2 1
How insurers invest to cover future
claims and contribute to Canada's
economic growth
Notes
Segregated fund
investments
primarily support annuity
contracts, where the
investment risk is retained by
policyholders.
General fund
investments
include amounts for other
policyholder benefits
(expected future contractual
claims), other liabilities and
required capital.
* Measured as available
capital as a per cent of
regulatory capital required
to cover risks. In 2018, OSFI
and Quebec's AMF changed
how they calculate capital
ratios resulting in a one-time
reduction of the ratio.
2018
139%
Capital ratio*
100%
Regulatory requirement
Life and health insurers maintain very
strong capital reserves, enough to cover
potential claims from policyholders, and
to meet the rigorous expectations of
government regulators.
Capital adequacy levels are maintained
by retaining profits and by issuing equity
and debt in capital markets.
Segregated funds have
grown at an annual
average rate of 8.7 per
cent - its share of total
assets has increased
from 31 per cent to 38
per cent over the past
decade
General funds
have grown at
5.5 per cent
annually since
2008
Insurers are strong and stable
$
300B
$
200B
$
250B
$
150B
$
100B
$
50B
Segregated fund
General fund
Mutual
funds
Bonds Stocks Mortgage
loans
Real
estate
Cash
& other
investments
Other
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