AM Best places Brookfield’s NERC ratings under review following AEL acquisition

Following the recent closure of Brookfield Reinsurance’s acquisition of American Equity Investment Life Holding Company (AEL), the strategy for subsidiary North End Re (Cayman) SPC (NERC) is under review by AM Best.

The rating agency has placed NERC’s credit ratings under review with developing implications, which include the company’s Financial Strength Rating of A- (Excellent) and its Long-Term Issuer Credit Rating of “a-” (Excellent).

Brookfield Reinsurance, a capital solutions business that provides insurance and reinsurance services to individuals and institutions, announced the completion of AEL’s acquisition in early May.

The deal, announced in July 2023, was completed in a cash and stock transaction valued at $56.50 per AEL share.

In 2021, prior to the acquisition, NERC had entered into a reinsurance agreement with AEL affiliate American Equity Investment Life Insurance Company, whereby NERC agreed to assume up to $10bn of fixed deferred annuities.

Over the following two years, NERC has managed the assumed business profitably over the following two years.

But “until more clarity on the strategy is communicated to AM Best analysts, the ratings will remain under review with developing implications,” the rating agency stated.

The post AM Best places Brookfield’s NERC ratings under review following AEL acquisition appeared first on ReinsuranceNe.ws.

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