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Member, Beacon International Group, Ltd.
The outlook for the Canadian property/casualty insurance industry remains stable, according to a Monday report by rating agency A.M. Best Co. Inc.
In “Despite Challenges, Canadian Insurance Industry Remains Profitable,” Best said the Canadian property/casualty industry’s results last year “remained solid” in underwriting and operating performance.
“Overall risk-adjusted capitalization continued to be strong given the good underwriting performance, which was aided by fewer weather-related events and catastrophes during the year. The industry now has posted an underwriting profit for several consecutive years reflecting significant improvement after losses in earlier years,” the Oldwick, N.J.-based rating agency said.
While the industry remains “generally conservative” in investment allocations, below-average interest rates continue to challenge most insurers even this year, Best said.
Still, the Canadian property/casualty industry is responding to the underwriting and investment challenges, Best said.
Despite catastrophes this year that will negatively affect earnings, Best said it “believes that core performance will continue to benefit from profitability initiatives, and the industry will maintain its strong risk-adjusted capitalization,” resulting in its stable outlook for the industry.