AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of Scotia Insurance (Cayman) Limited (SIC) (Cayman). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect SIC’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 CAD 270.8 million of equity at fiscal year-end 2025, a decrease from approximately CAD 294.5 million for fiscal year-end 2024. The majority of SIC’s business is creditor life, health and disability reinsurance business, for which the premium allocation approach has been utilized under IFRS 17. For the company’s non-creditor business, SIC holds a contractual service margin liability on its profitable reinsurance contracts, which partly contributed to a decline in reported capital on transition to IFRS 17, but is expected to be released into earnings over time. SIC’s business purpose is to reinsure the insurance protection offered to The Bank of Nova Scotia’s customers through its Canadian retail banking network, allowing the bank to undertake and manage insurance risk. SIC reported profit of approximately CAD 361.2 million, compared with about CAD 379.6 million in fiscal year 2024, primarily due to higher income tax expenses.

The stable outlooks reflect SIC’s very strong balance sheet strength assessment supported by consistently strong operating performance. The company’s favorable operating return-on-equity on a longstanding basis provides significant support to the balance sheet and reflects SIC’s appropriate underwriting practices in its core Canadian creditor life reinsurance product.

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