OLDWICK, N.J.--(BUSINESS WIRE)--This two-part episode of “First Monday” looks at the Canadian life and property/casualty sectors. In the first, A.M. Best Managing Senior Financial Analyst Richard McMillan and Senior Financial Analyst Edward Kohlberg explore growth strategies by Canadian life insurance writers amid the low interest rate environment. In the second part, Senior Financial Analysts Jacqueline Lentz and Joel Silverthorn discuss some of the hot-button issues in the Canadian property/casualty (P/C) market; such as, merger and acquisition (M&A) activities, Ontario automobile rates and the overland flood coverage. Click on http://www.ambest.com/v.asp?v=fmcanadalife915 to view the Canadian life segment. The Canadian P/C segment can be seen at http://www.ambest.com/v.asp?v=fmcanadapc915.
The next two “First Monday’ episodes will focus on how the U.S. surplus lines sector has become an attractive M&A target and the sweeping changes that are taking place in the global reinsurance market. “First Monday” is A.M. Best’s monthly program featuring commentary by the company's leading analysts.
The life insurance industry in Canada has managed well in recent years; although, it continues to suffer sluggish sales in certain business lines due to the low interest rate environment and a down economy.
“Despite the ad verse economic conditions that exist in the life insurance sector, the industry has seen favorable operating earnings over the last few years, capital has been adequate along with a reduction in volatility,” said Kohlberg. “This is partially attributable to life companies de-risking their product portfolios, making sure of having adequate hedging in place for their interest rates and equity market risks, as well as, focusing on less capital intensive products.”
With the Canadian economy being stuck in neutral, P/C companies are aspiring to achieve growth through M&As. This and other topics will be the focus of A.M. Best’s upcoming annual Canadian market briefing, titled, “A.M. Best Company’s 2014 Insurance Market Briefing – Canada,” starting Sept. 24 in Toronto. McMillan, Kohlberg, Lentz and Silverthorn will be addressing all the above issues at this event.
“M&A activities have been on the extreme end for the last several years in Canada, which also increased broker consolidations,” said Lentz. “Looking to the future, A.M. Best expects M&As to remain high on the list of P/C industry trends. However, for these companies to remain viable and competitive they will have to minimize their system failures, business interruptions, have an excellent integration of all of their systems and differentiate their services.”
Recent episodes of A.M.BestTV include:
- Surplus Lines Industry Adapts, Restructures and Networks: Preview of the upcoming National Association of Professional Surplus Lines Officers’ annual convention that is taking place from Sept. 9-11, in San Diego, CA: http://www.ambest.com/v.asp?v=surpluslines915.
- Reinsurance: It’s Not Your Father’s Market Anymore: A.M. Best Vice President Robert DeRose discusses a Best’s Special Report on the global reinsurance industry: http://www.ambest.com/v.asp?v=globalre915.
- Competition Among Auto Writers Heats Up: Auto insurers are increasingly turning to advertising to capture business as competition in the market increases: http://www.ambest.com/v.asp?v=auto815.
- Health Care Captives Take on Wider Range of Risks: A panel of captive professionals discusses how captive insurance companies sponsored by hospitals and medical professionals serve a wider variety of insurance exposures, including cyber liability and other emerging risks: http://www.ambest.com/v.asp?v=healthcaptives815.
A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.
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