Canadian P&C insurers “continued to suffer in 2009 H1,” says Swiss Re

Canadian property and casualty insurers reported a 24.7% drop in net income in the first half of 2009, to Cdn$1.1 billion, reported Swiss Re in its Canadian Property and Casualty Quarterly.
Direct premiums written growth slowed to 1.4% in 2009 H1, down from 2.3% in the same period of 2008.
Property premiums grew 3.8% during the first six months of 2009, with continued strong growth in personal property premiums at 6.2% year-over-year, while commercial property premiums only grew by 1.4%
The Canadian property and casualty industry recorded a small underwriting gain of Cdn$125.8 million in 2001 H1, a decline of 8.8% from Cdn$137.9 million in the same period of 2008.
The industry’s combined ratio was flat year-over-year at 99.4%, and the property direct loss ratio increased by 1.3 points year-over-year to 69.6%.
The motor segment has a 2009 H1 direct loss ratio of 73.1%, marking a marginal increase from the same period of the prior year.
The personal accident 2009 H1 direct loss ratio increased 16.8% to 111.6%. This was largely driven by Ontario auto, which had a 2009 H1 accident benefit loss ratio of 128%.
“Estimated 2009 Q3 cat losses of up to Cdn$1 billion will drive up the industry combined ratio significantly (up to 10 points for the 2009 Q3 direct loss ratio) and keep profitability down for the remainder of 2009,” Swiss Re says.