A.M. Best says these ratings reflect RBC’s prudent capitalization, excellent underwriting and operating performance, sound investment portfolio and balance sheet liquidity. These ratings also consider the stability, expertise and synergies that RBC receives from its ultimate parent company, Royal Bank of Canada.

A.M. Best says these ratings reflect RBC’s prudent capitalization, excellent underwriting and operating performance, sound investment portfolio and balance sheet liquidity. These ratings also consider the stability, expertise and synergies that RBC receives from its ultimate parent company, Royal Bank of Canada.

RBC’s core life retrocession business continues to generate consistently positive results, and the company benefits from a broad geographical spread of risk, which compliments a diverse product mix embodied in a book of business that includes retrocession and reinsurance of life, property and trade credit risk business. Furthermore, as a result of conservative operating practices, RBC has consistently generated above average returns.

Partially offsetting these rating strengths are challenges RBC faces in its property portfolio, where results have been affected by catastrophic events. In addition, the low interest rate environment has affected overall returns from the investment portfolio. In response, however, RBCI currently is repositioning its property reinsurance portfolio, which likely will be enhanced by a hardening reinsurance market.