Topic
Mergers and Aqcuisitions
Reserve costs, dollar blues dampen Kingsway’s 3-Q earnings
October 22, 2003 by Canadian UnderwriterSpecialty risk insurer Kingsway Financial Services Inc. (TSX: KFS) saw net income for the third quarter of this year drop by 28% to $15.6 million compared with the $21.7 million reported for the same period in 2002. This equates to…
IBC survey shows mixed support for Quebec reforms
October 8, 2003 by Canadian UnderwriterA new survey by the Insurance Bureau of Canada suggests Quebec’s drivers may not be quite so pleased with possible reforms to their auto insurance system.The survey comes as Quebec’s government considers changes to its auto insurance system such as…
Atlantic task force rejects public auto
October 6, 2003 by Canadian UnderwriterA task force established by Atlantic Canada’s premiers has come out against implementing public auto insurance in the region. The “Atlantic Insurance Harmonization Task Force” found “no significant reason to transform the private enterprise delivery system to a government monopoly…
Hub makes two U.S. acquisitions
October 3, 2003 by Canadian UnderwriterBroker consolidator Hub International has added two US brokerages to its stable. Boston-based Commonwealth Insurance Agency Inc. will become part of New England “hub” C.J. McCarthy, bringing about US$300,000 in annual revenue. The brokerage specializes in homeowners coverage in Massachusetts,…
A “Mom & Pop” Perspective
October 1, 2003 Sean van Zyl, EditorTaking over the presidency of the largest provincial independent brokerage association in the country shortly after what could be called a historic “landslide election” resulting in a new government for Ontario could be a daunting challenge for most people. That, however, is just the beginning of what may appear to the casual observer to be “overwhelming odds” as independent brokers continue to deal with the harsh realities of a “hard market” where insurance availability and pricing have become contentious political issues across Canada. For Doug Grahlman, who will take the helm of the Insurance Brokers Association of Ontario (IBAO) at the association’s annual convention to be held this month, the top priority on his agenda for the year ahead is “communication” – at both the government and consumer levels.
Atlantic Task Force Rejects Concept of Public Auto
October 1, 2003 by Canadian UnderwriterA task force established by the premiers of Atlantic Canada has rejected implementing public auto insurance in the region. The “Atlantic Insurance Harmonization Task Force” found “no significant reason to transform the private enterprise delivery system to a government monopoly…
Hub Expands East-Coast U.S. Operations
October 1, 2003 by Canadian UnderwriterBroker consolidator Hub International Ltd. (TSX: HBG] has added two U.S. brokerages to its stable: Boston-based Commonwealth Insurance Agency Inc., and New Jersey-based Sondheim & Laughlin. Commonwealth will become part of Hub’s New England “C.J. McCarthy hub”. The new brokerage…
Kingsway Reveals $30 Million Reserve Shortfall
October 1, 2003 by Canadian UnderwriterKingsway Financial Services Inc. (TSX: KFS) has disclosed an adverse reserve development totaling $30 million for prior year claims leading up to the end of 2002. The adverse reserve development resulted from the insurer’s Alberta non-standard auto insurance business, as…
Uneasy Optimism…
October 1, 2003 Sean van Zyl, EditorThe financial results of Canadian and U.S. insurers for the first half of this year suggest that the two marketplaces are converging in a positive direction after several years of runaway claims costs. For both U.S. and Canadian companies, the…
IBAC 2003 AGM: Rocky Times
October 1, 2003 Vikki SpencerIn the current environment – where provincial auto insurance systems are being changed on a near-daily basis in response to political whim and consumer ire, commercial and personal lines coverage remains scarce while rates continue to climb – brokers could…
Capital Allocation in Canada: The Three Strikes
October 1, 2003 Vikki SpencerWith all the headaches experienced in the Canadian property and casualty insurance industry right now, not the least of which are struggling results from a volatile auto insurance product, it begs the question: “Why would any insurer want to do business here?” The Canadian industry brings many challenges – stressed financial results, strict capital requirements and a higher tax burden – sources say. These “three strikes” could add up to an “out” for global parents choosing whether or not to put precious capital into this market, they warn.
Atlantic Canada: A Political Roller-Coaster
October 1, 2003 Mike Brien, president of Macdonald Chisholm InsuranceWhile the sharp rate increases introduced by insurers across nearly all lines of business in Atlantic Canada – with personal auto insurance having attracted the brunt of price hikes – are beginning to show positive signs of returned underwriting profitability for the region, the “public relations” cost incurred in the process may well prove that too much was done by the industry over too short a time. The political attention ignited by auto insurance pricing has presented a very real threat of government-run insurance systems being introduced in the region – the impact of which could be dire for insurers and brokers alike.