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What’s New: In Brief (October 29, 2009)


October 29, 2009   by Canadian Underwriter


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With the 2010 Olympic and Paralympic Winter Games fast approaching, Insurance Bureau of Canada (IBC) is reminding B.C. homeowners to make sure they are properly insured before renting out their property to visitors.
Since last year, IBC has been encouraging B.C. homeowners who are planning to rent their homes or apartments during the Olympics, in whole or in part, to contact their insurance professionals to discuss their insurance coverage.
“Scores of visitors will be coming to B.C. next February,” said Lindsay Olson, IBC’s vice-president for the British Columbia, Saskatchewan and Manitoba region. “Renting out your home or apartment to some of them could affect your insurance coverage.
“Consumers should not assume they are covered for damage done by occupants simply because they have home insurance.”
Olson reminds homeowners that in some cases, their existing coverage may be adequate. “In other cases, you may have the option to purchase additional coverage,” she said.

XL Capital Ltd. reported a net loss of US$11.4 million in 2009 Q3, a significant rebound from the company’s US$1.6-billion loss over the same period last year.
The company said its 2009 Q3 loss was primarily due to US$310.8 million of after-tax net realized losses on investments.
On the plus side, “solid underwriting and careful expense management, combined with our prudent reserving practices, provided a healthy combined ratio (COR) of 93.2% from [property and casualty] operations,” said XL Capital Ltd. CEO Mike McGavick. “Total shareholders’ equity increased from US$7.5 billion to US$9.2 billion in the quarter.”
McGavick said the healthy COR and equity results were “encouraging,” although there were still areas for improvement.
“For instance, gross premiums written for our P&C operations were 16.6% lower than the prior-year quarter,” he said. “Although on target with our current guidance for the year, continuing this recovery means we must remain vigilant in the face of challenging pricing conditions.
“Pressures from the current economic environment and where we are in the underwriting cycle have not deterred us from seeking the right price regardless of the impact on top line. We will continue to do so.”


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