AM Best has assigned credit ratings to North End Re Ltd. (Bermuda), the newly launched Bermuda-based reinsurance subsidiary of alternative asset management company Brookfield Asset Management Reinsurance Partners Ltd.
North End Re was assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent), with a stable outlook.
AM Best explained that the ratings reflect North End Re’s plan of making a significant capital investment to keep an appropriate level of risk-adjusted capital and regulatory risk-adjusted capital.
The company expects to use external and internal revolving lines of credit, and has recently closed one transaction, reinsuring $1.6 billion of fixed deferred annuities.
North End Re Ltd.’s parent, Brookfield Asset Management Reinsurance Partners Ltd. (BAM Re), is a publicly traded reinsurance company focused on providing capital-based solutions to insurance companies.
BAM Re seeks capital-intensive business to leverage its asset management and sourcing capabilities, and recently acquired American National Group in an all-cash transaction valued at approximately $5.1 billion.
AM Best also feels that North End Re Ltd. complements geographically its sister company, North End Re (Cayman) SPC, which also is starting its reinsurance operations.
The company has another sister company, Brookfield Annuity Company, that provides pension risk transfer solutions in Canada.
