Monday, March 17, 2008 – MSA is pleased to present preliminary aggregate statistics for the Canadian P&C industry for the year ending December 31, 2007. This report incorporates data for 129 Canadian insurers as filed with MSA through March 14, 2007. This population of companies represents over 85% of Canadian primary writers when measured on a premium volume basis.
Prior-year data is for the same population of companies.
Please refer to the attached data sheet for statistics.
Key Observations
- Direct and net premium growth, 3.2% and 3.4% respectively, somewhat anemic after economic growth and inflation taken into account.
- Net claims incurred* up almost 6%
- Underwriting income down by more than 26%, due primarily to increased claims and a very modest up-tick in expenses.
- Overall combined and loss ratios deteriorated by 1.6 and 2.2 points respectively.
- Investment income* was up 8.1%
- Reflecting the aforementioned and after adjusting the prior year result for fair value accounting, net income for the companies represented here declined by 4.8%.
- Sixty-three companies reported lower net income in 2007 while sixty-five companies reported higher net income*.
* Unless otherwise noted, 2006 results do not include the effect of fair value accounting.
For the two page summary, go to “http://www.msaresearch.com/uploads/docs/Prelim_YE07_MSAResults.pdf“.
About MSA Research Inc.
Market-Security Analysis & Research Inc. is a Canadian-owned, independent and impartial analytical research firm that is focused on the Canadian insurance industry. MSA’s mission is to provide Canada’s insurance professionals with comprehensive financial information, unparalleled analytical tools and rigorous research on a consistent basis.
