OSFI data shows $2.51 billion industry net income for 2004

Data published by the Office of the Superintendent of Financial Institutions (OSFI) puts the property & casualty insurance industry’s net income at $2.51 billion for 2004, up from $1.29 billion in 2003.
The OSFI data represents the combined filings of all federally-regulated p&c insurance companies (as compared with the recently released industry data from the Insurance Bureau of Canada, which represents both provincially and federally-regulated member companies of IBC).
The industry’s direct written premiums were up slightly in 2004 to $22.87 billion from $21.90 billion the year prior. And net premiums earned rose to $20.99 billion from $19.11 billion over the same comparative period.
Net claims and adjustment expenses reached $12.56 billion in 2004, just slightly over the $12.27 billion reported in 2003. When claims are combined with other expenses, total costs reached $18.45 billion in 2004, compared to $17.49 billion the year prior.
This led the industry to a strong underwriting profit of $1.62 billion last year, more than double the underwriting gain of $66.70 million posted in 2003.
Investment income of $1.53 billion, combined with realized gains of $395.11 million, led to net investment income of $1.86 billion in 2004. This compares with investment income of $1.41 billion, combined with realized gains of $422.83 million, leading to net investment income of $1.77 billion in 2003.
In 2004, the industry paid income taxes of $1.14 billion, up from $577.57 million in 2003.