Q3 2024 Canadian P&C Results and Insights

The Q3 2024 year-to-date (YTD) results, based on OSFI-reported data, underscore the continued growth and resilience of Canada’s Property & Casualty (P&C) insurance sector. Total YTD revenues reached $64.36 billion, a 16% increase compared to the same period in 2023 ($55.49 billion). Net profits after taxes also saw substantial growth, climbing 37% YoY from $4.66 billion in 2023-Q3 YTD to $6.39 billion in 2024-Q3 YTD. Net income similarly rose by 41%, from $4.58 billion in 2023-Q3 YTD to $6.46 billion this year.

Under the IFRS 17 reporting standards, insurers continue to provide greater transparency in underwriting performance, offering deeper insights into profitability. Net income for Q3 2024 YTD was reported at $6.46 billion, reflecting a strong upward trend as the industry adapts to evolving regulatory standards.

The results also highlight the sector’s balanced performance between domestic and foreign insurers. Domestic players accounted for $48.57 billion in revenues and $3.42 billion in net income, while foreign insurers contributed $15.79 billion in revenues and $3.04 billion in net income.

Key Performers and Insights

Intact Financial Corporation maintained its leadership with $9.13 billion in YTD revenues, reinforcing its dominant market position.
Lloyd’s Underwriters reported the highest net profits at $2.81 billion, showcasing its operational efficiency and underwriting strength.
Domestic leaders like Wawanesa Mutual and Definity Financial also delivered strong profits, reflecting stable and efficient operations within Canada.

Revenue Growth Leaders

Year-over-year revenue growth was led by several standout players, with significant contributions from domestic and foreign insurers alike:

Tokio Marine Canada Ltd. demonstrated an exceptional 220.93% YoY revenue growth, increasing from $23.58 million in 2023-Q3 YTD to $75.68 million in 2024-Q3 YTD. This remarkable growth reflects strategic expansion and strong performance across its portfolio.
Sompo Canada recorded a 151.29% increase, growing from $12.16 million to $30.54 million. This underscores the company’s commitment to scaling its Canadian operations.
Zenith Insurance Company also posted a solid 63.95% YoY growth, rising from $90.64 million in 2023-Q3 YTD to $148.61 million in 2024-Q3 YTD, cementing its position as a key player in the domestic market.

These results demonstrate the sector’s adaptability and resilience, as well as the strategic efforts of these companies to expand their market share in Canada.

Sector Growth Overview

The broader industry’s YoY growth metrics remain notable:

Total Revenues: Up 16%, from $55.49 billion in 2023-Q3 YTD to $64.36 billion in 2024-Q3 YTD.
Net Profits After Taxes: Increased by 37%, from $4.66 billion to $6.39 billion.
Net Income: Surged by 41%, from $4.58 billion to $6.46 billion.

Revenue Growth Drivers

Several factors contributed to the strong YoY revenue growth:

Increased underwriting activity across key segments.
Strategic expansion by domestic and foreign insurers, as evidenced by the growth of companies like Tokio Marine Canada Ltd. and Sompo Japan Insurance Inc.
A stable regulatory environment under IFRS 17, which has enhanced transparency and operational focus.

Sector Outlook

Heading into the final quarter of 2024, the Canadian P&C insurance sector is positioned for sustained growth. With total revenues growing 16% YoY and profits rising significantly, insurers are demonstrating their ability to navigate challenges while capitalizing on new opportunities. Domestic insurers contributed $48.57 billion in revenues and $3.42 billion in net income, while foreign insurers added $15.79 billion in revenues and $3.04 billion in net income.

For more insights, explore our detailed breakdowns of the Top 20 Gross Revenue Companies and Top 20 Net Income Companies, highlighting the industry’s key players and their strategies for success.