Canadian property and casualty direct premiums in 2006 were essentially flat, growing only an anemic 1%, according to a report on the preliminary year-end results posted online by MSA Research Inc.MSA Research noted that overall, in 2006, direct premiums written in Canada totalled Cdn$30.1 billion, as opposed to the 2005 total of Cdn$29.8 billion. Net premiums written amounted to Cdn$27.2 billion in 2006, compared to Cdn$26.1 billion in 2005, representing a groth rate of 3.9% But among its nine key observations, MSA Research noted that the 2006 growth in net premiums written of 3.9% reflects lower cessions to reinsurers, rather than underlying growth.MSA Research further observed that underwriting income is relatively flat in 2006, whereas investment income increased almost 16% Reflecting this, net income for the companies represented here [in the data] grew by 3.4%, MSA notes.Data contained in the 2006 report came from 119 Canadian insurers as filed with MSA through Mar. 14 2007.MSA observed that in 2006 there were no dramatic system-wide shifts in overall net loss, expense and combined ratios. The survey shows the industrys combined ratio in 2006 was 92.4%, as opposed to 92.2% in 2005.There were improvements in personal property, commercial property and liability loss ratios. Also, there was a slight deterioration in Canada-wide auto loss ratios. MSAs report is posted at http://www.msaresearch.com
Canada’s P&C premium growth rates “essentially flat” in 2006