Canadian P&C 2008 Q2 profits better than last quarter, but off the pace from 2007 Q2

Canadian and foreign property and casualty insurers licensed by the Office of the Superintendent of Financial Institutions (OSFI) reported better financial results in 2008 Q2 than they did in the first quarter of the year.But they were still well off the pace established during the second quarter of 2007.OSFI figures for 2008 Q2 show Canadian and foreign insurers licensed by the federal regulator reported a 2008 Q2 profit of about Cdn$1.4 billion.That result shows improvement over the Cdn$628 million profit the industry recorded in 2008 Q1. But it is still well off the mark of the Cdn$2.044 billion profit the industry posted during the second quarter of 2007.Of particular note is the continuing increase of claims ratio numbers for personal accident auto insurance.Canadian companies licensed with OSFI saw a huge jump between their overall claims ratio for personal accident auto insurance reported in 2007 Q2 (74.78%) and that reported in 2008 Q2 (99.43%). Similarly, foreign companies licensed by OSFI saw their auto insurance personal accident claims ratios go from 107.72% in 2007 Q2 to 112.39% in 2008 Q2.Canada’s property and casualty insurance industry wrote marginally more net premium in 2008 Q2 than it did over the same period last year. This year, Canadian and foreign companies licensed with OSFI wrote Cdn$1.56 billion in net premium, whereas during the same period last year it wrote Cdn$1.528 billion.