A look back at the year that ended December 31, Superintendent of Insurance Annual. Business Report

Transcription

1 A look back at the year that ended December 31, Superintendent of Insurance 2014 Annual Business Report

2 Superintendent of Insurance Alberta Treasury Board and Finance Room 402, Street, NW Edmonton, AB T5K 2C3 Phone: Fax: FEBRUARY 2016 ISBN (Print) (Online PDF) ISSN (Print) (Online PDF) Copyright 2015 President of Treasury Board and Minister of Finance and its licensors. All rights reserved.

3 LETTER OF TRANSMITTAL TO MINISTER CECI The Honourable Joe Ceci President of Treasury Board, Minister of Finance 323 Legislature Building Avenue Edmonton, AB T5K 2B6 Dear Minister Ceci: Pursuant to section 799(2) of The Insurance Act, I am pleased to send you the 102 nd Annual Report of the Superintendent of Insurance, which shows the insurance business transacted in Alberta for the year ending December 31, The report includes: a) a summary of insurance companies licensed under The Insurance Act; and b) summaries of premiums written and claims incurred. Yours truly, [Original Signed] Nilam Jetha Superintendent of Insurance cc: Ray Gilmour, Deputy Minister Treasury Board and Finance SUPERINTENDENT OF INSURANCE 2014 ANNUAL BUSINESS REPORT i

4 MESSAGE FROM THE SUPERINTENDENT Following consecutive years of catastrophic losses caused by hail, wind, fire, and flood, the insurance industry in Alberta remained strong and resilient in Albertans, along with many other Canadians, continue to face sizable increases in the cost to insure their property as a result of these catastrophic losses and the rising cost of claims. At the same time, automobile insurers have raised concerns about pricing pressures due to increasing costs. The office of the Superintendent of Insurance provides regulatory oversight for the insurance sector in Alberta. In 2014, we continued to monitor existing and emerging risks to the solvency of the provincial insurance companies and reciprocal insurance exchanges that we supervise. In addition, we monitored the industry and interacted with consumers to ensure that insurers conduct business in a way which customers are being treated fairly and in compliance with the Insurance Act. As Superintendent of Insurance, I would like to express gratitude to Laurie Balfour, Senior Manager, Prudential Supervision, who filled in as Acting Deputy Superintendent of Insurance until September 14, 2014, while continuing to provide strong oversight in her prudential supervision responsibilities. Effective September 15, 2014, I welcomed David Sorensen as the new Deputy Superintendent of Insurance. I would also like to thank the staff of Alberta Treasury Board and Finance as well as our colleagues at the Alberta Automobile Insurance Rate Board and the Alberta Insurance Council, who work to ensure Albertans have access to fair and affordable insurance. I am proud of their achievements. Their continued work is fundamental to a fair and balanced regulatory system in Alberta. In the coming year, the focus of the Superintendent s office will be on improving our insurer licensing system, improving insurer claim handling compliance, monitoring newly created flood insurance products, and ensuring that our provincial insurance companies remain financially strong through a challenging economic period. [Original Signed] Nilam Jetha Superintendent of Insurance ii 2014 ANNUAL BUSINESS REPORT SUPERINTENDENT OF INSURANCE

5 TABLE OF CONTENTS i Letter of Transmittal to Minister Ceci ii Message from the Superintendent 2 OVERVIEW 5 ABSTRACT OF RETURNS 6 Life Insurance Direct 8 Life Insurance Direct, Annuities and Dividends 10 Automobile and Property Insurance 13 Accident and Sickness Insurance 15 Liability and Fidelity Insurance 18 Surety and Boiler and Machinery Insurance 20 Aircraft and Marine Insurance 21 Hail and Title Insurance 22 Mortgage and Credit Insurance 23 Legal Expense and Credit Protection Insurance 23 Other Approved Products and Equipment Warranty 24 GLOSSARY SUPERINTENDENT OF INSURANCE 2014 ANNUAL BUSINESS REPORT 1

6 OVERVIEW The mission of the Office of the Superintendent of Insurance (Superintendent) is to provide regulatory oversight for the insurance sector which is effective, fair and in the interests of Albertans. We achieve this by taking appropriate and balanced regulatory actions and effectively communicating with Albertans and the insurance industry. The following is a summary of the business transacted in Alberta during 2014: (in Thousands) Life 1 $6,104,653 General $9,155,511 Total $15,260,164 and Disbursements Life 2 $3,891,379 General $5,970,235 Total and Disbursements $9,861,614 Insurers Licensed There were 256 insurance entities licensed on December 31, Business Type Alberta Extra Provincial Federal 3 Total Property and Casualty Insurance Companies Life Insurance Companies Fraternal Societies Reciprocal Insurance Exchanges Warranty Providers Total The Superintendent recovers all costs of regulation from industry on an annual basis. In 2014, we collected $2,156,611 through the Recovery of Administration Costs Regulation. 1 Life premiums include annuities and accident and sickness. 2 Life claims and disbursements include annuities and accident and sickness. 3 Includes branch operations of foreign insurers ANNUAL BUSINESS REPORT SUPERINTENDENT OF INSURANCE

