A.M. Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICR of "a" of RBC Life Insurance Company (RBC Life) (Mississauga, Ontario). The outlook of the FSR remains stable.

The positive outlook on the Long-Term ICR reflects the company's strong risk-adjusted capitalization, improved 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 increasing its range of insurance product solutions and deepening client relationships. RBC Life has experienced increased sales of targeted insurance products through continued expansion of wealth product offerings and the 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 Canada's competitive 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 Credit Ratings 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings .

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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