Royal Bank of Canada reported a record $3.1 billion in net income for its third quarter, but the positive gains in its personal and commercial banking, as well as wealth management divisions, were offset by a poor showing from its insurance unit.
Net income for insurance dropped to $158 million, down 2% from the previous year, and RBC cited increased costs to support sales growth and client service activities as factors contributing to the results. The bank did, however, note that it saw improvements in its international claims experience.
From the previous quarter, net income for insurance decreased $14 million, or 8%, due to lower favourable investment-related experience, according to RBC, adding that this was in part offset by business growth in Canadian insurance, a life retrocession contract recapture, and, again, improved experiences in international claims.
Leading up to the quarter, RBC Insurance has been busy in Canada, recently launching a new digital solution to help group benefit clients better serve their employees, and investing in a cybersecurity lab at the University of Waterloo to promote the development of advanced cybersecurity and privacy tools.
