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+” of Scotia
Insurance (Barbados) Limited (Scotia Insurance) (Barbados). The outlook
of these Credit Ratings (ratings) is stable.
The ratings reflect Scotia Insurance’s balance sheet strength, which AM
Best categorizes as very strong, as well as its strong operating
performance, neutral business profile and appropriate enterprise risk
management.
Scotia Insurance is primarily a life reinsurer that ultimately is owned
by The Bank of Nova Scotia (Scotiabank). Scotia Insurance principally
reinsurers credit insurance policies underwritten by major third-party
life insurance carriers on consumer loans originated by Scotiabank’s
retail branches throughout Canada. The company has a long history of
favorable underwriting results through conservative underwriting that
has continued through 2018. The company is bolstered further by a
favorable risk-adjusted capitalization, assessed at the strongest level,
as measured by Best’s Capital Adequacy Ratio.
These strengths are offset partially by Scotia Insurance’s dependence on
consumer loan originations within Canada, and how such products are
offered. The creditor insurance cross-sell on loans has slowed in recent
years, due to a general slowdown in the Canadian retail lending market.
Furthermore, the company maintains a high dividend payout ratio that has
resulted in a lack of absolute capital expansion. However, AM Best notes
that in a stress scenario, Scotia Insurance could recapitalize by
adjusting its shareholder dividend payout.
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 Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Kevin Varvaro
Financial Analyst
+1 908 439
2200, ext. 5487
[email protected]
William Pargeans
Director
+1 908 439 2200,
ext. 5359
[email protected]
Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
[email protected]
Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644
[email protected]
