Investor Presentation FY2018 slide image

Investor Presentation FY2018

Page 14 | Investor Presentation [intact] P&C insurance in Canada A $54 billion market representing approximately 3% of GDP • Fragmented market: - Top five represent 47%, versus bank/lifeco markets which are closer to 65-75% IFC is largest player with approximately 16% market share, versus largest bank/lifeco with 22- 25% market share P&C insurance shares the same regulator as the banks and lifecos Home and commercial insurance rates unregulated; personal auto rates regulated in many provinces. Capital is regulated nationally by OSFI* and by provincial authorities in the case of provincial insurance companies. Distribution in the industry is currently close to two thirds through brokers and 40% through direct writers. • Industry has grown at ~5% CAGR and delivered ROE of ~10% over the last 30 years. Industry DPW by line of business Personal Property, 24% Personal Auto, 37% Commercial P&C and other, 31% Commercial Auto, 7% Industry - premiums by province Quebec, 18% Alberta, 17% Other provinces and territories, Industry data: IFC estimates based on MSA Research Inc. and Insurance Bureau of Canada. Please refer to Important notes on page 2 of the Q2-2019 MD&A for further information. All data as at December 31, 2018. * OSFI = Office of the Superintendent of Financial Institutions Canada Ontario, 46% 19%
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