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    • Financial forum 1: Results suggest industry at bottom of cycle
        (Copyright Thompson’s World Insurance News
        Not to be redistributed by individual recipients.)
        In Joel Baker’s analysis the best that can be said for 2010 is that it won’t be as bad as 2009.
        “The good news is that deterioration in underwriting results has stopped, so we’re looking at the bottom of the cycle,” the MSA Research and National Insurance Conference of Canada president said at the first annual Canadian Insurance Financial Forum.
        “Growth in earned premiums has outpaced underwriting expenses, but only just.”
        There has been an improvement in the ‘other comprehensive income’ category and capital levels have recovered.
        The bad news is a slightly longer list. For the most part calendar year results look better than accident years ones. Personal lines companies enjoyed a positive boost as a result of the decision regarding the minor injury legislation in Alberta. Commercial and other long-tail writers took a hit on HST as well as lower interest rates.
        Personal lines were not the place to be in 2009, Mr. Baker said.
        “There were runaway losses in Ontario auto and in personal property business in many parts of the country.
        ‘This conspired to create an accident year COR of 109% for property line writers.” Ontario auto losses are almost at catastrophic levels
        “The overall results for 2009 were on par with the record losses companies experienced in 2001-02.
        Much more in our May 31, 2010 edition including the following story and comments from Baron Insurance Services president Barb Addie. If you are not a regular reader, go to www.thompsonsnews.com and click on subscribe on the right hand side of the page.
        
    		 


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