OLDWICK, N.J.–(BUSINESS WIRE)–AM Greatest has affirmed the Monetary Power Score of A (Wonderful) and the Lengthy-Time period Issuer Credit score Score of “a+” of Scotia Insurance coverage (Barbados) Restricted (Scotia Insurance coverage) (Barbados). The outlook of those Credit score Scores (scores) is steady.
The scores replicate Scotia Insurance coverage’s steadiness sheet energy, which AM Greatest categorizes as very robust, in addition to its robust working efficiency, impartial enterprise profile and applicable enterprise threat administration.
Scotia Insurance coverage is primarily a life reinsurer that in the end is owned by The Bank of Nova Scotia (Scotiabank). Scotia Insurance coverage principally reinsurers credit score insurance coverage insurance policies underwritten by main third-party life insurance coverage carriers on shopper loans originated by Scotiabank’s retail branches all through Canada. The corporate has a protracted historical past of favorable underwriting outcomes by means of conservative underwriting that has continued by means of 2019. The corporate is bolstered additional by a positive risk-adjusted capitalization and an funding portfolio that gives the entity with substantial liquidity.
These strengths are offset partially by Scotia Insurance coverage’s dependence on shopper loan originations inside Canada, that are prone to decline through the COVID-19 pandemic. This, coupled with a slowing of creditor insurance coverage cross-sell on loans in recent times, is anticipated to result in a decline in premium ranges within the close to time period. Moreover, the corporate maintains a excessive dividend payout ratio that has resulted in a scarcity of absolute capital growth. Nonetheless, AM Greatest notes that in a stress state of affairs, Scotia Insurance coverage might recapitalize by adjusting its shareholder dividend payout.
This press launch pertains to Credit score Scores which have been printed on AM Greatest’s web site. For all ranking info referring to the discharge and pertinent disclosures, together with particulars of the workplace liable for issuing every of the person scores referenced on this launch, please see AM Greatest’s Latest Score Exercise net web page. For extra info concerning the use and limitations of Credit score Score opinions, please view Information to Greatest’s Credit score Scores. For info on the right media use of Greatest’s Credit score Scores and AM Greatest press releases, please view Information for Media – Correct Use of Greatest’s Credit score Scores and AM Greatest Score Motion Press Releases.
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