This quarter's results were in line with expectations, with the core focus on the asset allocation strategy and capital efficiency improvement of the insurance business (BWS).

Key data: BWS's current income spread is 81 basis points, but when including total returns from equity investments, the spread can reach 2.2%; the integration of Just Group is expected to enhance the spread by 50 basis points.

Business progress: Management emphasizes that BWS's differentiation lies in its significant allocation to equity assets (including funds and publicly traded stocks), pursuing long-term total returns rather than pure spread income. By transferring assets such as BBU held by BN into insurance accounts, it provides policyholders with high-quality investment opportunities. Meanwhile, through long-term incentive plans and cultural alignment, the acquired insurance teams are ensured to align with Brookfield's risk appetite.

Guidance and outlook: Management believes there is room for BWS's spread to improve, and Just Group, through cost reductions and asset rotation, is expected to approach a spread target of 200 basis points. At the BN level, large opportunities such as AI primarily rely on fund and third-party capital, with no assumption of significant BN proprietary capital participation.

Risk/highlight signals: A positive signal is management's confidence in BWS's total return model, which it believes outperforms peers' spread levels of 100–110 basis points; a negative signal is that carry realization remains conservative, only being released after funds recoup costs and meet preferred returns.