Features
Kingsway Discloses 18.2% ROE for 2-Q
September 1, 2003 by Canadian UnderwriterKingsway Financial Service Inc. (TSE: KFS) reported a return on equity of 18.2% for the 12 month period leading to the end of the second quarter of this year. This compares with the 11.8% ROE generated by the insurer for…
Fairfax 2-Q Earnings Soar on Investment Boon
September 1, 2003 by Canadian UnderwriterFairfax Financial Holdings Ltd.’s (TSX: FFH) net earnings rose more than five-fold to $246.2 million for the second quarter of this year compared with the $47 million reported for the same period last year. This equates to earnings of $17.15…
Modest Insurance Cost From Blackout Expected
September 1, 2003 by Canadian UnderwriterImpact from the blackout that hit the northeastern U.S. and parts of Ontario from Windsor to Ottawa should not be significant, insurance sources on both sides of the border say. The lights went out in Ontario just after 4:00 pm…
Insurers’ Combined Ratio Drops as Profits Rise For 2-Q
September 1, 2003 by Canadian UnderwriterInsurers managed to bring their combined ratio to below the key 100% mark for the second quarter of this year as coverage price hikes implemented by companies over the last two years finally began to outstrip the growth in claims…
Commercial Liability: One Bad Apple
August 1, 2003 Vikki SpencerWith out of control losses on auto having dominated the attention of insurance companies over the past year, a new menace in the form of commercial liability risks has slipped under insurers’ underwriting radar. Adverse reserve development in the liability line was almost $250 million last year. At a time when insurers are struggling with the auto product and trying to regain profitability in a weakened investment environment, they can ill afford to be shoring up liability reserves. But, as the U.S. style of litigation creeps northward, already seen in the growing acceptance of class action lawsuits and contingency fees in Canada, it is clear commercial liability insurers have more than prior years’ losses to worry about. While the industry has its eye on auto, a “bad apple” may have slipped into the barrel in the form of commercial liability, with the potential to wreak havoc on a weakened industry.
Seizing Opportunity
August 1, 2003 Vikki SpencerA familiar face in unfamiliar times. Brokers face perhaps their most challenging market ever, trying to sell rate increases and find coverage for exposures insurers are leery to touch. Auto insurance has become a political hot potato in almost every province, on the back of consumer outrage at rising rates and lack of availability. The struggle to get the CSIO portal off the ground continues, and the ever-present threat of the big banks loom again. This landscape, however, offers opportunity for brokers, says incoming IBAC president Ken Orr.
IIS 2003 Seminar: Political, Social, and Economic Upheaval
August 1, 2003 Sean van Zyl, EditorIn the words of the International Insurance Society’s (IIS) president Patrick Kenny, “there’s a new chapter being written in the history of the insurance industry”. The post-9/11 era has created a volatile risk environment on several levels, from the political, social to economical – all of which have bearing on how insurers perceive and deal with the risks of today and tomorrow. Not surprisingly, the 600 attendees and speakers from around the world that partook in this year’s IIS seminar, which was recently held in New York City, identified “recovery from adverse market conditions” as being the top priority facing the insurance industry in the year ahead.
P&C Super Summit 2003: Sins of the Past
August 1, 2003 Vikki SpencerOn the eve of Ontario’s launch of new regulations to reform the auto insurance system, leaders of the property and casualty insurance industry met to discuss the challenges and possible solutions to the dilemmas facing them. While auto dominated much of the debate, there was a clear understanding that the industry’s woes are manifold. Across all lines of business, from the reinsurance sector to the primary market, companies and indeed their clients are paying the price for too many years of soft pricing and poor industry performance.
Reinsurance Outlook: 2003 CAT Rates
August 1, 2003 Catherine Fagan, assistant vice president atSwiss Reinsurance Co. CanadaAlthough pricing of catastrophe covers began rising in the wake of the 9/11 terrorist attack, it is important to note that these rate increases only brought premium levels to a point last seen almost a decade ago. Should the Canadian insurance industry see a normal “cat burden” for 2003, then the combination of primary and reinsurance rate increases should be enough to allow reinsurers to see improved combined ratios at yearend. But, whether the market’s result will be good enough remains to be seen. Swiss Re’s annual cat study highlights the major factors likely to come into play in evaluating and pricing exposures.
No Crash, No Cash…
August 1, 2003 Sean van Zyl, EditorFollowing recent political events surrounding auto insurance in New Brunswick is a bit like getting hooked on one of the more inane soap-operas on television: each line delivered by a character is a clich, and the only reason to keep…
Kingsway Sues US$500 Million Against “Bad Acquisition”
August 1, 2003 by Canadian UnderwriterKingsway Financial Services Inc. (TSX: KFS) has launched a lawsuit against the former directors, auditors and actuaries of a recent U.S. acquisition, American Country Holdings Inc. Kingsway alleges that the directors, along with Pricewaterhouse Coopers LLP and Miller, Herbers, Lehman…
Hub to Acquire Operations of Troubled Near North
August 1, 2003 by Canadian UnderwriterHub International Ltd. (TSX: HBG) has signed a proposal to acquire the brokerage assets of Chicago-based Near North National Group. Near North has been in talks to sell off its assets following indictment on federal fraud charges against the company…