7 OVERVIEW, CONTINUED... Provincial Insurer Financial Results The Superintendent publishes select financial data for Alberta incorporated insurance companies. The data is reported as provided by the insurers in their quarterly reporting to the Superintendent. It can be found on our website at: Superintendent Bulletins and Notices Pursuant to section of the Act, the Superintendent issues notices, guidelines and interpretation bulletins to clarify expectations with respect to interpretation and application of the Act and regulations. In 2014 the Superintendent issued 11 notices and interpretation bulletins on a variety of topics including the Home Warranty Insurance Regulation, Diagnostic and Treatment Protocols and Adverse Contractual Action Regulation. Additional information can be found on our website at: Enforcement Activities As part of a risk-based approach to the supervision of the insurance industry in Alberta, the Superintendent investigates consumer complaints, allegations of misconduct on the part of insurers, unfair acts or practices taken against consumers and occurrences of non-compliance with the Act and its attendant regulations. Upon the completion of an investigation the Superintendent, pursuant to the provisions of the Act and the Enforcement and Administration Regulation, determines if further regulatory action is warranted. Regulatory action includes but is not limited to the assessment of administrative penalties. In 2014 the Superintendent assessed administrative penalties totaling $296,000. Additional details can be found on our website at: Certified Examiner Selection In the event of a disagreement between a claimant and an insurance company as to whether or not an injury arising from a motor vehicle accident is a minor injury, or if a minor injury has caused a serious impairment, the Certified Examiner (CE) process is mandated under the Minor Injury Regulation to resolve the dispute. Under this process either party may apply to the Superintendent of Insurance to appoint a physician from the CE Register to assess the patient and determine if the injury is minor or not. The appointment of CEs began in 2005 and has averaged 188 per year for the last 5 years. See chart for number of CE applications processed by the Certified Examiner process. For further information on the Certified Examiner process, the Certified Examiner Register or application forms for the appointment of a Certified Examiner please refer to our website, at Number of CE Applications Processed by the Certified Examiner Process SUPERINTENDENT OF INSURANCE 2014 ANNUAL BUSINESS REPORT 3

8 OVERVIEW, CONTINUED... Comparative Summary of and by Class of Insurance in Alberta During 2014 Class Including Adjustment Expenses Ratio (%) Accident & Sickness 2,747,501 1,492, Aircraft 48,595 47, Automobile 4,223,915 3,334, Boiler & Machinery 75,729 58, Credit 9,898 5, Credit Protection 24,599 1, Fidelity 10,987 5, Hail 37,376 53, Legal Expense 1, Liability 962, , Life 3,367,152 2,399, Marine 51,858 15, Mortgage 235,287 5, Property 3,284,457 1,741, Surety 86,617 31, Title 23,705 5, Equipment Warranty 4 77,564 16, Source: The information in this table was obtained from the 2014 annual filings filed with Alberta for provincial and extra provincial insurers and information filed with the Office of the Superintendent of Financial Institutions for federal insurers. Insurance Companies Operating in Alberta The Superintendent maintains a list of Insurance Companies, Reciprocal Insurance Exchanges and Fraternal Societies licensed to operate in Alberta. This list can be found on our website at: ca/publications/insurance/insurers-recip-ins-exchanges-fraternal-societies-licensed-in-alberta.pdf The list includes the insurance classes, attorney for service (person delegated to accept service of legal papers), and contact information for the Complaint Liaison Officer/ombudsperson. The Superintendent also maintains a list of insurers, Reciprocal Insurance Exchanges and Fraternal Societies that have withdrawn, amalgamated or changed their names, and includes the name of the entity and the historical information on why they no longer operate in Alberta. This list can be found on our website at: Longer-Licensed-in-Alberta.pdf 4 In prior years Equipment Warranty was included with Boiler & Machinery ANNUAL BUSINESS REPORT SUPERINTENDENT OF INSURANCE

9 ABSTRACT OF RETURNS DISCLAIMER The following information was obtained from the 2014 annual filings filed with Alberta for provincial and extra provincial insurers and information filed with the Office of the Superintendent of Financial Institutions for federal insurers. While every effort has been made to ensure the accuracy of this report, decisions should not be made solely on the information herein contained. You will notice in many of the tables (on the following pages) that there s an asterisks (*) next to the words Ratio see below for a clarification of the term Ratio. *CLAIMS RATIO: A ratio of total direct claims and adjustment expense incurred to total direct premiums written in Alberta. This ratio does not take into consideration changes in unearned premiums and reinsurance as these amounts are not allocated by Province. SUPERINTENDENT OF INSURANCE 2014 ANNUAL BUSINESS REPORT 5

10 ABSTRACT OF THE RETURNS OF COMPANIES TRANSACTING LIFE INSURANCE DIRECT PREMIUMS WRITTEN IN THE PROVINCE OF ALBERTA FOR 2014 Individual INSURANCE PREMIUMS Group Total CONSIDERATION FOR ANNUITIES Individual Group Total Actra Fraternal Benefit Society Aetna Life Insurance Company Allianz Life Insurance Company of North America American Bankers Life Assurance Company of Florida 66 46,686 46,752 46,752 American Health and Life Insurance Company 1 2,337 2,338 2,338 American Income Life Insurance Company 14,278 14,278 14,278 Assumption Mutual Life Insurance Company 2, ,719 1,615 1,615 4,334 Assurant Life of Canada 394 3,828 4,222 1,864 18,542 20,406 24,628 Blue Cross Life Insurance Company of Canada ,090 11,237 11,237 BMO Life Assurance Company 39, ,583 2,097 14,558 16,655 56,238 BMO Life Insurance Company 1,478 1,478 1,086 1,086 2,564 Canada Life Assurance Company (The) 236, , ,244 7,712 2,355 10, ,311 Canadian Premier Life Insurance Company 16,779 16,779 16,779 CIBC Life Insurance Company Limited Combined Insurance Company of America Connecticut General Life Insurance Company Co-operators Life Insurance Company 50,060 5,915 55,975 3,059 3,059 59,034 Croatian Fraternal Union of America Cumis Life Insurance Company 2,286 20,522 22,808 22,808 Desjardins Financial Security Life Assurance Company 18,848 19,037 37,885 9,557 20,250 29,807 67,692 Empire Life Insurance Company (The) 27,821 3,555 31,376 13, ,093 45,469 Equitable Life Insurance Company of Canada (The) 61,324 6,831 68,155 10, ,129 79,284 Esurance Insurance Company of Canada FaithLife Financial 3,666 3, ,142 First Canadian Insurance Corporation 47,798 47,798 47,798 Foresters Life Insurance Company 6,918 2,491 9, ,084 2,100 11,509 Gerber Life Insurance Company Grand Orange Lodge of British America Benefit Fund (The) Great-West Life Assurance Company (The) 73, , ,542 12,463-1,537 10, ,468 Humania Assurance Inc Independent Order of Foresters (The) 4,322 4, ,356 Grand Total ANNUAL BUSINESS REPORT SUPERINTENDENT OF INSURANCE

