AM Best Affirms Credit Ratings of North End Re Ltd.
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating 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, limited business profile, appropriate enterprise risk management, and support from the parent organization, Brookfield Wealth Solutions Ltd. (BWS).
The company’s risk-adjusted capitalization is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), although some volatility in balance sheet strength metrics is expected over the near term as more business is assumed. As operations increase in scale, the company also is expected to utilize available internal and external revolving lines of credit to provide liquidity and maintain capital levels. To date, North End Re Ltd. has closed one transaction in third-quarter 2021, reinsuring $1.6 billion of fixed deferred annuities. The company is planning to assume annuity-type business from European and/or other Asian markets over the near term.
