24 Canadian Life & Health Insurance Facts // 2022 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 8.7 per cent. Their
share of total industry
assets has increased
from 34 per cent to
42 per cent over the
past decade
General funds
have grown
at 5 per cent
annually
over the past
decade
Insurers are strong and stable
2
0
2
1
Capital ratio*
134%
Regulatory
requirement
100%
Life and health insurers maintain very strong
capital resources, 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
A pool of investments held
by a life insurance company
that is managed separately
(i.e. segregated) from its other
investments and used to
support annuity contracts.
General fund
investments
include amounts for other
policyholder benefits
(expected future contractual
claims), other liabilities and
required capital.
*Measured as total capital
resources (available capital,
surplus allowance and eligible
deposits) as a per cent of
regulatory capital required to
cover risks.
