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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi,

Thank you for answering Scott's question today (Jan 30, 2024) and choosing BIPC. His question didn't include all the components of BN behemoth. I know your favorite is BN for growth and BAM for dividends. Can you rank order others, especially BEPC/BIP? To one of earlier questions about energy stocks you chose BEPC. I understand the rationale there. If you were to ignore the energy sector where would BEPC stand?
Many thanks.
Read Answer Asked by Savalai on January 31, 2024
Q: I spent some time reading the Offer to Exchange as I was thinking of doing this even before the offer came out. I am trying to reduce my taxable income because of the clawback of OAS and the RoC distributions works for that. However, I noticed that this will be a taxable event, ie it will generate a capital gain or loss on the BN shares that are exchanged. For long time holders with a capital gain it may not be worth doing. I didn't see any mention of the tax consequences in previous questions.
Read Answer Asked by Earl on October 19, 2023
Q: i got some BNRE:TSE share from my holding in BAM.A. Its an exchangeable share into BN:TSE share and get the same distribution as BN:TSE per share. Is it a good move to sell all shares of BNRE:TSE and buy the same about of BN:TSE though the price is $1 less as per today's closing price? (BNRE:TSE $45.18 and BN:TSE 44.17) It does not make sense because though the business of BNRE is insurance but paid our is based on BN:TSE which has some different mix of business. Need your general answer not based on individual based.
Thanks
Piyush
Read Answer Asked by Piyush on August 28, 2023
Q: I just saw a notice of AGM and Special Meeting in mail and there is one resolution:
to Authorize the company to issue up to a maximum of 101,899,808 exchangeable shares where by holders of BN:TSE class A shares could be exchangeable to BNRE:TSE in the ratio of one for one. Is this a kind of financial engineering? Is there any chances that CRA or related GOVT. authority can come after the company and shareholders pay the price when the stock price fall in future? Your views.
Thanks
Piyush
Read Answer Asked by Piyush on August 28, 2023
Q: It just occurred to me, and I thought your members might be interested, that BNRE is a better choice than BN for those of us subject to clawback of benefits such as OAS. BNRE pays the same distribution as BN but it is a return of capital instead of a dividend. So there is no tax to pay in the year received and there is no gross-up of the distribution. In addition, BNRE is convertible at anytime into BN shares. Seems to me that many people should be switching to BNRE instead of BN.
Read Answer Asked by Earl on August 08, 2023
Q: Hello 5i Team

I am reviewing US listed Property and Casualty Insurance companies for the US dollar portion of my RRSP account (in order to receive dividends without US withholding tax).

I understand Brookfield Reinsurance Ltd (BNRE) is a Bermuda based corporation and is not subject to withholding taxes in an RRSP.

Questions:

1 – Is BNRE a suitable candidate?

2 – Please list other US listed P&C insurance companies for consideration in order of preference.

Thank you
Read Answer Asked by Stephen on July 27, 2023
Q: I believe shares of BNRE are still exchangeable into shares of BN after their re-org, I know you are positive on the prospects of BN.
BNRE is starting as a smaller player in their industry but looks to aggressively grow.
By buying BNRE , at minimum , would you not get the same potential returns as BN but have potential for higher upside if their insurance business grow successfully.

Thank you
Read Answer Asked by Mario on July 17, 2023
Q: Paul today asked about exchanging Brookfield reinsurance shares for BN. Are all of the Brookfield shares interchangeable? I have some BAM that I have been planning to sell. But, if they are interchangeable that may be a better option.
Thanks as always
Read Answer Asked by joseph on May 30, 2023
Q: I have 400 BN with an ave cost of $39.24 and current price $42.16
I also have 2 BNRE-ave cost $56.18 and current price $42.56

What happens if I transfer the 2 BNRE into BN with the different average cost and current prices?
Would it be better to keep them separated?

thanks,

Paul
Read Answer Asked by Paul on May 29, 2023
Q: If I understand correctly, BNRE shares are exchangeable 1:1 for BN shares. Is there an advantage to do so? Now or at future date and under what circumstances?
As always, thank you for the valuable information you provide.
Read Answer Asked by Carlos on January 16, 2023
Q: If one were to sell BNRE or BN at a capital loss and purchase BAM with the proceeds would this stay onside with 30 day rule?
Read Answer Asked by Lynda on December 23, 2022
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