AM Best has assigned a Preliminary Credit Assessment (PCA) to North End Re (Cayman) SPC (NER Cayman) (Cayman Islands) with a Financial Strength Assessment of A- pca (Excellent) and a Long-Term Issuer Credit Assessment of "a-" pca. The outlook assigned to these PCAs is stable. Currently, the company is a wholly owned direct subsidiary of Brookfield Asset Management Inc.
The PCA reflects 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 PCA reflects the company’s plan of making a significant capital investment to keep an appropriate level of risk-adjusted capital, as measured by Best's Capital Adequacy Ratio (BCAR), and regulatory risk-adjusted capital. The company expects to use external and internal revolving lines of credit. The sponsor, Brookfield Asset Management Inc., provides security and resources, especially in the asset management space.
The company has a plan to grow the business, including its first transaction with American Equity Investment Life Holding Company (AEL) to reinsure $10 billion of liabilities, starting with $5 billion upon the close of the reinsurance transaction. The company is starting its focus in the United States with AEL, but it has possibilities outside the country. Brookfield Annuity Company (BAC), a sister company, provides pension risk transfer solutions in Canada.
This press release relates to Preliminary Credit Assessments that have been published on AM Best’s website. For all assessment information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual assessments 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 and Assessment opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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