PREFERRED SHARES REDEEMABLE NON-CONTROLLING INTEREST

12 Months Ended

Dec. 31, 2025

Temporary Equity Disclosure [Abstract]

PREFERRED SHARES REDEEMABLE NON-CONTROLLING INTEREST

13. PREFERRED SHARES REDEEMABLE NON-CONTROLLING INTEREST

As at December 31, 2025, subsidiaries of the Company have issued and outstanding certain classes of preferred shares which are outlined below:


	2025			2024
AS AT DECEMBER 31, (MILLIONS, EXCEPT SHARE AMOUNTS)	Number of Shares	Value		Number of Shares	Value
BUSHI Preferred Shares
BUSHI Tracking Shares	200	$	1,115	100	$	1,804
Class B senior preferred	1,621,093	41		1,621,093	41
Class B preferred	2,520,571	63		2,520,571	63
Class A preferred	5,909,372	148		7,797,431	195
BMHL Tracking Shares	100	31		100	—
		$	1,398		$	2,103

The movement in the carrying value of the preferred shares redeemable non-controlling interest is as follows:


AS AT AND FOR THE YEARS ENDED DECEMBER 31, (MILLIONS)	2025		2024
Balance, beginning	$	2,103	$	2,166
Issuances	124		158
Distributions	(199)		—
Deemed settlement of Class A preferred shares as a result of 2025 Arrangement	(47)		—
Changes in redemption value included in net income attributable to preferred shares non-controlling interest	(480)		(211)
Settlements	(94)		—
Other	(9)		(10)
Balance, ending	$	1,398	$	2,103

BUSHI and BMHL Tracking Shares

In December 2022, BUSHI and BMHL, subsidiaries of BAM, entered into arrangements with BN whereby BUSHI and BMHL issued preferred shares to BN in exchange for BN's holdings in BUSHI's and BMHL's common shares.

In April 2025, BUSHI entered into an arrangement with BN whereby BUSHI issued the third series of Tracking Shares to BN in exchange for $25 million of cash. The third series of Tracking Shares provides BN with an economic interest equal to 1.5% of certain investments held by Oaktree, an equity method investment of BAM, excluding any fee earnings, carried interest, incentive fees and performance fees of that equity method investee.

During the year ended December 31, 2025, BUSHI paid BN a $176 million cash dividend on the BUSHI Tracking Shares, BMHL paid BN a $14 million cash dividend on the BMHL tracking shares, and BUSHI declared a $7 million distribution to BN on the Class A Preferred Shares and $2 million on the Senior Class B Preferred Shares.

BUSHI Class B senior preferred and preferred shares

In addition to the Tracking Shares, BUSHI has also issued class B senior preferred shares and class B preferred shares. The class B senior preferred shares entitle the holder to cumulative preferential cash dividends at $1.36375 per share per annum and are ranked senior to the Tracking Shares, class B preferred shares and common shares. The class B senior preferred shares are redeemable by the issuer, whose board is controlled by BN, upon the tenth anniversary of issuance at a redemption amount of $25 per share plus accrued and unpaid dividend. The class B preferred shares are redeemable at the option of both the holder and the issuer at $25 per share (the redemption amount) plus unpaid dividends. These preferred shares are non-voting and rank junior to the BUSHI tracking shares and senior to common shares of the entity, and are entitled to non-cumulative cash dividends at 6.7% per annum on their redemption amount.

Class A preferred shares

The class A preferred shares were issued by a subsidiary of BAM to BN, redeemable at the option of the holder and the issuer at a redemption amount of $25 per share plus accrued and unpaid dividends and these preferred shares are non-voting. During the year ended December 31, 2025, 1,888,059 class A preferred shares worth $47 million were deemed to have been settled upon consolidation as a result of the 2025 Arrangement.

The Company accounts for the changes in the value of the redeemable non-controlling interest in accordance with ASC 480, Distinguishing Liabilities from Equity. The Company elects for the BUSHI tracking shares and class B senior preferred shares to recognize changes in the redemption value immediately as they occur and adjust the carrying amount to equal the redemption value at the end of each reporting period. During the year ended December 31, 2025, the BMHL tracking shares were amended such that a future redemption by BUSHI, whose board is controlled by BN, is now permitted upon the tenth anniversary of issuance consistent with the BUSHI tracking shares. As a result, BAM recognizes changes in the redemption value of the BMHL tracking shares by adjusting the carrying amount to equal the redemption value at the end of each reporting period. The BUSHI class B preferred shares are currently redeemable and are therefore measured at their redemption amount at each reporting date. However, no adjustment to the carrying value of the class B preferred shares is expected as dividends declared are expected to be paid on or prior to each reporting date.