The Royal Bank of Canada's (RBC) insurance activities generated a net profit of $171 million in the third quarter of 2015. (Note: Canadian banks post their quarterly results according to their fiscal year, unlike insurers which follow the calendar year.)

This represents a decline of $41 million compared to the same period in 2014. RBC attributes these reduced profits to changes in Canadian tax legislation which came into force at the beginning of November 2014 and affect certain foreign affiliates, as well as to higher net claims costs in its life retrocession business.

However, compared to the second quarter of this year, RBC's insurance division increased its profit by 41%. The bank says this is mainly due to lower net claims costs, mostly in life retrocession products, as well as to the favourable impact of investment-related activities on its Canadian life business, and higher earnings resulting from a new annuity reinsurance contract in the United Kingdom.