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Brookfield OPE Letter to Unitholders Q1 2021 We had a strong start to 2021 generating Company EBITDA of $ 387 million and record Company FFO of $ 545 million for the first quarter . As global economies reopen we are benefiting from the continued recovery in business conditions . Most of our businesses are operating at or above pre - pandemic levels and we are confident that as economic activity continues to improve , activity levels across all our operations will normalize through the year . We remain focused on our objective of generating growth in intrinsic value per unit over the long - term . Most of our value creation has been achieved by acquiring high - quality businesses at reasonable prices and improving their underlying operating performance and cash flows . While we expect some variability in cash flows and earnings as we advance initiatives to surface the considerable embedded value potential across our businesses , the exceptional quality of businesses we own today has supported resilient performance through an unprecedented period of volatility . Update on Strategic Initiatives Sagen In April , together with institutional partners , we completed the privatization of Sagen , Canada's largest private residential mortgage insurer . As a reminder , Sagen provides insurance to mortgage lenders against homeowner default for which it receives a lump sum upfront non - refundable premium on new policies . The business operates in a highly regulated industry as mortgage insurance is mandatory in Canada for home purchases with a down payment of less than 20 % and is provided on owner - occupied homes up to a maximum loan - to - value of 95 % . Sagen insures homes with an average price of approximately $ 310,000 ( CAD $ 400,000 ) and typically caters to first - time home buyers , 25 to 45 years old and with growing household incomes . Sagen's national footprint and the regional diversification of its mortgage insurance book limits exposure to correlated economic risks . As an essential service provider to the Canadian banking industry , Sagen has consistently generated earnings and reasonable returns on equity through both housing and economic cycles . The Canadian banking system and lending environment has historically been very stable . Strict mortgage underwriting rules are designed to be conservative and result in higher quality borrowers . Strong oversight and regulation including mandatory loan amortization , limits on maximum amortization periods , full borrower recourse and debt service stress tests for all insured borrowers have mitigated the risk of default . Consequently , mortgage delinquency rates in Canada have historically trended meaningfully lower than comparable levels in the U.S. Last year , strong economic government support programs during the pandemic resulted in increased Canadian household incomes which , combined with reduced discretionary spending , led to record savings rates and falling household debt levels . These impacts along with continued strength in housing market activity have contributed to low default rates within Sagen's portfolio even as borrowers have transitioned from mortgage deferral programs which were provided by lenders at the onset of the pandemic . Q1 2021 Letter to Unitholders Brookfield Business Partners L.P. 1