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LICAT
Capital Adequacy
Blumont Annuity Company is a Canadian life insurance company regulated by the Office of the Superintendent of Financial Institutions (OSFI), which introduced a regulatory capital framework called the Life Insurance Capital Adequacy Test (LICAT) on January 1, 2018.
LICAT Ratios Public Disclosure Summary
(thousands of Canadian dollars, except percentages)
Companies are required, at minimum, to maintain a Core Ratio of 55%1 and a Total Ratio of 90%. OSFI has established supervisory target levels of 70% for Core and 100% for Total Capital.
| 31 Mar 2026 | 31 Dec 2025 | % Change | |||
|---|---|---|---|---|---|
| Available Capital | (AC1 + B) | (AC) | 603,864 | 649,568 | 7% |
| Tier 1 Capital | (AC1) | 603,864 | 649,568 | 7% | |
| Tier 2 Capital | (B) | ||||
| Surplus Allowance and Eligible Deposits | (SA + ED) | 69,810 | 71,227 | 2% | |
| Base Solvency Buffer | (BSB) | 478,908 | 465,564 | 3% | |
| Total Ratio | ([AC + SA + ED]/BSB) x 100 | 141% | 155% | -14pp | |
| Core Ratio | ([AC1 + 70% SA + 70% ED]/BSB) x 100 | 136% | 150% | -14pp | |
1) Regulated insurance holding companies and non-operating insurance companies
Explanation of Changes in LICAT Ratio in the First Quarter of 2026:
The Company’s base solvency buffer increased by 3% in the first quarter and available capital decreased by 7% and surplus allowance and eligible deposits decreased by 2%. Overall, the LICAT Total Ratio decreased by 14 percentage points (“pp”) at 31 March 2026.
| 31 Dec 2025 | 30 Sep 2025 | % Change | |||
|---|---|---|---|---|---|
| Available Capital | (AC1 + B) | (AC) | 649,568 | 646,264 | 1% |
| Tier 1 Capital | (AC1) | 649,568 | 646,264 | 1% | |
| Tier 2 Capital | (B) | ||||
| Surplus Allowance and Eligible Deposits | (SA + ED) | 71,227 | 68,701 | 4% | |
| Base Solvency Buffer | (BSB) | 465,564 | 443,779 | 5% | |
| Total Ratio | ([AC + SA + ED]/BSB) x 100 | 155% | 161% | -6pp | |
| Core Ratio | ([AC1 + 70% SA + 70% ED]/BSB) x 100 | 150% | 156% | -6pp | |
1) Regulated insurance holding companies and non-operating insurance companies
Explanation of Changes in LICAT Ratio in the Fourth Quarter of 2025:
The Company’s base solvency buffer increased by 5% in the fourth quarter and available capital increased by 1% and surplus allowance and eligible deposits increased by 4%. Overall, the LICAT Total Ratio decreased by 6 percentage points (“pp”) at 31 December 2025.
| 30 Sep 2025 | 30 Jun 2025 | % Change | |||
|---|---|---|---|---|---|
| Available Capital | (AC1 + B) | (AC) | 646,264 | 584,818 | 11% |
| Tier 1 Capital | (AC1) | 646,264 | 584,818 | 11% | |
| Tier 2 Capital | (B) | ||||
| Surplus Allowance and Eligible Deposits | (SA + ED) | 68,701 | 69,063 | -1% | |
| Base Solvency Buffer | (BSB) | 443,779 | 439,517 | 1% | |
| Total Ratio | ([AC + SA + ED]/BSB) x 100 | 161% | 149% | 12pp | |
| Core Ratio | ([AC1 + 70% SA + 70% ED]/BSB) x 100 | 156% | 144% | 12pp | |
1) Regulated insurance holding companies and non-operating insurance companies
Explanation of Changes in LICAT Ratio in the Third Quarter of 2025:
The Company’s base solvency buffer increased by 1% in the third quarter and available capital increased by 11% and surplus allowance and eligible deposits decreased by 1%. Overall, the LICAT Total Ratio increased by 12 percentage points (“pp”) at 30 September 2025.
| 30 Jun 2025 | 31 Mar 2025 | % Change | |||
|---|---|---|---|---|---|
| Available Capital | (AC1 + B) | (AC) | 584,818 | 599,716 | -2% |
| Tier 1 Capital | (AC1) | 584,818 | 599,716 | -2% | |
| Tier 2 Capital | (B) | ||||
| Surplus Allowance and Eligible Deposits | (SA + ED) | 69,063 | 78,941 | -13% | |
| Base Solvency Buffer | (BSB) | 439,517 | 452,213 | -3% | |
| Total Ratio | ([AC + SA + ED]/BSB) x 100 | 149% | 150% | -1pp | |
| Core Ratio | ([AC1 + 70% SA + 70% ED]/BSB) x 100 | 144% | 145% | -1pp | |
1) Regulated insurance holding companies and non-operating insurance companies
Explanation of Changes in LICAT Ratio in the Second Quarter of 2025:
The Company’s base solvency buffer decreased by 3% in the second quarter and available capital decreased by 2% and surplus allowance and eligible deposits decreased by 13%. Overall, the LICAT Total Ratio decreased by 1 percentage point (“pp”) at 30 June 2025.
