Canadian Surety
Canadian Surety 2010 Issue – Market Analysis of 2009 Results
Montreal
Toronto
François Dagneau | Aon Benfield [email protected]
Charles Campisi | Aon Benfield [email protected]
Mara Torresan | Aon Benfield [email protected]
Heather McLeod | Aon Benfield [email protected]
700 de La Gauchetière West, Suite 1810 Montreal, Quebec, Canada H3B 0A6
150 King Street West, Suite 1900 Toronto, Ontario, Canada M5H 1J9
CANADIAN SURETY MARKET ANALYSIS
TABLE OF CONTENTS
Executive Summary …………………………………………………………………………… 1 Summary of Surety Results …………………………………………………………………
2
Comparative Surety Results of Top 10 Insurers …………………………………………… 3 Comparative Surety Results of Top 10 Reinsurers ………………………………………
4
GRAPHICAL EXHIBITS Comparison of Insurance vs Reinsurance Markets ……………………………………… 5 Comparison of Insurers' Results …………………………………………………………… 6 Comparison of Reinsurers' Results ………………………………………………………… 7 Comparison of Volume and Results by Region …………………………………………… 8 Individual Results - Top 15 Insurers ………………………………………………………… 9 Individual Results - Top 10 Reinsurers …………………………………………………… 10
Note: Throughout this study "Reinsurance Market" refers to the licensed Reinsurance Market and does not take into account any reinsurance written on an unlicensed basis.
Executive Summary
This is the 14th annual Surety Report produced by Aon Benfield Canada for the benefit of our key partners: our clients and reinsurers.
Data Like we have done in the past, we analyze the results of the main surety writers in Canada mainly for the period 2005 to 2009. However, beginning this year, we also track premium growth by region over a tenyear period. This report is designed to provide valuable insight on the sureties operating on a direct and reinsurance basis and is based on publicly available data for writers licensed in Canada. This report does not capture cessions to unregistered reinsurers.
Premium and Concentration Canadian industry premium continues to grow steadily. Over the past 5 years, DWP has seen a 50% growth. Over the past ten years, DWP has more than tripled (+240%). For 2009, despite slowdowns in BC and Alberta, a 5% DWP growth has been achieved in Canada (448.5 million vs 470.5 million). The largest dollar growth is seen in Ontario, which grew by 34.7 million while Atlantic Canada saw the largest percentage change in premium growing by 53%. British Columbia and Alberta have experienced a decrease of their DWP of 18.6% and 17% respectively. DWP variation by region is illustrated below:
Ontario Quebec British Columbia Alberta Manitoba & Saskatchewan Atlantic Provinces
DWP (in millions) 2008 2009 $146.4 $181.1 $92.2 $101.8 $89.0 $72.4 $69.1 $57.3 $24.7 $26.9 $17.6 $27.0
Growth $34.7 $9.6 ($16.6) ($11.8) $2.2 $9.4
+23.7% +10.4% -18.6% -17.0% +8.8% +53.0%
Ontario generates 38% of 2009 Canadian DWP, followed by Quebec with 22%, and by BC and Alberta with 15% and 12% respectively. Top 5 primary writers hold 62.5% of DWP. Top 10 hold 85.5% of DWP. The composition of the top 10 primary writers is relatively stable. While there has been some movement over the past few years in the lower half of the top 10, the top 4 positions have been held for many years by the same 4 companies.
Results Positive trend continues in Canada with an industry five-year loss ratio of 19.56%. 2009 results for primary carriers average 17.51% loss ratio without distinction as to ranking.
Reinsurance While there are many pure excess of loss reinsurance programs, proportional cessions are still very significant in Canada and tend to balance the results of the reinsurers. The average estimated volume ceded to reinsurance (based on the difference between NWP and DWP) is approximately 23% of DWP. Cession to registered reinsurers is equal to 13.7% of DWP. The percentage of cessions to registered reinsurance that is held by the Top 5 registered reinsurers is 66.5%. The Top 10 registered reinsurers hold 94%. The composition of the Top 10 reinsurers has been very stable. For the past five years, the first 6 positions have been held by the same 6 companies. For 2009, the Top 5 reinsurers fare better with 15% loss ratio than the rest of the Top 10 reinsurers who collectively have a 29% loss ratio. While reinsurers’ results for 2009 are worse than those of primary carriers by about 6.5 points, five-year loss ratios remain very comparable with just one point difference between them. Aon Benfield is proud to place the reinsurance programs of many Canadian primary surety carriers listed in this report.
CANADIAN SURETY MARKET ANALYSIS Summary of Surety Results
Direct Premiums Written ($000) INSURANCE REINSURANCE
REINSURANCE
REINSURANCE
REINSURANCE
273,194
44,253
16.20%
Overall
470,492
349,594
323,214
56,605
17.51%
60,633
53,677
15,469
28.82%
Top 10 Overall
64,577
57,381
13,816
24.08%
470,492
414,171
380,595
70,421
18.50%
Top 10
393,083
303,627
255,636
49,276
19.28%
Overall
448,643
352,619
301,720
60,082
19.91%
Top 10
54,022
49,612
7,648
15.42%
Overall
56,480
51,984
6,295
12.11%
409,099
353,704
66,377
18.77%
448,643 Top 10
333,724
249,429
236,344
42,824
18.12%
Overall
381,563
293,404
275,433
53,149
19.30%
Top 10
46,827
46,145
9,344
20.25%
Overall
49,225
49,506
9,427
19.04%
342,629
324,939
62,576
19.26%
381,563 Top 10
303,077
235,787
224,812
39,809
17.71%
Overall
340,523
260,966
247,239
40,945
16.56%
44,982
43,801
7,820
17.85%
Top 10 Overall
47,077
46,372
10,178
21.95%
340,523
308,043
293,611
51,123
17.41%
Top 10
283,011
221,830
209,207
54,994
26.29%
Overall
313,145
241,290
226,250
55,223
24.41%
39,756
40,473
9,046
22.35%
39,688
42,183
11,481
27.22%
280,978
268,433
66,704
24.85%
TOTAL
INSURANCE REINSURANCE
Earned Claims Ratio (%)
293,416
TOTAL
INSURANCE
Net Claims Incurred ($000)
402,295
TOTAL
INSURANCE
Net Premiums Earned ($000)
Top 10
TOTAL
INSURANCE
Net Premiums Written ($000)
Top 10 Overall
TOTAL
313,145
5 YEARS TOTAL (2005 TO 2009) INSURANCE REINSURANCE TOTAL
Top 10
1,686,739
1,279,069
1,186,510
228,200
19.23%
Overall
1,954,366
1,497,873
1,373,856
266,004
19.36%
242,000
230,348
47,779
20.74%
257,047 1,754,920
247,426 1,621,282
51,197 317,201
20.69% 19.56%
Top 10 Overall 1,954,366
Source: MSA Research Inc.
2 0 0 9
2 0 0 8
2 0 0 7
2 0 0 6
2 0 0 5
CANADIAN SURETY MARKET ANALYSIS Comparative Surety Results of Top Ten Insurers
2009 Market Share based on Direct WP (%)
INSURERS
1 Guarantee Company of North America
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
16.31%
76,756
55,945
52,010
3,638
6.99%
16.16%
76,010
74,608
78,307
15,571
19.88%
12.95%
60,933
44,865
43,755
9,772
22.33%
4 Aviva Canada Group (1)
9.98%
46,975
39,016
34,204
5,295
15.48%
5 Zurich Insurance Company
7.13%
33,558
12
11
-1,149
-10445%
6 Jevco Insurance Company (including Kinsgway General)
5.11%
24,055
20,325
17,797
5,468
30.72%
7 Chartis Insurance Company of Canada
4.88%
22,961
16,908
7,648
1,422
18.59%
8 Intact Financial Corporation
4.77%
22,461
17,062
17,050
313
1.84%
9 Trisura Guarantee Insurance Company
4.17%
19,608
12,690
11,338
2,398
21.15%
4.03%
18,978
11,985
11,074
1,525
13.77%
Top Ten Total
85.51%
402,295
293,416
273,194
44,253
16.20%
Insurance Market Total
100.00%
470,492
349,594
323,214
56,605
17.51%
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
2 Travelers Guarantee Company of Canada
(1)
3 AXA Canada Group
10 Western Surety Company
(1)
Direct Premiums Written ($000)
Figures indicated above include Home Warranty business.
2008 Market Share based on Direct WP (%)
INSURERS
1 Travelers Guarantee Company of Canada (1)
18.57%
83,308
88,193
80,948
19,646
24.27%
2 Guarantee Company of North America
15.58%
69,921
50,901
47,135
3,429
7.27%
3 Aviva Canada Group (1)
15.13%
67,873
58,049
30,131
4,155
13.79%
4 AXA Canada Group
13.30%
59,652
43,951
42,653
14,593
34.21%
5.24%
23,531
17,310
16,615
1,832
11.03%
6 Zurich Insurance Company
4.83%
21,651
7
8
-808
-10100.00%
7 Jevco Insurance Company (including Kingsway General)
4.81%
21,561
14,309
12,659
1,719
13.58%
8 Western Surety Company
4.06%
18,195
10,681
10,610
1,197
11.28%
9 Trisura Guarantee Insurance Company
3.41%
15,285
10,464
9,147
2,127
23.25%
2.70%
12,106
9,762
5,730
1,386
24.19%
Top Ten Total
87.62%
393,083
303,627
255,636
49,276
19.28%
Insurance Market Total
100.00%
448,643
352,619
301,720
60,082
19.91%
5 Intact Financial Corp
(formerly ING Canada)
10 Groupe La Capitale
(1)
Direct Premiums Written ($000)
Figures indicated above include Home Warranty business. Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparative Surety Results of Top Ten Insurers
2007 Market Share based on Direct WP (%)
INSURERS
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
1 Travelers Guarantee Company of Canada(1)
21.76%
83,017
83,446
77,395
21,182
27.37%
2 Guarantee Company of North America
16.00%
61,068
44,972
44,483
566
1.27%
3 AXA Canada Group
14.67%
55,982
40,663
40,524
12,556
30.98%
4 Aviva Canada Group
8.56%
32,643
26,791
25,579
1,963
7.67%
5 Zurich Insurance Company
6.26%
23,871
8
15
796
5306.67%
6 Intact Financial Corp
5.33%
20,336
15,670
15,463
260
1.68%
7 Western Surety Company
4.58%
17,475
10,298
10,210
-18
-0.18%
8 Jevco Insurance Company (including Kinsgway General)
4.47%
17,050
11,113
9,777
1,978
20.23%
2.94%
11,207
8,800
6,441
409
6.35%
2.90%
11,075
7,668
6,457
3,132
48.51%
Top Ten Total
87.46%
333,724
249,429
236,344
42,824
18.12%
Insurance Market Total
100.00%
381,563
293,404
275,433
53,149
19.30%
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
9 Northbridge Financial
(formerly ING Canada)
(1)
10 Trisura Guarantee Insurance Company
(1)
Direct Premiums Written ($000)
Figures indicated above include Home Warranty business.
2006 Market Share based on Direct WP (%)
INSURERS
1 Travelers Guarantee Company of Canada(1)
22.35%
76,090
80,615
76,979
27,160
35.28%
2 Guarantee Company of North America
18.28%
62,248
44,496
43,198
3,263
7.55%
3 AXA Canada Group
15.80%
53,796
39,954
38,805
4,095
10.55%
4 Aviva Canada Group
8.59%
29,242
24,583
23,764
482
2.03%
5.94%
20,228
15,629
15,200
1,999
13.15%
6 Western Surety Company
4.94%
16,806
10,096
9,094
231
2.54%
7 Zurich Insurance Company
4.75%
16,168
-244
-60
-110
183.33%
8 Jevco Insurance Company (including Kinsgway General)
3.61%
12,277
7,919
7,112
1,156
16.25%
9 Northbridge Financial (1)
2.49%
8,466
6,591
4,231
327
7.73%
2.28%
7,756
6,148
6,489
1,206
18.59%
Top Ten Total
89.00%
303,077
235,787
224,812
39,809
17.71%
Insurance Market Total
100.00%
340,523
260,966
247,239
40,945
16.56%
5 Intact Financial Corp
(formerly ING Canada)
10 Co-Operators & Sovereign
(1)
Direct Premiums Written ($000)
Figures indicated above include Home Warranty business. Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparative Surety Results of Top Ten Insurers
2005 Market Share based on Direct WP (%)
INSURERS
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
1 Travelers Guarantee Company of Canada(1)
25.13%
78,688
77,621
72,884
32,308
44.33%
2 Guarantee Company of North America
17.79%
55,713
42,692
40,976
-67
-0.16%
3 AXA Canada Group
15.06%
47,167
35,829
35,093
11,267
32.11%
4 Aviva Canada Group
8.71%
27,285
22,313
22,048
5,028
22.80%
6.13%
19,201
14,807
14,135
1,321
9.35%
6 Zurich Insurance Company
4.72%
14,791
255
67
740
1104.48%
7 Western Surety Company
4.60%
14,397
8,628
7,931
1,061
13.38%
8 Jevco Insurance Company (including Kinsgway General)
3.49%
10,924
7,096
6,613
1,420
21.47%
9 Co-Operators & Sovereign
2.75%
8,615
8,023
5,238
927
17.70%
1.99%
6,230
4,566
4,222
989
23.42%
Top Ten Total
90.38%
283,011
221,830
209,207
54,994
26.29%
Insurance Market Total
100.00%
313,145
241,290
226,250
55,223
24.41%
5 Intact Financial Corp
(formerly ING Canada)
10 Groupe La Capitale
(1)
Direct Premiums Written ($000)
Figures indicated above include Home Warranty business.
