Canadian Underwriter


Feature

Wolves in Sheeps’ Clothing

April 1, 2004 Mark Ram

The specialty lines business. Fat premiums. The appearance of fast, easy money. When markets turn soft and growth sounds good, they can attract insurers like mice to cheese. But, those hungry insurers who venture uninformed and unprepared into the high-risk specialty areas of insurance are more often than not dealt a blow that leaves them reeling.

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Royal SunAlliance Canadian arm improves, but hampered by FA losses

March 12, 2004 by Canadian Underwriter

With the release of Royal & SunAlliance Insurance Group’s results, the Canadian operations are posting improved operating results, however Facility Association (FA) losses are hampering the effect of prince increases and reduced exposures.Overall, the parent company is reporting a pre-tax

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Kingsway Canadian ops downgraded by A.M. Best

March 8, 2004 by Canadian Underwriter

The Canadian companies of Kingsway Financial Services Kingsway General Insurance Co. and York Fire and Casualty are being downgraded by rating agency A.M. Best, following release of the companies’ 2003 yearend results.A.M. Best has lowered the financial strength ratings on

Feature

Captive & Art Growth: Corporate Retentions Rise in Wake of the Hard Market

November 1, 2003 Sean van Zyl, Editor

Fueled by traditional insurance capacity shortage during 2002, particularly in the liability risk classes and certain specialty risk sectors, the growth in corporate risk retention through establishment of captives and other alternative self-insurance mechanisms is expected to maintain record levels through this year and into 2004 – after coming off a “ten year banner year” for 2001 following the insurance cost impact of the 9/11 terrorist attacks. Canada has not been excluded from this trend, with the number of captives formed during 2002 more than doubling the overall worldwide growth rate of captive formations. Canadian risk solution experts CU spoke to believe that the premium value as well as establishment of self-insurance mechanisms for this year and 2004 will continue to reflect strong growth despite the moderate improvement in traditional insurance capacity and easing of pricing currently emerging in the marketplace.

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Truckers up in arms over rate increases

October 30, 2003 by Canadian Underwriter

The Canadian Trucking Alliance is speaking out against successive rate increases over the past several years, which it says show no signs of abating.“We are in our third year of escalating insurance costs and it is hard to see much

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Reserve costs, dollar blues dampen Kingsway’s 3-Q earnings

October 22, 2003 by Canadian Underwriter

Specialty risk insurer Kingsway Financial Services Inc. (TSX: KFS) saw net income for the third quarter of this year drop by 28% to $15.6 million compared with the $21.7 million reported for the same period in 2002. This equates to

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Independent Brokers: Tightening the Belt?

October 1, 2003 Sean van Zyl, Editor

While the total value of the Canadian property and casualty insurance marketplace jumped by almost a third last year, the increased revenue benefits did not filter down to higher net earnings for the independent brokerage community, brokers say. In fact, independent brokers point out that they are not making money on personal lines business at all due to the rise in their operating costs brought on by the “hard market”. And, although market conditions are shaping up for improvement next year, brokers fear that a slow return of underwriting capacity combined with the overhead cost incurred from the past two years of lean running could spark a new wave of consolidation within their ranks. At the very least, the independent brokerage community will be facing a year of “belt tightening”, they say.

Feature

Liability Exposure South of the 49th Parallel

October 1, 2003 Mark Ram, president of Markel Insurance Co. of Canada

It is the largest product liability verdict so far this year – and one unheard of within Canada’s kinder legal system. A Florida jury this past August ordered a Wisconsin pool-pump manufacturer to pay US$104 million in compensatory damages to the family of a boy who sustained permanent brain damage after his arm became stuck in a pool drain three years ago. And the whopping $104 million is just the beginning. Further punitive damage awards are reported pending, as the pool pump company was allegedly aware of a manufacturing defect for years, yet did nothing.

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Kingsway Reveals $30 Million Reserve Shortfall

October 1, 2003 by Canadian Underwriter

Kingsway Financial Services Inc. (TSX: KFS) has disclosed an adverse reserve development totaling $30 million for prior year claims leading up to the end of 2002. The adverse reserve development resulted from the insurer’s Alberta non-standard auto insurance business, as

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Kingsway reveals $30 million adverse reserve development

September 29, 2003 by Canadian Underwriter

Kingsway Financial Services Inc. (TSX: KFS) has disclosed an adverse reserve development totaling $30 million for prior year claims leading up to the end of 2002. The adverse reserve development resulted from the insurer’s Alberta non-standard auto insurance business, as

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Kingsway ROE jumps to 18.2% in second quarter

August 11, 2003 by Canadian Underwriter

Reporting record results for the second-quarter and first half of 2003, Kingsway Financial Service Inc. (TSE, NYSE: KFS) says its annualized return on equity of 18.2% for the quarter, versus 11.8% for Q2 2002.Net income for the quarter grew 68%

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Markel opens up online submissions to market

July 22, 2003 by Canadian Underwriter

Toronto-based Markel Insurance Company of Canada is opening up its online submission process to the competition. Much like U.S.-based Progressive’s move to offer online quotes by its competitors, Markel will allow brokers to make submissions to any of its competitors