Canadian Life and Health Insurance Facts - 2021

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24 Canadian Life & Health Insurance Facts // 2021 Edition How insurers invest to cover future claims and contribute to Canada's economic growth Segregated funds have grown at an annual average rate of 7.3 per cent. Their share of total assets has increased from 35 per cent to 40 per cent over the past decade General funds have grown at 5.3 per cent annually over the past decade Segregated fund General fund Mutual funds Bonds Stocks Mortgage loans Real estate Cash & other investments Other $ 300B $ 350B $ 200B $ 250B $ 150B $ 100B $ 50B $ 33B $ 308B $ 89B $ 51B $ 290B $ 44B $ 19B $ 89B $ 58B $ 4B $ 11B $ 9B Insurers are strong and stable 2 0 2 0 Capital ratio* 139% Regulatory requirement 100% 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. 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.

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