5 YEARS TOTAL (2005 TO 2009) Market Share based on Direct WP (%)
Direct Premiums Written ($000)
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
1 Travelers Guarantee Company of Canada(1)
20.32%
397,113
404,483
386,513
115,867
29.98%
2 Guarantee Company of North America
16.67%
325,706
239,006
227,802
10,829
4.75%
3 AXA Canada Group
14.20%
277,530
205,262
200,830
52,283
26.03%
10.44%
204,018
170,752
135,726
16,923
12.47%
5 Zurich Insurance Company
5.63%
110,039
38
41
-531
-1295%
6 Intact Financial Corp
5.41%
105,757
80,478
78,463
5,725
7.30%
7 Jevco Insurance Company (including Kingsway General)
4.39%
85,867
60,762
53,958
11,741
21.76%
8 Western Surety Company
4.39%
85,851
51,688
48,919
3,996
8.17%
9 Trisura Guarantee Insurance Company
2.56%
50,005
33,373
28,300
8,102
28.63%
2.30%
44,853
33,227
25,958
3,265
12.58%
Top Ten Total
86.31%
1,686,739
1,279,069
1,186,510
228,200
19.23%
Insurance Market Total
100.00%
1,954,366
1,497,873
1,373,856
266,004
19.36%
INSURERS
4 Aviva Canada Group
(1)
(formerly ING Canada)
10 Groupe La Capitale
(1)
Figures indicated above include Home Warranty business. Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparative Surety Results of Top Ten Reinsurers
2009 Market Share based on Net WP (%)
Net Premiums Written ($000)
Net Premiums Earned ($000)
1 Hannover Ruckversicherung AG
19.22%
12,412
11,054
-374
-3.38%
2 Westport Insurance Corp. & Swiss Re
14.40%
9,298
7,048
-85
-1.21%
3 Transatlantic Reinsurance Company
14.25%
9,200
8,309
1,014
12.20%
4 Munich Re Canada / Munich Re America
9.82%
6,339
5,661
2,937
51.88%
5 Everest Reinsurance Company
8.92%
5,760
5,054
2,182
43.17%
6 Partner Reinsurance Europe Limited
7.80%
5,040
4,696
1,439
30.64%
7 St. Paul Fire and Marine Insurance Company
6.10%
3,939
3,939
488
12.39%
8 PARIS RE
5.95%
3,845
3,819
4,769
124.88%
9 SCOR Canada Reinsurance Company
4.61%
2,975
2,243
1,798
80.16%
2.83%
1,825
1,854
1,301
70.17%
Top Ten Total
93.89%
60,633
53,677
15,469
28.82%
Reinsurance Market Total
100.00%
64,577
57,381
13,816
24.08%
Market Share based on Net WP (%)
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
1 Hannover Rückversicherung AG
20.18%
11,396
10,855
3,503
32.27%
2 Transatlantic Reinsurance Company
16.51%
9,323
8,434
333
3.95%
3 Westport Insurance Corp. / Swiss Re
13.34%
7,533
6,676
1,404
21.03%
4 Munich Re Canada / Munich Re America
11.06%
6,246
4,892
-1,796
-36.71%
5 Partner Reinsurance Europe Limited
7.82%
4,418
3,983
340
8.54%
6 Everest Reinsurance Company
7.81%
4,410
4,122
1,386
33.62%
7 St. Paul Fire and Marine Insurance Company
6.30%
3,560
3,560
488
13.71%
8 PARIS RE
6.02%
3,401
3,314
1,299
39.20%
9 SCOR Canada Reinsurance Company
3.68%
2,078
1,953
493
25.24%
2.93%
1,657
1,823
198
10.86%
Top Ten Total
95.65%
54,022
49,612
7,648
15.42%
Reinsurance Market Total
100.00%
56,480
51,984
6,295
12.11%
REINSURERS
10 Odyssey America Reinsurance Corporation
Net Claims Incurred ($000)
Earned Claims Ratio (%)
2008 REINSURERS
10 Odyssey America Reinsurance Corporation
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparative Surety Results of Top Ten Reinsurers
2007 Market Share based on Net WP (%)
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
1 Hannover Rückversicherung AG
19.53%
9,612
9,245
2,641
28.57%
2 Swiss Re Group
15.04%
7,405
8,039
-715
-8.89%
3 Transatlantic Reinsurance Company
11.52%
5,670
5,192
2,330
44.88%
4 Munich Re Canada / Munich Re America
10.51%
5,174
6,021
562
9.33%
5 Partner Reinsurance Europe Limited
9.64%
4,747
3,888
1,689
43.44%
6 Everest Reinsurance Company
9.10%
4,480
4,200
1,189
28.31%
7 PARIS RE
5.80%
2,854
2,665
2,503
93.92%
8 St. Paul Fire and Marine Insurance Company
5.28%
2,600
2,600
-2,698
-103.77%
9 Odyssey America Reinsurance Corporation
5.04%
2,481
2,653
1,558
58.73%
3.66%
1,804
1,642
285
17.36%
Top Ten Total
95.13%
46,827
46,145
9,344
20.25%
Reinsurance Market Total
100.00%
49,225
49,506
9,427
19.04%
Market Share based on Net WP (%)
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
1 Swiss Re Group
21.91%
10,313
10,422
1,160
11.13%
2 Hannover Rückversicherung AG
16.35%
7,699
7,510
1,292
17.20%
3 Munich Re Canada / Munich Re America
11.73%
5,522
5,300
500
9.43%
4 Everest Reinsurance Company
8.31%
3,914
3,750
-834
-22.24%
5 Partner Reinsurance Europe Limited
8.19%
3,854
3,857
119
3.09%
6 Transatlantic Reinsurance Company
7.55%
3,553
3,229
-44
-1.36%
7 Endurance Reinsurance Corporation of America
6.21%
2,925
2,873
569
19.81%
8 St. Paul Fire and Marine Insurance Company
5.31%
2,502
2,502
2,230
89.13%
9 PARIS RE
5.00%
2,354
1,961
295
15.04%
4.98%
2,346
2,397
2,533
105.67%
Top Ten Total
95.55%
44,982
43,801
7,820
17.85%
Reinsurance Market Total
100.00%
47,077
46,372
10,178
21.95%
REINSURERS
10 SCOR Canada Reinsurance Company
2006 REINSURERS
10 Odyssey America Reinsurance Corporation
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparative Surety Results of Top Ten Reinsurers
2005 Market Share based on Net WP (%)
Net Premiums Written ($000)
Net Premiums Earned ($000)
1 Swiss Re & Employers Re
26.24%
10,414
10,824
-139
-1.28%
2 Hannover Rückversicherung AG
14.86%
5,898
6,027
-2,868
-47.59%
3 Munich Re Canada / Munich Re America
13.01%
5,164
5,625
6,805
120.98%
4 Partner Reinsurance Europe Limited
9.46%
3,754
3,928
523
13.31%
5 Everest Reinsurance Company
8.82%
3,502
3,339
268
8.03%
6 Transatlantic Reinsurance Company
8.24%
3,270
3,409
-11
-0.32%
7 St. Paul Fire and Marine Insurance Company
6.30%
2,500
2,500
2,453
98.12%
8 Endurance Reinsurance Corporation of America
6.15%
2,440
1,349
761
56.41%
9 Odyssey America Reinsurance Corporation
4.24%
1,684
2,301
644
27.99%
2.85%
1,130
1,171
610
52.09%
Top Ten Total
100.17%
39,756
40,473
9,046
22.35%
Reinsurance Market Total
100.00%
39,688
42,183
11,481
27.22%
REINSURERS
10 PARIS RE
Net Claims Incurred ($000)
Earned Claims Ratio (%)
Note: XL Re America have declared -2.635 million which results in the top ten total being higher than the overall total.
5 YEARS TOTAL (2005 TO 2009) Market Share based on Net WP (%)
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
1 Hannover Rückversicherung AG
18.29%
47,017
44,691
4,194
9.38%
2 Swiss Re Group
17.49%
44,963
43,009
1,625
3.78%
3 Transatlantic Reinsurance Company
12.07%
31,016
28,573
3,622
12.68%
4 Munich Re Canada / Munich Re America
11.07%
28,445
27,499
9,008
32.76%
5 Everest Reinsurance Company
8.58%
22,066
20,465
4,191
20.48%
6 Partner Reinsurance Europe Limited
8.49%
21,813
20,352
4,110
20.19%
7 St. Paul Fire and Marine Insurance Company
5.87%
15,101
15,101
2,961
19.61%
8 PARIS RE
5.28%
13,584
12,930
9,476
73.29%
9 Odyssey America Reinsurance Corporation
3.89%
9,993
11,028
6,234
56.53%
REINSURERS
10 SCOR Canada Reinsurance Company 17 Top Ten Total
3.11%
8,002
6,700
2,358
35.19%
94.15%
242,000
230,348
47,779
20.74%
Reinsurance Market Total
100.00%
257,047
247,426
51,197
20.69%
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparison of Insurance vs Reinsurance Markets
Direct Premiums Written
Net Premiums Written Insurance
500
Reinsurance
in millions
400
2009
2005 300
16%
14% 200 100 0 2005
2006
2007
2008
Net Loss Ratios - Overall Market Insurers
Reinsurers
84%
86%
2009
Net Loss Ratios - Top 5 vs Others Top 5 Insurers Other Insurers
Market
30%
Top 5 Reinsurers Other Reinsurers
60%
25%
40%
20% 20%
15% 10% 2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS Comparison of Insurers Results
2009 Market Share (DWP)
2009 Direct Written Premium ($) GCNA
GCNA
Travelers
AXA Canada
Aviva Canada
Zurich
Others
Travelers 16%
AXA Canada 38%
Aviva Canada
16%
Zurich Others
7% 0
20
40
60
10%
13%
80 100 120 140 160 180 200 in millions
Net Loss Ratios 50% 40% 30%
GCNA
20%
Travelers Guarantee
10%
AXA Canada
0% -10%
Aviva Canada
-20%
Zurich (1)
-30% -40% 2005
2006
2007
2008
2009
(1) Zurich loss ratios are on a gross basis
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS Comparison of Reinsurers Results
2009 Market Share (NWP)
2009 Net Written Premium ($)
Hannover Re Munich Re
Hannover Re Westport / Swiss
Westport / Swiss Everest Re
Transatlantic Re
Transatlantic Re Others
19% 34%
Munich Re Everest Re
14%
Others 9% 0
5
10
15
20
25
14%
10%
in millions
Net Loss Ratios 140% 120% 100% 80% 60% 40% 20% 0% -20% -40% -60% 2005
Hannover Re Westport / Swiss Transatlantic Re Munich Re Everest Re
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
Comparison of Volume and Results by Region
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - CANADA
2009 Direct Results - Major Regions Province Ontario Quebec British Columbia Alberta Manitoba / Saskatchewan Atlantic Provinces Others, incl. out of Canada CANADA
Written Premium 181,149 101,767 72,421 57,346 26,892 26,989 4,088 470,652
2009 DWP Share - Major Regions
Earned Premium 147,898 97,479 64,752 58,576 25,607 21,615 8,796 424,723
Incurred Losses 11,515 14,411 13,555 16,280 (418) (929) 460 54,874
Loss Ratio 8% 15% 21% 28% -2% -4% 5% 13%
6%
6% 1%
12%
38%
15% 22% Ontario British Columbia Manitoba / Saskatchewan Others, incl. out of Canada
Quebec Alberta Atlantic Provinces
10-Year Growth 400%
Ontario
Growth over 2000 2000 = 100%
350%
Quebec 300%
British Columbia
250%
Alberta Manitoba / Saskatchewan
200%
Atlantic Provinces Canada
150% 100% 50% 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - CANADA Top 5 Writers
16% 38%
7%
13%
10%
GCNA AXA Canada Zurich
5-Year DWP & Results - Travelers Market Share 16% 100%
90 80 70 60 50 40 30 20 10 0
80% 60%
in millions
16%
5-Year DWP & Results - GCNA Market Share 16%
Travelers Guarantee Aviva Canada Others
40% 20% 0% -20% -40% 2005
2006 DWP
2007
2008
100%
90 80 70 60 50 40 30 20 10 0
80% 60%
in millions
2009 DWP Share - Top 5 Writers
2009
40% 20% 0% -20% -40% 2005
Direct Loss Ratio
2006 DWP
2007
2008
2009
Direct Loss Ratio
5-Year DWP & Results - AXA Canada
5-Year DWP & Results - Aviva Canada
5-Year DWP & Results - Zurich
Market Share 13%
Market Share 10%
Market Share 7%
in millions
80
60%
60
40%
40
20% 0%
20 0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
100
100% 60%
60
40%
40
20%
-20%
20
-40%
0
0% -20% -40% 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
80%
80
80%
80
100%
100
in millions
80%
in millions
100%
100
Note: increased premiums in 2008 are due in part to one-time portfolio transfer for Home Warranty business. (source Aviva Canada)
60%
60
40%
40
20% 0%
20
-20%
0
-40% 2005
2006 DWP
2007
2008
2009
Direct Loss Ratio
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - ONTARIO
5-Year Progression of Direct Results
10-Year Growth 100%
200
300%
175 in millions
150 125
60%
100 40%
75 50
20%
25 0%
0 2005
2006
2007 DWP
2008
200% 150% 100% 50%
Direct Loss ratio
Region
Canada
2009 DWP Share - Top 5 Writers
Written Premium 35,471
Earned Premium 32,986
Incurred Losses 5,845
Loss Ratio 18%
GCNA
26,110
24,599
(716)
-3%
Aviva Insurance
22,314
20,342
1,854
9%
Chartis Insurance
18,784
2,754
1,206
44%
Zurich Insurance
