AM Best Affirms Credit Ratings of Scotia Reinsurance (Cayman) Limited

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+” (Excellent) of Scotia Reinsurance (Cayman) Limited (Scotia Re) (Cayman). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Scotia Re’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 USD 108.4 million of equity at fiscal year-end 2025, an increase from approximately USD 73.0 million for fiscal year-end 2024. The majority of Scotia Re’s business is credit life, health and disability reinsurance business, which has been accounted for on the general measurement model under IFRS 17. The company holds a contractual service margin liability, which partly contributed to a decline in its reported capital on transition to IFRS 17, but is expected to be released into earnings over time. In 2025, Scotia Re resumed dividends to its parent company, BNS International (Bahamas) Limited, which is an intermediate holding company ultimately owned by The Bank of Nova Scotia (Scotiabank). AM Best expects Scotia Re to maintain its strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR).

The company’s very favorable credit life reinsurance underwriting results over the long term have balanced overall operating results. Scotia Re’s business purpose is to reinsure the insurance protection offered to customers of Scotiabank through its international banking retail network, allowing the bank to undertake and manage insurance risk. Scotia Re’s business is well-diversified across various international markets in the Caribbean and Central and South America.

Scotia Re is ultimately owned by Scotiabank, which is among the leading banks in Canada, as measured by market capitalization. The parent bank is a strong organization with approximately CAD 89 billion of total equity at fiscal year-end October 2025 and CAD 1.5 trillion in assets. In addition, the bank earned approximately CAD 7.8 billion in net income on CAD 38 billion in revenue in fiscal-year 2025. AM Best notes that Scotiabank does not guarantee support but may at its discretion provide additional capital should Scotia Re need support to maintain its capital or liquidity targets.

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.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.