Quebec private damage insurers “stable” in 2005

Private damage insurers in 2005 collected CD$7.1 billion in premiums in Qubec almost the same level as the CD$7 billion collected in 2004, according to a recent report to Quebec’s National Assembly. “The damage insurance business in Qubec was therefore stable in 2005,” according to the report, prepared by the Autorit des marchs financiers (AMF).The AMF observed that each category of damage insurance posted only slight variations. “Premium income in the automobile and property insurance categories rose a combined 1.2%, or almost CD$68 million, over 2004,” the AMF noted.Auto premium collected in 2005 totaled CD$3.1 billion, while property insurance premiums amounted to CD$2.6 billion.”With respect to liability and other categories of insurance, premiums fell a combined 1.3%, or $18 million from 2004,” the AMF reported. Liability insurance premiums were CD$910 million in 2005, whereas other categories of damage insurance chipped in an additional CD$433 million in premium. The AMF report states that in terms of losses, the province’s insurers in 2005 paid out CD$4.2 billion to Qubec policyholders up 10.7% from 2004. “Based on overall activities, damage insurers also posted stable results in terms of net earnings, which stood at CD$3.9 billion in 2005, compared with CD$4 billion in 2004,” the AMF noted. “Net earnings remained fairly level despite a decline of CD$693 million in operating results. “The decline was largely offset by a $580-million increase in investment income.”