Canadian Property and Casualty Insurers' Q4 2022 Earnings Roundup: Strong Underwriting and Investment Performance

DBRS Morningstar released a commentary titled “Canadian Property and Casualty Insurers' Q4 2022 Earnings Roundup: Strong Underwriting and Investment Performance,” which discusses Q4 2022 results of the publicly traded property and casualty (P&C) insurance companies publicly rated by DBRS Morningstar.

The commentary highlights the following:

-- The results reflect the favourable insurance pricing environment. Despite the impact of catastrophe losses, the companies reported strong underwriting performance for the quarter, reporting very good combined ratios.

-- The companies remain well capitalized, with regulatory capital ratios of their Canadian operations well above regulatory minimums and internal targets as at December 31, 2022.

-- Net investment income improved for all of the companies, reflecting higher fixed income yields, contributing to the overall net earnings.

“The four publicly traded Canadian P&C insurance companies are well positioned going into F2023. Higher interest rates will benefit the insurers' net interest income. We expect the underwriting results to be positive for the year despite their exposure to climate-related catastrophe losses. The pricing environment remains favourable as the market has been able to generate significant premium increases for most products,” said Victor Adesanya, Vice President, Insurance.