11 LIFE INSURANCE DIRECT PREMIUMS WRITTEN, CONTINUED... Individual INSURANCE PREMIUMS Group Total CONSIDERATION FOR ANNUITIES Individual Group Total Industrial Alliance Insurance and Financial Services Inc. 152,919 21, , ,720 25, , ,677 Knights of Columbus 24,965 24,965 24,965 La Capitale Financial Security Insurance Company 1, , ,332 La Capitale Insurance and Financial Services Inc. 1, ,344 2,722 2,722 5,066 Life Insurance Company of North America London Life Insurance Company 201, ,531 4,871 42,756 47, ,158 Manufacturers Life Insurance Company (The) 280, , ,909 17,083 29,143 46, ,135 National Bank Life Insurance Company New York Life Insurance Company Order of United Commercial Travelers of America (The) Pavonia Life Insurance Company of Michigan 25 1,778 1,803 1,803 Primerica Life Insurance Company of Canada 41,509 41,509 41,509 RBC Life Insurance Company 132,390 2, , ,573 Reliable Life Insurance Company Scotia Life Insurance Company 227 1,812 2,039 2,039 Sons of Scotland Benevolent Association SSQ Insurance Company Inc. 1,309 10,347 11,656 11,656 SSQ Life Insurance Company Inc. 11,842 11, ,873 Standard Life Assurance Company of Canada (The) 18,677 12,478 31,155 23,634 6,118 29,752 60,907 State Farm International Life Insurance Company Ltd. 12, , ,770 Sun Life Assurance Company of Canada 296, , ,575 74, , , ,359 TD Life Insurance Company 1, ,939 1,939 Teachers Life Insurance Society (Fraternal) The Excellence Life Insurance Company The Union Life Mutual Assurance Company Trans Global Life Insurance Company Transamerica Life Canada 117, , ,963 Ukrainian Fraternal Society of Canada Ukrainian National Association Inc United American Insurance Company Wawanesa Life Insurance Company (The) 15,215 1,046 16,261 11,016 11,016 27,277 Western Life Assurance Company 8,953 9,293 18,246 18,246 Totals and Average Claim Ratios 1,854, ,553 2,768, , , ,103 3,367,152 Grand Total SUPERINTENDENT OF INSURANCE 2014 ANNUAL BUSINESS REPORT 7

12 ABSTRACT OF THE RETURNS OF COMPANIES TRANSACTING LIFE INSURANCE DIRECT CLAIMS, ANNUITIES AND DIVIDENDS IN THE PROVINCE OF ALBERTA FOR 2014 Death Dividends Annuity Aetna Life Insurance Company Allianz Life Insurance Company of North America American Bankers Life Assurance Company of Florida 4,002 4,002 American Health and Life Insurance Company American Income Life Insurance Company 2,154 2,154 Assumption Mutual Life Insurance Company ,750 Assurant Life of Canada 3,105 4,930 8,035 AXA Equitable Life Insurance Company 2 2 Blue Cross Life Insurance Company of Canada 5,426 5,426 BMO Life Assurance Company 43, ,248 51,684 BMO Life Insurance Company Canada Life Assurance Company (The) 66,452 29,495 39, ,827 Canadian Premier Life Insurance Company 3,131 3,131 CIBC Life Insurance Company Limited Combined Insurance Company of America Connecticut General Life Insurance Company Co-operators Life Insurance Company 25, ,330 30,756 Cumis Life Insurance Company 9,563 2, ,630 Desjardins Financial Security Life Assurance Company 23,643 1,041 15,041 39,725 Empire Life Insurance Company (The) 12,863 1,522 17,142 31,527 Equitable Life Insurance Company of Canada (The) 20,923 2,318 11,788 35,029 FaithLife Financial 1, ,121 3,755 First Canadian Insurance Corporation 2,417 2,417 Foresters Life Insurance Company 4, ,122 9,679 Gerber Life Insurance Company Grand Orange Lodge of British America Benefit Fund (The) Great-West Life Assurance Company (The) 135,823 16,905 25, ,186 Humania Assurance Inc. 8 8 Independent Order of Foresters (The) 4,131 1, ,870 Grand Total ANNUAL BUSINESS REPORT SUPERINTENDENT OF INSURANCE

13 LIFE INSURANCE DIRECT CLAIMS, ANNUITIES AND DIVIDENDS, CONTINUED... Death Dividends Annuity Industrial Alliance Insurance and Financial Services Inc. 71,530 1, , ,169 Jackson National Life Insurance Company 1 1 Knights of Columbus 6,525 3, ,191 La Capitale Financial Security Insurance Company ,014 La Capitale Insurance and Financial Services Inc Liberty Life Assurance Company of Boston Life Insurance Company of North America London Life Insurance Company 85,564 66,085 55, ,547 Manufacturers Life Insurance Company (The) 196,915 36, , ,894 National Bank Life Insurance Company New York Life Insurance Company Order of United Commercial Travelers of America (The) 6 6 Pavonia Life Insurance Company of Michigan Primerica Life Insurance Company of Canada 17,900 17,900 Principal Life Insurance Company RBC Life Insurance Company 291, ,551 Scotia Life Insurance Company Sons of Scotland Benevolent Association SSQ Insurance Company Inc. 5,621 5,621 SSQ Life Insurance Company Inc. 6, ,924 Standard Life Assurance Company of Canada (The) 21,543 2,367 34,040 57,950 Standard Life Assurance Limited 1,554 1,554 State Farm International Life Insurance Company Ltd. 5, ,471 7,768 Sun Life Assurance Company of Canada 242,272 67, , ,057 TD Life Insurance Company Trans Global Life Insurance Company Transamerica Life Canada 52, ,411 55,264 Ukrainian Fraternal Society of Canada 9 9 Ukrainian National Association Inc. 7 7 Wawanesa Life Insurance Company (The) 6, ,362 15,068 Western Life Assurance Company 2, ,529 Totals and Average Claim Ratios 1,387, , ,058 2,399,046 Grand Total SUPERINTENDENT OF INSURANCE 2014 ANNUAL BUSINESS REPORT 9

