A.M. Best Affirms Credit Ratings of Scotia Insurance (Barbados) Limited

OLDWICK, N.J.--()--A.M. 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.

Scotia Insurance is primarily a life reinsurer that is ultimately owned by The Bank of Nova Scotia (Scotiabank). Scotia Insurance principally reinsures credit insurance policies underwritten by third-party life insurance carriers on consumer loans originated by Scotiabank’s retail branches in Canada, Latin America and the Caribbean. Going forward, Scotia Insurance will retain this business instead of retroceding the Canadian risks to unaffiliated reinsurers and accepting similar non-Canadian risks from those unaffiliated reinsurers. Scotia Insurance exited the international property/casualty business segment during 2015.

The rating affirmations reflect Scotia Insurance’s strong levels of capitalization, return on equity and liquidity. Additionally, the ratings reflect Scotia Insurance’s enterprise risk management (ERM) framework, which is well-integrated into its ultimate parent’s ERM process, and its highly liquid investment portfolio that consists primarily of term bank deposits with a bank affiliate, in addition to other North American financial institutions.

These strengths are partially offset by Scotia Insurance’s dependence upon consumer loan originations within Canada, and to a lesser degree, Latin America and the Caribbean. Premium growth could decline if consumer loan originations slow in any of these markets, impacting Scotia Insurance’s ability to maintain current levels of reinsurance activity.

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. 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.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Peter Kelly, +1 908-439-2200, ext. 5834
Senior Financial Analyst
peter.kelly@ambest.com
or
William Pargeans, +1 908-439-2200, ext. 5359
Director
william.pargeans@ambest.com
or
Christopher Sharkey, +1 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Peter Kelly, +1 908-439-2200, ext. 5834
Senior Financial Analyst
peter.kelly@ambest.com
or
William Pargeans, +1 908-439-2200, ext. 5359
Director
william.pargeans@ambest.com
or
Christopher Sharkey, +1 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com