OSFI 2009 year-end results show more deterioration in personal auto accident lines

Auto lines, particularly the personal accident category, for federally regulated Canadian and foreign property and casualty insurers continued to deteriorate, according to 2009 figures posted by the Office of the Superintendent of Financial Institutions (OSFI).
OSFI figures show that in the auto personal accident category, which includes accident benefits, Canadian insurers collectively reported a claims ratio of 125.72% at year-end 2009 (109% in 2008). The figure climbs to 211.8% for foreign insurers (166% in 2008).
On the other hand, the claims ratios for auto liability decreased to 60% from 67.9% for Canadian P&C insurers between 2008 and 2009.
For foreign insurers, the claims ratio for auto liability decreased from 78.7% in 2008 to 65.6% in 2009.
The net income for Canadian and foreign P&C companies reporting to OSFI totalled just over $2.5 billion in 2009, marking an increase from the $2.2 billion reported in 2008. While the net income continues to improve, it is still down considerably from the $4.9 billion profits the same companies reported in 2007.
The industry’s collective net investment income increased in 2009 to $3.2 billion from slightly more than $2.7 billion in 2008.
In the personal property area, claims ratios for Canadian P&C insurers deteriorated slightly to 77.7% in 2009 from 2008’s 75.8%. For foreign insurers, claims ratios on personal property lines improved slightly from 75.1% in 2008 to 73.4% in 2009.
In commercial lines, claims ratios for Canadian insurers deteriorated slightly from 68.3% in 2008 to 69.2% last year. For foreign insurers, commercial property claims ratios increased to 60.1% in 2009 from 2008’s 58.3%.