18,418
16,124
(963)
-6%
Others
60,052
51,093
4,289
8%
MARKET
181,149
147,898
11,515
8%
Travelers Guarantee
250%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
2009
2009 Direct Results - Top 5 Writers Company
Growth over 2000 2000 = 100%
80%
20%
34%
14% 10%
10%
Travelers Guarantee Aviva Insurance Zurich Insurance
12% GCNA Chartis Insurance Others
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - ONTARIO Top 5 Writers
5-Year DWP & Results - Travelers
5-Year DWP & Results - GCNA
Market Share 24%
Market Share 18%
20% in millions
34%
14% 10%
12%
10%
Travelers Guarantee
GCNA
Aviva Insurance
Chartis Insurance
Zurich Insurance
Others
100%
40 35 30 25 20 15 10 5 0
75% 50% 25% 0% -25%
in millions
2009 DWP Share - Top 5 Writers
-50% -75% 2005
2006 DWP
2007
2008
100%
40 35 30 25 20 15 10 5 0
2009
75% 50% 25% 0% -25% -50% -75% 2005
Direct Loss Ratio
2006 DWP
2007
2008
2009
Direct Loss Ratio
5-Year DWP & Results - Chartis
5-Year DWP & Results - Zurich
Market Share 15%
Market Share 13%
Market Share 13%
75% 50% 25% 0% -25% -50% -75% 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
100%
40 35 30 25 20 15 10 5 0
75% 50% 25% 0% -25% -50% -75% 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
in millions
100%
40 35 30 25 20 15 10 5 0
in millions
in millions
5-Year DWP & Results - Aviva Insurance
100%
40 35 30 25 20 15 10 5 0
75% 50% 25% 0% -25% -50% -75% 2005
2006 DWP
2007
2008
2009
Direct Loss Ratio
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - QUEBEC
10-Year Growth
120
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
in millions
100 80 60 40 20 0 2005
2006
2007 DWP
2008
200% 150% 100% 50% 2001
2002
Direct Loss ratio
2004
2005
2006
2007
2008
2009
Canada
2009 DWP Share - Top 5 Writers
Earned Premium 25,835
Incurred Losses 3,659
Loss Ratio 14%
Jevco
15,923
15,420
5,444
35%
GCNA
14,588
14,201
235
2%
Intact
12,096
11,827
598
5%
Travelers Guarantee
10,767
10,476
1,291
12%
Others
22,527
19,720
3,188
16%
MARKET
101,767
14,415
15%
97,479
2003
Region
Written Premium 25,866
AXA Assurances
250%
2000
2009
2009 Direct Results - Top 5 Writers Company
300% Growth over 2000 2000 = 100%
5-Year Progression of Direct Results
22%
25%
11% 12% AXA Assurances GCNA Travelers Guarantee
16% 14% Jevco Intact Others
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - QUEBEC Top 5 Writers
22%
5-Year DWP & Results - AXA Assurances
5-Year DWP & Results - Jevco
Market Share 25%
Market Share 16%
in millions
25%
11% 16%
12%
14%
30
100%
30
100%
25
75%
25
75%
20
50%
15 25%
10 5
AXA Assurances GCNA Travelers Guarantee
0
Jevco Intact Others
2005
2006 DWP
2007
2008
in millions
2009 DWP Share - Top 5 Writers
20
50%
15 25%
10
0%
5
-25%
0
2009
0% -25% 2005
Direct Loss Ratio
2006 DWP
2007
2008
2009
Direct Loss Ratio
5-Year DWP & Results - Intact
5-Year DWP & Results - Travelers
Market Share 14%
Market Share 12%
Market Share 12%
100%
30
100%
30
100%
25
75%
25
75%
25
75%
20
50%
15 25%
10 5 0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
20
50%
15 25%
10
0%
5
-25%
0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
in millions
30
in millions
in millions
5-Year DWP & Results - GCNA
20
50%
15 25%
10
0%
5
-25%
0
0% -25% 2005
2006 DWP
2007
2008
2009
Direct Loss Ratio
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - BRITISH COLUMBIA
10-Year Growth 100%
100 90 80 70 60 50 40 30 20 10 0
300% 80% 60% 40% 20% 0% 2005
2006
2007 DWP
2008
100% 50% 2001
2002
Loss Ratio 14%
Travelers Guarantee
12,719
18,754
9,330
50%
Aviva Insurance
10,889
10,416
2,389
23%
Zurich Insurance
9,953
1,943
(11)
-1%
GCNA
7,448
6,259
(1)
0%
Others
15,150
13,398
(127)
-1%
13,555
21%
64,752
2003
2004
2005
2006
2007
2008
2009
Canada
2009 DWP Share - Top 5 Writers Incurred Losses 1,975
72,421
150%
Region
Earned Premium 13,982
MARKET
200%
Direct Loss ratio
Written Premium 16,262
AXA Pacific
250%
2000
2009
2009 Direct Results - Top 5 Writers Company
Growth over 2000 2000 = 100%
in millions
5-Year Progression of Direct Results
21%
22%
10% 14% AXA Pacific Aviva Insurance GCNA
18% 15% Travelers Guarantee Zurich Insurance Others
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - BRITISH COLUMBIA Top 5 Writers
5-Year DWP & Results - Axa Pacific
5-Year DWP & Results - Travelers
Market Share 22%
Market Share 18%
10%
in millions
22%
21%
18% 14%
15%
30
100%
30
100%
25
75%
25
75%
20
50%
15 25%
10 5
AXA Pacific Aviva Insurance GCNA
0
Travelers Guarantee Zurich Insurance Others
2005
2006 DWP
2007
2008
in millions
2009 DWP Share - Top 5 Writers
20
50%
15 25%
10
0%
5
-25%
0
2009
0% -25% 2005
Direct Loss Ratio
2006 DWP
2007
2008
2009
Direct Loss Ratio
5-Year DWP & Results - Aviva Insurance
5-Year DWP & Results - Zurich
5-Year DWP & Results - GCNA
Market Share 15%
Market Share 14%
Market Share 10%
100%
25
75%
20
50%
15
25%
10 5 0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
30
100%
30
100%
25
75%
25
75%
20
50%
15 25%
10
0%
5
-25%
0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
in millions
30
in millions
in millions
Note: increased premiums in 2008 are due in part to one-time portfolio transfer for Home Warranty business. (source Aviva Canada)
20
50%
15 25%
10
0%
5
-25%
0
0% -25% 2005
2006 DWP
2007
2008
2009
Direct Loss Ratio
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - ALBERTA
5-Year Progression of Direct Results
10-Year Growth 100%
80
400%
70 in millions
60 50
60%
40 40%
30 20
20%
10 0%
0 2005
2006
2007 DWP
2008
Loss Ratio 32%
AXA Pacific
9,732
10,163
7,756
76%
Travelers Guarantee
8,257
9,648
(562)
-6%
Aviva Insurance
4,932
5,600
1,722
31%
Western Surety
4,756
4,646
942
20%
13,354
13,193
1,475
11%
16,280
28%
57,346
200% 150% 100% 50% 2001
2002
58,576
2003
2004
2005
2006
2007
2008
2009
Canada
2009 DWP Share - Top 5 Writers Incurred Losses 4,947
MARKET
250%
Region
Earned Premium 15,326
Others
300%
Direct Loss ratio
Written Premium 16,315
GCNA
350%
2000
2009
2009 Direct Results - Top 5 Writers Company
Growth over 2000 2000 = 100%
80%
23%
29%
8% 9%
14%
GCNA Travelers Guarantee Western Surety
17% AXA Pacific Aviva Insurance Others
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - ALBERTA Top 5 Writers
5-Year DWP & Results - GCNA
5-Year DWP & Results - AXA Pacific
Market Share 29%
Market Share 17% 100%
20 23%
in millions
29%
8% 9%
17%
14%
GCNA Travelers Guarantee Western Surety
80%
15
60% 40%
10
20%
5
0% -20%
0
AXA Pacific Aviva Insurance Others
2005
2006 DWP
2007
2008
100%
20
in millions
2009 DWP Share - Top 5 Writers
80%
15
60% 40%
10
20%
5
0% -20%
0
2009
2005
Direct Loss Ratio
2006 DWP
2007
2008
2009
Direct Loss Ratio
5-Year DWP & Results - Travelers
5-Year DWP & Results - Aviva Insurance
5-Year DWP & Results - Western Surety
Market Share 14%
Market Share 9%
Market Share 8%
60% 40%
10
20%
5
0% -20%
0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
in millions
in millions
80%
15
80%
15
60% 40%
10
20%
5
0% -20%
0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
100%
20
100%
20
in millions
100%
20
Note: increased premiums in 2008 are due in part to one-time portfolio transfer for Home Warranty business. (source Aviva Canada)
80%
15
60% 40%
10
20%
5
0% -20%
0 2005
2006 DWP
2007
2008
2009
Direct Loss Ratio
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - MANITOBA & SASKATCHEWAN
10-Year Growth
30
100%
25
80%
20
60%
15
40%
10
20%
5
0%
0
-20% 2005
2006
2007 DWP
2008
200% 150% 100% 50% 2001
2002
2003
Direct Loss ratio
2004
Region
2005
2006
2007
2008
2009
Canada
2009 DWP Share - Top 5 Writers
Written Premium 5,680
Earned Premium 5,328
Incurred Losses (74)
Loss Ratio -1%
GCNA
4,659
4,022
616
15%
Travelers Guarantee
4,325
3,978
564
14%
Western Surety
250%
2000
2009
2009 Direct Results - Top 5 Writers Company
300% Growth over 2000 2000 = 100%
in millions
5-Year Progression of Direct Results
AXA Pacific
4,304
4,462
(1,615)
-36%
SGI CANADA
3,114
3,027
(64)
-2%
Others
4,810
4,790
155
3%
MARKET
26,892
25,607
(418)
-2%
18%
21%
12% 17% 16% Western Surety Travelers Guarantee SGI CANADA
16% GCNA AXA Pacific Others
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - MANITOBA & SASKATCHEWAN Top 5 Writers
5-Year DWP & Results - Western Surety
5-Year DWP & Results - GCNA
Market Share 21%
Market Share 17% 100%
10 18%
21% in millions
17% 16%
80%
8
12%
16%
60%
6
40%
4
20% 0%
2 Western Surety Travelers Guarantee SGI CANADA
2006 DWP
2007
2008
60%
6
40%
4
20% 0%
2
-20%
0
-40% 2005
80%
8
-20%
0
GCNA AXA Pacific Others
100%
10
in millions
2009 DWP Share - Top 5 Writers
2009
-40% 2005
Direct Loss Ratio
2006 DWP
2007
2008
2009
Direct Loss Ratio
5-Year DWP & Results - Travelers
5-Year DWP & Results - AXA Pacific
5-Year DWP & Results - SGI Canada
Market Share 16%
Market Share 16%
Market Share 12%
60%
6
40%
4
20% 0%
2
-20%
0
-40% 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
60%
6
40%
4
20% 0%
2
-20%
0
-40% 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
100%
10
80%
8 in millions
in millions
8
100%
10
80%
80%
8 in millions
100%
10
60%
6
40%
4
20% 0%
2
-20%
0
-40% 2005
2006 DWP
2007
2008
2009
Direct Loss Ratio
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - ATLANTIC PROVINCES
5-Year Progression of Direct Results
10-Year Growth
30
25% 300%
20 15
0%
10 5 0
-25% 2005
2006
2007 DWP
2008
200% 150% 100% 50% 2001
2002
Direct Loss ratio
2003
2004
Region
2005
2006
2007
2008
2009
Canada
2009 DWP Share - Top 5 Writers
Written Premium 6,867
Earned Premium 5,774
Incurred Losses 167
Loss Ratio 3%
Aviva Insurance
4,871
3,922
(1,324)
-34%
Travelers Guarantee
3,653
3,070
715
23%
Western Surety
3,218
2,595
586
23%
Intact Insurance
2,596
2,628
(1,241)
-47%
Others
5,784
3,626
168
5%
MARKET
26,989
21,615
(929)
-4%
GCNA
250%
2000
2009
2009 Direct Results - Top 5 Writers Company
Growth over 2000 2000 = 100%
in millions
25
21%
25%
10% 12%
18% 14%
GCNA Travelers Guarantee Intact Insurance
Aviva Insurance Western Surety Others
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - ATLANTIC PROVINCES Top 5 Writers
21%
5-Year DWP & Results - GCNA
5-Year DWP & Results - Aviva Insurance
Market Share 25%
Market Share 18%
in millions
25%
10% 18%
12%
14%
10
100%
10
8
80%
8
60%
6
40% 4
20%
2 GCNA Travelers Guarantee Intact Insurance
0
Aviva Insurance Western Surety Others
2005
2006 DWP
2007
2008
in millions
2009 DWP Share - Top 5 Writers
100% 80% 60% 40% 20% 0% -20% -40% -60%
6 4
0%
2
-20%
0
2009
2005
Direct Loss Ratio
2006 DWP
2007
2008
2009
Direct Loss Ratio
5-Year DWP & Results - Travelers
5-Year DWP & Results - Western Surety
5-Year DWP & Results - Intact
Market Share 14%
Market Share 12%
Market Share 10%
in millions
8 6 4 2 0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
10
100% 80% 60% 40% 20% 0% -20% -40% -60%
8 6 4 2 0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
10
100% 80% 60% 40% 20% 0% -20% -40% -60%
8 in millions
100% 80% 60% 40% 20% 0% -20% -40% -60%
in millions
10
6 4 2 0 2005
2006 DWP
2007
2008
2009
Direct Loss Ratio
Source: MSA Research Inc.
