Although one insurer is feeling the pinch from last year’s catastrophic weather events, it still recorded industry-leading growth in net written premiums, thanks in large part to the acquisition of L’Union Canadienne.
RSA Canada recently reported an 11 per cent jump in net written premiums of $2,826 million, although admitting that its bottom line results were impacted by three significant catastrophic weather events.
“While 2013 was a record year for severe weather in Canada, our core business remains strong,” says Rowan Saunders, president & CEO of RSA Canada. “The severe weather may have negatively impacted results, but I am extremely proud of the exceptional support we provided to customers and brokers from coast to coast.”
The increase in overall weather activity resulted in a combined operating ratio (COR) of 99.3 per cent, compared to 93.6 per cent in 2012.
“In 2013 we supported our customers through an unprecedented number of severe weather events,” continued Saunders. “In 2014, I expect our COR to return to the mid- low 90s, to see growth in line with the market and to continue providing the best service to our customers and brokers.”
Other insurers shared the same story – that of weathering the storm from what has been know acknowledged as one of the worst years in Canadian history for weather-related catastrophe claims. And the winter of 2014 is showing to be just as tough. (continued.)
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Allstate Corp. recently announced it expects a pre-tax catastrophe loss of $277 million for January, citing up to six events estimated at $271 million, along with reserve re-estimates of prior reported catastrophe losses.
“One of the events met the definition of a winter freeze catastrophe in one region of the country but not in other regions due to the amount of claim counts,” read a statement from Allstate.
For RSA Canada, the underwriting result of $16 million was impacted by severe weather, including the floods in Alberta and the Greater Toronto Area (GTA), which were the first and third most costly weather events in Canadian history, as well as by the ice storms that hit the GTA in December. These events resulted in $286 million of insured losses resulting in net losses of $151 million.
Excluding the impact of adverse weather, the combined ratio was 94.5 per cent reflecting a continued strong performance and an improving operating expense ratio.
