Core Insights - Canada's life and annuity insurers reported strong results in 2024, driven by record growth in new annualised premiums and increased revenue from assets under management and fee-based income [1][3] Industry Performance - The Canadian life and annuity market outlook remains stable, supported by consistent earnings, sound underwriting performance, and prudent capital management [3] - New annualised premiums reached a record CAD 2.4 billion in 2024, representing an 8% increase from the previous year [6] - Group life insurance generated over CAD 33 billion in revenue, while individual life insurance contributed slightly more than CAD 29 billion, both with a pre-tax return on revenue of approximately 7% [7] Key Players - Leading insurers such as The Canada Life Assurance Company, Manulife Financial Corporation, Sun Life Assurance Company of Canada, and iA Financial Group are central to the sector's growth [5] - These companies have focused on technology investments, data analytics, and customer-focused distribution strategies to drive positive momentum [5] Challenges and Opportunities - Ongoing challenges include economic uncertainty and potential interest rate cuts by the Bank of Canada, alongside a persistent coverage gap in the life insurance market [4] - Economic uncertainty has prompted individuals to purchase life insurance for retirement and wealth planning, particularly in the affluent market [7] Annuity Segment - The annuity segment also performed well, with group annuity products generating CAD 6.1 billion in insurance revenue and individual annuities accounting for CAD 4.7 billion, achieving returns on revenue of 13% and 15% respectively [8]