AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Bermudian-based North End Re Ltd.

The outlook of these credit ratings is stable.

The ratings reflect North End Re Ltd’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 North End Re Ltd’s plan of maintaining strong risk-adjusted capital levels, as measured by Best’s capital adequacy ratio, as the company ramps up operations in the coming years.

The company expects to use external and internal revolving lines of credit to maintain these levels and to provide substantial liquidity.

North End Re Ltd closed one transaction in the third quarter 2021, reinsuring $1.6 billion of fixed deferred annuities.

AM Best said North End Re Ltd’s parent, Brookfield Reinsurance Ltd, is a publicly traded reinsurance company focused on providing capital-based solutions to insurance companies.

Slightly offsetting these favourable attributes of North End Re Ltd and its greater organisation, AM Best said, are the high level of competition and the temporary realised investment losses caused by rising interest rates.

AM Best notes that the company was quick in establishing itself in the market, showing early success against competitors, and rising interest rates will be a favourable factor for the company over the longer term.