AM Best Assigns PCA To North End Re Ltd
AM Best has assigned a Preliminary Credit Assessment [PCA] to North End Re Ltd. [Bermuda] with a Financial Strength Assessment of A- pca [Excellent] and a Long-Term Issuer Credit Assessment of “a-” pca [Excellent].
The outlook assigned to these PCAs is stable. Currently, the company is a wholly owned direct subsidiary of Brookfield Asset Management Reinsurance Partners Ltd.
A statement from the ratings agency said, “The PCA reflects 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 PCA reflects North End Re Ltd.’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.
“North End Re Ltd. complements geographically its sister company, North End Re [Cayman] SPC, which also is starting its activities. The company has another sister company, Brookfield Annuity Company, that provides pension risk transfer solutions in Canada, which has been in operation for a few years.”
