AM Best Affirms Credit Ratings of Brookfield Annuity Company

Rhea-AI Summary

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Rating of “a-” (Excellent) for Brookfield Annuity Company, a wholly owned subsidiary of BAMR. The stable outlook reflects strong balance sheet strength and adequate operating performance. Brookfield Annuity has demonstrated a solid execution track record, with significant capital support from its parent company. The company is expanding its market share in the Canadian pension-risk transfer market and has developed a robust reinsurance program.

Positive

• Affirmation of Financial Strength Rating A- and Credit Rating a- from AM Best.
• Strong balance sheet strength and adequate operating performance.
• Significant market share in the Canadian pension-risk transfer market.
• Good reinsurance program enhancing capital management.

Negative

• Risk-adjusted capital can be volatile due to unpredictable deal flow.

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. [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 (ERM).

The balance sheet strength is assessed based on the company’s track record of execution of its business plan, with a high level of capital injected into the business at startup and as needed by the parent company. As typically seen with startups, risk-adjusted capital has and can be volatile due the potential lumpy nature of deal flow as Brookfield Annuity Company writes business. 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 significant market share in the PRT market so far and has expanded its product offering. The company continues to develop its developed ERM 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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220824005686/en/

Kevin Varvaro

Financial Analyst

+1 908 439 2200, ext. 5487

kevin.varvaro@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Anthony McSwieney

Senior Financial Analyst

+1 908 439 2200, ext. 5715

anthony.mcswieney@ambest.com

Jeff Mango

Managing Director,

Strategy & Communications

+1 908 439 2200, ext. 5204

jeffrey.mango@ambest.com

Source: AM Best

FAQ

What is the current Financial Strength Rating of Brookfield Annuity Company?

AM Best has affirmed a Financial Strength Rating of A- (Excellent) for Brookfield Annuity Company.

What is Brookfield Annuity Company's Long-Term Issuer Credit Rating?

The Long-Term Issuer Credit Rating of Brookfield Annuity Company is 'a-' (Excellent).

What is the outlook of the Credit Ratings for BAMR?

The outlook for the Credit Ratings of BAMR is stable.

How is the balance sheet strength of Brookfield Annuity Company assessed?

The balance sheet strength is assessed as strong based on its execution track record and capital injection from its parent.

In which market does Brookfield Annuity operate?

Brookfield Annuity Company operates in the Canadian pension-risk transfer market.