Individual Results – Top 15 Insurers
CANADIAN SURETY MARKET ANALYSIS Guarantee Company of North America
in thousands
Direct Written Premium
Market Share (based on DWP)
90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0
GCNA
Others
2005 27.2%
2005
2006
2007
2008
GCNA
2009 17.8%
16.3%
37.5%
46.2%
55.0%
2009
Direct Written Premium Growth
Growth over 2005 2005 = 100%
Top 5 less GCNA
Net Loss Ratio GCNA
Insurance Market
160% 150% 140% 130% 120% 110% 100% 90%
Insurance Market
30% 20% 10%
2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Travelers Guarantee Company of Canada
Direct Written Premium
Market Share (based on DWP)
100,000
Travelers Guarantee
Top 5 less Travelers Guarantee
Others
in thousands
80,000
2005
60,000
2009
27.2%
40,000
16.2%
37.5%
25.1%
20,000 0 2005
2006
2007
2008
47.7%
2009
46.4%
Direct Written Premium Growth
Growth over 2005 2005 = 100%
Travelers Guarantee
Net Loss Ratio
Insurance Market
160% 150% 140% 130% 120% 110% 100% 90%
Travelers Guarantee
Insurance Market
50%
25%
2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS AXA Canada Group
Direct Written Premium
Market Share (based on DWP)
70,000
AXA
Top 5 less AXA
Others
in thousands
60,000 50,000
2005
2009
40,000 27.2%
30,000
15.1%
13.0%
37.5%
20,000 10,000 0 2005
2006
2007
2008
Direct Written Premium Growth
Growth over 2005 2005 = 100%
AXA
49.6%
57.8%
2009
Net Loss Ratio
Insurance Market
AXA
160% 150%
Insurance Market
40% 30%
140% 130% 120% 110%
20% 10%
100% 90% 2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Aviva Canada Group
in thousands
Direct Written Premium
Market Share (based on DWP)
80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0
Aviva
Others
2005
2006
2007
2008
Net Loss Ratio
Insurance Market
Aviva
270%
30%
240%
25%
210%
20%
180%
15%
150%
10%
120%
5%
90% 2006
2007
2008
52.6%
64.1%
Direct Written Premium Growth
2005
10.0%
37.5%
2009
Note: increased premiums in 2008 are due in part to one-time portfolio transfer for Home Warranty business. (source Aviva Canada)
Aviva
2009 8.7%
27.2%
2005
Growth over 2005 2005 = 100%
Top 5 less Aviva
2009
0% 2005
2006
Insurance Market
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Zurich Insurance Company
Direct Written Premium
Market Share (based on DWP)
40,000
Zurich
in thousands
35,000
Top 5 less Zurich
Top 5
Others
30,000
2005
25,000 20,000
2009 4.7%
22.4%
7.1%
37.5%
15,000 10,000 5,000 0 2005
2006
2007
2008
2009
Direct Written Premium Growth
Growth over 2005 2005 = 100%
Zurich
55.4%
72.8%
Gross Loss Ratio
Insurance Market
Zurich
240%
30%
210%
20%
180%
10%
150%
0%
Insurance Market
-10%
120%
-20%
90% 2005
2006
2007
2008
2009
-30% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Jevco Insurance Company (including Kingsway General)
Direct Written Premium
Market Share (based on DWP)
30,000
Jevco
Top 5
Others
in thousands
25,000 20,000
2005
15,000
23.7%
2009 3.5%
5.1%
32.4%
10,000 5,000 0 2005
2006
2007
2008
Direct Written Premium Growth
Growth over 2005 2005 = 100%
Jevco
Net Loss Ratio
Insurance Market
Jevco
240% 215% 190% 165% 140% 115% 90% 2005
2006
2007
2008
62.5%
72.8%
2009
2009
35% 30% 25% 20% 15% 10% 5% 0% 2005
2006
Insurance Market
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Chartis Insurance Company of Canada (including former AIG Group companies American Home and Commerce& Industry)
Direct Written Premium
Market Share (based on DWP)
25,000
Chartis
Top 5
Others
in thousands
20,000
2005
15,000 26.3%
10,000
2009 0.9%
4.9%
32.6%
5,000 0 2005
2006
2007
2008
Direct Written Premium Growth
Growth over 2005 2005 = 100%
Chartis
Net Loss Ratio
Insurance Market
Chartis
975% 825% 675% 525% 375% 225% 75% 2005
2006
2007
2008
62.5%
72.8%
2009
2009
30% 20% 10% 0% -10% -20% -30% -40% 2005
2006
Insurance Market
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Intact Financial Corporation (formerly ING Canada)
Direct Written Premium
Market Share (based on DWP)
25,000
Intact
Top 5 less Intact
Top 5
Others
in thousands
20,000
2005
15,000
6.1%
27.2%
10,000
2009 4.8%
32.7%
5,000 0 2005
2006
2007
2008
Net Loss Ratio
Direct Written Premium Growth
Growth over 2005 2005 = 100%
Intact
62.5%
66.7%
2009
Intact
Insurance Market
Insurance Market
30%
160% 150% 140% 130% 120% 110% 100% 90%
25% 20% 15% 10% 5% 2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Trisura Guarantee Insurance Company
Direct Written Premium
Market Share (based on DWP)
22,500
Trisura
in thousands
20,000 17,500 15,000 12,500
Top 5
Others
2006 25.6%
10,000 7,500
2009 3.4%
4.2%
33.3%
5,000 2,500 0 2006
2007
2008
Direct Written Premium Growth
Growth over 2006 2006 = 100%
Trisura
Net Loss Ratio Trisura
Insurance Market
525% 450% 375% 300% 225% 150% 75% 2006
2007
2008
62.5%
71.0%
2009
2009
Insurance Market
60% 50% 40% 30% 20% 10% 0% -10% 2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Western Surety Company
Direct Written Premium
Market Share (based on DWP)
in thousands
22,500
Western Surety
20,000 17,500 15,000 12,500 10,000 7,500 5,000 2,500 0
Others
2005
2006
2007
2008
4.0%
33.4%
62.5%
72.8%
2009
Direct Written Premium Growth Western Surety
2009 4.6%
22.6%
2005
Net Loss Ratio Western Surety
Insurance Market
Insurance Market
30%
160% Growth over 2005 2005 = 100%
Top 5
140%
20%
120% 10%
100% 80% 2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Groupe La Capitale
Direct Written Premium
Market Share (based on DWP)
14,000
Groupe La Capitale
Top 5
Others
in thousands
12,000 10,000
2005
8,000 25.2%
6,000
2009 2.0%
2.4%
35.0%
4,000 2,000 0 2005
2006
2007
2008
2009
Direct Written Premium Growth
Growth over 2005 2005 = 100%
Groupe La Capitale
62.5%
72.8%
Net Loss Ratio
Insurance Market
Groupe La Capitale
Insurance Market
30%
225% 200% 175% 150% 125% 100% 75%
25% 20% 15% 10% 5% 2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Chubb Canada Group
Direct Written Premium
Market Share (based on DWP)
12,000
Chubb
Top 5
Others
in thousands
10,000 8,000
2005
6,000
25.3%
2009 1.9%
2.0%
35.4%
4,000 2,000 0 2005
2006
2007
2008
2009
Direct Written Premium Growth Chubb
Net Loss Ratio
Insurance Market
Chubb
Insurance Market
30%
180% Growth over 2005 2005 = 100%
62.5%
72.8%
160% 20%
140% 120%
10%
100% 80% 2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Industrial Alliance Pacific General Insurance Corp.
Direct Written Premium
Market Share (based on DWP)
10,000
IAP
Top 5
Others
in thousands
8,000
2007
6,000 32.1%
4,000
2009 0.6%
1.8%
35.7%
2,000 0 2007
2008
2009
Direct Written Premium Growth IAP
Growth over 2007 2007 = 100%
62.5%
67.3%
Net Loss Ratio
Insurance Market
IAP
Insurance Market
100%
400% 350% 300% 250% 200% 150% 100% 50%
80% 60% 40% 20% 2007
2008
2009
0% 2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Co-Operators General & Sovereign
Direct Written Premium
Market Share (based on DWP)
10,000
Co-Op Group
Top 5
Others
in thousands
8,000
2005
6,000 24.4%
4,000
2009 2.8%
1.7%
35.7%
2,000 0 2005
2006
2007
2008
2009
Direct Written Premium Growth Co-Op Group
Net Loss Ratio
Insurance Market
Co-Op Group
175% Growth over 2005 2005 = 100%
62.5%
72.8%
60% 50% 40% 30% 20% 10% 0% 2005
150% 125% 100% 75% 2005
2006
2007
2008
2009
2006
2007
Insurance Market
2008
2009
Note: due to an incorrect internal allocation by LOB of IBNR, ULAE and discounting, 2009 loss ratio is overstated by approximately 1 million. (source: Sovereign General).
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Northbridge Financial Group
Direct Written Premium
Market Share (based on DWP)
12,000
Northbridge
Top 5
Others
in thousands
10,000 8,000
2005
6,000
25.4%
2009 1.7%
1.7%
35.8%
4,000 2,000 0 2005
2006
2007
2008
2009
Direct Written Premium Growth Northbridge
Growth over 2005 2005 = 100%
62.5%
72.8%
Net Loss Ratio
Insurance Market
Northbridge
225%
30%
200%
20%
175%
10%
150%
0%
125%
-10%
100%
Insurance Market
-20%
75% 2005
2006
2007
2008
2009
-30% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
Individual Results – Top 10 Reinsurers
CANADIAN SURETY MARKET ANALYSIS Hannover Rückversicherung-AG
Net Written Premium
Market Share (based on reinsurance NWP)
14,000
Hannover Re
in thousands
12,000 10,000
Top 5 less Hannover Re
2009
2005
8,000 27.6%
6,000
Others
14.9%
33.4%
19.2%
4,000 2,000 0 2005
2006
2007
2008
47.4%
57.5%
2009
Net Written Premium Growth Hannover Re
Net Loss Ratio
Reinsurance Market
Hannover Re 50%
250% Growth over 2005 2005 = 100%
Reinsurance Market
25%
200%
0% 150%
-25%
100%
-50%
50% 2005
2006
2007
2008
2009
-75% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS Westport Insurance Corporation / Swiss Reinsurance Company
Net Written Premium
Market Share (based on reinsurance NWP)
12,500
Westport
Top 5 less Westport
Others
in thousands
10,000
2009
2005
7,500 27.6%
5,000
14.4%
33.4%
26.2%
2,500 0 2005
2006
2007
2008
52.2%
46.2%
2009
Net Written Premium Growth Westport
Net Loss Ratio
Reinsurance Market
Westport
Growth over 2005 2005 = 100%
175%
Reinsurance Market
50%
150% 125%
25%
100% 75%
0%
50% 25% 2005
2006
2007
2008
2009
-25% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS Transatlantic Reinsurance Company
Net Written Premium
Market Share (based on reinsurance NWP)
10,000
Transatlantic Re
Top 5 less Transatlantic Re
Top 5
Others
in thousands
8,000
2009
2005
6,000
8.2%
19.4%
4,000
14.2%
33.4%
2,000 0 2005
2006
2007
2008
Net Written Premium Growth Transatlantic Re
Net Loss Ratio Transatlantic Re
Reinsurance Market
Reinsurance Market
50%
300% Growth over 2005 2005 = 100%
52.4%
72.4%
2009
250% 25%
200% 150%
0%
100% 50% 2005
2006
2007
2008
2009
-25% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS Munich Re Canada / Munich Re America
Net Written Premium
Market Share (based on reinsurance NWP)
7,000
Munich Re
Top 5 less Munich Re
Others
in thousands
6,000 5,000
2009
2005
4,000
13.0%
27.6%
3,000
9.8%
33.4%
2,000 1,000 0 2005
2006
2007
2008
56.8%
59.4%
2009
Net Written Premium Growth
Growth over 2005 2005 = 100%
Munich Re
Net Loss Ratio Munich Re
Reinsurance Market
170%
150%
150%
100%
130%
Reinsurance Market
50%
110%
0%
90% 70% 2005
2006
2007
2008
2009
-50% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS Everest Reinsurance Company
Market Share (based on reinsurance NWP)
Net Written Premium 7,000
Everest Re
Top 5 less Everest Re
Others
in thousands
6,000 5,000
2009
2005
4,000
8.8%
27.6%
3,000
8.9%
33.4%
2,000 1,000 0 2005
2006
2007
2008
Net Written Premium Growth
Growth over 2005 2005 = 100%
Everest Re
57.7%
63.6%
2009
Net Loss Ratio
Reinsurance Market
Everest Re
170%
60%
150%
45%
Reinsurance Market
30%
130%
15%
110%
0%
90%
-15%
70% 2005
2006
2007
2008
2009
-30% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS Partner Reinsurance Europe Limited
Net Written Premium
Market Share (based on reinsurance NWP)
6,000
PartnerRe
Top 5 less PartnerRe
Top 5
Others
in thousands
5,000 4,000
2009
2005
3,000
9.5%
27.6%
7.8%
25.6%
2,000 1,000 0 2005
2006
2007
2008
Net Loss Ratio
Net Written Premium Growth
Growth over 2005 2005 = 100%
PartnerRe
PartnerRe
Reinsurance Market
180%
50%
160%
40%
140%
30%
120%
20%
100%
10%
80% 2005
2006
2007
2008
66.6%
62.9%
2009
2009
0% 2005
2006
Reinsurance Market
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS St-Paul Fire & Marine Insurance Company
Net Written Premium
Market Share (based on reinsurance NWP)
5,000
St-Paul
Top 5
Others
in thousands
4,000
2009
2005
3,000
6.3%
21.3%
2,000
6.1%
27.3%
1,000 0 2005
2006
2007
2008
72.4%
2009
66.6%
Net Written Premium Growth
Growth over 2005 2005 = 100%
St-Paul
Net Loss Ratio
Reinsurance Market
St-Paul
180%
150%
160%
100%
Reinsurance Market
50%
140%
0%
120%
-50%
100%
-100%
80% 2005
2006
2007
2008
2009
-150% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS PARIS RE
in thousands
Net Written Premium
Market Share (based on reinsurance NWP)
4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0
PARIS Re
Others
2009
2005 24.8%
2005
2006
2007
2008
2.8%
PARIS Re
2006
PARIS Re
Reinsurance Market
2007
2008
66.6%
Net Loss Ratio
400% 350% 300% 250% 200% 150% 100% 50% 2005
6.0%
27.4%
72.4%
2009
Net Written Premium Growth
Growth over 2005 2005 = 100%
Top 5
2009
140% 120% 100% 80% 60% 40% 20% 0% 2005
2006
Reinsurance Market
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS SCOR Canada Reinsurance Company
Net Written Premium
Market Share (based on reinsurance NWP)
3,500
SCOR Canada
Top 5
Others
in thousands
3,000 2,500
2009
2005
2,000 25.4%
1,500
2.2%
4.6%
28.8%
1,000 500 0 2005
2006
2007
2008
Net Loss Ratio
Net Written Premium Growth
Growth over 2005 2005 = 100%
SCOR Canada
66.6%
72.4%
2009
Reinsurance Market
SCOR Canada
400%
100%
325%
0%
250%
Reinsurance Market
-100%
175%
-200%
100% 25% 2005
2006
2007
2008
2009
-300% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS Odyssey America Reinsurance Corporation
Net Written Premium
Net Written Premium Market Share
3,000
Odyssey
Top 5
Others
in thousands
2,500 2,000
2009
2005
1,500
23.4%
4.2%
2.8%
30.6%
1,000 500 0 2005
2006
2007
2008
Net Loss Ratio
Net Written Premium Growth
Growth over 2005 2005 = 100%
Odyssey
66.6%
72.4%
2009
Odyssey
Reinsurance Market
Reinsurance Market
120%
170% 150% 130% 110% 90% 70% 50%
100% 80% 60% 40% 20% 2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
Montreal
Toronto
François Dagneau | Aon Benfield [email protected]
Charles Campisi | Aon Benfield [email protected]
Mara Torresan | Aon Benfield [email protected]
Heather McLeod | Aon Benfield [email protected]
700 de La Gauchetière West, Suite 1810 Montreal, Quebec, Canada H3B 0A6
150 King Street West, Suite 1900 Toronto, Ontario, Canada M5H 1J9
CANADIAN SURETY MARKET ANALYSIS
TABLE OF CONTENTS
Executive Summary …………………………………………………………………………… 1 Summary of Surety Results …………………………………………………………………
2
Comparative Surety Results of Top 10 Insurers …………………………………………… 3 Comparative Surety Results of Top 10 Reinsurers ………………………………………
4
GRAPHICAL EXHIBITS Comparison of Insurance vs Reinsurance Markets ……………………………………… 5 Comparison of Insurers' Results …………………………………………………………… 6 Comparison of Reinsurers' Results ………………………………………………………… 7 Comparison of Volume and Results by Region …………………………………………… 8 Individual Results - Top 15 Insurers ………………………………………………………… 9 Individual Results - Top 10 Reinsurers …………………………………………………… 10
Note: Throughout this study "Reinsurance Market" refers to the licensed Reinsurance Market and does not take into account any reinsurance written on an unlicensed basis.
