Keyword
interest rates
The underrated factor pushing down the industry’s profitability
January 22, 2020 by Greg MeckbachThe impact of low interest rates on insurer profitability is something that warrants more discussion, suggests a senior executive with one of the world’s largest reinsurers. “This is something that significantly impacts the profitability of the insurance and reinsurance industry,…
The mirage of high returns
December 10, 2019 David Gambrill, Editor in ChiefIt could be decades before insurers make decent returns on their investments. Why Canadians pay higher premiums when interest rates are low…
Twenty more years of low interest rates? What that and a recession will mean for Canadian P&C insurers
October 4, 2019 by David GambrillIf P&C insurers are looking to use their investment returns to offset inadequate pricing strategies, Swiss Re has a chilling prediction for them – low interest rates could be with us for another 20 years or longer. Jerome Jean Haegeli,…
What needs to happen before interest rates rise
January 9, 2019 Andy Blatchford - THE CANADIAN PRESSOTTAWA – The Bank of Canada left its trend-setting interest rate unchanged at 1.75 per cent Wednesday as the sharp decline in oil prices temporarily dims its economic outlook for the coming months. Before long, however, the central bank expects…
Interest rates might not rise next month: Analysts
December 19, 2018 Andy Blatchford - THE CANADIAN PRESSOTTAWA – Cooling inflation has given the Bank of Canada another reason to keep interest rates on ice next month. The annual pace of inflation slowed in November to 1.7 per cent as upward pressure from higher gasoline prices eased…
Why interest rates might not rise further
December 4, 2018 Craig Wong - THE CANADIAN PRESSOTTAWA – The pace of economic growth in Canada slowed in the third quarter as business investment spending fell and the growth in household spending slowed, raising questions about the future pace of interest rate hikes by the Bank of…
Bank of Canada keeps key interest rate target on hold at 1.25 per cent
May 30, 2018 Craig Wong - THE CANADIAN PRESSOTTAWA – The Bank of Canada kept its key interest rate target on hold Wednesday, but noted the Canadian economy was a little stronger than expected in the first quarter, raising expectations that rate hikes are coming later this year…
What Fairfax’s CEO is saying about interest rates
May 19, 2018 by Greg MeckbachAs Canadian insurers struggle with auto claims and weather-related losses, relief may be in sight in the form of interest rate increases. “We think interest rates will go up over time because the economy of the U.S. is doing very…
Intact, Fairfax discuss impact of interest rate hike on income
February 27, 2018 by Greg MeckbachWith interest rates at historic lows, Canadian property and casualty insurers rely more on underwriting profits to keep profitable than they have in the past. What difference would a rate hike make to insurers? A one percentage point rise in…
Bank of Canada hikes interest rate to 1.25%, cites strong economic data
January 17, 2018 Andy Blatchford - THE CANADIAN PRESSOTTAWA – The economy’s impressive run prompted the Bank of Canada to raise its trend-setting interest rate Wednesday for the third time since last summer – but looking ahead it warned of growing uncertainties about NAFTA. The central bank pointed…
Why insurers don’t want a sudden hike in interest rates
January 8, 2018 by Greg MeckbachInsurers might be happy if lending rates rise by a few percentage points, but a financial executive with one mutual warns a sudden rise in interest rates carries a noticeable risk. The Bank of Canada announced in December it is…
Bank of Canada head explains why Canada’s interest rates are so low
December 14, 2017 THE CANADIAN PRESSTORONTO – Bank of Canada governor Stephen Poloz says with the economy running at close to full tilt, a mechanical approach to setting interest rates would suggest higher borrowing rates should already be in place. But in a speech Thursday,…