Insurance companies reap record profits in 2003

Last Updated Wed, 17 Mar 2004 12:30:22
EDMONTON - Canada's insurance industry made $2.63 billion in profits last year - more than in any other year. The results are about 675 per cent higher than for 2002.


INDEPTH: Insurance Rates

The previous best was set in 1997 when insurance companies made $2 billion in profits.
The Insurance Bureau of Canada says the industry's rate of return remains "lower than reasonable profitablity targets accepted by government regulators and lower than levels seen in other financial services."

The IBC notes the profits are spread among more than 200 companies dealing in fire, home, auto, life and other types of policies.

"The average company net earning figure was approximately $13 million," the bureau said in a release.

Rapidly rising car insurance premiums last year almost led to the defeat of one provincial government. New Brunswick's Conservatives barely clung to power after car insurance rates became an election issue. Several provinces quickly announced measures they said would reduce premiums.



Written by CBC News Online staff