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AM Best Affirms Credit Ratings of Royal Bank of Canada Insurance Company Ltd.
[May 20, 2022]

AM Best Affirms Credit Ratings of Royal Bank of Canada Insurance Company Ltd.

AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a+" (Excellent) of Royal Bank of Canada Insurance Company Ltd. (RBCICL) (Cayman Islands). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect RBCICL's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. RBCICL's balance sheet strength assessment of very strong is due to a conservative investment portfolio and continuing equity growth from retained earnings. The company's longstanding record of favorable operating returns provides significant support to the balance sheet and reflects its appropriate underwriting practices in Canadian creditor and U.K. longevity products. Well-defined risk limits, targets and procedures to identify and report emerging and ongoing risks, as well as significant stress and sensitivity testing of the company's capital adequacy, have been in place to maintain these positives throughout the ongoing COVID-19 pandemic.

RBCICL is owned ultimately by Royal Bank of Canada, the largest bank in Canada, as measured by market capitalization. RBCICL primarily reinsures creditor life, life retrocession and longevity business. The company formerly wrote property and trade credit reinsurance, which currently makes up an insignificant portion of the overall book of business. AM Best notes that RBCICL's premium growth has been driven by the longevity product in recent years, with the creditor life prduct remaining largely flat. AM Best also notes that premium growth largely depends on the strength of the Canadian and U.K. economies, and any decrease in consumer loan or longevity deal activity could adversely impact the company's assumed premium.

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

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