Canada

Manulife reported third-quarter 2026 core earnings of C$2,125 million, up 4% at constant exchange rates, with core EPS of C$1.24 and core ROE of 17.8%, while net income attributed to shareholders fell to C$1,424 million after a C$388 million post-tax market experience loss, and the contractual service margin grew to C$27.3 billion.

Sun Life reported third-quarter 2026 underlying net income of C$1,146 million (C$2.05 per share, up 10%) and underlying ROE of 19.0%, while reported net income fell 29% to C$785 million on interest-rate effects and acquisition and restructuring charges; asset management and wealth saw net outflows of C$32.7 billion and the dividend rose to C$1.00.

Fairfax Financial's interim report for the nine months to September 30, 2026 shows third-quarter net earnings of US$1,096.9 million against US$1,245.7 million, insurance revenue up about 6% to US$8.77 billion, and net losses on investments of US$858.7 million that cut total investment income from US$1.39 billion to US$188 million.

Ontario's financial regulator FSRA says it has found guaranteed asset protection (GAP) products sold by unlicensed businesses and individuals, some naming an insurer that never issued the policy and some marketed as loyalty programs, and warns that claims may not be honoured.

From January 1, 2027, British Columbia businesses that sell insurance incidentally, including all motor vehicle dealers, need a Restricted Insurance Agency licence from the Insurance Council of BC, with a C$1,000 application fee, a trained designated representative, accredited training for sellers and a March 31, 2027 application deadline for those using earlier exemptions.

AM Best analysts say Canada's property and casualty industry has the balance sheet strength to absorb catastrophe losses on the scale of 2024 or worse without threatening its stable outlook, while naming catastrophe frequency, Ontario and Alberta auto reforms, tariffs, casualty pricing and claims inflation as the issues to watch into 2027.

The Ontario Superior Court approved on October 16, 2026 a C$150 million settlement by Aviva Canada of the country's largest COVID-19 business interruption class action, covering about 49,000 policyholders in Ontario, Quebec and British Columbia, with no admission of liability and no ruling on whether the policy wordings covered pandemic shutdowns.

Phase 1 of Ontario regulator FSRA's review of insurer and MGA relationships found that 66% of 50 sampled life agents did not complete needs and suitability assessments, 74% gave no policy illustrations and 53% gave incomplete disclosures, and that insurers reviewed 0% to 4% of their active agents.

The Ontario Superior Court has approved a C$213.5 million national class action settlement in Fehr v. Sun Life over three legacy universal life products sold by MetLife agents between 1987 and 1998, with direct payments, a permanent freeze on Flexiplus charges and a cap on future Universal Plus costs of insurance.

Alberta's Care-First auto model replaces lawsuits with no-fault benefits from January 1, 2027, offering income replacement of 90% of net income, treatment until maximum medical recovery and lump sums that Intact estimates at up to $306,580, with the rate board projecting average savings of about $297 a vehicle.

At the Insurance Brokers Association of Ontario convention, executives from Intact, Definity, Wawanesa, Aviva and CAA Insurance said AI search tools are changing how customers research insurance; Intact put LLM share of searches at about 40%, Definity argued brokers benefit because models favor reviews and advice content, and the panel disagreed on how fast direct sales are growing.

OSFI letters dated October 22, 2026 confirm that Q4 2026 returns for federally regulated property and casualty and mortgage insurers are unchanged, that updated IFRS 18 returns start in Q1 2027 for December year-end companies and November 1, 2027 for October year-end companies, and that the final 2027 MICAT guideline lowers the base risk weight for low-rise multi-unit construction from 150% to 130% from January 1, 2027.

The Insurance Bureau of Canada's October 2026 report on the Canadian cyber insurance market credits better underwriting for stability since the 2019 to 2021 ransomware peak, while flagging correlated losses from shared cloud and AI providers and a small-business gap in which only 22% have cover.

Intact Financial estimated third-quarter 2026 catastrophe losses of about C$660 million ($2.76 per diluted share) and Definity about C$190 million ($1.15 per share), together roughly C$850 million, driven by Ontario and Alberta flooding and British Columbia wildfires, lifting Intact's trailing 12-month losses to C$1.29 billion against C$1.20 billion of annual guidance.

