News
Benchmark survey shows decline in smaller brokerage profits
February 19, 2008 by Canadian UnderwriterThe average annual net income of Canada’s most profitable property and casualty insurance brokerages is between Cdn$800,00 and Cdn$1 million, with the average industry profitability equalling 25.3% of total brokerage income, according to a benchmark survey by Vancouver’s Berris Mangan…
What’s New: In Brief (February 19, 2008)
February 19, 2008 by Canadian UnderwriterThe Insurance Brokers Association of Canada (IBAC) announced that York Fire and Casualty Insurance Company is continuing its investment as a full partner of the Broker Identity Program for 2008.“York Fire and Casualty is proud to continue as a full…
Co-operators reports $42.3 million increase in Q4 profits
February 19, 2008 by Canadian UnderwriterCo-operators General Insurance Company has reported a 2007 Q4 consolidated net income of Cdn$60.8 million, up from the Cdn$18.5 million it reported in 2006 Q4.“The improvement was due to favourable automobile claims development, higher investment returns and tax recoveries,” the…
Kingsway reports decreasing profits
February 15, 2008 by Canadian UnderwriterKingsway Financial Services Inc. (TSE:KFS) reported a net loss of US$103.5 million for 2007 Q4 and a net loss of US$18.5 million for the year, marking a decrease of 716% and 115% over the same periods of 2006, respectively. The…
A.M. Best develops Takaful rating methodology
February 15, 2008 by Canadian UnderwriterA.M. Best has issued a rating methodology for Takaful insurers that incorporates a two-stage risk-based capital approach.One of the key characteristics of a Takaful insurance operation is the existence of two separate funds: the Takaful (or policyholders’) fund, and the…
A.M. Best places AIG’s financial rating under review
February 15, 2008 by Canadian UnderwriterA.M. Best Co. has placed the financial strength rating (FSR) of A++ (Superior) of the domestic life and retirement services subsidiaries of American International Group (AIG) (New York) [NYSE: AIG] under review with negative implications. In addition, A.M. Best has…
What’s New: In Brief (February 15, 2008)
February 15, 2008 by Canadian UnderwriterMarsh & McLennan Companies Inc. (MMC) has decided to eliminate its current three-class structure of its board of directors, subject to shareholder approval. As a result of the Board’s declassification, all directors would become subject to annual election as their…
CBA supports Alta court decision to nullify injury cap
February 14, 2008 by Canadian UnderwriterThe Canadian Bar Association (CBA) has voiced its disappointment with the Alberta government’s decision to appeal the recent court decision abolishing the $4,000 cap on minor automobile injuries.“This cap denies the right of Albertans to access justice,” said Tom W.…
CSA seeks comments on paper discussing move to IFRS
February 14, 2008 by Canadian UnderwriterThe Canadian Securities Administrators (CSA) is requesting comment on its paper discussing issues surrounding proposed amendments to securities rules on acceptable accounting principles for financial reporting.The Accounting Standards Board (AcSB) proposes to move financial reporting for all Canadian publicly accountable…
Driver fatigue kills 400 Canadians annually
February 14, 2008 by Canadian UnderwriterDriver fatigue kills more than 400 Canadians ever year, a Highway Safety Roundtable reports. One in five drivers surveyed in Drowsy Driving, a 2004 Traffic Injury Research Foundation survey of 1,209 Canadians, reported nodding off at least once in the…
ICBC investigates vehicles sold from its training facility
February 14, 2008 by Canadian UnderwriterThe Insurance Corporation of British Columbia (ICBC) has launched an investigation into the sale of all vehicles repaired at the company’s research facility in Burnaby over the last 10 years.The investigation focuses on whether the previous damage history of vehicles…
Dedicated prosecutor one way to increase sentences
February 13, 2008 by Canadian UnderwriterOntario needs a dedicated insurance prosecutor, the Insurance Bureau of Canada (IBC) says.This would help to ensure that cases move faster to trial, reducing the number of arguments of delay in the Court system, according to Rick Dubin, the vice…