In his most recent Atlantic hurricane prediction for the 2004 season, Prof. William Gray of Colorado State University says there is a 71% probability of a major hurricane making landfall somewhere on the U.S. coastline this year.Gray builds on earlier reports forecasting an above-average Atlantic hurricane season, now predicting 8 hurricanes, 14 named storms, 60 […]
By Canadian Underwriter | June 2, 2004
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Royal Bank is reporting lower returns from its insurance division in the second quarter ending April 30, 2004, down to 27% from 28.6% a year earlier. However, net income from RBC Insurance was up 16% to $65 million from $56 million, largely on the back of reinsurance and Canadian insurance operations. Net earned premiums dropped […]
By Canadian Underwriter | June 2, 2004
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Rating errors could cost U.S. auto insurers as much as US$13 billion annually, says a report from QPC. In fact, in an audit of 12 million policies from 10 insurers over the past two years, QPC estimates the rating error at about 9.8% of premium on private passenger rates. Of, this 1.6% comes from errors […]
By Canadian Underwriter | June 1, 2004
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U.S. reinsurers produced a combined ratio of 94.0% for the first quarter of this year compared with the 96.4% ratio posted for the same period in 2003, according to data collected by the Reinsurance Association of America (RAA). The improved performance was achieved through stronger underwriting, which saw the sector’s loss ratio fall to 67.6% […]
May 31, 2004
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Canadian reinsurance companies lifted net taxed earnings for 2003 by more than 5.8 times to $310.8 million compared with the $52.9 million in after tax income reported the year prior. “The sharp rise in income was mostly attributable to a significant improvement in the incurred claims to premiums earned ratio [loss ratio],” says Cam Macdonald, […]
May 31, 2004
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A.M. Best has placed the “B++” (very good) rating of Federated Life under review with developing implications as a result of its sale to Western Financial Group by parent Northbridge Financial. The rater says it will meet with Western management to discuss issues of financing, capitalization and operating plans. The provinces of B.C. and Alberta […]
By Canadian Underwriter | May 30, 2004
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The Canadian insurance industry mourns the loss of veteran broker Cyril MacKinnon, who passed away suddenly on Thursday, May 27. A long-time representative of the Insurance Brokers Association of PEI, MacKinnon was its president and director to the Insurance Brokers Association of Canada (IBAC).MacKinnon was chair and managing partner of Concorde Insurance Brokers Ltd. in […]
By Canadian Underwriter | May 30, 2004
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U.S. reinsurer results for the first quarter of 2004 show underwriting diligence is paying off with the members of the Reinsurance Association of America (RAA) posting a combined ratio of 94.0%. This compares with 96.4% in the first quarter of 2003.Premiums were actually lower in the first quarter of this year, with gross written premiums […]
By Canadian Underwriter | May 30, 2004
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Swiss Re has seen its financial strength and long-term debt ratings cut by Moody’s to “Aa2”, although the reinsurer’s short-term rating was affirmed at “prime-1”. Among the conditions cited in the downgrade are possible further adverse development for the years 1997-2001, and the evolving risk profile associated with its growing life and financial intermediation business. […]
By Canadian Underwriter | May 27, 2004
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GE has priced the IPO of its investment/life insurance spin-off, Genworth Financial (NYSE: GNW), which could net US$2.5-2.9 billion. After the offering, GE will own about 70% of the company. More than 500 people have been killed by flooding in the Caribbean. Hardest hit have been Haiti and the Dominican Republic, specifically Hispaniola (an island […]
By Canadian Underwriter | May 26, 2004
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