Executive Summary
This is the 14th annual Surety Report produced by Aon Benfield Canada for the benefit of our key partners: our clients and reinsurers.
Data Like we have done in the past, we analyze the results of the main surety writers in Canada mainly for the period 2005 to 2009. However, beginning this year, we also track premium growth by region over a tenyear period. This report is designed to provide valuable insight on the sureties operating on a direct and reinsurance basis and is based on publicly available data for writers licensed in Canada. This report does not capture cessions to unregistered reinsurers.
Premium and Concentration Canadian industry premium continues to grow steadily. Over the past 5 years, DWP has seen a 50% growth. Over the past ten years, DWP has more than tripled (+240%). For 2009, despite slowdowns in BC and Alberta, a 5% DWP growth has been achieved in Canada (448.5 million vs 470.5 million). The largest dollar growth is seen in Ontario, which grew by 34.7 million while Atlantic Canada saw the largest percentage change in premium growing by 53%. British Columbia and Alberta have experienced a decrease of their DWP of 18.6% and 17% respectively. DWP variation by region is illustrated below:
Ontario Quebec British Columbia Alberta Manitoba & Saskatchewan Atlantic Provinces
DWP (in millions) 2008 2009 $146.4 $181.1 $92.2 $101.8 $89.0 $72.4 $69.1 $57.3 $24.7 $26.9 $17.6 $27.0
Growth $34.7 $9.6 ($16.6) ($11.8) $2.2 $9.4
+23.7% +10.4% -18.6% -17.0% +8.8% +53.0%
Ontario generates 38% of 2009 Canadian DWP, followed by Quebec with 22%, and by BC and Alberta with 15% and 12% respectively. Top 5 primary writers hold 62.5% of DWP. Top 10 hold 85.5% of DWP. The composition of the top 10 primary writers is relatively stable. While there has been some movement over the past few years in the lower half of the top 10, the top 4 positions have been held for many years by the same 4 companies.
Results Positive trend continues in Canada with an industry five-year loss ratio of 19.56%. 2009 results for primary carriers average 17.51% loss ratio without distinction as to ranking.
Reinsurance While there are many pure excess of loss reinsurance programs, proportional cessions are still very significant in Canada and tend to balance the results of the reinsurers. The average estimated volume ceded to reinsurance (based on the difference between NWP and DWP) is approximately 23% of DWP. Cession to registered reinsurers is equal to 13.7% of DWP. The percentage of cessions to registered reinsurance that is held by the Top 5 registered reinsurers is 66.5%. The Top 10 registered reinsurers hold 94%. The composition of the Top 10 reinsurers has been very stable. For the past five years, the first 6 positions have been held by the same 6 companies. For 2009, the Top 5 reinsurers fare better with 15% loss ratio than the rest of the Top 10 reinsurers who collectively have a 29% loss ratio. While reinsurers’ results for 2009 are worse than those of primary carriers by about 6.5 points, five-year loss ratios remain very comparable with just one point difference between them. Aon Benfield is proud to place the reinsurance programs of many Canadian primary surety carriers listed in this report.
CANADIAN SURETY MARKET ANALYSIS Summary of Surety Results
Direct Premiums Written ($000) INSURANCE REINSURANCE
REINSURANCE
REINSURANCE
REINSURANCE
273,194
44,253
16.20%
Overall
470,492
349,594
323,214
56,605
17.51%
60,633
53,677
15,469
28.82%
Top 10 Overall
64,577
57,381
13,816
24.08%
470,492
414,171
380,595
70,421
18.50%
Top 10
393,083
303,627
255,636
49,276
19.28%
Overall
448,643
352,619
301,720
60,082
19.91%
Top 10
54,022
49,612
7,648
15.42%
Overall
56,480
51,984
6,295
12.11%
409,099
353,704
66,377
18.77%
448,643 Top 10
333,724
249,429
236,344
42,824
18.12%
Overall
381,563
293,404
275,433
53,149
19.30%
Top 10
46,827
46,145
9,344
20.25%
Overall
49,225
49,506
9,427
19.04%
342,629
324,939
62,576
19.26%
381,563 Top 10
303,077
235,787
224,812
39,809
17.71%
Overall
340,523
260,966
247,239
40,945
16.56%
44,982
43,801
7,820
17.85%
Top 10 Overall
47,077
46,372
10,178
21.95%
340,523
308,043
293,611
51,123
17.41%
Top 10
283,011
221,830
209,207
54,994
26.29%
Overall
313,145
241,290
226,250
55,223
24.41%
39,756
40,473
9,046
22.35%
39,688
42,183
11,481
27.22%
280,978
268,433
66,704
24.85%
TOTAL
INSURANCE REINSURANCE
Earned Claims Ratio (%)
293,416
TOTAL
INSURANCE
Net Claims Incurred ($000)
402,295
TOTAL
INSURANCE
Net Premiums Earned ($000)
Top 10
TOTAL
INSURANCE
Net Premiums Written ($000)
Top 10 Overall
TOTAL
313,145
5 YEARS TOTAL (2005 TO 2009) INSURANCE REINSURANCE TOTAL
Top 10
1,686,739
1,279,069
1,186,510
228,200
19.23%
Overall
1,954,366
1,497,873
1,373,856
266,004
19.36%
242,000
230,348
47,779
20.74%
257,047 1,754,920
247,426 1,621,282
51,197 317,201
20.69% 19.56%
Top 10 Overall 1,954,366
Source: MSA Research Inc.
2 0 0 9
2 0 0 8
2 0 0 7
2 0 0 6
2 0 0 5
CANADIAN SURETY MARKET ANALYSIS Comparative Surety Results of Top Ten Insurers
2009 Market Share based on Direct WP (%)
INSURERS
1 Guarantee Company of North America
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
16.31%
76,756
55,945
52,010
3,638
6.99%
16.16%
76,010
74,608
78,307
15,571
19.88%
12.95%
60,933
44,865
43,755
9,772
22.33%
4 Aviva Canada Group (1)
9.98%
46,975
39,016
34,204
5,295
15.48%
5 Zurich Insurance Company
7.13%
33,558
12
11
-1,149
-10445%
6 Jevco Insurance Company (including Kinsgway General)
5.11%
24,055
20,325
17,797
5,468
30.72%
7 Chartis Insurance Company of Canada
4.88%
22,961
16,908
7,648
1,422
18.59%
8 Intact Financial Corporation
4.77%
22,461
17,062
17,050
313
1.84%
9 Trisura Guarantee Insurance Company
4.17%
19,608
12,690
11,338
2,398
21.15%
4.03%
18,978
11,985
11,074
1,525
13.77%
Top Ten Total
85.51%
402,295
293,416
273,194
44,253
16.20%
Insurance Market Total
100.00%
470,492
349,594
323,214
56,605
17.51%
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
2 Travelers Guarantee Company of Canada
(1)
3 AXA Canada Group
10 Western Surety Company
(1)
Direct Premiums Written ($000)
Figures indicated above include Home Warranty business.
2008 Market Share based on Direct WP (%)
INSURERS
1 Travelers Guarantee Company of Canada (1)
18.57%
83,308
88,193
80,948
19,646
24.27%
2 Guarantee Company of North America
15.58%
69,921
50,901
47,135
3,429
7.27%
3 Aviva Canada Group (1)
15.13%
67,873
58,049
30,131
4,155
13.79%
4 AXA Canada Group
13.30%
59,652
43,951
42,653
14,593
34.21%
5.24%
23,531
17,310
16,615
1,832
11.03%
6 Zurich Insurance Company
4.83%
21,651
7
8
-808
-10100.00%
7 Jevco Insurance Company (including Kingsway General)
4.81%
21,561
14,309
12,659
1,719
13.58%
8 Western Surety Company
4.06%
18,195
10,681
10,610
1,197
11.28%
9 Trisura Guarantee Insurance Company
3.41%
15,285
10,464
9,147
2,127
23.25%
2.70%
12,106
9,762
5,730
1,386
24.19%
Top Ten Total
87.62%
393,083
303,627
255,636
49,276
19.28%
Insurance Market Total
100.00%
448,643
352,619
301,720
60,082
19.91%
5 Intact Financial Corp
(formerly ING Canada)
10 Groupe La Capitale
(1)
Direct Premiums Written ($000)
Figures indicated above include Home Warranty business. Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparative Surety Results of Top Ten Insurers
2007 Market Share based on Direct WP (%)
INSURERS
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
1 Travelers Guarantee Company of Canada(1)
21.76%
83,017
83,446
77,395
21,182
27.37%
2 Guarantee Company of North America
16.00%
61,068
44,972
44,483
566
1.27%
3 AXA Canada Group
14.67%
55,982
40,663
40,524
12,556
30.98%
4 Aviva Canada Group
8.56%
32,643
26,791
25,579
1,963
7.67%
5 Zurich Insurance Company
6.26%
23,871
8
15
796
5306.67%
6 Intact Financial Corp
5.33%
20,336
15,670
15,463
260
1.68%
7 Western Surety Company
4.58%
17,475
10,298
10,210
-18
-0.18%
8 Jevco Insurance Company (including Kinsgway General)
4.47%
17,050
11,113
9,777
1,978
20.23%
2.94%
11,207
8,800
6,441
409
6.35%
2.90%
11,075
7,668
6,457
3,132
48.51%
Top Ten Total
87.46%
333,724
249,429
236,344
42,824
18.12%
Insurance Market Total
100.00%
381,563
293,404
275,433
53,149
19.30%
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
9 Northbridge Financial
(formerly ING Canada)
(1)
10 Trisura Guarantee Insurance Company
(1)
Direct Premiums Written ($000)
Figures indicated above include Home Warranty business.
2006 Market Share based on Direct WP (%)
INSURERS
1 Travelers Guarantee Company of Canada(1)
22.35%
76,090
80,615
76,979
27,160
35.28%
2 Guarantee Company of North America
18.28%
62,248
44,496
43,198
3,263
7.55%
3 AXA Canada Group
15.80%
53,796
39,954
38,805
4,095
10.55%
4 Aviva Canada Group
8.59%
29,242
24,583
23,764
482
2.03%
5.94%
20,228
15,629
15,200
1,999
13.15%
6 Western Surety Company
4.94%
16,806
10,096
9,094
231
2.54%
7 Zurich Insurance Company
4.75%
16,168
-244
-60
-110
183.33%
8 Jevco Insurance Company (including Kinsgway General)
3.61%
12,277
7,919
7,112
1,156
16.25%
9 Northbridge Financial (1)
2.49%
8,466
6,591
4,231
327
7.73%
2.28%
7,756
6,148
6,489
1,206
18.59%
Top Ten Total
89.00%
303,077
235,787
224,812
39,809
17.71%
Insurance Market Total
100.00%
340,523
260,966
247,239
40,945
16.56%
5 Intact Financial Corp
(formerly ING Canada)
10 Co-Operators & Sovereign
(1)
Direct Premiums Written ($000)
Figures indicated above include Home Warranty business. Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparative Surety Results of Top Ten Insurers
2005 Market Share based on Direct WP (%)
INSURERS
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
1 Travelers Guarantee Company of Canada(1)
25.13%
78,688
77,621
72,884
32,308
44.33%
2 Guarantee Company of North America
17.79%
55,713
42,692
40,976
-67
-0.16%
3 AXA Canada Group
15.06%
47,167
35,829
35,093
11,267
32.11%
4 Aviva Canada Group
8.71%
27,285
22,313
22,048
5,028
22.80%
6.13%
19,201
14,807
14,135
1,321
9.35%
6 Zurich Insurance Company
4.72%
14,791
255
67
740
1104.48%
7 Western Surety Company
4.60%
14,397
8,628
7,931
1,061
13.38%
8 Jevco Insurance Company (including Kinsgway General)
3.49%
10,924
7,096
6,613
1,420
21.47%
9 Co-Operators & Sovereign
2.75%
8,615
8,023
5,238
927
17.70%
1.99%
6,230
4,566
4,222
989
23.42%
Top Ten Total
90.38%
283,011
221,830
209,207
54,994
26.29%
Insurance Market Total
100.00%
313,145
241,290
226,250
55,223
24.41%
5 Intact Financial Corp
(formerly ING Canada)
10 Groupe La Capitale
(1)
Direct Premiums Written ($000)
Figures indicated above include Home Warranty business.