CatIQ's third estimate puts insured losses from the June 9-10 Prairie storms at $923 million, up from $728 million initially, driven latterly by commercial property; Manitoba Public Insurance received a record 29,195 hail claims.

Canada's banking and insurance supervisor said its final Capital Adequacy Requirements guideline takes effect November 1, 2026, its mortgage insurer capital test (MICAT 2027) on January 1, 2027, and that insurance regulatory returns are being updated for IFRS 18, with the first final returns due January 1, 2027.

Intact estimates about $660 million of pre-tax catastrophe losses for July to September and Definity about $190 million, driven by the June 30 to July 3 Ontario and Quebec floods, British Columbia wildfires and a September storm; both report full results in the coming weeks.

Public-sector and education job losses, a sharp fall for young workers and the lowest participation rate in 29 years outside the pandemic left markets cutting bets on a rate rise, even as inflation runs near 3%.

Since July 1, several accident benefits are optional in Ontario, and estimates put the saving from declining them all at roughly 5% of an average premium, while victims' advocates say the choice mainly helps insurers.

The first industry estimate for the September 2-3 hail, wind and flood outbreak is well below some early guesses, but it follows a Canadian catastrophe season that pushed Intact and Definity to roughly C$850 million in third-quarter losses.

Equifax data show serious mortgage delinquencies rising from a low base and insolvencies at their highest since 2009, while the Bank of Canada held its rate at 2.25% on September 2 and said it is prepared to adjust policy as needed.

Morningstar DBRS said in late July 2026 that Canadian insurers remain well positioned to absorb moderate wildfire losses, with about 2.95 million hectares burned against a 10-year average of 2.55 million, mostly in remote northwestern Ontario and northern Quebec, while business interruption and civil authority claims are an emerging risk.

OSFI's regulatory notice, dated July 20, 2026 and effective immediately, treats natural catastrophe bonds as unregistered reinsurance with no margin requirement for federally regulated property and casualty insurers, provided the bond has an indemnity trigger, Canadian-held high-quality collateral and OSFI's prior approval.

The G7 Central Bank Quantum Technologies Working Group, co-chaired by the Banque de France and the Bank of Canada, published its first report on June 11, 2026, setting out quantum risks to cryptography and possible uses in finance, with Governor Tiff Macklem saying the window to being quantum-ready is narrowing.

Canada's banking and insurance supervisor ranks residential mortgage risk first in its Annual Risk Outlook for April 2026 to April 2027, followed by non-bank financial institutions and funding and liquidity, notes that 1.3 million mortgages face first-time renewal at higher payments, and says its loan-to-income limit framework has met its prudential objectives.

OSFI's Annual Risk Outlook for 2026-27, released on April 14, 2026, names real estate secured lending, non-bank financial institution risk (reintroduced) and liquidity and funding risk as its priorities, and sets targeted plans for insurers covering private credit, cyber, AI in underwriting, claims inflation and catastrophe resilience.

Announced on June 18, 2026, the add-on pays $100 per covered rainy day by Interac e-Transfer within two business days when rainfall at the destination passes the contract's threshold, with no claim to file; it must be bought at least 14 days before departure.

The Bank of Canada's May 28, 2026 Financial Stability Report says households, businesses and banks have remained stable, with shocks less widespread than feared, while warning that heavily indebted households have little room to absorb a shock, insolvencies are the highest since 2009 and pandemic-era mortgages face payment rises of about 15%.

A CBC report of June 8, 2026 says insurers increasingly assess wildfire risk property by property with satellite imagery and laser scanning, rewarding FireSmart measures; one Nova Scotia owner who rebuilt saw her premium fall about 12%.

From July 1, 2026, most Ontario accident benefits become optional for all customers; FSRA's guidance says medical, rehabilitation and attendant care stay mandatory, existing policies renew unchanged until customers agree in writing.

Bloomberg reported on April 14, 2026 that Canadian insurers are pressing homeowners to fireproof and floodproof their homes and urging Ottawa to update building codes, as premiums rose about 6% last year and 2024 claims hit a record C$9.4 billion.