OSFI data points to industry net income of $590 million in first quarter

Federally-regulated insurers posted net income of $589.6 million in the first quarter of 2004, according to data from the Office of the Superintendent of Financial Institutions (OSFI).This result tops the $137.0 million in income insurers reported in the first quarter last year, and comes on the back of both investment and underwriting gains.Net written premiums for the most recent quarter were $4.6 billion, up from $3.6 billion a year ago. And net earned premiums came in at $4.9 billion in the first quarter of 2004, compared to $4.0 billion the year prior.Claims were also on the rise, however, growing to $4.7 billion for the most recent quarter from $4.2 billion a year ago. Nonetheless, the industry eked out underwriting income of $250.1 million in the first quarter of this year, compared to an underwriting loss of $171.7 million a year ago.Investment income offered a strong boost, rising to $593.9 million this quarter from $398.8 million in the first quarter of 2003. Of this, realized gains growth was significant, with the industry producing gains of $234.3 million this year, compares to $76.5 million for the same period a year prior.At the same time, the industry paid a hefty sum of $289.1 million in income taxes in the first quarter of 2004, compared to $64.7 million in early 2003.Insurance Bureau of Canada (IBC) analysis of first quarter results (taking into account a wider swath of insurers) puts the industry’s combined ratio at 94.6%, with a 66.9% loss ratio and a rolling 12-month return on equity of 14.9%.