The life and health insurance industry ably weathered the impact of the economic downturn having turned in a strong performance in 2008, according to its annual industry report released Wednesday.

“The positive results released today demonstrate that our industry continues to offer products and services that are important to Canadians, and that the industry is well positioned for further growth as the economy rebounds” stated Frank Swedlove, president of the Canadian Life and Health Insurance Association Inc.

The industry’s key statistics for 2008 show that:

• total industry premiums for all lines of business rose 3.8% to $76.3 billion;

• annuity premiums rose to $34.7 billion (up 1.2% over the record high set in 2007) driven by continued high contributions to segregated fund products and increased deposits to fixed-return general fund products;

• premiums for supplementary health and disability insurance products rose 7.4% to almost $26.7 billion and life insurance increased 3.7% to $14.9 billion; and

• industry assets declined by a moderate 4.8% to $411 billion, despite the economic turmoil.

CLHIA is a voluntary association whose member companies account for 99% of Canada’s life and health insurance business.

IE