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5 Assets and Liabilities ❖ At December 31, 2013, assets held on behalf of Canadian policyholders and annuitants totalled: General funds $399.7 billion Segregated funds 246.9 billion Total $646.6 billion ❖ More than three-quarters of the assets were held in bonds (35.3 per cent), stocks (15.5 per cent) and mutual funds (25.5 per cent). ❖ Actuarial liabilities totalled $517 billion by year-end, making up 80 per cent of total assets. ❖ The remaining assets back items such as other policy liabilities, borrowed funds, as well as capital and surplus. (Reference page 20) Company Operations in Canada ❖ At the end of 2013, 86 active life insurance companies and 13 federal fraternal benefit societies were operating in Canada. ❖ Health insurance protection was provided to Canadians by 65 life insurance companies, 48 property and casualty insurers, 8 fraternal benefit societies, and 8 not-for-profit health care benefit providers. ❖ Working in the life and health insurance industry were 150,100 Canadians. (Reference page 24) Policy Payments ❖ During 2013, payments to Canadian policyholders and beneficiaries totalled: Life insurance $ 7.8 billion Annuities 35.3 billion Health benefit plans* 30.0 billion Policyholder dividends 3.1 billion Total $76.2 billion ❖ Benefits were paid at a rate of almost $1.5 billion a week. ❖ Over 90 per cent of the payments went to living policyholders with the remainder paid out as death benefits. *Includes benefit payments under uninsured contracts totalling $13 billion (Reference page 14) Premium Income ❖ In 2013, Canadians paid premiums for: Life insurance $17.2 billion Annuities 37.4 billion Health benefit plans* 37.6 billion Total $92.2 billion ❖ Total premiums rose 4 per cent during the year, with health and disability products as well as life insurance leading the way (up 4.5 and 4.1 per cent, respectively) while annuity premiums rose 3.5 per cent. Overtaking annuities, health and disability products moved into top place with a 41 per cent share of total premiums. ❖ Segregated fund premiums rose 1.8 per cent to a record high of $31.5 billion, accounting for 34 per cent of the total. * Includes premium equivalents for uninsured contracts totalling $13.7 billion (Reference page 17) Foreign Operations of Canadian Insurers ❖ In 2013, foreign branch and subsidiary operations of Canadian life and health insurers accounted for: ◆ ◆ premiums of $56.3 billion, or 41 per cent of their worldwide total; ◆ ◆ benefit payments of $60.8 billion; and ◆ ◆ assets of $657.6 billion, or 51 per cent of their global total. (Reference page 25) Consumer Protection/ Government Regulation ❖ Assuris administers the industry Consumer Protection Plan, which protects Canadian life and health insurance policyholders if their life insurance company should fail. ❖ Life and health insurance is regulated by both federal and provincial governments to ensure that contractual commitments to policyholders are met. ❖ Insurance companies and their representatives are subject to guidelines on consumer disclosure and insurance practices. (Reference page 27)