Canadian Life & Health Insurance Facts // 2024 Edition 25
How Insurers Invest
I N D U S T R Y I N D E T A I L
Insurers' investments help cover future claims and contribute to
Canada's economic growth
Segregated funds have grown at an annual average rate of 6.1 per cent. Their share of total
industry assets has increased from 38 per cent to 42 per cent over the past decade.
General funds have grown at 4.4 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.
Life and health insurers maintain strong regulatory capital levels to
protect policyholders
In 2023, Canadian life and health insurers' total capital ratio* was
136 per cent** well above the regulatory 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.
** 136% 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.
136%
total capital ratio
Bonds Other Mutual
funds
Mortgage
loans
Real
estate
Cash &
other investments
Stock
$
350B
$
300B
$
200B
$
150B
$
100B
$
50B
$
250B
$
28B
$
39B
$
344B
$
3B
$
4B
$
46B
$
12B
$
20B
$
149B
$
57B
$
306B
$
56B
Segregated fund
General fund
