September 21, 2018 by Staff
It was a rocky start to 2018 for insurers in Canada, according to the latest Quarterly Outlook Report from MSA Research.
Although premiums written grew by 7.6% compared to the same time last year, they were offset by a 12% increase in claims. A decline in investment income also contributed to an industry-wide underwriting loss and a “steep decline” in net income for insurers, writes Joel Baker, president and CEO of MSA Research.
Personal and multi-line writers managed to shave 1.2 points off their expense ratios, but saw their combined ratio deteriorate nearly 2 points to 102.7. Their net income dropped 74% compared to H1 2017 and their total comprehensive income was “wiped out” from $670 million to “essentially zero” in H1 2018.
Commercial writers saw their collective combined ratio deteriorate by 10.5 points to 106.5, and their investment income decreased by 50%, leading to an 80% decline in net income and a total comprehensive loss of $2 million.
On the reinsurance front, the combined ratio deteriorated slightly to 94%, compared to 93.5% at the same time last year. Net premiums written increased by 36%, net premiums earned increased by 21% and claims increased by 27%.
CatIQ declared that there were six cats and five notable events in the first half of 2018, leading to $1.2 billion in insured losses. So far in the third quarter, there have been four cats and three more notable events.
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This story was originally published by Canadian Insurance Top Broker.