OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Brookfield Annuity Company (Toronto, Ontario, Canada). Brookfield Annuity Company is a wholly owned subsidiary of Brookfield Asset Management Reinsurance Partners Ltd (BAM Re) [TSX: BAMR; NYSE: BAMR]. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Brookfield Annuity Company’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 ratings also reflect the company’s ability to execute on its business plan and the utilization of the balance sheet. The business profile of the company has improved as the company matures.
The balance sheet strength is assessed based 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. As typically seen with startups, risk-adjusted capital has decreased over the years as Brookfield Annuity Company writes business. As of year-end 2020, the parent company has contributed a total of $100 million of capital. AM Best expects the company’s balance sheet capacity to remain stable going forward as the in-force business emerges. Furthermore, the company has developed a good reinsurance program that serves to strengthen capital management. Brookfield Annuity Company is a pension-risk transfer (PRT) carrier in the Canada market, and it continues to write profitable business.
The company has achieved a respectable market share in the PRT market and has expanded its product offering. The company continues to nurture its developed enterprise risk management program.
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