Investor Presentation FY2018
Page 19 |Investor Presentation
Track record of prudent
reserving practices
□ PYD can fluctuate from quarter to
quarter and year to year and,
therefore, should be evaluated over
longer periods of time.
As yields have increased, we
would expect average favourable
PYD as a percentage of opening
reserves to be in the 1%-3% range
going forward. We expect that the
current accident year (CAY) loss
ratio will be favourably impacted by
these higher yields.
[intact]
Annualized rate of favourable PYD - P&C Canada
(as a % of opening reserves)
5.0%
4.5%
4.0%
3.5%
3.0%
2.5%
2.0%
☐ Our consistent track record of
1.5%
positive reserve development
1.0%
reflects our preference to take a
conservative approach to
0.5%
establishing and managing claims
0.0%
reserves.
10-yr avg.
5-yr avg.
3-yr avg.
2017
2018
Please see Section 10 - Claims liabilities and reinsurance of the Q2-2019 MD&A for details.View entire presentation