Lack of premium growth nationwide and diminished results in the Ontario auto segment have constrained results for Canadian property and casualty insurers in the past year, according to a recent report published by Standard & Poor’s Ratings Services.
Although 2007 results were generally good, a number of factors will play a part in dragging down industry results throughout 2008 and beyond, says the S&P’s commentary, “Industry Report Card: Canadian Property and Casualty Insurers Face Deteriorating Results Due To Ontario Auto Segment.”
Such factors include declining premium growth rates, deteriorating results in Ontario auto, worsening weather-related conditions and intense pricing pressures in commercial lines.
In addition, Ontario auto insurers face obstacles from regulations that govern the pricing and availability of the product, S&P’s says.