CLHIA-ACCAP

2 The Canadian life and health insurance industry: Provides a wide range of financial security products to 28 million Canadians and their dependents. These products include individual and group life insurance, individual and group annuities (including RRSPs, RRIFs, TFSAs and pensions) and supplementary health insurance. Is highly competitive. Within Canada, 97 life insurers provide Canadians with an extensive selection of life insurance and wealth management product choices. At the same time, 127 companies (including 72 of those in the life insurance market) offer Canadians a diverse selection of health and disability insurance products. Canadian-controlled firms have 81 per cent of the Canadian life and health insurance market. Pays out $83.5 billion a year in benefits, or more than $1.6 billion a week. Of this total, over 90 per cent goes to living policyholders as annuity or disability benefits, reimbursement of health care costs, policyholder dividends, cash surrender values and matured endowments. The remainder goes to beneficiaries as death claims. Is a major investor in Canada's economy with assets of $721.2 billion in the country at the end of 2014. This pool of capital provides one of the country's most important and largest sources of long-term institutional investments in Canada, with almost 90 per cent of Canadian assets (or over $630 billion) held in long-term investments. Plays an important role in meeting the financing needs of all levels of government in Canada. The industry holds federal securities valued at $29.3 billion; provincial securities, amounting to $80.9 billion; and municipal securities, totalling $11.4 billion. In 2014, the industry's investments in government securities totalled $121.6 billion or 17 per cent of total assets. Is well capitalized. The Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio, which measures each Canadian life and health insurer's capital strength, averaged 236 per cent at the end of 2014, significantly above the regulator's supervisory target ratio of 150 per cent. Is a major employer. In total, about 155,000 Canadians earn some or all of their living from the industry. Some 69,100 people work full time for life Part One Industry Profile Premiums in Canada – 2014 (billions) Health plans Group life $4.3 Individual life $13.8 Individual annuities $14.6 Group annuities $27.9 Uninsured $14.3 Insured $24.5 Total: $99.4 billion Total: $721.2 billion Reinsurance assets $45.0 Mortgages $43.7 Stocks $108.6 Mutual funds $183.5 Corporate $137.4 Government $121.6 Other $41.4 Cash $19.8 Real estate $20.2 Bonds Assets in Canada – 2014 (billions)

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