New Brunswick auto insurers to see higher profits

New Brunswick-based car insurers will see higher profits than other Atlantic Canadian provinces that are exposed to rate regulations. The New Brunswick Insurance Board (NBIB) recently granted NB car insurers permission to earn these higher profits. This development stems from the NBIB’s approval of company rate applications including a 14% profit margin. This figure is […]

May 31, 2006 | Last updated on October 1, 2024

1 min read

New Brunswick-based car insurers will see higher profits than other Atlantic Canadian provinces that are exposed to rate regulations.

The New Brunswick Insurance Board (NBIB) recently granted NB car insurers permission to earn these higher profits. This development stems from the NBIB’s approval of company rate applications including a 14% profit margin. This figure is calculated based on return on equity.

NBIB director of operations Kevin Duff explains the board felt a reasonable return on equity for auto insurance should be between 10 and 12%.