OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating (FSR) to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a-” from “bbb+” of Brookfield Annuity Company (Toronto, Ontario, Canada). Brookfield Annuity Company is a wholly owned subsidiary of Brookfield Asset Management Inc. The outlook of these Credit Rating (ratings) remains stable.
The ratings reflect Brookfield Annuity Company’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The Long-Term ICR upgrade reflects the company’s ability to execute on its business plan, including posting positive earnings in 2018 and good underlying business fundamentals.
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 parent committed a total of $100 million of capital, of which $70 million was injected at inception and $8 million was infused in 2018. The company is a monoline carrier in Canada’s pension-risk transfer (PRT) market. Brookfield Annuity Company achieved a 5% market share in its first two years of operation. AM Best expects the company to continue increasing sales as it establishes itself as a significant player in the PRT market.
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