5 YEARS TOTAL (2005 TO 2009) Market Share based on Direct WP (%)
Direct Premiums Written ($000)
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
1 Travelers Guarantee Company of Canada(1)
20.32%
397,113
404,483
386,513
115,867
29.98%
2 Guarantee Company of North America
16.67%
325,706
239,006
227,802
10,829
4.75%
3 AXA Canada Group
14.20%
277,530
205,262
200,830
52,283
26.03%
10.44%
204,018
170,752
135,726
16,923
12.47%
5 Zurich Insurance Company
5.63%
110,039
38
41
-531
-1295%
6 Intact Financial Corp
5.41%
105,757
80,478
78,463
5,725
7.30%
7 Jevco Insurance Company (including Kingsway General)
4.39%
85,867
60,762
53,958
11,741
21.76%
8 Western Surety Company
4.39%
85,851
51,688
48,919
3,996
8.17%
9 Trisura Guarantee Insurance Company
2.56%
50,005
33,373
28,300
8,102
28.63%
2.30%
44,853
33,227
25,958
3,265
12.58%
Top Ten Total
86.31%
1,686,739
1,279,069
1,186,510
228,200
19.23%
Insurance Market Total
100.00%
1,954,366
1,497,873
1,373,856
266,004
19.36%
INSURERS
4 Aviva Canada Group
(1)
(formerly ING Canada)
10 Groupe La Capitale
(1)
Figures indicated above include Home Warranty business. Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparative Surety Results of Top Ten Reinsurers
2009 Market Share based on Net WP (%)
Net Premiums Written ($000)
Net Premiums Earned ($000)
1 Hannover Ruckversicherung AG
19.22%
12,412
11,054
-374
-3.38%
2 Westport Insurance Corp. & Swiss Re
14.40%
9,298
7,048
-85
-1.21%
3 Transatlantic Reinsurance Company
14.25%
9,200
8,309
1,014
12.20%
4 Munich Re Canada / Munich Re America
9.82%
6,339
5,661
2,937
51.88%
5 Everest Reinsurance Company
8.92%
5,760
5,054
2,182
43.17%
6 Partner Reinsurance Europe Limited
7.80%
5,040
4,696
1,439
30.64%
7 St. Paul Fire and Marine Insurance Company
6.10%
3,939
3,939
488
12.39%
8 PARIS RE
5.95%
3,845
3,819
4,769
124.88%
9 SCOR Canada Reinsurance Company
4.61%
2,975
2,243
1,798
80.16%
2.83%
1,825
1,854
1,301
70.17%
Top Ten Total
93.89%
60,633
53,677
15,469
28.82%
Reinsurance Market Total
100.00%
64,577
57,381
13,816
24.08%
Market Share based on Net WP (%)
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
1 Hannover Rückversicherung AG
20.18%
11,396
10,855
3,503
32.27%
2 Transatlantic Reinsurance Company
16.51%
9,323
8,434
333
3.95%
3 Westport Insurance Corp. / Swiss Re
13.34%
7,533
6,676
1,404
21.03%
4 Munich Re Canada / Munich Re America
11.06%
6,246
4,892
-1,796
-36.71%
5 Partner Reinsurance Europe Limited
7.82%
4,418
3,983
340
8.54%
6 Everest Reinsurance Company
7.81%
4,410
4,122
1,386
33.62%
7 St. Paul Fire and Marine Insurance Company
6.30%
3,560
3,560
488
13.71%
8 PARIS RE
6.02%
3,401
3,314
1,299
39.20%
9 SCOR Canada Reinsurance Company
3.68%
2,078
1,953
493
25.24%
2.93%
1,657
1,823
198
10.86%
Top Ten Total
95.65%
54,022
49,612
7,648
15.42%
Reinsurance Market Total
100.00%
56,480
51,984
6,295
12.11%
REINSURERS
10 Odyssey America Reinsurance Corporation
Net Claims Incurred ($000)
Earned Claims Ratio (%)
2008 REINSURERS
10 Odyssey America Reinsurance Corporation
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparative Surety Results of Top Ten Reinsurers
2007 Market Share based on Net WP (%)
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
1 Hannover Rückversicherung AG
19.53%
9,612
9,245
2,641
28.57%
2 Swiss Re Group
15.04%
7,405
8,039
-715
-8.89%
3 Transatlantic Reinsurance Company
11.52%
5,670
5,192
2,330
44.88%
4 Munich Re Canada / Munich Re America
10.51%
5,174
6,021
562
9.33%
5 Partner Reinsurance Europe Limited
9.64%
4,747
3,888
1,689
43.44%
6 Everest Reinsurance Company
9.10%
4,480
4,200
1,189
28.31%
7 PARIS RE
5.80%
2,854
2,665
2,503
93.92%
8 St. Paul Fire and Marine Insurance Company
5.28%
2,600
2,600
-2,698
-103.77%
9 Odyssey America Reinsurance Corporation
5.04%
2,481
2,653
1,558
58.73%
3.66%
1,804
1,642
285
17.36%
Top Ten Total
95.13%
46,827
46,145
9,344
20.25%
Reinsurance Market Total
100.00%
49,225
49,506
9,427
19.04%
Market Share based on Net WP (%)
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
1 Swiss Re Group
21.91%
10,313
10,422
1,160
11.13%
2 Hannover Rückversicherung AG
16.35%
7,699
7,510
1,292
17.20%
3 Munich Re Canada / Munich Re America
11.73%
5,522
5,300
500
9.43%
4 Everest Reinsurance Company
8.31%
3,914
3,750
-834
-22.24%
5 Partner Reinsurance Europe Limited
8.19%
3,854
3,857
119
3.09%
6 Transatlantic Reinsurance Company
7.55%
3,553
3,229
-44
-1.36%
7 Endurance Reinsurance Corporation of America
6.21%
2,925
2,873
569
19.81%
8 St. Paul Fire and Marine Insurance Company
5.31%
2,502
2,502
2,230
89.13%
9 PARIS RE
5.00%
2,354
1,961
295
15.04%
4.98%
2,346
2,397
2,533
105.67%
Top Ten Total
95.55%
44,982
43,801
7,820
17.85%
Reinsurance Market Total
100.00%
47,077
46,372
10,178
21.95%
REINSURERS
10 SCOR Canada Reinsurance Company
2006 REINSURERS
10 Odyssey America Reinsurance Corporation
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparative Surety Results of Top Ten Reinsurers
2005 Market Share based on Net WP (%)
Net Premiums Written ($000)
Net Premiums Earned ($000)
1 Swiss Re & Employers Re
26.24%
10,414
10,824
-139
-1.28%
2 Hannover Rückversicherung AG
14.86%
5,898
6,027
-2,868
-47.59%
3 Munich Re Canada / Munich Re America
13.01%
5,164
5,625
6,805
120.98%
4 Partner Reinsurance Europe Limited
9.46%
3,754
3,928
523
13.31%
5 Everest Reinsurance Company
8.82%
3,502
3,339
268
8.03%
6 Transatlantic Reinsurance Company
8.24%
3,270
3,409
-11
-0.32%
7 St. Paul Fire and Marine Insurance Company
6.30%
2,500
2,500
2,453
98.12%
8 Endurance Reinsurance Corporation of America
6.15%
2,440
1,349
761
56.41%
9 Odyssey America Reinsurance Corporation
4.24%
1,684
2,301
644
27.99%
2.85%
1,130
1,171
610
52.09%
Top Ten Total
100.17%
39,756
40,473
9,046
22.35%
Reinsurance Market Total
100.00%
39,688
42,183
11,481
27.22%
REINSURERS
10 PARIS RE
Net Claims Incurred ($000)
Earned Claims Ratio (%)
Note: XL Re America have declared -2.635 million which results in the top ten total being higher than the overall total.
5 YEARS TOTAL (2005 TO 2009) Market Share based on Net WP (%)
Net Premiums Written ($000)
Net Premiums Earned ($000)
Net Claims Incurred ($000)
Earned Claims Ratio (%)
1 Hannover Rückversicherung AG
18.29%
47,017
44,691
4,194
9.38%
2 Swiss Re Group
17.49%
44,963
43,009
1,625
3.78%
3 Transatlantic Reinsurance Company
12.07%
31,016
28,573
3,622
12.68%
4 Munich Re Canada / Munich Re America
11.07%
28,445
27,499
9,008
32.76%
5 Everest Reinsurance Company
8.58%
22,066
20,465
4,191
20.48%
6 Partner Reinsurance Europe Limited
8.49%
21,813
20,352
4,110
20.19%
7 St. Paul Fire and Marine Insurance Company
5.87%
15,101
15,101
2,961
19.61%
8 PARIS RE
5.28%
13,584
12,930
9,476
73.29%
9 Odyssey America Reinsurance Corporation
3.89%
9,993
11,028
6,234
56.53%
REINSURERS
10 SCOR Canada Reinsurance Company 17 Top Ten Total
3.11%
8,002
6,700
2,358
35.19%
94.15%
242,000
230,348
47,779
20.74%
Reinsurance Market Total
100.00%
257,047
247,426
51,197
20.69%
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparison of Insurance vs Reinsurance Markets
Direct Premiums Written
Net Premiums Written Insurance
500
Reinsurance
in millions
400
2009
2005 300
16%
14% 200 100 0 2005
2006
2007
2008
Net Loss Ratios - Overall Market Insurers
Reinsurers
84%
86%
2009
Net Loss Ratios - Top 5 vs Others Top 5 Insurers Other Insurers
Market
30%
Top 5 Reinsurers Other Reinsurers
60%
25%
40%
20% 20%
15% 10% 2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS Comparison of Insurers Results
2009 Market Share (DWP)
2009 Direct Written Premium ($) GCNA
GCNA
Travelers
AXA Canada
Aviva Canada
Zurich
Others
Travelers 16%
AXA Canada 38%
Aviva Canada
16%
Zurich Others
7% 0
20
40
60
10%
13%
80 100 120 140 160 180 200 in millions
Net Loss Ratios 50% 40% 30%
GCNA
20%
Travelers Guarantee
10%
AXA Canada
0% -10%
Aviva Canada
-20%
Zurich (1)
-30% -40% 2005
2006
2007
2008
2009
(1) Zurich loss ratios are on a gross basis
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS Comparison of Reinsurers Results
2009 Market Share (NWP)
2009 Net Written Premium ($)
Hannover Re Munich Re
Hannover Re Westport / Swiss
Westport / Swiss Everest Re
Transatlantic Re
Transatlantic Re Others
19% 34%
Munich Re Everest Re
14%
Others 9% 0
5
10
15
20
25
14%
10%
in millions
Net Loss Ratios 140% 120% 100% 80% 60% 40% 20% 0% -20% -40% -60% 2005
Hannover Re Westport / Swiss Transatlantic Re Munich Re Everest Re
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
Comparison of Volume and Results by Region
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - CANADA
2009 Direct Results - Major Regions Province Ontario Quebec British Columbia Alberta Manitoba / Saskatchewan Atlantic Provinces Others, incl. out of Canada CANADA
Written Premium 181,149 101,767 72,421 57,346 26,892 26,989 4,088 470,652
2009 DWP Share - Major Regions
Earned Premium 147,898 97,479 64,752 58,576 25,607 21,615 8,796 424,723
Incurred Losses 11,515 14,411 13,555 16,280 (418) (929) 460 54,874
Loss Ratio 8% 15% 21% 28% -2% -4% 5% 13%
6%
6% 1%
12%
38%
15% 22% Ontario British Columbia Manitoba / Saskatchewan Others, incl. out of Canada
Quebec Alberta Atlantic Provinces
10-Year Growth 400%
Ontario
Growth over 2000 2000 = 100%
350%
Quebec 300%
British Columbia
250%
Alberta Manitoba / Saskatchewan
200%
Atlantic Provinces Canada
150% 100% 50% 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - CANADA Top 5 Writers
16% 38%
7%
13%
10%
GCNA AXA Canada Zurich
5-Year DWP & Results - Travelers Market Share 16% 100%
90 80 70 60 50 40 30 20 10 0
80% 60%
in millions
16%
5-Year DWP & Results - GCNA Market Share 16%
Travelers Guarantee Aviva Canada Others
40% 20% 0% -20% -40% 2005
2006 DWP
2007
2008
100%
90 80 70 60 50 40 30 20 10 0
80% 60%
in millions
2009 DWP Share - Top 5 Writers
2009
40% 20% 0% -20% -40% 2005
Direct Loss Ratio
2006 DWP
2007
2008
2009
Direct Loss Ratio
5-Year DWP & Results - AXA Canada
5-Year DWP & Results - Aviva Canada
5-Year DWP & Results - Zurich
Market Share 13%
Market Share 10%
Market Share 7%
in millions
80
60%
60
40%
40
20% 0%
20 0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
100
100% 60%
60
40%
40
20%
-20%
20
-40%
0
0% -20% -40% 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
80%
80
80%
80
100%
100
in millions
80%
in millions
100%
100
Note: increased premiums in 2008 are due in part to one-time portfolio transfer for Home Warranty business. (source Aviva Canada)
60%
60
40%
40
20% 0%
20
-20%
0
-40% 2005
2006 DWP
2007
2008
2009
Direct Loss Ratio
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - ONTARIO
5-Year Progression of Direct Results
10-Year Growth 100%
200
300%
175 in millions
150 125
60%
100 40%
75 50
20%
25 0%
0 2005
2006
2007 DWP
2008
200% 150% 100% 50%
Direct Loss ratio
Region
Canada
2009 DWP Share - Top 5 Writers
Written Premium 35,471
Earned Premium 32,986
Incurred Losses 5,845
Loss Ratio 18%
GCNA
26,110
24,599
(716)
-3%
Aviva Insurance
22,314
20,342
1,854
9%
Chartis Insurance
18,784
2,754
1,206
44%
