Canada’s P&C Underwriting Loss A First Since 2002

Canada’s property and casualty insurance sector took an underwriting loss during the first fiscal quarter of 2008.

It’s the first loss for the industry since 2002, says MSA/Baron in its Outlook Report.

While the report indicates that premiums grew by 1.4 per cent – or $7.44 billion from $7.33, underwriting profits fell from $289 million in the first quarter of 2007 to a loss of $353 million in the same quarter of 2008.

First quarter results are normally lower than those posted over the remainder of the year although the report suggests that Ontario’s auto market coupled with Alberta’s controversial injury cap contributed to the lower results.

So there is a chance that the numbers will recover to some degree by the fiscal year end.

This story was originally published by Canadian Insurance Top Broker.