Federally regulated insurers report drop in Q2 net incomes

Federally regulated foreign insurers saw their consolidated net income tumble in 2011 Q2 to $1.5 billion from 2010 Q2’s $2.1 billion, according to the Office of the Superintendent of Financial Institutions.
Foreign p&c insurers saw their collective net income dip from $117 million in 2010 Q2 to $47 million in the same period of 2011. Canadian federally regulated p&c insurers also saw their net income drop, from $1.96 billion in 2010 Q2 to $1.47 billion in 2011 Q2.
Underwriting income for foreign and Canadian federally regulated insurers dropped from $235 million in 2010 Q2 to an underwriting loss of $15 million.
Foreign insurers saw their underwriting loss worsen from a loss of $251 million in 2010 Q2 to a loss of $271 million in 2011 Q2. Canadian federally-regulated insurers saw their underwriting income drop from $486 million to $256 million, quarter-over-quarter.
Net premiums earned improved for federally regulated insurers, on a consolidated basis this figure increased from $16.6 billion in 2010 Q2 to $17.3 billion in 2011 Q2.
Canadian federally regulated insurers saw the greatest gains, with their net premiums earned increasing from $12.9 billion in 2010 Q2 to $13.4 billion. Foreign insurers saw this figure grow from $3.7 billion to $3.9 billion.
Net investment income for Canadian and foreign insurers on a consolidated basis declined from $1.8 billion in 2010 Q2 to $1.6 billion in 2011 Q2. While foreign insurers saw improvement in this area, growing their net investment income to $437 million from $396 million, Canadian federally regulated insurers saw a decrease quarter-over-quarter, from $1.4 billion to $1.2 billion.