Canadian P&C assets increase in Q4 2005

Buoyed by the value of its investments, the Canadian property and casualty industry’s total assets increased from CDN$61.094 billion in Q4 2004 to CDN$64.208 billion in Q4 2005.
According to information collected by Canada’s Superintendent of Financial Institutions, Canada’s P&C Q4 investment assets grew from $36.3 billion in 2004 to $40.5 billion in 2005.
The growth of the investment assets was largely the result of the increased value of the industry’s bonds and debentures, which were valued at CDN$26.5 billion during Q4 2004 and at CDN$29.7 billion in Q4 2005. Also, term deposit assets increased from CDN$1.39 billion in Q4 2004 to CDN$1.96 billion in Q4 2005. Preferred share and common share assets also rose marginally.
Assets received from policyholders, on the other hand, fell to roughly CDN$81 million in Q4 2005, compared to CDN$344 million taken in during Q4 2004. Also, Canadian P&C insurers saw their cash assets slip from CDN$1.9 billion in Q4 2004 to CDN$1.3 billion in Q4 2005.
Recoverables from reinsurers – including unearned premiums and unpaid claims and adjustment expenses – stayed roughly the same in Q4 2004 as in Q4 2005 (around CDN$9.2 billion).