Trans Global Life Insurance Company

Year Ended 31 December 2023


The Life Insurance Capital Adequacy Test (“LICAT”) guideline replaced the MCCSR guideline effective January 1, 2018.

The LICAT guideline establishes the standards used by OSFI to assess whether a life insurer maintains adequate capital or an adequate margin to support risks specific to the life insurance business. This is in compliance with the requirements of The Office of the Superintendent of Insurance of Alberta and the Act.

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. 

Definition of terms used in this document can be found in the OSFI Guideline on the Office of Superintendent of Financial Institution’s website.

There was $5.6 million of available capital and $1.5 million of base solvency buffer, resulting in an LICAT Total Ratio of 388% as at December 31, 2023.

2023 2022 Year over Year Movement
($’000) ($’000) ($’000)
Available Capital (A) 5,584 5,809 (225)
Surplus Allowance (B) 79 45 34
Total 5,663 5,854 374
Credit Risk 29 59 (30)
Market Risk 725 901 (176)
Insurance Risk 494 404 90
Diversification Credit (C) 160 137 23
Operational Risk (D) 373 292 81
Base Solvency Buffer (E) 1,461 1,595 (134)
Total Ratio (%) ([A+B]/E)x100 388% 367% 21%





Source of Earnings


The Alberta Superintendent of Insurance has fully adopted OSFI’s D-9 Source of Earnings (SOE) Guideline. In compliance with those guidelines, Trans Global Life Insurance Company has opted to make the SOE disclosure publicly available by providing this notification on our website to inform users (i.e. policyholders, analysts, directors, management and regulators, etc.) that they may contact the company through this link ( to request this information.

Note that SOE is not an International Financial Reporting Standard (IFRS) measure and that there is no standard SOE methodology. The calculation of SOE is dependent on, and sensitive to, the methodology, estimates and assumptions used. SOE identifies various sources of IFRS earnings and provides an analysis of the differences between actual net income and expected net income based on assumptions made at the beginning of the reporting period.