Insurance companies in Canada are now posting their midyear financial reports, and their results reveal that many members of the industry have experienced marked success in the first half of 2015.
Economical Insurance reported that gross written premiums and personal lines premiums both grew by the millions, Echelon Financial Holdings reported that its net income increased by 73% from the same period last year, and
RSA Canada boasted of its strongest underwriting performance in 10 years.
RSA Canada’s story is particularly noteworthy, since much of its success was due to a $500 million transformation plan aimed at improving its underperforming portfolios, as well as enhancing its products and service models for brokers.
“We’re starting to get feedback from broker partners that propositions are improving, rates are competitive and service levels from the operating model are becoming more positive,” said RSA Canada president and CEO Rowan Saunders.
The insurer has completed 22 new broker appointments so far this year, exceeding its initial goal of 19.
RSA Canada’s strategies also involved reducing expense rates, strengthening capabilities around data analysis and predictive modeling and refining such products as its same-day quote service for small to medium-sized businesses.
These insurer success contradicts analyst 2015 P&C outlook, which was largely grim.
“Historic low interest rates, volatile investment returns and low gross domestic product (GDP) growth are forecasted to persist in 2015, adversely affecting the industry’s profit margins and premium growth,” Ernst and Young wrote in a late 2014 report.
The remainder of 2015 may see further consolidation of major players, as M&A activity continues to thrive both domestically and in overseas markets.
