A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of "a" of RBC Life Insurance Company (RBC Life) (Mississauga, Ontario). The outlook for both ratings is stable.

RBC Life's ratings reflect its adequate risk-adjusted capitalization, favorable earnings in core business lines and the strong brand name recognition of the Royal Bank of Canada (RBC) [TSX and NYSE: RY] in the Canadian market. RBC Life operates as the Canadian life insurance operation of its parent, RBC, under RBC Insurance, a division of RBC.

RBC Life maintains a favorable market position in Canada in the individual living benefits and group long-term disability insurance markets. RBC Life also has maintained a focus on growing its individual and group life segments through an increase in their range of insurance product solutions and expansion of their cross-selling capabilities. RBC Life has seen increased sales of targeted insurance products through continued expansion of wealth product offerings and the launch of the company's new pension risk transfer business. A.M. Best believes RBC will continue to support RBC Life's growth initiatives, if needed, as it has demonstrated in the past.

Partially offsetting these positive rating factors are the challenges RBC Life faces while positioning itself to increase market share in the competitive Canadian individual life and group accident and sickness markets, as well as the challenges due to the continued low interest rate environment. A.M. Best also notes that RBC Life maintains a modest position in the wealth management market through its general account annuities, group annuities and segregated funds.

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page.

A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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