Q3 2024 Canadian P&C Reinsurance Results

Key Insights and Highlights

• Revenue leaders such as Everest Reinsurance Company and Swiss Re. maintained their dominance, showcasing their ability to adapt to global market shifts. Everest led the sector with 14.18% YoY revenue growth, achieving total revenues of $503.850 million, up from $441.288 million in Q3 2023. Swiss Re followed closely with a steady 8.02% growth, reaching $462.425 million in revenues.
• Smaller players like Starr Insurance & Reinsurance Limited posted a strong 16.01% YoY increase in revenues, reflecting effective operational strategies, rising from $348.495 million in Q3 2023 to $403.852 million in Q3 2024. Meanwhile, companies like Toa Reinsurance Company of America faced a -20.95% YoY decline, underscoring operational challenges and a tough market environment.
• Service expenses surged for some companies. Swiss Re Corporate Solutions America Insurance Corporation reported an extraordinary 941.09% YoY increase in service expenses, while Munich Reinsurance Company of Canada saw a sharp rise of 523.85%. These jumps reflect rising operational costs in certain regions. In contrast, Toa Reinsurance Company of America achieved a notable -36.43% YoY decrease in service expenses, showcasing cost containment measures.
• Profitability varied across the sector. Everest Reinsurance Company, despite strong revenue growth, experienced a 45.55% drop in Profit After Tax, falling to $22.307 million, down from $40.986 million in Q3 2023. On the other hand, Starr Insurance & Reinsurance Limited delivered a standout performance, reporting a 53.15% YoY growth in Net Income, rising to $29.371 million from $19.485 million.
• Smaller players like Mapfre Re Compania de Reaseguros, S.A., despite modest revenues, showed resilience with notable YoY percentage increases in Profit After Tax. These performances underscore the sector’s diversity as companies navigate unique market dynamics.

Sector Growth Drivers:

• Growing demand for comprehensive risk management solutions, driven by climate-related challenges and natural catastrophe exposures.
• Rising service expenses for many companies, which placed pressure on overall profitability.
• Revenue concentration among top players, reflecting their ability to capture market opportunities and adapt to shifting economic conditions.

Sector Outlook:

The reinsurance sector remains a cornerstone of global risk management, but the path forward will require balancing cost pressures with revenue growth. Larger players are well-positioned to leverage their scale and financial strength, while smaller companies must embrace innovation and agility to stay competitive.

The adoption of IFRS 17 standards continues to enhance transparency and comparability, providing the industry with a stronger foundation for data-driven insights. As companies adjust to these changes, success will hinge on strategic cost control, effective underwriting, and robust investment results.

Latest Data Insights from OSFI Reporting

Latest Articles