S&P Global Ratings has assigned a ‘A-‘ financial strength and long-term issuer credit ratings, with a stable outlook, to North End Re Bermuda Ltd. (NERB), a Bermuda-based entity of Brookfield Wealth Solutions (BWS).
“NERB has close operational, strategic, financial, and risk management integration with the rest of the group. We view NERB as part of the group’s strategy to expand its geographic footprint in core reinsurance markets including UK pension risk transfer (UK PRT), third-party annuity business written in Japan, and the US This supports our view of this subsidiary as highly strategic to group operations. The ratings on NERB reflect our view that its operations will continue to be an important part of BWS’ group structure,” the rating agency stated.
While NERB accounted for less than 5% of BWS’ capital base at the end of 2024, it is expected to grow over time through retained earnings and new reinsurance business in the UK, Japan and the US.
“We believe there is some execution risk associated with this initiative. This new business, to be brought in through NERB, will have a limited track record within the BWS group,” S&P added.
An upgrade for NERB is viewed as unlikely within the next two years. However, a potential upgrade could occur in the long term if the company demonstrated a multiyear track record of successful growth in its international reinsurance business.
This would require NERB to achieve stable profitability levels that are closely aligned with the BWS group while maintaining prudent risk management, S&P noted.
The ratings on NERB could be lowered in the next two years if the rating agency downgrades the core operating entities of BWS. The ratings could also be lowered if the company’s importance to the group’s strategy is viewed as significantly diminished, or if it is believed that the group will not support the entity.
BWS is a diversified insurance group offering retirement services, wealth protection products, and property/casualty insurance.
The group’s insurance assets have grown from $2 billion in 2020 to $135 billion as of June 30, 2025. In the last 12 months leading up to June 30, 2025, BWS reported $1.6 billion in distributable operating earnings.
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