Canada’s property/casualty (P/C) insurers utilized robust capital buffers, disciplined pricing approaches and effective risk management strategies to offset the impact of the country’s costliest catastrophe year on record, according to a new AM Best report.

AM Best is also maintaining its stable market segment outlook for the Canada P/C sector, driven in part by its strong profitability, resilient underwriting results and favorable investment returns. Additional supporting factors include Canada’s comprehensive and continuously improving regulatory framework, adequate levels of reinsurance capacity and easing inflationary pressures.

However, Canada’s insurers continue to navigate significant challenges, including persistent climate-related risks, challenges in the personal auto sector, partly from rising accident frequency, in addition to economic volatility. “These pressures are testing the industry’s resilience and demand continual refinement of underwriting strategies and risk management practices to sustain profitability,” said Alan Murray, director, AM Best.

Insured losses reached over CAD 9.0 billion in 2024, surpassing the previous high of CAD 6.2 billion in 2016. This included a challenging 27-day period with four major catastrophes that involved flash flooding in Southern Ontario, a wildfire in Jasper, a hailstorm in Calgary and the impact from remnants of Hurricane Debby that were experienced in eastern Ontario and southern Quebec.

“Over the past 25 years, the frequency and severity of extreme catastrophic weather events have increased noticeably, with particularly pronounced trends emerging since 2015,” Murray said. “When adjusted for inflation, the cumulative cost of these events since 2000 has reached CAD 50.6 billion.”

Canada’s P/C insurers delivered another strong year of financial performance in 2024, generating total net income of CAD 6.3 billion, reflecting a moderate decline from CAD 7.1 billion in 2023. Underwriting performance in the segment was particularly resilient, with an insurance service result of CAD 7.4 billion for the year. “In addition to solid underwriting results, investment income was strong, driven by higher bond yields that reflected higher interest rates, which are likely to moderate going forward,” said Cristian Siera, senior financial analyst, AM Best.

AM Best will host an insurance market briefing on the state of Canada’s insurance industry at the Sheraton Centre Toronto Hotel on Thursday, Oct. 30, 2025. During the complimentary half-day event, AM Best analysts will deliver market insights and present overviews of Canada’s main insurance sectors, including discussion of emerging trends such as catastrophe losses, climate risk mitigation, cyber and artificial intelligence, and updates around the IFRS 17 accounting practices.

To register for AM Best’s Canada Insurance Market Briefing - Toronto, please go to AM Best’s Canada Insurance Market Briefing - Toronto.

To access the full copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=359324.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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