AM Best Affirms Credit Ratings of North End Re Ltd.
January 25 2023 - 10:29AM
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
Ltd. (Bermuda). The outlook of these Credit Ratings (ratings) is
stable.
The ratings reflect North End Re Ltd.’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 North End Re Ltd.’s plan of maintaining
strong risk-adjusted capital levels, as measured by Best’s Capital
Adequacy Ratio (BCAR), as the company ramps up operations in the
coming years. The company expects to use external and internal
revolving lines of credit to maintain these levels and to provide
substantial liquidity. North End Re Ltd. closed one transaction in
third-quarter 2021, reinsuring $1.6 billion of fixed deferred
annuities.
North End Re Ltd.’s parent, Brookfield Reinsurance Ltd.
(Brookfield Reinsurance), is a publicly traded reinsurance company
focused on providing capital-based solutions to insurance
companies. Brookfield Reinsurance seeks capital-intensive business
to leverage its asset management and sourcing capabilities.
Brookfield Reinsurance recently acquired American National Group,
Inc. [NASDAQ: ANAT] in an all-cash transaction valued at
approximately $5.1 billion. North End Re Ltd. geographically
complements its sister company, North End Re (Cayman) SPC, which is
also in its first full year of establishing reinsurance operations.
The company has another sister company, Brookfield Annuity Company,
that provides pension risk transfer solutions in Canada.
Slightly offsetting these favorable attributes of North End Re
Ltd. and its greater organization are the high level of competition
and the temporary realized investment losses caused by rising
interest rates. AM Best notes that the company was quick in
establishing itself in the market, showing early success against
competitors; rising interest rates will be a favorable factor for
the company over the longer term.
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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version on businesswire.com: https://www.businesswire.com/news/home/20230125005582/en/
Kevin Varvaro Senior Financial Analyst +1 908
439 2200, ext.5487 kevin.varvaro@ambest.com Anthony
McSwieney Senior Financial Analyst +1 908 439 2200,
ext.5715 anthony.mcswieney@ambest.com Christopher
Sharkey Manager, Public Relations +1 908 439 2200,
ext. 5159 christopher.sharkey@ambest.com Al Slavin
Senior Public Relations Specialist +1 908 439 2200, ext.
5098 al.slavin@ambest.com
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