Companies are required, at minimum, to maintain a Core Ratio of 55% and a Total Ratio of 90%. OSFI has established supervisory target levels of 70% for Core and 100% for Total capital.
Definitions of terms can be found in Guideline A: LICAT – Life Insurance Capital Adequacy Test.
The Total and Core Ratios remained stable and above RGA’s capital targets during 2023. The slightly favorable impact of the transition to IFRS 17 was reversed during the year by interest movements and the annual changes in insurance assumptions. The material, and substantially offsetting, variation in the Available Capital and on the Surplus Allowance and Eligible Deposits components are a result of the transition to IFRS17 accounting standard. These variations have a negligible impact on the numerator of the ratios.
(thousands of dollars, except percentages)
| Current Period | Prior Period | -% Change | ||
|---|---|---|---|---|
| Available Capital (AC1 +B) | (AC) | 4,771,019 | 1,255,834 | 280% |
| Tier 1 Capital | (AC1) | |||
| Tier 2 Capital | (B) | |||
| Surplus Allowance and Eligible Deposits | (SA + ED) | 4,391,747 | 7,061,578 | -38% |
| Base Solvency Buffer | (BSB) | 7,668,363 | 7,015,244 | 9% |
| Total Ratio ([AC + SA + ED] / BSB) x 100 | 119% | 119% | 0% | |
| Core Ratio ([AC1 + 70% SA + 70% ED] / BSB) x 100 | 83% | 85% | -2% |
Companies are required, at minimum, to maintain a Core Ratio of 55% and a Total Ratio of 90%. OSFI has established supervisory target levels of 70% for Core and 100% for Total capital.
Definitions of terms can be found in Guideline A: LICAT – Life Insurance Capital Adequacy Test.
The changes in Total and Core Ratios in 2022 are primarily attributable to movements in interest rates and the update of the actuarial assumptions. The capital ratios remain above RGA’s capital targets.
(thousands of dollars, except percentages)
| Current Period | Prior Period | -% Change | ||
|---|---|---|---|---|
| Available Capital (AC1 +B) | (AC) | 1,255,834 | 1,125,318 | 12% |
| Tier 1 Capital | (AC1) | |||
| Tier 2 Capital | (B) | |||
| Surplus Allowance and Eligible Deposits | (SA + ED) | 7,061,578 | 7,339,522 | -4% |
| Base Solvency Buffer | (BSB) | 7,015,244 | 6,946,399 | 1% |
| Total Ratio ([AC + SA + ED] / BSB) x 100 | 119% | 122% | -3% | |
| Core Ratio ([AC1 + 70% SA + 70% ED] / BSB) x 100 | 85% | 86% | -1% |
Companies are required, at minimum, to maintain a Core Ratio of 55% and a Total Ratio of 90%. OSFI has established supervisory target levels of 70% for Core and 100% for Total capital.
Definitions of terms can be found in Guideline A: LICAT – Life Insurance Capital Adequacy Test.
The changes in Total and Core Ratios in 2021 are primarily attributable to movements in interest rates and the update of the actuarial assumptions. The capital ratios remain above RGA’s capital targets.
(thousands of dollars, except percentages)
| Current Period | Prior Period | -% Change | ||
|---|---|---|---|---|
| Available Capital (AC1 +B) | (AC) | 1,125,318 | 1,097,114 | 3% |
| Tier 1 Capital | (AC1) | |||
| Tier 2 Capital | (B) | |||
| Surplus Allowance and Eligible Deposits | (SA + ED) | 7,339,522 | 6,504,594 | 13% |
| Base Solvency Buffer | (BSB) | 6,946,399 | 5,993,142 | 16% |
| Total Ratio ([AC + SA + ED]/BSB) x 100 | 122% | 127% | -4% | |
| Core Ratio ([AC1 + 70% SA + 70% ED] / BSB) x 100 | 86% | 90% | -5% |
Companies are required, at minimum, to maintain a Core Ratio of 55% and a Total Ratio of 90%. OSFI has established supervisory target levels of 70% for Core and 100% for Total capital.
Definitions of terms can be found in Guideline A: LICAT – Life Insurance Capital Adequacy Test.
The Total and Core Ratios changes in 2020 are primarily attributed to retrocession of blocks of business, change in interest rates and the optimization of capital usage.
(thousands of dollars, except percentages)
| Current Period | Prior Period | -% Change | ||
|---|---|---|---|---|
| Available Capital (AC1 +B) | (AC) | 1,097,114 | 909,457 | 21% |
| Tier 1 Capital | (AC1) | |||
| Tier 2 Capital | (B) | |||
| Surplus Allowance and Eligible Deposits | (SA + ED) | 6,504,594 | 6,155,953 | 6% |
| Base Solvency Buffer | (BSB) | 5,993,142 | 6,008,878 | 0% |
| Total Ratio ([AC + SA + ED]/BSB) x 100 | 127% | 118% | 8% | |
| Core Ratio ([AC1 + 70% SA + 70% ED] / BSB) x 100 | 90% | 83% | 8% |
Companies are required, at minimum, to maintain a Core Ratio of 55% and a Total Ratio of 90%. OSFI has established supervisory target levels of 70% for Core and 100% for Total capital.
Definitions of terms can be found in Guideline A: LICAT – Life Insurance Capital Adequacy Test.
The Total and Core Ratios changes in 2019 are primarily attributed to the strengthening of assumptions on a portion of the foreign branch business, deployment of excess capital on in-force block transactions and recurring new business. The capital ratios remain above RGA’s capital targets.
(thousands of dollars, except percentages)
| Current Period | Prior Period | -% Change | ||
|---|---|---|---|---|
Available Capital (AC1 +B) | (AC) | 909,457 | 1,207,073 | -25% |
| Tier 1 Capital | (AC1) | |||
| Tier 2 Capital | B | |||
Surplus Allowance and Eligible Deposits | (SA + ED) | 6,155,953 | 4,782,439 | 29% |
Base Solvency Buffer | (BSB) | 6,008,878 | 4,797,052 | 25% |
Total Ratio | 118% | 125% | -6% | |
Core Ratio | 83% | 89% | -7% |