OLDWICK: AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” of Royal Bank of Canada Insurance Company Ltd. (RBCICL) (Barbados). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect RBCICL’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. RBCICL’s balance sheet strength is enhanced by an investment portfolio composed of cash and sovereign, corporate and supranational bonds of high credit quality, resulting in a very favorable liquidity position. Additionally, the company has a long-standing record of favorable earnings and operating returns due largely to conservative underwriting practices. RBCICL is a reinsurer that ultimately is owned by Royal Bank of Canada, the largest bank in Canada, as measured by market capitalization. RBCICL primarily provides creditor life reinsurance, life retrocession and annuity longevity reinsurance coverage to international clients. The company formerly wrote property and trade credit reinsurance. AM Best recognizes the solid market position of Royal Bank of Canada, but notes that RBCICL’s premium growth has been relatively flat in recent years. AM Best also notes that premium growth largely depends on the strength of the Canadian and global economies, and any decrease in consumer loan activity could adversely impact the credit insurance market.