AM Best has finalised its financial strength and credit ratings for North End Re (Cayman), a segregated portfolio company owned by Brookfield Asset Management.
The rating agency assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to the unit, in line with the Preliminary Credit Assessment (PCA) issued back in March 2021.
The ratings reflect NER Cayman’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
AM Best also noted NER Cayman’s plan of making a significant capital investment to keep a strong level of risk-adjusted capital and risk-based capital.
Additionally, NER Cayman has executed a reinsurance transaction with American Equity Investment Life Holding Company (AEL) and now has a total combined equity interest in AEL to approximately 16%.
The reinsurance transaction consists of assuming $10 billion of annuity products issued by American Equity Investment Life Insurance Company, a subsidiary of AEL.
Analysts further stated NER Cayman geographically complements its sister company, North End Re Ltd., which also is starting its reinsurance operations.
The company has another sister company, Brookfield Annuity Company, that provides pension risk transfer solutions in Canada.
