Solvency ratio
LIMAT Ratios Public Disclosure Summary Template
(CAD thousands, except percentages)
Branches are required, at minimum, to maintain a Total Ratio of 90%. Canada’s Office of the Superintendent of Financial Institutions (“OSFI”) has established a supervisory target level of 100% for Total Margin.
Definitions of terms can be found in the OSFI Guideline A: LICAT – Life Insurance Capital Adequacy Test
|
| Current Period | Prior Period | Change (%) |
Available Margin (A – B) | C | 195,885 | 184,766 | 6% |
· Assets Available | A | 281,052 | 289,530 | -3% |
· Assets Required | B | 85,167 | 104,764 | -19% |
Surplus Allowance and Eligible Deposits | D | 620,453 | 367,945 | 69% |
Required Margin | E | 602,127 | 364,637 | 65% |
LIMAT Total Ratio ([C + D] / E x 100) |
| 136% | 152% | -16% |
Qualitative analysis of change in solvency ratio
The results above represent a comparison of the December 31st 2024 and December 31st 2023 solvency for the Branch. Through 2024 the Branch has used its excess capital above and beyond its long-term internal target to write additional new business in both Protection and Longevity lines of business. The total ratio continues to remain strong relative to the Branch’s long-term internal target.