OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of “a+” of Royal Bank
of Canada Insurance Company Ltd. (RBCICL) (Barbados). The outlook of
these Credit Ratings (ratings) is stable.
The ratings reflect RBCICL’s balance sheet strength, which AM Best
categorizes as very strong, as well as its strong operating performance,
neutral business profile and appropriate enterprise risk management.
RBCICL’s balance sheet strength is enhanced by an investment portfolio
composed of cash and sovereign, corporate and supranational bonds of
high credit quality, resulting in a very favorable liquidity position.
Additionally, the company has a long-standing record of favorable
earnings and operating returns due largely to conservative underwriting
RBCICL is a reinsurer that ultimately is owned by Royal Bank of Canada,
the largest bank in Canada, as measured by market capitalization. RBCICL
primarily provides creditor life reinsurance, life retrocession and
annuity longevity reinsurance coverage to international clients. The
company formerly wrote property and trade credit reinsurance. AM Best
recognizes the solid market position of Royal Bank of Canada, but notes
that RBCICL’s premium growth has been relatively flat in recent years.
AM Best also notes that premium growth largely depends on the strength
of the Canadian and global economies, and any decrease in consumer loan
activity could adversely impact the credit insurance market.
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 Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
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