Canadian 2007 Results Constrained By Lack Of Premium Growth, Diminished Returns In Ontario Auto

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.