14 ABSTRACT OF THE RETURNS OF COMPANIES TRANSACTING AUTOMOBILE AND PROPERTY INSURANCE IN THE PROVINCE OF ALBERTA FOR 2014 AUTOMOBILE PROPERTY ACE INA Insurance 10,334 7, % 25,895 9, % Affiliated F.M. Insurance Company 5,270 26, % AIG Insurance Company of Canada 11,558 10, % 174,636 38, % Alberta Motor Association Insurance Company 241, , % 74,206 46, % Alberta Municipal Insurance Exchange % 8,175 5, % Alberta New Home Warranty Program (ANHWP) 13,859 9, % Alberta School Boards Insurance Exchange 1,947 1, % Allianz Global Risk US Insurance Company (176) (1,080) 54,746 8, % Allied World Specialty Insurance Company 2, % Allstate Insurance Company of Canada 84,998 56, % 39,337 28, % American Bankers Insurance Company of Florida 25,999 9, % American Road Insurance Company 2,023 7, % Ascentus Insurance Ltd. 28 Aspen Insurance U.K. Limited 1, % Asset Protection Insurance Exchange % Associated Electric & Gas Insurance Services Limited 1,511 1, % Aviva Insurance Company of Canada 252, , % 163, , % AXIS Reinsurance Company (Canadian Branch) 740 (1,007) Berkley Insurance Company % Canadian Airports Reciprocal Insurance Exchange (CARIE) 1, % Canadian Direct Insurance Incorporated 52,276 35, % 15,168 16, % Canadian Egg Industry Reciprocal Alliance (CEIRA) % Canadian Farm Insurance Corp. 4,418 2, % 4,274 2, % Canadian Northern Shield Insurance Company % Canadian Universities Reciprocal Insurance Exchange 2, % Canassurance Insurance Company % Certas Direct Insurance Company 16,551 11, % 2,490 2, % Chubb Insurance Company of Canada 10,628 6, % 36,719 10, % Continental Casualty Company 11,579 8, % 25,195 12, % Co-operators General Insurance Company 311, , % 255, , % CorePointe Insurance Company (261) Coseco Insurance Company 17,776 12, % 7,931 6, % Cumis General Insurance Company 3,226 2, % 3,388 2, % Dominion of Canada General Insurance Company (The) 79,281 49, % 54,197 46, % Ecclesiastical Insurance Office Public Limited Company 9,074 8, % Echelon Insurance 6,192 3, % 7,648 1, % Economical Mutual Insurance Company 156, , % 90,196 61, % Electric Insurance Company % Elite Insurance Company 18,139 7, % 42,352 34, % Employers Insurance Company of Wausau ANNUAL BUSINESS REPORT SUPERINTENDENT OF INSURANCE

15 AUTOMOBILE AND PROPERTY INSURANCE, CONTINUED... AUTOMOBILE PROPERTY Energy Insurance Group 12,162 4, % Everest Insurance Company of Canada % 1, % Factory Mutual Insurance Company 21, % Federal Insurance Company % Federated Insurance Company of Canada 23,346 16, % 17,862 9, % Federation Insurance Company of Canada % 5,011 4, % FedGas Insurance Reciprocal Exchange % First North American Insurance Company 2, % Fortress Insurance Company 603 2, % GMS Insurance Inc. 3 Gore Mutual Insurance Company 2,545 1, % Great American Insurance Company 15,356 1, % Guarantee Company of North America (The) 2,006 1, % 4,854 2, % Hartford Fire Insurance Company % 4,620 2, % Healthcare Insurance Reciprocal of Canada 10 (6) Industrial Alliance Pacific General Insurance Corporation 1,463 (36) Intact Insurance Company 709, , % 348, , % International Insurance Company of Hannover SE 5,593 1, % Jevco Insurance Company (752) 591 (6) 3,931 Jewelers Mutual Insurance Company % Jubilee Reciprocal Insurance Exchange 7,741 5, % La Capitale General Insurance Inc. 18 Legacy General Insurance Company 14 Liberty Mutual Insurance Company 10,505 7, % 17,309 11, % Lloyd's Underwriters 6,149 5, % 188, , % MAX Canada Insurance Company % Mennonite Mutual Insurance Co. (Alberta) Ltd. 20 8,485 4, % Millennium Insurance Corporation 20,085 16, % 36,136 7, % Missisquoi Insurance Company (The) 4 Motors Insurance Corporation 2,156 7, % National Liability & Fire Insurance Company 2, % Nordic Insurance Company of Canada (The) (1,449) (34) Northbridge Commercial Insurance Corporation 44,943 25, % 4,002 2, % Northbridge General Insurance Corporation 30,790 16, % 52,655 (8,546) Northbridge Personal Insurance Corporation % % Novex Insurance Company 71,408 54, % 35,823 20, % Old Republic Insurance Company of Canada 6,693 6, % % Omega General Insurance Company 11,161 7, % Optimum West Insurance Company 3,167 1, % 4,855 2, % Orion Travel Insurance Company 6,778 2, % Pafco Insurance Company 1 Peace Hills General Insurance Company 70,439 47, % 74,573 41, % Pembridge Insurance Company 10,383 7, % 7,571 6, % Perth Insurance Company (742) Portage La Prairie Mutual Insurance Company (The) 21,392 17, % 19,316 10, % SUPERINTENDENT OF INSURANCE 2014 ANNUAL BUSINESS REPORT 11

