Insurance monitoring

Quarterly updates on the Life & Health and Property & Casualty insurance markets in the US and Canada, and special focus papers on associated themes.



Canadian Property & Casualty Quarterly

Despite an improvement compared to the cat-impacted period a year ago, the Canadian P&C industry's operating performance for 9M17 remained middling, with the annualized ROE at 6.1%. Although prior year's record loss driven by the Fort McMurray fire was not repeated, and the year-ago underwriting loss of CAD 754 million turned into a gain of CAD 430 million, the rough winter weather in 1Q17, wildfires in BC and a number of hail and thunderstorms over the summer kept the combined ratio near break-even at 99.2%.

Canadian Life & Health Quarterly

Canadian life insurers' premium income continued to grow solidly in 9M17, in line with robust economic growth. The boost from tax policy changes to the individual life segment persisted into early 2017. The rebound in new annuity premiums also continued, while international operations of the large companies further bolstered premium growth. Moreover, rising stock markets supported an increase in both assets under management and fee income in the period. In total, life companies' consolidated net income was up 8.5% to CAD 8.5 bn, and overall profitability remained stable, with the annualized ROE at 10.2%.



US Property & Casualty Quarterly

The US P&C industry's profitability deteriorated year-on-year in 1H17. Underwriting losses increased to USD 3.5 billion, from USD 0.9 billion in 1H16, mainly driven by higher catastrophe losses in 1H17.


Underwriting the US infrastructure gap

US infrastructure investment has long fallen behind what’s needed to maintain a state of good repair for existing assets, let alone power the economy of the 21st century. Over the next decade, the investment gap amounts to more than USD 2.1 trillion.



US Life Quarterly

Low economic growth and a further decline in interest rates impacted negatively life insurers' earnings and profitability in 2Q16. Direct premium growth slowed and the industry reported a net loss due to large aggregate reserve increases driven by revisions to actuarial assumptions on interest rates and policyholder behavior.