The ratings on Royal Bank of Canada Insurance Co. Ltd. (RBC Insurance) reflect its well-established position in the European life retrocession market, very strong operating performance, conservative investment portfolio, and solid capital adequacy and balance-sheet position. Challenges the company faces include: concentration of its primary line of business, pursuit of a growth strategy that includes developing and expanding into new business lines with potentially volatile risk profiles, and the growing competition in the European life retrocession market. The ratings also reflect Standard & Poor's Ratings Services' view that RBC Insurance will remain a core subsidiary to its parent, Royal Bank of Canada (RBC; AA-/Stable/A-1+). The core status reflects its common branding, 100% ownership, and material earnings contribution to the RBC...
Companies mentioned in this report are:
- Royal Bank of Canada Insurance Co. Ltd.
- Royal Bank of Canada
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