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A.M. Best Assigns Credit Ratings to Scotia Reinsurance LimitedA.M. Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of "a+" to Scotia Reinsurance Limited (Scotia Reinsurance) (Barbados). The outlook assigned to these Credit Ratings (ratings) is stable. Scotia Reinsurance is primarily a life reinsurance subsidiary that is ultimately owned by The Bank of Nova Scotia in Toronto, Ontario. Scotia Reinsurance will assume the existing non-Canadian source business from its sister company, Scotia Insurance (Barbados) Limited. Scotia Reinsurance also will assume new business mainly from Mexico, South and Central America and the Caribbean sourced by its banking parent. The existing book of business has a long history of favorable premium growth and strong underwriting results underpinned by low loss ratios. The assigned ratings assume continued favorable operating results, adequate capitalization and maintenance of a conservative investment profile. These strengths are partially offset by its dependence for growth upon consumer loan originations in local economies outside Canada that have elevated country risk profiles, and an expected high dividend payout ratio to its parent. Recognizing that Scotia Reinsurance's core business line is credit reinsurance, A.M. Best notes that premium growth has the potential to decline if consumer loan originationsslow in Mexico, South and Central America or the Caribbean. This press release relates to Credit Ratings that have been published on A.M. 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 A.M. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases. A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED. View source version on businesswire.com: http://www.businesswire.com/news/home/20170816005919/en/ |