16 AUTOMOBILE AND PROPERTY INSURANCE, CONTINUED... AUTOMOBILE PROPERTY Primmum Insurance Company 139, , % 58,918 26, % Protective Insurance Company % Provincial Health Authorities of Alberta Liability and Property Insurance Plan 2, % RBC General Insurance Company 54,433 38, % 19,828 12, % RBC Insurance Company of Canada 908 2, % 1,859 1, % Royal & Sun Alliance Insurance Company of Canada 72,411 38, % 105,631 (11,632) Saskatchewan Mutual Insurance Company 1 13,676 7, % Scottish & York Insurance Co. Limited (1) Security National Insurance Company 511, , % 267, , % Sentry Insurance A Mutual Company % SGI CANADA Insurance Services Ltd. 51,194 36, % 27,548 13, % Sompo Japan Nipponkoa Insurance Inc. 1 (8) % Sovereign General Insurance Company (The) 18,491 17, % 29,085 (3,444) St. Paul Fire and Marine Insurance Company 13,221 6, % 10,660 10, % Starr Insurance & Reinsurance Limited % State Farm Fire and Casualty Company (The) 48,179 25, % State Farm Mutual Automobile Insurance Company 125, , % Sumitomo Marine and Fire Insurance Company Limited (The) % 1, % T.H.E. Insurance Company 1 TD Home and Auto Insurance Company 18,117 18, % 14,553 6, % Temple Insurance Company 7,880 (2,653) The Boiler Inspection and Insurance Company of Canada % The Mutual Fire Insurance Company of British Columbia 8,553 7, % The Personal Insurance Company 75,681 50, % 22,190 18, % Tokio Marine & Nichido Fire Insurance Co., Ltd % 3, % Traders General Insurance Company 40,102 30, % 16,773 13, % Trafalgar Insurance Company of Canada 16,994 11, % 7,638 2, % Trans Global Insurance Company 2, % Travelers Insurance Company of Canada 3,218 2, % 5, % Trisura Guarantee Insurance Company 17 Triton Insurance Company 1, % Unica Insurance Inc (3) Unifund Assurance Company 169, , % 69,801 40, % Urban School Insurance Consortium Reciprocal (USIC) 3,550 2, % Waterloo Insurance Company 10,875 8, % 4,095 3, % Wawanesa Mutual Insurance Company (The) 533, , % 327, , % Western Financial Insurance Company 8,726 4, % Westport Insurance Corporation 6 24,414 2, % Wynward Insurance Group 10,869 11, % Zenith Insurance Company % % Zurich Insurance Company Ltd 41,301 51, % 77,953 48, % Totals and Average Claim Ratios 4,223,915 3,334, % 3,284,457 1,741, % *CLAIMS RATIO: See page 5 for definition ANNUAL BUSINESS REPORT SUPERINTENDENT OF INSURANCE

17 ABSTRACT OF THE RETURNS OF COMPANIES TRANSACTING ACCIDENT AND SICKNESS INSURANCE IN THE PROVINCE OF ALBERTA FOR 2014 ACCIDENT AND SICKNESS ACE INA Insurance % Actra Fraternal Benefit Society % Aetna Life Insurance Company 1, % AIG Insurance Company of Canada 9,787 3, % Alberta Motor Association Insurance Company 1, % Allianz Global Risk US Insurance Company 9,817 2, % American Bankers Insurance Company of Florida 25,586 1, % American Bankers Life Assurance Company of Florida 26,773 3, % American Income Life Insurance Company 1, % Assumption Mutual Life Insurance Company % Aviva Insurance Company of Canada % Berkley Insurance Company 2 Blue Cross Life Insurance Company of Canada 31,516 16, % BMO Life Assurance Company 4,813 1, % BMO Life Insurance Company 5, % Canada Life Assurance Company (The) 121,589 13, % Canadian Premier Life Insurance Company 24,331 2, % Canassurance Insurance Company % Chubb Insurance Company of Canada % CIBC Life Insurance Company Limited 9,922 1, % Combined Insurance Company of America 20,185 9, % Connecticut General Life Insurance Company % Continental Casualty Company 16 Co-operators General Insurance Company 124 Co-operators Life Insurance Company 50,777 23, % Cumis General Insurance Company 18 Cumis Life Insurance Company 11,178 2, % Desjardins Financial Security Life Assurance Company 126,509 77, % Echelon Insurance 3, % Empire Life Insurance Company (The) 34,991 24, % Equitable Life Insurance Company of Canada (The) 65,322 41, % Everest Insurance Company of Canada 25 (16) FaithLife Financial % Fenchurch General Insurance Company 2,874 1, % First Canadian Insurance Corporation 61,727 3, % Foresters Life Insurance Company 2, % GMS Insurance Inc. 6,418 3, % SUPERINTENDENT OF INSURANCE 2014 ANNUAL BUSINESS REPORT 13

18 ACCIDENT AND SICKNESS INSURANCE, CONTINUED... ACCIDENT AND SICKNESS Great-West Life Assurance Company (The) 624, , % Green Shield Canada 49,644 58, % Guarantee Company of North America (The) 1 Humania Assurance Inc % Independent Order of Foresters (The) % Industrial Alliance Insurance and Financial Services Inc. 91,500 39, % International Insurance Company of Hannover SE % Knights of Columbus % La Capitale Financial Security Insurance Company 12,860 9, % La Capitale Insurance and Financial Services Inc. 7,176 4, % Legacy General Insurance Company 1, % Liberty Life Assurance Company of Boston 59 Life Insurance Company of North America % Lloyd's Underwriters 5,463 (9,961) LS-Travel, Insurance Company % Manufacturers Life Insurance Company (The) 414, , % National Bank Life Insurance Company % Order of United Commercial Travelers of America (The) % Orion Travel Insurance Company 10,191 6, % Pavonia Life Insurance Company of Michigan % PBC Health Benefits Society 919 Primerica Life Insurance Company of Canada 2 RBC Insurance Company of Canada 24,923 10, % RBC Life Insurance Company 91,888 56, % Reliable Life Insurance Company 2,164 1, % Royal & Sun Alliance Insurance Company of Canada 16,475 Scotia Life Insurance Company 9, % SSQ Insurance Company Inc. 6,839 5, % SSQ Life Insurance Company Inc. 56,311 30, % Standard Life Assurance Company of Canada (The) 54,080 31, % Sun Life Assurance Company of Canada 553, , % TD Life Insurance Company 12,775 4, % The Excellence Life Insurance Company 1, % The Union Life Mutual Assurance Company 4 Transamerica Life Canada % Triton Insurance Company 3, % Wawanesa Life Insurance Company (The) 4,615 3, % Western Life Assurance Company 16,001 6, % Zurich Insurance Company Ltd % Totals and Average Claim Ratios 2,737,501 1,492,333???% *CLAIMS RATIO: See page 5 for definition ANNUAL BUSINESS REPORT SUPERINTENDENT OF INSURANCE

