Last year was not a kind one for Canadian property/casualty insurance companies, according to a new statistical study from insurance ratings agency A.M. Best Co.

Despite some price hardening, rate deficiencies continued to plague many insurers, particularly in the Ontario auto market and the Atlantic provinces.

The industry’s combined ratio for the year is expected to reach 108.2, a significant increase from 1999’s combined ratio of 105.9. Based on company filings to date –accounting for about 90% of the industry — significant realized gains and investment income mitigated underwriting losses. A.M. best believes that in 2001, Canadian insurers will not see similar investment offsets, since the opportunities for large capital gains have been exhausted.

The full report is available for purchase from www.bestweek.com.