May 23, 2025 Newswires

AM Best Affirms Credit Ratings of RBC Life Insurance Company

Business Wire

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+” (Excellent) of RBC Life Insurance Company (RBC Life) (Mississauga, Ontario). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect RBC Life’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.

RBC Life has written a relatively stable mix of business over the last five years, which is in line with focusing on products that align with the parent company's strategy. The company had transitioned to IFRS 17 reporting in 2023 and reported approximately CAD 340 million of earnings in fiscal-year 2024 under the new reporting standard. RBC Life also increased its overall level of premiums written by 4% and continues a favorable trend in overall operating performance metrics over the medium term. The required accounting change requires holding a contractual service margin liability for its profitable contracts, which contributed to a decline in reported capital but is expected to be released into earnings over time.

RBC Life is owned ultimately by Royal Bank of Canada (RBC), the largest bank in Canada as measured by market capitalization. The parent bank is a strong organization with approximately CAD 127 billion of IFRS equity at financial year-end 2024 and over CAD 2 trillion in assets. The group earned approximately CAD 16 billion in net income on CAD 57 billion in revenue in fiscal-year 2024. AM Best notes that RBC does not guarantee support, but may provide additional capital at its discretion should RBC Life need to maintain its risk-adjusted capitalization levels.

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 www.ambest.com.