AM Best Reaffirms 'A' Rating for Royal Bank of Canada Insurance

AM Best has reaffirmed its rating of 'A' (Excellent) for Royal Bank of Canada Insurance Company Ltd., citing the company's strong balance sheet and operating performance. The ratings agency also praised RBCICL's risk management practices, which it deemed 'very strong.' The company reported a net income of CAD 707.8 million in 2025, driven by a strong insurance service result.

The rating reflects RBCICL's position as a subsidiary of Royal Bank of Canada, the largest bank in Canada by market capitalization. RBCICL holds a contractual service margin (CSM) liability for its profitable reinsurance contracts under IFRS 17. This CSM contributed to a decline in reported capital upon the transition to IFRS 17, but is expected to be released into earnings over time.

RBC has a large and stable balance sheet, with CAD 139 billion in equity at financial year-end 2025 and over CAD 2.3 trillion in assets. The group earned approximately CAD 20.4 billion in net income on CAD 66.75 billion in revenue in fiscal year 2025.