Q1 Canadian insurance revenue up 94% at Royal Bank of Canada

The Royal Bank of Canada reported Wednesday its revenue from Canadian insurance – including home, auto, life, health and travel – was $1.89 billion in the three months ending Jan. 31 2015, up 94% from $770 million for the same period in 2013-14.

In international insurance, revenue dropped 21%, from $512 million in the three months ending Jan. 31, 2014 to $402 million in the most recent quarter.

RBC’s fiscal year-end is Oct. 31.

In its management discussion and analysis for the most recent quarter, RBC did not specifically report its property & casualty insurance results, nor did it report a combined ratio.

The increase in Canadian insurance revenue was “mainly due to the change in fair value of investments backing our policyholder liabilities resulting from the decrease in long-term interest rates, largely offset in” policyholder benefits, claims and acquisition expenses, the bank reported.

The decrease in international insurance revenue was “mainly due to the change in fair value of investments backing our policyholder liabilities and a reduction of revenue related to our retrocession contracts, both of which were largely offset in” policyholder benefits, claims and acquisition expenses.

Net income from insurance was $185 million in the quarter ending Jan. 31, up 17.8% from $157 million in the three months ending Jan. 31, 2014.

In insurance, RBC “provides a wide range of life, health, home, auto, travel, wealth and reinsurance products,” the bank said in its annual report for 2014 released last November. It sells through its field sales force “which includes retail insurance branches, our field sales representatives, call centres and online, as well as through independent insurance advisors and affinity relationships in Canada.”

Outside of Canada, RBC offers life, accident and annuity reinsurance.

RBC’s total revenue was $9.64 billion in Q1 2015, up from $8.38 billion in Q1 2014. Net income was $2.46 billion in the most recent quarter, up from $2.33 billion in the three months ending Jan. 31, 2014.