Personal property results strong despite catastrophes: A.M. Best

Canadian personal property insurers produced continued strong results in 2003, despite wildfire and hurricane losses, according to a new study by A.M. Best.
The statistical study shows the Canadian personal property industry produced a loss ratio of 61% last year, despite losses sustained from the B.C. wildfires, Hurricane Juan’s devastation in Nova Scotia and PEI, as well as the Ontario blackout. This is an improvement over 2002’s strong result of 64.1%. “This improvement was driven by rate increases and more conservative underwriting practices undertaken by the industry in recent years,” the report notes.
ING led the industry, not only in direct premiums written ($5.5 billion), but also in loss ratio, at 54.3%. Wawanesa showed strong growth last year, with direct written premiums up 24.1% to $2.9 billion, to rank second. State Farm was the third largest writer, with direct premiums written up 16.7% to $2.5 billion. Co-operators General and Desjardins round out the top five, although Dominion of Canada also saw significant growth, with premiums up 21.3% to rank sixth.
Losing ground was Aviva Canada, with direct written premiums down 10.8% to $1.8 billion in 2003, and Royal & SunAlliance, down 16.4% to $1.6 billion.