AM Best Affirms Credit Ratings of North End Re Ltd.

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of North End Re Ltd. (Bermuda). The outlook of these Credit Ratings (ratings) is stable. The ratings were released publicly with an effective date of April 16, 2025.

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 company’s risk-adjusted capitalization is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). However AM Best expects volatility in balance sheet metrics once more business is assumed, which is expected in late 2025, or early 2026. As operations ramp up, the company also is expected to utilize available internal and external revolving lines of credit to provide liquidity and maintain capital levels. To date, North End Re Ltd. has closed one transaction in third-quarter 2021, reinsuring $1.6 billion of fixed deferred annuities.

North End Re Ltd.’s parent, Brookfield Wealth Solutions Ltd. (BWS), is a publicly traded company [NYSE, TSX: BNT], which is focused on securing the financial futures of individuals and institutions through a range of retirement services, wealth protection products and tailored capital solutions.

Slightly offsetting the favorable attributes of North End Re Ltd., and its greater organization, are the high level of competition and realized investment losses caused by rising interest rates. Rising rates negatively impacted earnings for the two years prior to 2024; however, in 2024 North End Re Ltd., reported its first annual profit. AM Best notes that the enhanced yield in the company’s investments from portfolio movements will be a favorable factor over the longer term. Furthermore, while the lack of new transactions over the last three years have exemplified the competitive space North End Re Ltd. operates in, AM Best notes that the company was initially quick in establishing itself, showing early success against competitors and does not compromise on underwriting standards to acquire new business.

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.

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