AM Best Affirms Credit Ratings of North End Re (Cayman) SPC
14 April 2023 - 1:52AM
Business Wire
AM Best has affirmed the Financial Strength Rating (FSR)
of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term
ICR) of “a-” (Excellent) of North End Re (Cayman) SPC (NER Cayman)
(Cayman Islands). The outlook of these Credit Ratings (ratings) is
stable.
The ratings reflect NER Cayman’s balance sheet strength, which
AM Best assesses as very strong, as well as its adequate operating
performance, neutral business profile and appropriate enterprise
risk management. The ratings also reflect NER Cayman’s execution of
its business plan, which includes maintaining a favorable
risk-adjusted capitalization, as measured by Best’s Capital
Adequacy Ratio (BCAR).
In 2021, NER Cayman executed a reinsurance transaction with
American Equity Investment Life Holding Company [NYSE: AEL] (AEL),
under which NER Cayman agreed to assume up to $10 billion of
annuity products issued by American Equity Investment Life
Insurance Company, a subsidiary of AEL. As of year-end 2022, the
management of this business has produced favorable results with NER
Cayman reporting $195 million in net income.
NER Cayman’s parent, Brookfield Reinsurance Ltd. [NYSE, TSX:
BNRE] (Brookfield Reinsurance), is a publicly traded company
focused on providing capital-based solutions and insurance and
reinsurance services to individuals and institutions. Brookfield
Reinsurance seeks capital-intensive business to leverage its asset
management and sourcing capabilities. In August 2021, Brookfield
Reinsurance announced an agreement to acquire American National
Group, Inc. in a cash transaction valued at approximately $5.1
billion, which closed in May 2022. NER Cayman geographically
complements its sister company, North End Re Ltd., which also began
its reinsurance operations in 2021. The company has another sister
company, Brookfield Annuity Company, that provides pension risk
transfer solutions in Canada.
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Kevin Varvaro Senior Financial Analyst +1 908
439 2200, ext. 5487 kevin.varvaro@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Anthony McSwieney Senior Financial Analyst +1
908 439 2200, ext. 5715 anthony.mcswieney@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 439 2200, ext. 5098 al.slavin@ambest.com
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