Zurich Insurance
18,418
16,124
(963)
-6%
Others
60,052
51,093
4,289
8%
MARKET
181,149
147,898
11,515
8%
Travelers Guarantee
250%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
2009
2009 Direct Results - Top 5 Writers Company
Growth over 2000 2000 = 100%
80%
20%
34%
14% 10%
10%
Travelers Guarantee Aviva Insurance Zurich Insurance
12% GCNA Chartis Insurance Others
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - ONTARIO Top 5 Writers
5-Year DWP & Results - Travelers
5-Year DWP & Results - GCNA
Market Share 24%
Market Share 18%
20% in millions
34%
14% 10%
12%
10%
Travelers Guarantee
GCNA
Aviva Insurance
Chartis Insurance
Zurich Insurance
Others
100%
40 35 30 25 20 15 10 5 0
75% 50% 25% 0% -25%
in millions
2009 DWP Share - Top 5 Writers
-50% -75% 2005
2006 DWP
2007
2008
100%
40 35 30 25 20 15 10 5 0
2009
75% 50% 25% 0% -25% -50% -75% 2005
Direct Loss Ratio
2006 DWP
2007
2008
2009
Direct Loss Ratio
5-Year DWP & Results - Chartis
5-Year DWP & Results - Zurich
Market Share 15%
Market Share 13%
Market Share 13%
75% 50% 25% 0% -25% -50% -75% 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
100%
40 35 30 25 20 15 10 5 0
75% 50% 25% 0% -25% -50% -75% 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
in millions
100%
40 35 30 25 20 15 10 5 0
in millions
in millions
5-Year DWP & Results - Aviva Insurance
100%
40 35 30 25 20 15 10 5 0
75% 50% 25% 0% -25% -50% -75% 2005
2006 DWP
2007
2008
2009
Direct Loss Ratio
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - QUEBEC
10-Year Growth
120
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
in millions
100 80 60 40 20 0 2005
2006
2007 DWP
2008
200% 150% 100% 50% 2001
2002
Direct Loss ratio
2004
2005
2006
2007
2008
2009
Canada
2009 DWP Share - Top 5 Writers
Earned Premium 25,835
Incurred Losses 3,659
Loss Ratio 14%
Jevco
15,923
15,420
5,444
35%
GCNA
14,588
14,201
235
2%
Intact
12,096
11,827
598
5%
Travelers Guarantee
10,767
10,476
1,291
12%
Others
22,527
19,720
3,188
16%
MARKET
101,767
14,415
15%
97,479
2003
Region
Written Premium 25,866
AXA Assurances
250%
2000
2009
2009 Direct Results - Top 5 Writers Company
300% Growth over 2000 2000 = 100%
5-Year Progression of Direct Results
22%
25%
11% 12% AXA Assurances GCNA Travelers Guarantee
16% 14% Jevco Intact Others
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - QUEBEC Top 5 Writers
22%
5-Year DWP & Results - AXA Assurances
5-Year DWP & Results - Jevco
Market Share 25%
Market Share 16%
in millions
25%
11% 16%
12%
14%
30
100%
30
100%
25
75%
25
75%
20
50%
15 25%
10 5
AXA Assurances GCNA Travelers Guarantee
0
Jevco Intact Others
2005
2006 DWP
2007
2008
in millions
2009 DWP Share - Top 5 Writers
20
50%
15 25%
10
0%
5
-25%
0
2009
0% -25% 2005
Direct Loss Ratio
2006 DWP
2007
2008
2009
Direct Loss Ratio
5-Year DWP & Results - Intact
5-Year DWP & Results - Travelers
Market Share 14%
Market Share 12%
Market Share 12%
100%
30
100%
30
100%
25
75%
25
75%
25
75%
20
50%
15 25%
10 5 0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
20
50%
15 25%
10
0%
5
-25%
0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
in millions
30
in millions
in millions
5-Year DWP & Results - GCNA
20
50%
15 25%
10
0%
5
-25%
0
0% -25% 2005
2006 DWP
2007
2008
2009
Direct Loss Ratio
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - BRITISH COLUMBIA
10-Year Growth 100%
100 90 80 70 60 50 40 30 20 10 0
300% 80% 60% 40% 20% 0% 2005
2006
2007 DWP
2008
100% 50% 2001
2002
Loss Ratio 14%
Travelers Guarantee
12,719
18,754
9,330
50%
Aviva Insurance
10,889
10,416
2,389
23%
Zurich Insurance
9,953
1,943
(11)
-1%
GCNA
7,448
6,259
(1)
0%
Others
15,150
13,398
(127)
-1%
13,555
21%
64,752
2003
2004
2005
2006
2007
2008
2009
Canada
2009 DWP Share - Top 5 Writers Incurred Losses 1,975
72,421
150%
Region
Earned Premium 13,982
MARKET
200%
Direct Loss ratio
Written Premium 16,262
AXA Pacific
250%
2000
2009
2009 Direct Results - Top 5 Writers Company
Growth over 2000 2000 = 100%
in millions
5-Year Progression of Direct Results
21%
22%
10% 14% AXA Pacific Aviva Insurance GCNA
18% 15% Travelers Guarantee Zurich Insurance Others
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - BRITISH COLUMBIA Top 5 Writers
5-Year DWP & Results - Axa Pacific
5-Year DWP & Results - Travelers
Market Share 22%
Market Share 18%
10%
in millions
22%
21%
18% 14%
15%
30
100%
30
100%
25
75%
25
75%
20
50%
15 25%
10 5
AXA Pacific Aviva Insurance GCNA
0
Travelers Guarantee Zurich Insurance Others
2005
2006 DWP
2007
2008
in millions
2009 DWP Share - Top 5 Writers
20
50%
15 25%
10
0%
5
-25%
0
2009
0% -25% 2005
Direct Loss Ratio
2006 DWP
2007
2008
2009
Direct Loss Ratio
5-Year DWP & Results - Aviva Insurance
5-Year DWP & Results - Zurich
5-Year DWP & Results - GCNA
Market Share 15%
Market Share 14%
Market Share 10%
100%
25
75%
20
50%
15
25%
10 5 0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
30
100%
30
100%
25
75%
25
75%
20
50%
15 25%
10
0%
5
-25%
0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
in millions
30
in millions
in millions
Note: increased premiums in 2008 are due in part to one-time portfolio transfer for Home Warranty business. (source Aviva Canada)
20
50%
15 25%
10
0%
5
-25%
0
0% -25% 2005
2006 DWP
2007
2008
2009
Direct Loss Ratio
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - ALBERTA
5-Year Progression of Direct Results
10-Year Growth 100%
80
400%
70 in millions
60 50
60%
40 40%
30 20
20%
10 0%
0 2005
2006
2007 DWP
2008
Loss Ratio 32%
AXA Pacific
9,732
10,163
7,756
76%
Travelers Guarantee
8,257
9,648
(562)
-6%
Aviva Insurance
4,932
5,600
1,722
31%
Western Surety
4,756
4,646
942
20%
13,354
13,193
1,475
11%
16,280
28%
57,346
200% 150% 100% 50% 2001
2002
58,576
2003
2004
2005
2006
2007
2008
2009
Canada
2009 DWP Share - Top 5 Writers Incurred Losses 4,947
MARKET
250%
Region
Earned Premium 15,326
Others
300%
Direct Loss ratio
Written Premium 16,315
GCNA
350%
2000
2009
2009 Direct Results - Top 5 Writers Company
Growth over 2000 2000 = 100%
80%
23%
29%
8% 9%
14%
GCNA Travelers Guarantee Western Surety
17% AXA Pacific Aviva Insurance Others
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - ALBERTA Top 5 Writers
5-Year DWP & Results - GCNA
5-Year DWP & Results - AXA Pacific
Market Share 29%
Market Share 17% 100%
20 23%
in millions
29%
8% 9%
17%
14%
GCNA Travelers Guarantee Western Surety
80%
15
60% 40%
10
20%
5
0% -20%
0
AXA Pacific Aviva Insurance Others
2005
2006 DWP
2007
2008
100%
20
in millions
2009 DWP Share - Top 5 Writers
80%
15
60% 40%
10
20%
5
0% -20%
0
2009
2005
Direct Loss Ratio
2006 DWP
2007
2008
2009
Direct Loss Ratio
5-Year DWP & Results - Travelers
5-Year DWP & Results - Aviva Insurance
5-Year DWP & Results - Western Surety
Market Share 14%
Market Share 9%
Market Share 8%
60% 40%
10
20%
5
0% -20%
0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
in millions
in millions
80%
15
80%
15
60% 40%
10
20%
5
0% -20%
0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
100%
20
100%
20
in millions
100%
20
Note: increased premiums in 2008 are due in part to one-time portfolio transfer for Home Warranty business. (source Aviva Canada)
80%
15
60% 40%
10
20%
5
0% -20%
0 2005
2006 DWP
2007
2008
2009
Direct Loss Ratio
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - MANITOBA & SASKATCHEWAN
10-Year Growth
30
100%
25
80%
20
60%
15
40%
10
20%
5
0%
0
-20% 2005
2006
2007 DWP
2008
200% 150% 100% 50% 2001
2002
2003
Direct Loss ratio
2004
Region
2005
2006
2007
2008
2009
Canada
2009 DWP Share - Top 5 Writers
Written Premium 5,680
Earned Premium 5,328
Incurred Losses (74)
Loss Ratio -1%
GCNA
4,659
4,022
616
15%
Travelers Guarantee
4,325
3,978
564
14%
Western Surety
250%
2000
2009
2009 Direct Results - Top 5 Writers Company
300% Growth over 2000 2000 = 100%
in millions
5-Year Progression of Direct Results
AXA Pacific
4,304
4,462
(1,615)
-36%
SGI CANADA
3,114
3,027
(64)
-2%
Others
4,810
4,790
155
3%
MARKET
26,892
25,607
(418)
-2%
18%
21%
12% 17% 16% Western Surety Travelers Guarantee SGI CANADA
16% GCNA AXA Pacific Others
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - MANITOBA & SASKATCHEWAN Top 5 Writers
5-Year DWP & Results - Western Surety
5-Year DWP & Results - GCNA
Market Share 21%
Market Share 17% 100%
10 18%
21% in millions
17% 16%
80%
8
12%
16%
60%
6
40%
4
20% 0%
2 Western Surety Travelers Guarantee SGI CANADA
2006 DWP
2007
2008
60%
6
40%
4
20% 0%
2
-20%
0
-40% 2005
80%
8
-20%
0
GCNA AXA Pacific Others
100%
10
in millions
2009 DWP Share - Top 5 Writers
2009
-40% 2005
Direct Loss Ratio
2006 DWP
2007
2008
2009
Direct Loss Ratio
5-Year DWP & Results - Travelers
5-Year DWP & Results - AXA Pacific
5-Year DWP & Results - SGI Canada
Market Share 16%
Market Share 16%
Market Share 12%
60%
6
40%
4
20% 0%
2
-20%
0
-40% 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
60%
6
40%
4
20% 0%
2
-20%
0
-40% 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
100%
10
80%
8 in millions
in millions
8
100%
10
80%
80%
8 in millions
100%
10
60%
6
40%
4
20% 0%
2
-20%
0
-40% 2005
2006 DWP
2007
2008
2009
Direct Loss Ratio
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - ATLANTIC PROVINCES
5-Year Progression of Direct Results
10-Year Growth
30
25% 300%
20 15
0%
10 5 0
-25% 2005
2006
2007 DWP
2008
200% 150% 100% 50% 2001
2002
Direct Loss ratio
2003
2004
Region
2005
2006
2007
2008
2009
Canada
2009 DWP Share - Top 5 Writers
Written Premium 6,867
Earned Premium 5,774
Incurred Losses 167
Loss Ratio 3%
Aviva Insurance
4,871
3,922
(1,324)
-34%
Travelers Guarantee
3,653
3,070
715
23%
Western Surety
3,218
2,595
586
23%
Intact Insurance
2,596
2,628
(1,241)
-47%
Others
5,784
3,626
168
5%
MARKET
26,989
21,615
(929)
-4%
GCNA
250%
2000
2009
2009 Direct Results - Top 5 Writers Company
Growth over 2000 2000 = 100%
in millions
25
21%
25%
10% 12%
18% 14%
GCNA Travelers Guarantee Intact Insurance
Aviva Insurance Western Surety Others
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Comparisons of Volume and Results by Region - ATLANTIC PROVINCES Top 5 Writers
21%
5-Year DWP & Results - GCNA
5-Year DWP & Results - Aviva Insurance
Market Share 25%
Market Share 18%
in millions
25%
10% 18%
12%
14%
10
100%
10
8
80%
8
60%
6
40% 4
20%
2 GCNA Travelers Guarantee Intact Insurance
0
Aviva Insurance Western Surety Others
2005
2006 DWP
2007
2008
in millions
2009 DWP Share - Top 5 Writers
100% 80% 60% 40% 20% 0% -20% -40% -60%
6 4
0%
2
-20%
0
2009
2005
Direct Loss Ratio
2006 DWP
2007
2008
2009
Direct Loss Ratio
5-Year DWP & Results - Travelers
5-Year DWP & Results - Western Surety
5-Year DWP & Results - Intact
Market Share 14%
Market Share 12%
Market Share 10%
in millions
8 6 4 2 0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
10
100% 80% 60% 40% 20% 0% -20% -40% -60%
8 6 4 2 0 2005
2006 DWP
2007
2008
Direct Loss Ratio
2009
10
100% 80% 60% 40% 20% 0% -20% -40% -60%
8 in millions
100% 80% 60% 40% 20% 0% -20% -40% -60%
in millions
10
6 4 2 0 2005
2006 DWP
2007
2008
2009
Direct Loss Ratio
Source: MSA Research Inc.
