Investor Presentation: Outperforming in the Next Decade slide image

Investor Presentation: Outperforming in the Next Decade

Page 8 | Investor Presentation [intact] P&C industry 12-month outlook' We expect growth at a mid-to- upper single-digit level in personal auto The market is hard with rate actions continuing, tightening of capacity and further increases in residual market volumes १ We expect mid-to-upper single- digit growth in personal property We expect that the severe winter weather will lead to further hardening of market conditions We expect upper single-digit to low-double digit growth in commercial lines Canada Market conditions are hard, with industry combined ratios above 100% in 2018 and Q1-2019 良 We expect low single-digit growth in U.S. commercial lines The market remains competitive but is firming, with improving upward pricing trends continuing Volatility in capital markets may put some pressure on investment market values and capital levels Overall the Canadian industry's ROE is expected to improve but remain below its long-term average of 10% over the next 12 months. 1 Refer to Section 6 - P&C Insurance Industry Outlook of the Q2-2019 MD&A
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