News
Alberta to review auto premiums following 2004 industry earnings release
February 22, 2005 by Canadian UnderwriterAlberta’s Auto Insurance Rate Board is set to review auto insurance premiums “to determine if further reduction for drivers are recommended”, according to a press release from the office of the province’s finance minister, Shirley McClellan.While a formal review will…
2004 hurricane losses continue to dampen fortunes
February 21, 2005 by Canadian UnderwriterThe rising loss total being attributed to the 2004 U.S. hurricane season is putting increasing pressure on the shareholders’ equity of many insurers and reinsurers, says a report by Standard & Poor’s.S&P notes that two issues are causing the loss…
Increase in capacity not deterring European reinsurer discipline
February 21, 2005 by Canadian UnderwriterBased on January 2005 reinsurance renewals, European carriers have not given in to competitive pressures despite rising capacity, notes a report by A.M. Best.While overall reinsurance rates declined moderately, with the exception of some U.S. hurricane-exposed risks, the pricing drop…
Tobacco class action certified in Quebec
February 21, 2005 by Canadian UnderwriterTwo class actions against three tobacco manufacturers for “smoking addiction” have been certified in Quebec Superior Court.The suits involved tobacco companies Imperial Tobacco Canada, Rothmans Benson & Hedges, and JTI MacDonald, with plaintiffs alleging the companies did not disclose the…
What’s new: In brief (February 21, 2005)
February 21, 2005 by Canadian UnderwriterA bill to extend the Terrorism Risk Insurance Act (TRIA) two years past its December 31, 2005 sunset has been introduced in the U.S. Senate, crafted by Sens. Robert Bennett and Christopher Dodd. The same two men had introduced a…
Three insurers face lawsuit on “blackout” claims
February 20, 2005 by Canadian UnderwriterThree Canadian insurers are now facing class action lawsuits stemming from claims made for perished stock and business interruption losses following the August 2003 blackout.Aviva Canada Inc., Lombard General Insurance Co. of Canada and Royal & SunAlliance Insurance Co. of…
Anthony Clark losses widen, but U.S. revenue rises
February 20, 2005 by Canadian UnderwriterAnthony Clark International Insurance Brokers Ltd. (TSX: ACL, NASDAQ: ACKBF) is reporting deeper losses for the first nine months ending December 31, 2004 of $2.39 million, or $0.30 per share. This compares with a loss of $969,400, or $0.12 per…
Consortium predicts another active hurricane season for 2005
February 20, 2005 by Canadian UnderwriterFollowing on 2004’s record Atlantic hurricane season, more storms are brewing for 2005, says Tropical Storm Risk (TSR), a consortium of researchers sponsored by Benfield, Royal & SunAlliance and Crawford & Co.TSR’s extended outlook for 2005 suggests 2005 will see…
Insurers finish 2004 with healthy bottom-line
February 20, 2005 by Canadian UnderwriterThe Canadian property and casualty insurance industry will likely finish 2004 with a 65% year-on-year gain in net profit of $4.2 billion, producing a return on equity (ROE) of just over 20%, according to preliminary financial data released by the…
Co-operators General profits soar on underwriting gains
February 17, 2005 by Canadian UnderwriterCo-operators General Insurance Co. (TSX: CCS.PR.A) is reporting net income tripled in 2004, to hit $139.49 million, or $6.54 per share. This compares to income of $44.04 million, or $1.78 per share, reported in 2003.For the fourth quarter of 2004,…
Loyalist sells fund management arm
February 17, 2005 by Canadian UnderwriterLoyalist Insurance Group Ltd. has sold its controlling stake in All-Canadian Management Inc. The buyers are existing ACMI shareholders Russell C. Boychuk and Harold A. Kent.Loyalist says proceeds from the sale will “be used to provide additional working capital and…
What’s new: In brief (February 17, 2005)
February 17, 2005 by Canadian UnderwriterThe U.S. House of Representatives quickly passed the “Class Action Fairness Act” Thursday, by a vote of 279-149. The bill’s passage means it could be signed into law as early as Friday by President George W. Bush. Royal & SunAlliance…