Borrowing a phrase from Britain’s Queen Elizabeth the Insurance Bureau of Canada labeled the year 2002 an “Anni horribiles” as it reported that the financial results for the country’s P/C insurers “plunged to a new low.” The IBC is the national trade association of the private property and casualty industry. It represents the companies that provide more than 90 percent of the non-government home, car and business insurance in Canada. According to the annual financial report “2001 was the worst year on record for the industry but final financial results for 2002 are even weaker.” Paul Kovacs, IBC’s chief economist, indicated that, “higher prices over the past 12 months were not enough to make up for mounting claims costs and a significant slump in investment income. The past two years for Canadian insurers have been absolutely terrible.” The report did note that nearly 60 percent of Canada’s insurers reported some improvement in their combined ratio last year. “However,” it said, “underwriting results are still unsustainably weak, mainly for auto insurance.” Kovacs noted, “The market remained very difficult for the whole year. Seventy-seven percent of companies reported lower investment income last year which caused a deterioration of return on equity (ROE) for 53 percent of the companies.” The industry ROE dropped to 1.6 percent—the lowest level on record. IBC data is based on year-end regulatory findings for some 90 percent of insurers and reinsurers. “On a region-by-region basis, significant differences are evident in the distressed auto insurance market, and some provinces are starting to address the urgent need for legislation to deal with the rising costs of providing auto insurance. Atlantic results are dreadful and have been unprofitable for more than a decade. Ontario is the weakest insurance market in the country. Results for Alberta are poor and continue to deteriorate, while the Quebec market remains healthy. More than 95 percent of the BC market is closed to private auto insurers,” according to the bulletin.