AM Best has upgraded Brookfield Annuity Company’s Financial Strength Rating to A (Excellent) from A- (Excellent) and its Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent). The outlook for these ratings has been revised to stable from positive.
The upgraded ratings reflect Brookfield Annuity Company’s balance sheet strength, which AM Best evaluates as very strong, alongside adequate operating performance, a neutral business profile, and effective enterprise risk management.
In 2023 and through the third quarter of 2024, Brookfield Annuity Company maintained risk-adjusted capitalisation at a very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR).
While some fluctuations are expected due to the nature of deal flow in pension risk transfer (PRT) buy-in and buy-out transactions, AM Best anticipates the company’s balance sheet strength to remain very strong, supported by consistent profitability and ample liquidity.
The company has also implemented a robust reinsurance programme with highly rated partners, further enhancing its capital management framework.
Brookfield Annuity Company has established itself as a key player in Canada’s PRT market, achieving a significant market share and ranking second in annual sales.
Over the past six years, the company has consistently reported profitability, including record earnings at the close of 2023. Although market share and earnings are subject to variability given the nature of the business, AM Best expects Brookfield Annuity Company to maintain its competitive position in the PRT space for the foreseeable future.
