Press Release - APRIL 20, 2018
A.M. Best Affirms Credit Ratings of Royal Bank of Canada Insurance Company Ltd.
FOR IMMEDIATE RELEASE
OLDWICK - APRIL 20, 2018
The ratings reflect RBCICL’s balance sheet strength, which A.M. 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 comprised of cash and high credit quality sovereign, corporate and supranational bonds 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 practices.
RBCICL is a reinsurer that is ultimately owned by Royal Bank of Canada, the largest bank in Canada, as measured by market capitalization. RBCICL provides primarily creditor life reinsurance, life retrocession and annuity longevity reinsurance coverage to international clients and formerly wrote property and trade credit reinsurance. While recognizing the solid market position of Royal Bank of Canada, A.M. Best notes that premium growth depends upon the strength of the Canadian and global economy. Any potential decrease in consumer loan activity could adversely impact the credit insurance market.
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.