| 31 Mar 2025 | 31 Dec 2024 | % Change | |||
|---|---|---|---|---|---|
| Available Capital | (AC1 + B) | (AC) | 599,716 | 581,532 | +3% |
| Tier 1 Capital | (AC1) | 599,716 | 581,532 | +3% | |
| Tier 2 Capital | (B) | ||||
| Surplus Allowance and Eligible Deposits | (SA + ED) | 78,941 | 79,788 | -1% | |
| Base Solvency Buffer | (BSB) | 452,213 | 449,708 | +1% | |
| Total Ratio | ([AC + SA + ED]/BSB) x 100 | 150% | 147% | +3pp | |
| Core Ratio | ([AC1 + 70% SA + 70% ED]/BSB) x 100 | 145% | 142% | +3pp | |
1) Regulated insurance holding companies and non-operating insurance companies
Explanation of Changes in LICAT Ratio in the First Quarter of 2025:
The Company’s base solvency buffer increased by 1% in the first quarter and available capital increased by 3% and surplus allowance and eligible deposits decreased by 1%. Overall, the LICAT Total Ratio increased by 3 percentage points (“pp”) at 31 March 2025.
| 31 Dec 2024 | 30 Sep 2024 | % Change | |||
|---|---|---|---|---|---|
| Available Capital | (AC1 + B) | (AC) | 581,532 | 520,401 | +12% |
| Tier 1 Capital | (AC1) | 581,532 | 520,401 | +12% | |
| Tier 2 Capital | (B) | ||||
| Surplus Allowance and Eligible Deposits | (SA + ED) | 79,788 | 75,563 | +6% | |
| Base Solvency Buffer | (BSB) | 449,708 | 398,526 | +13% | |
| Total Ratio | ([AC + SA + ED]/BSB) x 100 | 147% | 150% | -3pp | |
| Core Ratio | ([AC1 + 70% SA + 70% ED]/BSB) x 100 | 142% | 144% | -2pp | |
1) Regulated insurance holding companies and non-operating insurance companies
Explanation of Changes in LICAT Ratio in the Fourth Quarter of 2024:
The Company’s base solvency buffer increased by 13% in the fourth quarter while available capital increased by 12% and surplus allowance and eligible deposits increased by 6%. Overall, the LICAT Total Ratio decreased by 3 percentage points (“pp”) at 31 December 2024.
| 30 Sep 2024 | 30 Jun 2024 | % Change | |||
|---|---|---|---|---|---|
| Available Capital | (AC1 + B) | (AC) | 520,401 | 479,331 | +9% |
| Tier 1 Capital | (AC1) | 520,401 | 479,331 | +9% | |
| Tier 2 Capital | (B) | ||||
| Surplus Allowance and Eligible Deposits | (SA + ED) | 75,563 | 70,778 | +7% | |
| Base Solvency Buffer | (BSB) | 398,526 | 386,038 | +3% | |
| Total Ratio | ([AC + SA + ED]/BSB) x 100 | 150% | 143% | +7pp | |
| Core Ratio | ([AC1 + 70% SA + 70% ED]/BSB) x 100 | 144% | 137% | +7pp | |
1) Regulated insurance holding companies and non-operating insurance companies
Explanation of Changes in LICAT Ratio in the Third Quarter of 2024:
The Company’s base solvency buffer increased by 3% in the third quarter while available capital increased by 9% and surplus allowance and eligible deposits increased by 7%. Overall, the LICAT Total Ratio increased by 7 percentage points (“pp”) at 30 September 2024.
| 30 Jun 2024 | 31 Mar 2024 | % Change | |||
|---|---|---|---|---|---|
| Available Capital | (AC1 + B) | (AC) | 479,331 | 487,625 | -2% |
| Tier 1 Capital | (AC1) | 479,331 | 487,625 | -2% | |
| Tier 2 Capital | (B) | ||||
| Surplus Allowance and Eligible Deposits | (SA + ED) | 70,778 | 65,720 | +8% | |
| Base Solvency Buffer | (BSB) | 386,038 | 371,803 | +4% | |
| Total Ratio | ([AC + SA + ED]/BSB) x 100 | 143% | 149% | -6pp | |
| Core Ratio | ([AC1 + 70% SA + 70% ED]/BSB) x 100 | 137% | 144% | -7pp | |
1) Regulated insurance holding companies and non-operating insurance companies
Explanation of Changes in LICAT Ratio in the Second Quarter of 2024:
The Company’s base solvency buffer increased by 4% in the second quarter while available capital decreased by 2% and surplus allowance and eligible deposits increased by 8%. Overall, the LICAT Total Ratio decreased by 6 percentage points (“pp”) at 30 June 2024.
| 31 Mar 2024 | 31 Dec 2023 | % Change | |||
|---|---|---|---|---|---|
| Available Capital | (AC1 + B) | (AC) | 487,625 | 461,063 | +6% |
| Tier 1 Capital | (AC1) | 487,625 | 461,063 | +6% | |
| Tier 2 Capital | (B) | ||||
| Surplus Allowance and Eligible Deposits | (SA + ED) | 65,720 | 94,361 | -30% | |
| Base Solvency Buffer | (BSB) | 371,803 | 393,772 | -6% | |
| Total Ratio | ([AC + SA + ED]/BSB) x 100 | 149% | 141% | +8pp | |
| Core Ratio | ([AC1 + 70% SA + 70% ED]/BSB) x 100 | 144% | 134% | +10pp | |
1) Regulated insurance holding companies and non-operating insurance companies
Explanation of Changes in LICAT Ratio in the First Quarter of 2024:
The Company’s base solvency buffer decreased by 6% in the first quarter due to the execution of a reinsurance arrangement that released insurance risk required capital and also decreased the level of surplus allowance and eligible deposits by 30%. With available capital increasing by 6% in the quarter, overall the LICAT Total Ratio increased by 8 percentage points (“pp”) at 31 March 2024.