North End Re (Cayman), a segregated portfolio company owned by Brookfield Asset Management, has secured a Preliminary Credit Assessment (PCA) from AM Best.
The PCA include a Financial Strength Assessment of A- (Excellent) and a Long-Term Issuer Credit Assessment of “a-”.
AM Best says its decision reflects North End Re Cayman’s balance sheet strength, which it assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
Furthermore, the PCA has been described as reflecting the company’s plan of making a significant capital investment to keep an appropriate level of risk-adjusted capital.
The sponsor, Brookfield Asset Management, is seen as providing security and resources, especially in the asset management space.
AM Best says the company as planning to grow the business, including its first transaction with American Equity Investment Life Holding Company (AEL).
The partnership includes the reinsurance of $5 billion of existing liabilities and up to an incremental $5 billion of new sales of American Equity’s IncomeShield or similar fixed index annuity products.
As part of this strategic partnership, Brookfield will acquire a 19.9% ownership interest in the common shares of American Equity.
