
Cove Insight: RBC Insurance Announces 2025 SRIA Guaranteed Interest Rate
RBC has announced that the Smoothed Return Investment Account (SRIA) return for 2024 will increase to 3.40%, up from 3.25% in 2024 and 3.00% in 2023.
The SRIA interest rate increased in 2024 and 2025 reflecting the improving cumulative performance of the Reference Portfolio in 2023 and 2024. 33% of the Reference Portfolio is composed of fixed income loans secured by SRIA account values. The gross return on the loans is approximately 5.35% in 2024 and 5.40% in 2025.
Cove has been engaged in ongoing discussions with RBC Insurance (RBCI) about the management of the cash value of our clients’ RBC Security Fund policies (RBC SF). Our conversation with RBCI began with an intention of gaining clarity around the dramatic decrease in the credited rate to the policy for 2023. On May 23, 2024, a client of Cove Continuity Advisors filed a Notice of Civil Claim with the Supreme Court of British Columbia against RBC LIFE INSURANCE COMPANY doing business as RBC INSURANCE and ROYAL BANK OF CANADA.
For more information about the lawsuit please click here.
RBC Insurance SRIA Investment Account
The SRIA is an investment account option in certain RBCI Security Fund universal life insurance policies. Funds invested in the SRIA are managed on a discretionary basis by RBCI in an underlying portfolio (the “Reference Portfolio”). The investment objective is low volatility with a long-term focus targeting superior returns while minimizing risk of capital loss. Actual returns in the Reference Portfolio are smoothed into the policy interest rate through a guaranteed calendar year interest rate announced prior to each calendar year.

As of August 31, 2024, the Reference Portfolio’s market value was $1.6 billion allocated as follows:

Reference Portfolio Asset Allocation (Note: This asset allocation illustration is provided by RBC Insurance and does not reflect the investments of the select conservative portfolio. For more information about how the portfolio is invested click here.)
If you have questions, thoughts, or want to talk more about this topic with one of our advisors, we’re happy to chat. Book a meeting with us here.