AM Best has assigned InEvo Re Ltd, the Bermudian-based Class E reinsurer owned by Macquarie Group, a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent), both with stable outlooks.

The ratings agency said the assessments reflected InEvo Re’s very strong balance sheet, adequate operating performance, appropriate risk management and capital support from Macquarie Group.

InEvo Re has the strongest level of risk-adjusted capitalisation under AM Best’s model. The company has capital from Macquarie Group and Macquarie Asset Management, with its parent backing it to keep capital above target levels.

The reinsurer is expected to make a profit in the near term and is designed to help life insurers reduce their exposure to long-dated liabilities, including pension risk-transfer business.

AM Best said InEvo Re had benefited from more demand for asset-intensive reinsurance, although it is a new entrant in a tough market. The report also pointed to the Macquarie Group’s investment expertise in private credit and long-duration assets.