Boston, MA -- (SBWIRE) -- 02/28/2014 -- The Canadian life insurance segment registered a review-period (2008-2012) compound annual growth rate (CAGR) of 2.3% despite a prolonged period of low interest rates, rising levels of household debt, the European debt crisis and weak economic development. Growth was partially a consequence of re-pricing and de-risking practices adopted by insurers, which eventually strengthened their capital positions and balance sheets. Growth was compounded by the strong performance of the equity market, low unemployment rates and inflation. These factors are expected to support the growth of the segment over the forecast period (2012-2017). As such, the segment is expected to increase from a value of CAD40.2 billion (US$40.2 billion) in 2012 to CAD49.0 billion (US$47.3 billion) in 2017, at a projected CAGR of 4.1%. Numerous challenges will be faced however, with persistently low interest rates over the early part of the forecast period and regulatory challenges relating to capital and solvency margins being the main issues.
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- The Canadian life segment has remained resilient to the volatility of the financial markets and uncertain economic conditions following the financial and the European debt crisis during the review period.
- The segment is open to foreign insurers and therefore has access to capital from foreign sources.
- The introduced PRPPs are expected to provide accessible and low-cost retirement savings for Canadians who do not participate in an employer's sponsored pension plan
- The three largest Canadian life insurers are among the top 15 in the world in terms of stock market capitalization.
- The Canadian life insurance segment's minimum continuing capital and surplus requirements (MCCSR) ratio stood at 212% in 2013, significantly above OSFI's requirement of 150%. This states that the segment is adequately capitalized.
This report provides a comprehensive analysis of the life insurance segment in Canada:
- It provides historical values for the Canadian life insurance segment for the report's 2008-2012 review period and forecast figures for the 2012-2017 forecast period.
- It offers a detailed analysis of the key categories in the Canadian life insurance segment, along with market forecasts until 2017.
- It covers an exhaustive list of parameters, including written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, frauds and crimes, total assets, total investment income and retentions.
- It analyses the various distribution channels for life insurance products in Canada.
- Using Porter's industry-standard "Five Forces" analysis, it details the competitive landscape in Canada for the life insurance business.
- It provides a detailed analysis of the reinsurance segment in Canada and its growth prospects.
Companies Mentioned in this Report: Manulife Financial Corporation, The Great-West Life Assurance Company, Sun Life Financial Inc., RBC Life Insurance Company, The Standard Life Assurance Company of Canada, The Empire Life Insurance Company, Co-operators Life Insurance Company, Transamerica Life Canada, BMO Life Insurance Company, The Equitable Life Insurance Company of Canada
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