Canadian P&C Q4 assets increase

Buoyed by the value of its investments, the Canadian property and casualty industry’s total assets increased from CD$61.094 billion in Q4 2004 to CD$64.208 billion in the fourth quarter (Q4) of 2005.

According to information collected by Canada’s Superintendent of Financial Institutions, Canada’s P&C Q4 investment assets grew from CD$36.3 billion in 2004 to CD$40.5 billion in 2005.

Investment assets grew largely because of the increased value of the industry’s bonds and debentures, which were valued at CD$26.5 billion during Q4 2004 and CD$29.7 billion in Q4 2005. Also, term deposit assets increased from CD$1.39 billion in Q4 2004 to CD$1.96 billion in Q4 2005. Preferred share and common share assets also rose marginally.

Assets received from policyholders, on the other hand, fell to roughly CD$81 million in Q4 2005, compared to CD$344 million taken in during Q4 2004. In addition, Canadian P&C insurers saw their cash assets slip from CD$1.9 billion in Q4 2004 to CD$1.3 billion in Q4 2005.

Recoverables from reinsurers, including unearned premiums and unpaid claims and adjustment expenses, stayed roughly the same in Q4 2004 as in Q4 2005 (around CD$9.2 billion).