19 ABSTRACT OF THE RETURNS OF COMPANIES TRANSACTING LIABILITY AND FIDELITY INSURANCE IN THE PROVINCE OF ALBERTA FOR 2014 LIABILITY FIDELITY ACE INA Insurance 20,514 13, % (85) (15) AIG Insurance Company of Canada 83,421 19, % % Alberta Lawyers Insurance Exchange 3,970 1, % Alberta Municipal Insurance Exchange 6,344 4, % Alberta Roofing Contractors Reciprocal Insurance Exchange % Alberta School Boards Insurance Exchange 2, % Allianz Global Risk US Insurance Company 7,432 4, % Allied World Specialty Insurance Company % Aspen Insurance U.K. Limited 2,316 2, % Associated Electric & Gas Insurance Services Limited 7,424 32, % Aviva Insurance Company of Canada 53,207 18, % % AXIS Reinsurance Company (Canadian Branch) 9,802 4, % % Berkley Insurance Company 4,540 1, % 31 (3) Canadian Direct Insurance Incorporated % Canadian Lawyers Insurance Association 6,500 1, % Canadian Lawyers Liability Assurance Society 1,674 1, % Canadian Northern Shield Insurance Company % 57 Canadian Universities Reciprocal Insurance Exchange 1, % Canassurance Insurance Company % Chubb Insurance Company of Canada 37,712 35, % 1,646 (538) Community Newspapers Reciprocal Insurance Exchange 15 Continental Casualty Company 19,591 8, % 76 Co-operators General Insurance Company 53,982 35, % % Coseco Insurance Company Cumis General Insurance Company 1, % 1,354 1, % Dominion of Canada General Insurance Company (The) 12,344 13, % % Ecclesiastical Insurance Office Public Limited Company 2,921 2, % Echelon Insurance 401 (91) Economical Mutual Insurance Company 19,917 14, % % Electric Insurance Company 1, % Employers Insurance Company of Wausau (1) SUPERINTENDENT OF INSURANCE 2014 ANNUAL BUSINESS REPORT 15

20 LIABILITY AND FIDELITY INSURANCE, CONTINUED... LIABILITY FIDELITY Energy Insurance Group 7,715 16, % Everest Insurance Company of Canada 3,902 2, % Federal Insurance Company (53) Federated Insurance Company of Canada 13,552 4, % 72 (38) Federation Insurance Company of Canada % FedGas Insurance Reciprocal Exchange % Genesis Reciprocal Insurance Exchange 4,848 3, % Gore Mutual Insurance Company % Great American Insurance Company 3, % % Guarantee Company of North America (The) 1, % 2,081 1, % Hartford Fire Insurance Company 860 (68) Healthcare Insurance Reciprocal of Canada 1, % Intact Insurance Company 91,325 29, % International Insurance Company of Hannover SE 1, % Jevco Insurance Company 366 Jewelers Mutual Insurance Company 54 La Capitale General Insurance Inc. 5 Liberty Mutual Insurance Company 24,904 9, % % Lloyd's Underwriters 178, , % 824 1, % MAX Canada Insurance Company 26 (2) Mennonite Mutual Insurance Co. (Alberta) Ltd % Millennium Insurance Corporation % National Liability & Fire Insurance Company % Nordic Insurance Company of Canada (The) 76 Northbridge Commercial Insurance Corporation % Northbridge General Insurance Corporation 23,091 (683) 208 (5) Northbridge Personal Insurance Corporation 1,063 Novex Insurance Company 882 1, % Old Republic Insurance Company of Canada % Omega General Insurance Company % Optimum West Insurance Company % 2 Portage La Prairie Mutual Insurance Company (The) 865 (268) Primmum Insurance Company % Provincial Health Authorities of Alberta Liability and Property Insurance Plan 21,847 29, % RBC General Insurance Company ANNUAL BUSINESS REPORT SUPERINTENDENT OF INSURANCE

21 LIABILITY AND FIDELITY INSURANCE, CONTINUED... LIABILITY FIDELITY Real Estate Insurance Exchange 3,273 2, % Royal & Sun Alliance Insurance Company of Canada 37,726 36, % % Saskatchewan Mutual Insurance Company 2, % 6 (1) Scottish & York Insurance Co. Limited ,500.0% Security Insurance Company of Hartford (32) Security National Insurance Company 3,937 2, % Sentry Insurance A Mutual Company % SGI CANADA Insurance Services Ltd. 6, % % Sompo Japan Nipponkoa Insurance Inc % Sovereign General Insurance Company (The) 17,255 9, % 35 St. Paul Fire and Marine Insurance Company 10,528 2, % % Starr Insurance & Reinsurance Limited % State Farm Fire and Casualty Company (The) 5,188 2, % 4 Sumitomo Marine and Fire Insurance Company Limited (The) 1,201 (345) 26 T.H.E. Insurance Company 4 TD Home and Auto Insurance Company 3,528 2, % Temple Insurance Company 12,359 (79) The Mutual Fire Insurance Company of British Columbia % The Personal Insurance Company Tokio Marine & Nichido Fire Insurance Co., Ltd % Trafalgar Insurance Company of Canada 1 Travelers Insurance Company of Canada 8,121 6, % 1, % Trisura Guarantee Insurance Company 4, % 132 (4) Triton Insurance Company 26 Unica Insurance Inc. 5 Urban School Insurance Consortium Reciprocal (USIC) 1,400 1, % Virginia Surety Company, Inc % Waterloo Insurance Company 69 (22) Wawanesa Mutual Insurance Company (The) 12,196 5, % Western Surety Company 2 Westport Insurance Corporation 9,574 1, % Wynward Insurance Group 2, % XL Reinsurance America Inc. 2,743 3, % Zurich Insurance Company Ltd 68, , % % Totals and Average Claim Ratios 962, , % 10,987 5, % *CLAIMS RATIO: See page 5 for definition. SUPERINTENDENT OF INSURANCE 2014 ANNUAL BUSINESS REPORT 17

