Northbridge Financial Corporation, the Canadian property and casualty insurance group that includes Northbridge Insurance, Federated Insurance and TruShield Insurance, is reported an underwriting profit of $253.4 million for the full year 2021.

This result is up 73.8 per cent or $107.6 million from 2020, when the company reported an underwriting profit of $145.8 million. 

Parent company Fairfax Financial says the increase “principally reflected lower current accident year attritional loss experience (across most lines of business) as a result of reduced claims frequency due to COVID-19, continued rate increases, and growth in net premiums earned.”

Incidentally, Northbridge did not report losses related to COVID-19 in 2021. It recorded $58.9 million in such losses in 2020.

Combined ratio  

The group’s combined ratio improved by 3.6 points, from 92.4 per cent in 2020, to 88.8 per cent in 2021. This is the first time since at least 2016 that Northbridge’s annual combined ratio has fallen below 90 percent.


Northbridge Financial Corporation’s gross premiums written were $2.7 billion in 2021, up from $2.3 billion in 2020. This increase of 14.6 per cent or $339.3 million reflects "reflecting new business, strong retention of renewal business, rate increases and decreased returned premium due to reduced exposure from COVID-19 closures,” Fairfax says.

Net premiums written increased by 16.4 per cent or $338.2 million, and net premiums earned rose by 18.2 per cent or $347.9 million.

Operating income  

Northbridge’s operating income was $330.5 million in 2021, versus $217.1 million in 2020, for an increase of 52.2 per cent or $113.4 million.