Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 534

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 19
Chunk 534
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 compensation risk. The present value of the defined benefit pension plan obligation is calculated using a discount rate. If the return on plan assets is below this rate, a plan deficit occurs. The partnership mitigates this investment risk by establishing a

  F-88      Brookfield Business Partners  

Table of Contents

BROOKFIELD BUSINESS PARTNERS L. P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As at December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022

sound investment policy to be followed by the investment manager. The investment policy requires plan assets to be invested in a diversified portfolio and is set based on both asset return and local statutory requirements. The most significant assumptions used in projecting the defined benefit obligation are the discount rate and rate of compensation which range from 1.2 9.2 1.0 5.0 1.1 9.3 1.0 5.0

The benefit plans’ assets primarily comprise of debt and equity instruments among other investments held within investment funds valued by independent third-party fund administrators on a recurring basis. As at December 31, 2024, the fair value of the plan assets was $419million (2023: $438million), of which $362million related to plan assets classified as Level 2 on the fair value hierarchy (2023: $356million).

NOTE 32. INSURANCE CONTRACTS

The following table shows the reconciliation from the opening to the closing balances of the insurance liabilities related to the partnership’s insurance contracts from its residential mortgage insurer, reported by measurement components.

  (US$ MILLIONS)                                                       Estimates of present value of future cash flows               Risk adjustment               Contractual service margin                  Total  
  Change during period:                                                                                                                                                                                               
  Changes that relate to current service:                                                                                                                                                                             
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Insurance contract liabilities, as at January 1, 2024                                                              $      385      $                    479      $                               1,070           $  
  Contractual service margin recognized for services provided                                                        —               —                             ( 426)                                     ( 426)  
  Change in risk adjustment recognized for the risk expired                                                          —               ( 68)                         —                                           ( 68)  
  Experience adjustments                                                                                          ( 6)