22 ABSTRACT OF THE RETURNS OF COMPANIES TRANSACTING SURETY AND BOILER AND MACHINERY INSURANCE IN THE PROVINCE OF ALBERTA FOR 2014 SURETY BOILER AND MACHINERY ACE INA Insurance 1, % Affiliated F.M. Insurance Company % AIG Insurance Company of Canada 160 (471) 4,726 13, % Allianz Global Risk US Insurance Company 2,001 1, % Aviva Insurance Company of Canada 6, % 3, % AXIS Reinsurance Company (Canadian Branch) 24 (3) Berkley Insurance Company % 4 Canadian Farm Insurance Corp. 34 Canadian Northern Shield Insurance Company % Chubb Insurance Company of Canada 2,720 (61) 1,198 (410) Continental Casualty Company % % Co-operators General Insurance Company 4,355 1, % 2, % Cumis General Insurance Company % Dominion of Canada General Insurance Company (The) % Ecclesiastical Insurance Office Public Limited Company 274 (10) Economical Mutual Insurance Company % 1, % Everest Insurance Company of Canada % Factory Mutual Insurance Company 8,552 (683) Federated Insurance Company of Canada 47 (1) % Gore Mutual Insurance Company % Great American Insurance Company % 72 Guarantee Company of North America (The) 14,712 8, % % Hartford Fire Insurance Company 1 Industrial Alliance Pacific General Insurance Corporation % Intact Insurance Company 12,065 6, % 4,423 1, % La Capitale General Insurance Inc % ANNUAL BUSINESS REPORT SUPERINTENDENT OF INSURANCE

23 SURETY AND BOILER AND MACHINERY INSURANCE, CONTINUED... SURETY BOILER AND MACHINERY Liberty Mutual Insurance Company 3, % Lloyd's Underwriters 4,924 1, % 19,332 32, % L'Unique General Insurance Inc % Millennium Insurance Corporation 52 Northbridge General Insurance Corporation (1) % Novex Insurance Company 9 Optimum West Insurance Company % Royal & Sun Alliance Insurance Company of Canada ,745 4, % Saskatchewan Mutual Insurance Company 40 SGI CANADA Insurance Services Ltd , % % Sovereign General Insurance Company (The) 4,200 1, % 1, % St. Paul Fire and Marine Insurance Company % State Farm Fire and Casualty Company (The) 16 Sumitomo Marine and Fire Insurance Company Limited (The) 31 Temple Insurance Company % The Boiler Inspection and Insurance Company of Canada 3, % The Mutual Fire Insurance Company of British Columbia 32 Tokio Marine & Nichido Fire Insurance Co., Ltd. 2 Trafalgar Insurance Company of Canada 9 Travelers Insurance Company of Canada 9, % (32) 47 Trisura Guarantee Insurance Company 5,981 (3,439) Wawanesa Mutual Insurance Company (The) 3, % Western Surety Company 7,501 14, % Westport Insurance Corporation % Wynward Insurance Group % Zurich Insurance Company Ltd 6,047 (188) 2,885 1, % Totals and Average Claim Ratios 86,617 31, % 75,729 58, % *CLAIMS RATIO: See page 5 for definition. SUPERINTENDENT OF INSURANCE 2014 ANNUAL BUSINESS REPORT 19

24 ABSTRACT OF THE RETURNS OF COMPANIES TRANSACTING AIRCRAFT AND MARINE INSURANCE IN THE PROVINCE OF ALBERTA FOR 2014 AIRCRAFT MARINE ACE INA Insurance % % AIG Insurance Company of Canada 2, % 30,847 11, % Allianz Global Risk US Insurance Company 8,053 4, % 2, % Ascentus Insurance Ltd % Aspen Insurance U.K. Limited (125) 54 Associated Electric & Gas Insurance Services Limited 67 (11) Aviva Insurance Company of Canada % Berkley Insurance Company 55 1, % Canadian Applicators Insurance Reciprocal 826 Chubb Insurance Company of Canada % Continental Casualty Company 1, % Co-operators General Insurance Company 1,172 1, % Elite Insurance Company 5,633 2, % Great American Insurance Company 126 (1) Guarantee Company of North America (The) % Hartford Fire Insurance Company (1) Intact Insurance Company 360 (2,772) % Liberty Mutual Insurance Company % % Lloyd's Underwriters 24,601 38, % 1,576 (5,122) National Liability & Fire Insurance Company 1, % 12 Northbridge General Insurance Corporation 1,831 (23) % Royal & Sun Alliance Insurance Company of Canada (82) 712 1, % Sompo Japan Nipponkoa Insurance Inc. 1 Sovereign General Insurance Company (The) 1,172 1, % St. Paul Fire and Marine Insurance Company (20) % Starr Insurance & Reinsurance Limited % Sumitomo Marine and Fire Insurance Company Limited (The) % ANNUAL BUSINESS REPORT SUPERINTENDENT OF INSURANCE

