How insurers invest
Insurers' investments help cover future claims
and contribute to Canada's economic growth
Segregated funds have grown at an annual average rate of 6.6 per cent. Their
share of total industry assets has increased from 35 per cent to 41 per cent over
the past decade.
General funds have grown at 3.8 per cent annually over the past decade. General
fund investments include amounts for other policyholder benefits (expected future
contractual claims), other liabilities and required capital.
Segregated fund
General fund
$
300B
$
350B
$
200B
$
250B
$
150B
$
100B
$
50B
$
305B
Mutual
funds
$
27B
$277B
Bonds
$
91B
$
52B
Stocks
$
48B
$
3B
Mortgage
loans
$
22B
$
12B
Real
estate
$
92B
$
9B
Cash
& other
investments
$
63B
Other
Life and health insurers maintain strong regulatory
capital levels to protect policyholders
In 2022, Canadian life and health insurers' total capital ratio* was
129 per cent** -- well above the regulator's target of 100 per cent.
By maintaining a strong capital base, life and health insurers are
able to protect policyholders, clients and creditors, and to meet
the rigorous expectations of government regulators.
* Measured as total capital resources (available capital, surplus allowance and eligible
deposits) as a per cent of regulatory capital required to cover risks.
** 129% is for federally regulated life and health (re)insurers excluding fraternal benefit
societies and life & health (re)insurers who operate in Canada on a branch basis.
129%
total capital
ratio
Canadian Life & Health Insurance Facts // 2023 Edition
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