Does the exchange which reduces the number on BN shares increase BN EPS? Wondering how all the accounting works.

BN's share count is unchanged by the offer. The results of the offer were announced today, and answer your question here:

The Offer has significantly enhanced the equity base and market capitalization of Brookfield Reinsurance. Because Brookfield Reinsurance is a “paired entity” to Brookfield Corporation, this result was achieved without any dilution to Brookfield Corporation or Brookfield Reinsurance.
stocktitan.net - Brookfield reinsurance announces results of exchange offer and

My "BN" stock has already been replaced with a holding (non-tradable) stock, and in a few days this should be replaced with "BNRE.A" (tradable) representing the A1 shares, and those will be quoted every 5 minutes or so BN's price plus or minus a few cents. Annually my returns will be the same as BN's returns, plus about 0.23% owing to the tax advantage. Essentially dividends will arrive without the 25% withholding tax, and there is no practical difference apart from that.

If others want this advantage* keep in mind that you need not have taken the offer, as you can anyway have the same outcome by gradually selling BN and buying BNRE (you could even try to do this when BNRE is trading temporary slightly below BN) provided your trading volume is low enough - there's no rush - to not move the quote.

- Manlobbi

*There is only really an advantage if you don't pay capital gains tax. This 0.23% annual bonus will be partly cancelled, if you pay capital gains tax, because of the cost basis increasing as each dividend is paid out. But.. if you are long-term holder then the capital gains tax can be delayed until you sell - unlike the immediate cash deduction taken from your dividends every 3 months. That advantage is so small that I would keep BN, personally speaking, if I was paying capital gains tax.