OSFI figures show claims ratios decreasing in auto personal accident, but increasing in property lines

Automobile personal accident lines showed a huge improvement in 2011 Q3 compared to the same period last year, according to figures released by the Office of the Superintendent of Financial Institutions (OSFI).
During the third quarter of 2010, Canadian insurers automobile private passenger personal accident lines stood at 125.4%. Over the same period this year, after Ontario introduced its auto insurance reforms, the claims ratio had been shaved down to 75.67%
Foreign insurers had a claims ratio of 220.57% in auto personal accident lines in 2010 Q3, a figure that had almost been halved (to 129.16%) in 2011 Q3.
But while claims ratios have come down in auto personal accident lines, claims ratios have increased in personal and commercial property lines, according to OSFI figures.
Claims ratios for Canadian insurers in personal property lines increased from 66.04% in 2010 Q3 to 72.86% in 2011 Q3. Claims ratios in commercial property also increased, from 63.89% in 2010 Q3 to 74.49% during the same period this year.
Foreign insurers also saw their claims ratios increase, both in personal property lines (from 60.58% in 2010 Q3 to 65.71%) and in commercial property lines (from 70.95% in 2010 Q3 to 82.42% in 2011 Q3).
Overall, Canada’s federally regulated property and casualty insurers reported a $2.01 billion profit in 2011 Q3, roughly $100 million more than the $1.9 billion net income they reported during the same period last year.
All told, Canadian and foreign insurers reported net premiums written of $26.07 billion. Added together, their total claims and expenses total $26.39 billion.
Canadian P&C insurers reported an underwriting profit of $155.3 million, while foreign companies reported an underwriting loss of $329.4 million.
Net investment income for Canadian and foreign insurers was $2.83 billion, down slightly from the $2.87 billion reported during the same period last year.