Canada’s P&C premium growth rates “essentially flat” in 2006

Canadian property and casualty direct premiums in 2006 were essentially flat, growing only an anemic 1%, according to a report on the preliminary year-end results posted online by MSA Research Inc.
MSA Research noted that overall, in 2006, direct premiums written in Canada totalled Cdn$30.1 billion, as opposed to the 2005 total of Cdn$29.8 billion.
Net premiums written amounted to Cdn$27.2 billion in 2006, compared to Cdn$26.1 billion in 2005, representing a groth rate of 3.9% But among its nine key observations, MSA Research noted that the 2006 growth in net premiums written of 3.9% reflects lower cessions to reinsurers, rather than underlying growth.
MSA Research further observed that underwriting income is relatively flat in 2006, whereas investment income increased almost 16% Reflecting this, net income for the companies represented here [in the data] grew by 3.4%, MSA notes.
Data contained in the 2006 report came from 119 Canadian insurers as filed with MSA through Mar. 14 2007.
MSA observed that in 2006 there were no dramatic system-wide shifts in overall net loss, expense and combined ratios. The survey shows the industrys combined ratio in 2006 was 92.4%, as opposed to 92.2% in 2005.
There were improvements in personal property, commercial property and liability loss ratios. Also, there was a slight deterioration in Canada-wide auto loss ratios.
MSAs report is posted at http://www.msaresearch.com