25 AIRCRAFT AND MARINE INSURANCE, CONTINUED... AIRCRAFT MARINE Temple Insurance Company 3,571 2, % The Shipowners' Mutual Protection and Indemnity Association (Luxembourg) 33 Tokio Marine & Nichido Fire Insurance Co., Ltd. 15 (11) Traders General Insurance Company % Travelers Insurance Company of Canada % Westport Insurance Corporation 3,204 3, % Zurich Insurance Company Ltd 2, % Totals and Average Claim Ratios 48,595 47, % 51,958 15, % *RATIO: See page 5 for definition. ABSTRACT OF THE RETURNS OF COMPANIES TRANSACTING HAIL AND TITLE INSURANCE IN THE PROVINCE OF ALBERTA FOR 2014 HAIL TITLE ACE INA Insurance 2,633 2, % Allianz Global Risk US Insurance Company % Chicago Title Insurance Company 3, % FCT Insurance Company Ltd. 15,831 4, % First American Title Insurance Company 1,357 (90) Lawyers' Professional Indemnity Company 104 (54) Northbridge General Insurance Corporation 4,449 5, % Palliser Insurance Company Limited 29,683 44, % Stewart Title Guaranty Company 2, % Totals and Average Claim Ratios 37,376 53, % 23,705 5, % *CLAIMS RATIO: See page 5 for definition. SUPERINTENDENT OF INSURANCE 2014 ANNUAL BUSINESS REPORT 21

26 ABSTRACT OF THE RETURNS OF COMPANIES TRANSACTING MORTGAGE AND CREDIT INSURANCE IN THE PROVINCE OF ALBERTA FOR 2014 MORTGAGE CREDIT AIG Insurance Company of Canada 1,677 2, % Atradius Credit Insurance N.V 3,565 1, % Canada Guaranty Mortgage Insurance Company 68,521 (548) Compagnie Francaise d'assuarance Pour le Commerce Exterieur 800 (270) Euler Hermes North America Insurance Company 1, % FCT Insurance Company Ltd , % Genworth Financial Mortgage Insurance Company Canada 165,908 4, % Guarantee Company of North America (The) % Lloyd's Underwriters 2,469 1, % MIC Insurance Company Canada (7) Totals and Average Claim Ratios 235,287 5, % 9,898 5, % *CLAIMS RATIO: See page 5 for definition ANNUAL BUSINESS REPORT SUPERINTENDENT OF INSURANCE

27 ABSTRACT OF THE RETURNS OF COMPANIES TRANSACTING LEGAL EXPENSE AND CREDIT PROTECTION INSURANCE IN THE PROVINCE OF ALBERTA FOR 2014 LEGAL EXPENSE CREDIT PROTECTION American Bankers Insurance Company of Florida 23,603 1, % Co-operators General Insurance Company 6 DAS Legal Protection Insurance Company Limited % Echelon Insurance 4 Guarantee Company of North America (The) % Intact Insurance Company % Legacy General Insurance Company % Lloyd's Underwriters % Millennium Insurance Corporation 1 Novex Insurance Company % Trafalgar Insurance Company of Canada % Totals and Average Claim Ratios 1, % 24,599 1, % *CLAIMS RATIO: See page 5 for definition. ABSTRACT OF THE RETURNS OF COMPANIES TRANSACTING OTHER APPROVED PRODUCTS AND EQUIPMENT WARRANTY IN THE PROVINCE OF ALBERTA FOR 2014 OTHER APPROVED PRODUCTS EQUIPMENT WARRANTY CorePointe Insurance Company 9 Fenchurch General Insurance Company 4,125 1, % First North American Insurance Company % GMS Insurance Inc % Industrial Alliance Pacific General Insurance Corporation 20,561 2, % Lloyd's Underwriters 1, % Millennium Insurance Corporation 40,427 9, % Motors Insurance Corporation 6,783 1, % The Mutual Fire Insurance Company of British Columbia 83 Trisura Guarantee Insurance Company 2, % Virginia Surety Company, Inc. 1, % Totals and Average Claim Ratios % 77,564 16, % *CLAIMS RATIO: See page 5 for definition. SUPERINTENDENT OF INSURANCE 2014 ANNUAL BUSINESS REPORT 23

28 GLOSSARY A glossary has been provided to: define abbreviations used in this annual report; and define application and technical terms used in this annual report. Attorney For Service Including Adjustment Expenses Ratio A person delegated to accept service of legal papers. All of the expenses related to the settlement of a claim and can include such costs an adjuster and legal fees in addition to the claim settlement amount. The ratio of direct claims and adjustment expenses to the total direct premiums written. The insurer is presumed to have earned a profit on a particular class of insurance when the ratio is 70% or less. Classes of Insurance Consideration for Annuities Extra Provincial Federal Fraternal Benefit Society Insurance Entities Provincial Reciprocal Insurance Exchange Run Off For a definition of any of the classes of insurance used in this annual report, please refer to the Classes of Insurance Regulation, located at: isbncln= &display=html. Inclusion of any annuities reported. An insurer that is formed by or incorporated under the laws of another province or territory. An insurer that has authorization from the Office of the Superintendent of Financial Institutions (OSFI). A body corporate that is a not for profit society, order or association formed for the purpose of making, with its members only, contracts of life, accident or sickness insurance in accordance with its constitution, bylaws and rules and the Insurance Act. Insurance companies, reciprocal insurance exchanges and exempt entities. An insurer that is formed by or incorporated under the laws of the province of Alberta. A group of subscribers exchanging reciprocal contracts of indemnity or interinsurance with each other through a principle attorney as defined in section 78(b) of the Insurance Act. A company is in run off when it no longer accepts new business, but has open or outstanding claims. An insurer or reciprocal will remain in run off status until all claims have been settled. NOTE: All premium and claims data presented on pages 5-23 of this report are based on the consolidated data reported on the provincial pages of the regulatory reporting provided by each insurer ANNUAL BUSINESS REPORT SUPERINTENDENT OF INSURANCE

29

30 The Office of the Superintendent of Insurance is a branch of Financial Sector Regulation and Policy, a division of Alberta Treasury Board and Finance. PRINTING, GRAPHIC AND PAGE LAYOUT DESIGN 2015 DESIGN QUARRY PRINT + DIGITAL SOLUTIONS LTD.