AM Best has initiated a review with developing implications for the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of North End Re (Cayman) SPC (NERC) based in the Cayman Islands.
The recent completion of Brookfield Reinsurance Ltd.’s acquisition of American Equity Investment Life Holding Company (AEL) has prompted AM Best to review the strategy for NERC, a subsidiary of AEL. In 2021, prior to the acquisition, NERC entered into a reinsurance agreement with AEL affiliate American Equity Investment Life Insurance Company, agreeing to assume up to $10 billion of fixed deferred annuities. NERC has effectively managed the assumed business profitably over the past two years. However, until AM Best receives further clarity on NERC’s strategy, the ratings will remain under review with developing implications.
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