Best’s News & Research Service - February 02, 2022 08:11 AM (EST)
AM Best Assigns Credit Ratings to North End Re (Cayman) SPC
- February 02, 2022 08:11 AM (EST)
Oldwick //BestWire// - AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to North End Re (Cayman) SPC (NER Cayman) (Cayman Islands). The outlook assigned to these Credit Ratings (ratings) is stable.
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.
The ratings also reflect NER Cayman’s plan of making a significant capital investment to keep a strong level of risk-adjusted capital, as measured by Best’s Capital Adequacy Ratio (BCAR), and risk-based capital. The company expects to use external and internal revolving lines of credit.
NER Cayman also has executed a reinsurance transaction with American Equity Investment Life Holding Company (NYSE:AEL) (AEL) and now has a total combined equity interest in AEL to approximately 16%. The reinsurance transaction consist of assuming $10 billion of annuity products issued by American Equity Investment Life Insurance Company, a subsidiary of AEL.
NER Cayman’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. In August 2021, BAM Re announced an agreement to acquire American National Group, Inc. [NASDAQ: ANAT] in an all-cash transaction valued at approximately $5.1 billion, with the transaction is expected to close in the first half of 2022. 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.
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 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.