Canadian Underwriter

Keyword
interest rates

News Insurance

The underrated factor pushing down the industry’s profitability

January 22, 2020 by Greg Meckbach

The 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,

Feature

The mirage of high returns

December 10, 2019 David Gambrill, Editor in Chief

It could be decades before insurers make decent returns on their investments. Why Canadians pay higher premiums when interest rates are low…

News InsuranceReinsurance

Twenty more years of low interest rates? What that and a recession will mean for Canadian P&C insurers

October 4, 2019 by David Gambrill

If 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,

News Legislation / Regulation

What needs to happen before interest rates rise

January 9, 2019 Andy Blatchford - THE CANADIAN PRESS

OTTAWA – 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

News Legislation / Regulation

Interest rates might not rise next month: Analysts

December 19, 2018 Andy Blatchford - THE CANADIAN PRESS

OTTAWA – 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

News Earnings / Ratings

Why interest rates might not rise further

December 4, 2018 Craig Wong - THE CANADIAN PRESS

OTTAWA – 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

News InsuranceMarkets / Coverages

Bank of Canada keeps key interest rate target on hold at 1.25 per cent

May 30, 2018 Craig Wong - THE CANADIAN PRESS

OTTAWA – 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

News InsuranceMarkets / Coverages

What Fairfax’s CEO is saying about interest rates

May 19, 2018 by Greg Meckbach

As 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

News Earnings / RatingsInsurance

Intact, Fairfax discuss impact of interest rate hike on income

February 27, 2018 by Greg Meckbach

With 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

News Earnings / RatingsInsuranceMarkets / Coverages

Bank of Canada hikes interest rate to 1.25%, cites strong economic data

January 17, 2018 Andy Blatchford - THE CANADIAN PRESS

OTTAWA – 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

News Earnings / RatingsInsuranceMarkets / Coverages

Why insurers don’t want a sudden hike in interest rates

January 8, 2018 by Greg Meckbach

Insurers 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

News Insurance

Bank of Canada head explains why Canada’s interest rates are so low

December 14, 2017 THE CANADIAN PRESS

TORONTO – 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,