OSFI stats show a slight increase in Canadian insurers’ 2007 Q4 profits

Federally regulated property and casualty insurance companies in Canada reported a total profit of Cdn$3.284 billion in 2007 Q4, a slight increase over the same period last year.
Information posted by the Office of the Superintendent of Financial Institutions (OSFI) shows Canadian P&C insurers reported earning a net income of Cdn$3.256 billion in 2006 Q4, and a Cdn$3.167 billion profit in 2005 Q4.
One factor in the results is the continuing ability for P&C insurers as a whole to improve their net premiums written (NPW).
Carriers reporting to OSFI indicated a total NPW in 2007 Q4 of Cdn$23.764 billion. This compares to Cdn$22.773 billion in 2006 Q4 and Cdn$21.220 in 2005 Q4.
Also increasing, however, are insurers’ claims ratios. In 2007 Q4, Canada’s federally regulated insurers reported a total claims ratio of 63.78%, as opposed to 62.34% over the same period in 2006 and 61.7% in 2005.
The claims ratio in automobile lines has also shown a steady increase, rising from 63.5% in 2005 Q4 to 69.75% in 2007 Q4.
Net incurred expenses for liability (excluding automobile) are steadily decreasing, according to OSFI figures, from Cdn$1.258 billion in 2005 Q4 to Cdn$1.121 in 2007 Q4.