AM Best affirms Scotia Reinsurance Limited credit ratings

OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best confirmed the financial strength rating of A (excellent) and the long-term issuer credit rating of “a +” (excellent) of Scotia Reinsurance Limited (Scotia Re) (Barbados). The outlook for these credit ratings (ratings) is stable.

The ratings reflect the strength of Scotia Re’s balance sheet, which AM Best considers to be very strong, as well as its strong operating performance, business neutral profile and appropriate management of business risk. The ratings also reflect the improvement in the ratings of the company’s sister entity, Scotia Insurance (Barbados) Limited (SIB), based on the transfer of the initial block of business in 2017

Scotia Re is primarily a life reinsurance subsidiary that supports non-Canadian business, primarily from Mexico, South America and Central America and the Caribbean, originating from the retail operations of the company’s ultimate parent, the Bank of Nova Scotia (Scotiabank). The initial business volume was taken over in 2017 by SIB, which has a long history of favorable technical results. The alleged company produced favorable performance metrics under Scotia Re after its third full year of operation despite operating challenges in the context of the COVID-19 pandemic. The strength of the company’s balance sheet is further enhanced by the higher level of risk-adjusted capitalization, partly reflecting a conservative short duration and a very liquid investment portfolio.

These strengths are partially offset by the Company’s reliance for growth on loan product originations in economies outside of Canada, many of which are known to have higher country risk profiles.

With the global economy slowing down due to the COVID-19 pandemic, it is likely that Scotia Re will continue to see a decline in assumed premiums in the near term. Additionally, AM Best notes that despite the company’s management of capital according to specific internal objectives, which has maintained largely stable absolute capitalization levels, Scotia Re could recapitalize itself in a stress scenario by adjusting its dividend payout to shareholders. .

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the publication and relevant disclosures, including details of the office responsible for the publication of each of the individual ratings referenced in this publication, please see AM Best’s Recent rating activity Web page. For more information on the use and limits of credit rating opinions, please see Best Credit Score Guide. For more information on the appropriate media use of Best’s credit scores and AM Best press releases, please see Media Guide – Appropriate Use of Best Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit

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