Fairfax Financial steers clear of Canadian car insurance: ‘a political issue’
The Canadian car insurance business is a toxic wreck and Fairfax Financial Holdings Ltd. and its operating companies will continue to steer clear of it, company executives said Monday.
“It has become such a political issue in Canada,” Byron Messier, president of Fairfax subsidiary Northbridge Financial Corp., told American analysts during a New York presentation.
He noted that across Canada there are either premium rollbacks or freezes, with return on equity on personal auto coverage controlled by provincial governments.
Northbridge (TSX:NB) does less than 10 per cent of its business in personal insurance lines, as its four units concentrate on commercial coverage and niches such as insuring big trucks.
Fairfax Financial steers clear of Canadian car insurance: ‘a political issue’
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