New analysis from S&P Global Market Intelligence has found that among Canada’s largest property and casualty (P&C) insurers reporting to the Office of the Superintendent of Financial Institutions (OSFI), insurance service revenue increased by more than 6.5 per cent while expenses declined 1.9 per cent.
They say Intact Insurance Co. maintained market leadership with $13.04-billion in insurance revenue, followed by Lloyd’s Underwriters marketplace with $7.46-billion. Aviva Insurance Company of Canada reported $6.74-billion in insurance revenue.
“Full-year 2025 results for most Canadian P&C insurers improved significantly, reflecting a materially lower catastrophe load,” they state.
Alberta remains an outlier, they add. “Structural challenges persist, particularly in Alberta’s auto insurance market where regulatory rate constraints continue to compress margins,” S&P’s researchers write in the research note, Canadian P&C market posts better results but structural headwinds remain.
“Persistent rate constraints in the province have kept earned premium growth behind claims cost inflation, even as the latter has faced upward pressure.” They add that Alberta’s Bill 47, enabling the Care-First no-fault system is intended to reduce the effects of litigated claims, “but the extension of a 7.5 per cent ‘good driver’ rate cap through 2026 effectively preserves another year of margin compression.”
Among the 15 largest OSFI-filing auto insurance writers, the gross insurance service ratio for Alberta came in at 113.3 per cent, compared with 87.4 per cent reported elsewhere in Canada.
Across all reporting insurers, the combined ratio for the group, in aggregate, dropped to 92.4 per cent during the year. The aggregate property gross insurance service ratio dropped to 71.1 per cent, down from a record 89.4 per cent in 2024. Again, in automobile lines, the gross insurance service ratio was 93.2 per cent, down from 96.9 per cent.
The report notes that S&P’s data is limited to results published by OSFI, which excludes entities regulated in Quebec and which excludes the government-controlled Insurance Corporation of British Columbia (ICBC).
