OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” to Brookfield Annuity Company (Toronto, Ontario, Canada). Brookfield Annuity Company is a wholly owned subsidiary of Brookfield Asset Management Inc. [TSX: BAM.A; NYSE: BAM]. The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Brookfield Annuity Company’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
The balance sheet strength is assessed on the company’s five-year business plan with a very high level of capital injected into the business at startup by the parent company. The company is a monoline carrier in the pension risk transfer market in Canada. Brookfield Annuity Company achieved a greater than 5% market share in its first year of operations. The company expects to continue increasing sales as they establish themselves as a significant player in the pension risk transfer market. Since Brookfield Annuity Company is a newly formed company, assessments with regard to operating performance or business profile could provide rating enhancement once A.M. Best assesses the business plan post-execution.
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