Canadian federally regulated insurers report $1.4 billion profit in 2010 Q2

Canadian federally regulated property and casualty (P&C) insurers more than doubled their Q2 net income in 2010 compared to the same period of 2009.
However, the same cannot be said for their foreign counterparts, according to the Office of the Superintendent of Financial Institutions (OSFI).
Canadian P&C insurers reported profits of $1.419 billion to OSFI in 2010 Q2, up significantly from 2009 Q2’s net income of $642 million.
Foreign P&C insurers saw their net income decline from $430 million in 2009 Q2 to $117 million in 2010 Q2.
While Canadian P&C insurers reported strong gains in underwriting income quarter over quarter to OSFI ($49 million in 2009 Q2 to $486 million in 2010 Q2), foreign insurers saw their underwriting profits turn to losses ($76 million in 2009 Q2 to a loss of $250 million in 2010 Q2).
Canadian insurers reported a vast improvement in investment income, growing 2009 Q2’s investment income of $810 million to $1.4 billion in 2010 Q2. Foreign insurers, on the other hand lost ground. In 2009 Q2, this group of insurers reported an investment income of $511 million to OSFI. In 2010 Q2 that figure shrank to $396 million.
Both sets of insurers reported an improvement in personal property claims ratios to OSFI. Canadian insurers saw this ratio dip from 77.75% in 2009 Q2 to 59.57% in 2010 Q2. Likewise, foreign insurers reported a drop from 68.69% to 57.63% quarter over quarter.
But, personal accident in automobile continues to deliver poor results for both groups of insurers. Canadian insurers saw loss ratios in this line climb from 112.5% in 2009 Q2 to 126.44% in 2010 Q2. Foreign insurers’ loss ratio in this line soared from 156% in 2009 Q2 to 218.09% in 2010 Q2.