entire amortized cost basis when compared to the present value of cash flows expected to be collected, it cannot assert that it has the ability to recover the loan-backed security's amortized cost basis even though it has no intent to sell and has the intent and ability to retain the loan-backed security. Therefore, an other-than-temporary impairment has occurred and a realized loss is recognized for the non-interest related decline, which is calculated as the difference between the loan-backed security's amortized cost basis and the present value of cash flows expected to be collected.

For situations where an other-than-temporary impairment is recognized, the previous amortized cost basis less the other-than temporary impairment recognized as a realized loss becomes the new amortized cost basis of the loan- backed security. The new amortized cost basis is not adjusted for subsequent recoveries in fair value. Therefore, the prospective adjustment method is used for periods subsequent to other-than-temporary impairment loss recognition.

1. 1. The Company's carrying value for ownership interests in partnerships and limited liability companies is determined using the proportion of Brooke's investment in each fund ("NAV equivalent") as a practical expedient for fair value.
2. Going Concern
  There is not substantial doubt about the Company's ability to continue as a going concern.
Accounting Changes and Corrections of Errors
Significant changes have not occurred since 12/31/2023 that warrant disclosure in Note 2.
Business Combinations and Goodwill
Significant changes have not occurred since 12/31/2023 that warrant disclosure in Note 3.
Discontinued Operations
Significant changes have not occurred since 12/31/2023 that warrant disclosure in Note 4.
Investments
1. Loan Backed and Structured Securities
2. 1. Principal prepayment assumptions for loan-backed and structured securities are obtained from broker-dealers, independent providers of broker-dealer estimates, or internal models.
  2. There were no loan-backed and structured securities with a recognized other-than-temporary impairment where the Company has either the intent to sell the securities or lacks the ability or intent to retain the securities as of the statement date.
  3. There were no loan-backed and structured securities with a recognized other-than-temporary impairment.
  4. The following table summarizes loan-backed and structured securities in an unrealized loss position as of June 30, 2024:

		Total		<12 Months		12+ Months
Fair Value	$	10,512,262	$	-	$	10,512,262
Unrealized Loss	$	1,179,103	$	-	$	1,179,103

The carrying value and fair value of all loan-backed and structured securities, regardless of whether the security is in an unrealized loss position, was $12,090,648 and $11,193,060, respectively.

The Company periodically reviews its debt securities and equities on a case-by-case basis to determine if any decline in fair value to below amortized cost is other-than-temporary. Factors considered in determining whether a decline is other-than-temporary include the length of time a security has been in an unrealized loss position, reasons for the decline in value, expectations for the amount and timing of recovery in value, and the Company's intent and ability not to sell a security prior to a recovery in fair value.
Securities the Company determines are underperforming or potential problem securities are subject to regular review. To facilitate this review, securities with significant declines in value, or where other objective criteria evidencing credit deterioration have been met, are included on a watch list. Among the criteria for securities to be included on a watch list are: credit deterioration that has led to a significant decline in fair value of the security; a significant covenant related to the security has been breached; or an issuer has filed or indicated a possibility of filing for bankruptcy, has missed or announced it intends to miss a scheduled interest or principal payment, or has experienced a specific material adverse change that may impair its creditworthiness.

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NOTES TO FINANCIAL STATEMENTS

In performing these reviews, the Company considers the relevant facts and circumstances relating to each investment and exercises considerable judgment in determining whether a security is other-than-temporarily impaired. Assessment factors include judgments about an obligor's current and projected financial position, an issuer's current and projected ability to service and repay its debt obligations, the existence of, and realizable value of, any collateral supporting the obligations, and the macro-economic and micro-economic outlooks for specific industries or issuers. This assessment may also involve assumptions regarding underlying collateral such as prepayment rates, default and recovery rates, and third-party service capabilities.

Dollar Repurchase Agreements and/or Securities Lending Transactions
The Company does not have investments in dollar repurchase agreements and/or securities lending transactions.
Repurchase Agreements Transactions Accounted for as Secured Borrowing The Company does not have repurchase agreements.
Reverse Repurchase Agreements Transactions Accounted for as Secured Borrowing The Company does not have reverse repurchase agreements.
Repurchase Agreements Transactions Accounted for as a Sale The Company does not have repurchase agreements.
Reverse Repurchase Agreements Transactions Accounted for as a Sale The Company does not have reverse repurchase agreements.

Working Capital Finance Investments
1. The Company does not have working capital finance investments.
2. The Company did not have any defaults on working capital finance investments.
Offsetting and Netting of Assets and Liabilities
The Company does not have investments in derivatives, repurchase agreements and securities lending transactions. No other significant changes have occurred since 12/31/2023 that warrant disclosure in Note 5.

1. Reporting Entity's Share of Cash Pool by Asset Type The Company does not have a cash pooling arrangement.
Joint Ventures, Partnerships and Limited Liability Companies
Significant changes have not occurred since 12/31/2023 that warrant disclosure in Note 6. See Note 10 for additional information on limited partnerships.
Investment Income
Significant changes have not occurred since 12/31/2023 that warrant disclosure in Note 7.
Derivative Instruments
1. Derivatives under SSAP No. 86-Derivatives
2. 1. The Company does not have investments in derivative instruments.
3. Derivatives under SSAP No. 108-Derivatives Hedging Variable Annuity Guarantees The Company does not have any derivatives hedging variable annuity guarantees. Significant changes have not occurred since 12/31/2023 that warrant disclosure in Note 8.
Income Taxes
At June 30, 2024 and December 31, 2023, the statutory financial statements were not impacted by CAMT because no CAMT was allocated to the Company under the tax allocation agreement.
Information Concerning Parent, Subsidiaries and Affiliates
The statement value of Jackson total assets and liabilities as of June 30, 2024, was $278,649,600,861 and $274,584,092,026, respectively.

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Jackson Financial Inc. published this content on 13 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2024 22:10:50 UTC.