AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of Scotia Insurance (Cayman) Limited (SIC) (Cayman). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect SIC’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.
The company reported approximately CAD 270.8 million of equity at fiscal year-end 2025, a decrease from approximately CAD 294.5 million for fiscal year-end 2024. The majority of SIC’s business is creditor life, health and disability reinsurance business, for which the premium allocation approach has been utilized under IFRS 17. For the company’s non-creditor business, SIC holds a contractual service margin liability on its profitable reinsurance contracts, which partly contributed to a decline in reported capital on transition to IFRS 17, but is expected to be released into earnings over time. SIC’s business purpose is to reinsure the insurance protection offered to The Bank of Nova Scotia’s customers through its Canadian retail banking network, allowing the bank to undertake and manage insurance risk. SIC reported profit of approximately CAD 361.2 million, compared with about CAD 379.6 million in fiscal year 2024, primarily due to higher income tax expenses.
The stable outlooks reflect SIC’s very strong balance sheet strength assessment supported by consistently strong operating performance. The company’s favorable operating return-on-equity on a longstanding basis provides significant support to the balance sheet and reflects SIC’s appropriate underwriting practices in its core Canadian creditor life reinsurance product.
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.
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