Canadian Underwriter

Canadian insurers reported increase in premiums, claims costs for first nine months of 2007

November 29, 2007   by Canadian Underwriter

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Canadian insurers under the auspices of the federal Office of the Superintendent of Financial Institutions (OSFI) saw their collective net income drop Cdn$211.9 million over the first three quarters when compared to the same period last year.OSFI’s recent quarterly filings show that Canadian insurers regulated by OSFI claimed a net income of Cdn$2.26 billion for the first three quarters of 2007, compared to the Cdn$2.472 billion net income that insurers reported in the first three quarters of 2006.Insurers filing for the first three quarters of 2007 reported almost Cdn$1 billion more in net premiums written than in 2006 with insurers reporting Cdn$18 billion in net premiums written during this year’s first nine months, as opposed to Cdn$17.1 billion during the same period in 2006.On the other hand, total claims and expenses in the first three quarters topped out at about Cdn$16.1 billion, whereas the figure for the same period last year was Cdn$15.2 billion.Claims ratios are up in property and auto lines.In personal property lines, companies filing with OSFI showed a jump in the claims ratio from 63.51% in the first nine months of 2006 to 69.29% in the same period in 2007. In commercial lines, the claims ratio jumped from 54.30% to 60.55% over the same period.In the auto insurance sector, the first nine months of 2007 claims ratio of 68.64% (including liability and personal accident) was an increase over the 67.35% auto claims ratio recorded in the same period of 2006.Net incurred liability in the first three quarters of 2007 was down about Cdn$20 million over the same period last year.

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