AM Best Affirms Credit Ratings of Brookfield Annuity Company

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.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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