Canada has committed to attaining net-zero greenhouse gas (GHG) emissions by 2050 and subsequently set its target goals into law in June 2021. It joins only about a dozen other jurisdictions around the world that have introduced net-zero laws. Canadian insurance companies are also increasingly making commitments to achieve net zero emissions in their operations and in their investment portfolios by 2050. Key highlights include: -- Canada's transition to net-zero greenhouse gas emissions will b...
Despite the initial volatility of debt capital markets following the start of the Coronavirus Disease (COVID-19) pandemic, Canadian insurance companies issued debt and preferred shares in record numbers during 2020. Nine DBRS Morningstar-rated insurance issuers tapped long-term debt markets, issuing almost $13 billion of bonds and preferred shares.
As if the ongoing disruptions caused by the negative impacts of the Coronavirus Disease (COVID-19) pandemic were not enough to keep property and casualty (P&C) insurers busy in 2020, on May 21, 2020,forecasters in the Climate Prediction Center of the National Oceanic and Atmospheric Administration (NOAA) predicted that the Atlantic hurricane season, which runs from June 1 through November 30 each year, will have above-normal hurricane activity in 2020. The forecast envisages a 60% chance of an a...
On June 13 and 14, 2020, a series of extreme thunderstorms struck southern Alberta, Canada, resulting in hail and flooding that caused extensive damage. According to preliminary estimates by the Insurance Bureau of Canada, the thunderstorms caused approximately $1.2 billion in insured losses, with total economic losses exceeding $1.7 billion as thousands of vehicles, homes, and agricultural lands sustained significant damage. This natural catastrophe became Canada's most expensive thunderstorm-r...
DBRS Morningstar released a commentary titled “Canadian Insurance Companies Maintain Strong Access to Debt Markets Despite the Coronavirus Pandemic†that discusses the drivers of recent debt issuances in anticipation of a tougher economic environment in 2020 and 2021.
Given the relative maturity of the P&C insurance market in Canada there is a direct relationship between economic activity and premium levels. Based on DBRS Morningstar's latest moderate macroeconomic scenario for Canada in 2020, we expect that the growth of P&C insurance premiums in Canada will be severely limited and could even turn negative. Alternatively, under an adverse scenario, we anticipate that the volume of P&C insurance premiums will drop in 2020. Both scenarios contrast with strong ...
DBRS Limited (DBRS Morningstar) released a commentary entitled “P&C Insurance: Regulatory Oversight Essential for Broad Adoption of ESG Reporting Principles,†which discusses the importance of environmental, social, and governance (ESG) risk factors in assessing the financial strength of a property and casualty insurance company, as well as the need for standardization to facilitate comparability across geographic regions and between companies operating in similar sectors.
DBRS Limited (DBRS Morningstar) released a commentary entitled “P&C Insurance: The Conundrum of Business Interruption Coverage during the Coronavirus Pandemic†that discusses the impact of retroactively forcing property and casualty (P&C) insurance companies to assume business interruption losses in contracts that originally excluded pandemics as a covered peril.
Please refer to PDF document for more detail about our research: DBRS Morningstar Releases Commentary on Assessing Financial Strength Ratings of Property and Casualty (P&C) Insurance Companies Amid the Global Coronavirus Pandemic
DBRS Morningstar released a commentary entitled “Coronavirus: Likely Increases in P&C Insurance Claims in Certain Business Lines; Financial Markets’ Volatility Will Affect Investment Portfolios†that discusses the ways the Coronavirus Disease (COVID-19) can be expected to affect the Property and Casualty insurance industry.
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