Individual Results – Top 15 Insurers
CANADIAN SURETY MARKET ANALYSIS Guarantee Company of North America
in thousands
Direct Written Premium
Market Share (based on DWP)
90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0
GCNA
Others
2005 27.2%
2005
2006
2007
2008
GCNA
2009 17.8%
16.3%
37.5%
46.2%
55.0%
2009
Direct Written Premium Growth
Growth over 2005 2005 = 100%
Top 5 less GCNA
Net Loss Ratio GCNA
Insurance Market
160% 150% 140% 130% 120% 110% 100% 90%
Insurance Market
30% 20% 10%
2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Travelers Guarantee Company of Canada
Direct Written Premium
Market Share (based on DWP)
100,000
Travelers Guarantee
Top 5 less Travelers Guarantee
Others
in thousands
80,000
2005
60,000
2009
27.2%
40,000
16.2%
37.5%
25.1%
20,000 0 2005
2006
2007
2008
47.7%
2009
46.4%
Direct Written Premium Growth
Growth over 2005 2005 = 100%
Travelers Guarantee
Net Loss Ratio
Insurance Market
160% 150% 140% 130% 120% 110% 100% 90%
Travelers Guarantee
Insurance Market
50%
25%
2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS AXA Canada Group
Direct Written Premium
Market Share (based on DWP)
70,000
AXA
Top 5 less AXA
Others
in thousands
60,000 50,000
2005
2009
40,000 27.2%
30,000
15.1%
13.0%
37.5%
20,000 10,000 0 2005
2006
2007
2008
Direct Written Premium Growth
Growth over 2005 2005 = 100%
AXA
49.6%
57.8%
2009
Net Loss Ratio
Insurance Market
AXA
160% 150%
Insurance Market
40% 30%
140% 130% 120% 110%
20% 10%
100% 90% 2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Aviva Canada Group
in thousands
Direct Written Premium
Market Share (based on DWP)
80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0
Aviva
Others
2005
2006
2007
2008
Net Loss Ratio
Insurance Market
Aviva
270%
30%
240%
25%
210%
20%
180%
15%
150%
10%
120%
5%
90% 2006
2007
2008
52.6%
64.1%
Direct Written Premium Growth
2005
10.0%
37.5%
2009
Note: increased premiums in 2008 are due in part to one-time portfolio transfer for Home Warranty business. (source Aviva Canada)
Aviva
2009 8.7%
27.2%
2005
Growth over 2005 2005 = 100%
Top 5 less Aviva
2009
0% 2005
2006
Insurance Market
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Zurich Insurance Company
Direct Written Premium
Market Share (based on DWP)
40,000
Zurich
in thousands
35,000
Top 5 less Zurich
Top 5
Others
30,000
2005
25,000 20,000
2009 4.7%
22.4%
7.1%
37.5%
15,000 10,000 5,000 0 2005
2006
2007
2008
2009
Direct Written Premium Growth
Growth over 2005 2005 = 100%
Zurich
55.4%
72.8%
Gross Loss Ratio
Insurance Market
Zurich
240%
30%
210%
20%
180%
10%
150%
0%
Insurance Market
-10%
120%
-20%
90% 2005
2006
2007
2008
2009
-30% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Jevco Insurance Company (including Kingsway General)
Direct Written Premium
Market Share (based on DWP)
30,000
Jevco
Top 5
Others
in thousands
25,000 20,000
2005
15,000
23.7%
2009 3.5%
5.1%
32.4%
10,000 5,000 0 2005
2006
2007
2008
Direct Written Premium Growth
Growth over 2005 2005 = 100%
Jevco
Net Loss Ratio
Insurance Market
Jevco
240% 215% 190% 165% 140% 115% 90% 2005
2006
2007
2008
62.5%
72.8%
2009
2009
35% 30% 25% 20% 15% 10% 5% 0% 2005
2006
Insurance Market
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Chartis Insurance Company of Canada (including former AIG Group companies American Home and Commerce& Industry)
Direct Written Premium
Market Share (based on DWP)
25,000
Chartis
Top 5
Others
in thousands
20,000
2005
15,000 26.3%
10,000
2009 0.9%
4.9%
32.6%
5,000 0 2005
2006
2007
2008
Direct Written Premium Growth
Growth over 2005 2005 = 100%
Chartis
Net Loss Ratio
Insurance Market
Chartis
975% 825% 675% 525% 375% 225% 75% 2005
2006
2007
2008
62.5%
72.8%
2009
2009
30% 20% 10% 0% -10% -20% -30% -40% 2005
2006
Insurance Market
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Intact Financial Corporation (formerly ING Canada)
Direct Written Premium
Market Share (based on DWP)
25,000
Intact
Top 5 less Intact
Top 5
Others
in thousands
20,000
2005
15,000
6.1%
27.2%
10,000
2009 4.8%
32.7%
5,000 0 2005
2006
2007
2008
Net Loss Ratio
Direct Written Premium Growth
Growth over 2005 2005 = 100%
Intact
62.5%
66.7%
2009
Intact
Insurance Market
Insurance Market
30%
160% 150% 140% 130% 120% 110% 100% 90%
25% 20% 15% 10% 5% 2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Trisura Guarantee Insurance Company
Direct Written Premium
Market Share (based on DWP)
22,500
Trisura
in thousands
20,000 17,500 15,000 12,500
Top 5
Others
2006 25.6%
10,000 7,500
2009 3.4%
4.2%
33.3%
5,000 2,500 0 2006
2007
2008
Direct Written Premium Growth
Growth over 2006 2006 = 100%
Trisura
Net Loss Ratio Trisura
Insurance Market
525% 450% 375% 300% 225% 150% 75% 2006
2007
2008
62.5%
71.0%
2009
2009
Insurance Market
60% 50% 40% 30% 20% 10% 0% -10% 2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Western Surety Company
Direct Written Premium
Market Share (based on DWP)
in thousands
22,500
Western Surety
20,000 17,500 15,000 12,500 10,000 7,500 5,000 2,500 0
Others
2005
2006
2007
2008
4.0%
33.4%
62.5%
72.8%
2009
Direct Written Premium Growth Western Surety
2009 4.6%
22.6%
2005
Net Loss Ratio Western Surety
Insurance Market
Insurance Market
30%
160% Growth over 2005 2005 = 100%
Top 5
140%
20%
120% 10%
100% 80% 2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Groupe La Capitale
Direct Written Premium
Market Share (based on DWP)
14,000
Groupe La Capitale
Top 5
Others
in thousands
12,000 10,000
2005
8,000 25.2%
6,000
2009 2.0%
2.4%
35.0%
4,000 2,000 0 2005
2006
2007
2008
2009
Direct Written Premium Growth
Growth over 2005 2005 = 100%
Groupe La Capitale
62.5%
72.8%
Net Loss Ratio
Insurance Market
Groupe La Capitale
Insurance Market
30%
225% 200% 175% 150% 125% 100% 75%
25% 20% 15% 10% 5% 2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Chubb Canada Group
Direct Written Premium
Market Share (based on DWP)
12,000
Chubb
Top 5
Others
in thousands
10,000 8,000
2005
6,000
25.3%
2009 1.9%
2.0%
35.4%
4,000 2,000 0 2005
2006
2007
2008
2009
Direct Written Premium Growth Chubb
Net Loss Ratio
Insurance Market
Chubb
Insurance Market
30%
180% Growth over 2005 2005 = 100%
62.5%
72.8%
160% 20%
140% 120%
10%
100% 80% 2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Industrial Alliance Pacific General Insurance Corp.
Direct Written Premium
Market Share (based on DWP)
10,000
IAP
Top 5
Others
in thousands
8,000
2007
6,000 32.1%
4,000
2009 0.6%
1.8%
35.7%
2,000 0 2007
2008
2009
Direct Written Premium Growth IAP
Growth over 2007 2007 = 100%
62.5%
67.3%
Net Loss Ratio
Insurance Market
IAP
Insurance Market
100%
400% 350% 300% 250% 200% 150% 100% 50%
80% 60% 40% 20% 2007
2008
2009
0% 2007
2008
2009
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Co-Operators General & Sovereign
Direct Written Premium
Market Share (based on DWP)
10,000
Co-Op Group
Top 5
Others
in thousands
8,000
2005
6,000 24.4%
4,000
2009 2.8%
1.7%
35.7%
2,000 0 2005
2006
2007
2008
2009
Direct Written Premium Growth Co-Op Group
Net Loss Ratio
Insurance Market
Co-Op Group
175% Growth over 2005 2005 = 100%
62.5%
72.8%
60% 50% 40% 30% 20% 10% 0% 2005
150% 125% 100% 75% 2005
2006
2007
2008
2009
2006
2007
Insurance Market
2008
2009
Note: due to an incorrect internal allocation by LOB of IBNR, ULAE and discounting, 2009 loss ratio is overstated by approximately 1 million. (source: Sovereign General).
Source: MSA Research Inc.
CANADIAN SURETY MARKET ANALYSIS Northbridge Financial Group
Direct Written Premium
Market Share (based on DWP)
12,000
Northbridge
Top 5
Others
in thousands
10,000 8,000
2005
6,000
25.4%
2009 1.7%
1.7%
35.8%
4,000 2,000 0 2005
2006
2007
2008
2009
Direct Written Premium Growth Northbridge
Growth over 2005 2005 = 100%
62.5%
72.8%
Net Loss Ratio
Insurance Market
Northbridge
225%
30%
200%
20%
175%
10%
150%
0%
125%
-10%
100%
Insurance Market
-20%
75% 2005
2006
2007
2008
2009
-30% 2005
2006
2007
2008
2009
Source: MSA Research Inc.
Individual Results – Top 10 Reinsurers
CANADIAN SURETY MARKET ANALYSIS Hannover Rückversicherung-AG
Net Written Premium
Market Share (based on reinsurance NWP)
14,000
Hannover Re
in thousands
12,000 10,000
Top 5 less Hannover Re
2009
2005
8,000 27.6%
6,000
Others
14.9%
33.4%
19.2%
4,000 2,000 0 2005
2006
2007
2008
47.4%
57.5%
2009
Net Written Premium Growth Hannover Re
Net Loss Ratio
Reinsurance Market
Hannover Re 50%
250% Growth over 2005 2005 = 100%
Reinsurance Market
25%
200%
0% 150%
-25%
100%
-50%
50% 2005
2006
2007
2008
2009
-75% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS Westport Insurance Corporation / Swiss Reinsurance Company
Net Written Premium
Market Share (based on reinsurance NWP)
12,500
Westport
Top 5 less Westport
Others
in thousands
10,000
2009
2005
7,500 27.6%
5,000
14.4%
33.4%
26.2%
2,500 0 2005
2006
2007
2008
52.2%
46.2%
2009
Net Written Premium Growth Westport
Net Loss Ratio
Reinsurance Market
Westport
Growth over 2005 2005 = 100%
175%
Reinsurance Market
50%
150% 125%
25%
100% 75%
0%
50% 25% 2005
2006
2007
2008
2009
-25% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS Transatlantic Reinsurance Company
Net Written Premium
Market Share (based on reinsurance NWP)
10,000
Transatlantic Re
Top 5 less Transatlantic Re
Top 5
Others
in thousands
8,000
2009
2005
6,000
8.2%
19.4%
4,000
14.2%
33.4%
2,000 0 2005
2006
2007
2008
Net Written Premium Growth Transatlantic Re
Net Loss Ratio Transatlantic Re
Reinsurance Market
Reinsurance Market
50%
300% Growth over 2005 2005 = 100%
52.4%
72.4%
2009
250% 25%
200% 150%
0%
100% 50% 2005
2006
2007
2008
2009
-25% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS Munich Re Canada / Munich Re America
Net Written Premium
Market Share (based on reinsurance NWP)
7,000
Munich Re
Top 5 less Munich Re
Others
in thousands
6,000 5,000
2009
2005
4,000
13.0%
27.6%
3,000
9.8%
33.4%
2,000 1,000 0 2005
2006
2007
2008
56.8%
59.4%
2009
Net Written Premium Growth
Growth over 2005 2005 = 100%
Munich Re
Net Loss Ratio Munich Re
Reinsurance Market
170%
150%
150%
100%
130%
Reinsurance Market
50%
110%
0%
90% 70% 2005
2006
2007
2008
2009
-50% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS Everest Reinsurance Company
Market Share (based on reinsurance NWP)
Net Written Premium 7,000
Everest Re
Top 5 less Everest Re
Others
in thousands
6,000 5,000
2009
2005
4,000
8.8%
27.6%
3,000
8.9%
33.4%
2,000 1,000 0 2005
2006
2007
2008
Net Written Premium Growth
Growth over 2005 2005 = 100%
Everest Re
57.7%
63.6%
2009
Net Loss Ratio
Reinsurance Market
Everest Re
170%
60%
150%
45%
Reinsurance Market
30%
130%
15%
110%
0%
90%
-15%
70% 2005
2006
2007
2008
2009
-30% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS Partner Reinsurance Europe Limited
Net Written Premium
Market Share (based on reinsurance NWP)
6,000
PartnerRe
Top 5 less PartnerRe
Top 5
Others
in thousands
5,000 4,000
2009
2005
3,000
9.5%
27.6%
7.8%
25.6%
2,000 1,000 0 2005
2006
2007
2008
Net Loss Ratio
Net Written Premium Growth
Growth over 2005 2005 = 100%
PartnerRe
PartnerRe
Reinsurance Market
180%
50%
160%
40%
140%
30%
120%
20%
100%
10%
80% 2005
2006
2007
2008
66.6%
62.9%
2009
2009
0% 2005
2006
Reinsurance Market
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS St-Paul Fire & Marine Insurance Company
Net Written Premium
Market Share (based on reinsurance NWP)
5,000
St-Paul
Top 5
Others
in thousands
4,000
2009
2005
3,000
6.3%
21.3%
2,000
6.1%
27.3%
1,000 0 2005
2006
2007
2008
72.4%
2009
66.6%
Net Written Premium Growth
Growth over 2005 2005 = 100%
St-Paul
Net Loss Ratio
Reinsurance Market
St-Paul
180%
150%
160%
100%
Reinsurance Market
50%
140%
0%
120%
-50%
100%
-100%
80% 2005
2006
2007
2008
2009
-150% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS PARIS RE
in thousands
Net Written Premium
Market Share (based on reinsurance NWP)
4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0
PARIS Re
Others
2009
2005 24.8%
2005
2006
2007
2008
2.8%
PARIS Re
2006
PARIS Re
Reinsurance Market
2007
2008
66.6%
Net Loss Ratio
400% 350% 300% 250% 200% 150% 100% 50% 2005
6.0%
27.4%
72.4%
2009
Net Written Premium Growth
Growth over 2005 2005 = 100%
Top 5
2009
140% 120% 100% 80% 60% 40% 20% 0% 2005
2006
Reinsurance Market
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS SCOR Canada Reinsurance Company
Net Written Premium
Market Share (based on reinsurance NWP)
3,500
SCOR Canada
Top 5
Others
in thousands
3,000 2,500
2009
2005
2,000 25.4%
1,500
2.2%
4.6%
28.8%
1,000 500 0 2005
2006
2007
2008
Net Loss Ratio
Net Written Premium Growth
Growth over 2005 2005 = 100%
SCOR Canada
66.6%
72.4%
2009
Reinsurance Market
SCOR Canada
400%
100%
325%
0%
250%
Reinsurance Market
-100%
175%
-200%
100% 25% 2005
2006
2007
2008
2009
-300% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
CANADIAN SURETY MARKET ANALYSIS Odyssey America Reinsurance Corporation
Net Written Premium
Net Written Premium Market Share
3,000
Odyssey
Top 5
Others
in thousands
2,500 2,000
2009
2005
1,500
23.4%
4.2%
2.8%
30.6%
1,000 500 0 2005
2006
2007
2008
Net Loss Ratio
Net Written Premium Growth
Growth over 2005 2005 = 100%
Odyssey
66.6%
72.4%
2009
Odyssey
Reinsurance Market
Reinsurance Market
120%
170% 150% 130% 110% 90% 70% 50%
100% 80% 60% 40% 20% 2005
2006
2007
2008
2009
0% 2005
2006
2007
2008
2009
SOURCE: CANADIAN INSURANCE STATISTICAL ISSUE
