OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to positive from stable and 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).
The Credit Ratings (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 revision of the outlooks to positive from stable is driven by Brookfield Annuity Company’s favorable risk-adjusted capitalization and qualitative balance sheet strength factors.
Brookfield Annuity Company’s risk-adjusted capitalization remained favorable in 2022 despite the potential for volatility due to the lumpy nature of deal flow as pension risk transfer (PRT) buy-in and buy-out agreements are made. AM Best expects the company’s strong balance sheet strength to remain stable going forward driven by profitable operations and supported by ample liquidity. Furthermore, the company has developed a good reinsurance program with highly rated partners that serves to strengthen capital management.
Over the previous several years, Brookfield Annuity Company has established itself as a significant player in the Canadian PRT market growing to second in 2022 sales in just its sixth year of operations. Furthermore, the company has remained profitable over the previous five years with record earnings for year-end 2022. While market share and earnings also are subject to volatility due to the nature of the business line, AM Best expects the company to remain a competitive participant over the near to medium term.
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