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There has been plenty of anecdotal evidence suggesting that insurance is a good hedge against a downturn in the stock market, as clients seek out products with guarantees.

Now there is empirical evidence to back that up, as the CLHIA released data on 2008. In one of the toughest years in decades for the financial services sector, total insurance industry premiums for all lines of business rose 3.8% to $76.3 billion.

In a time when the investment industry was talking a beating, insurance industry assets declined by just 4.8% to $411 billion.

“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” said Frank Swedlove, president of the CLHIA.

Annuity premiums set a record in 2007, but still managed to rise another 1.2% in 2008, to $34.7 billion. 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.

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IIROC calls for comment

The Investment Industry Regulatory Organization of Canada (IIROC) has called for comment on its arbitration program, in which dealer members are required to participate. IIROC commenced a review of the arbitration program in the fall of 2008, and has put forth suggestions to improve the effectiveness and use of the program.

Comments will be accepted until March 16, 2010. Comments will be posted on the IIROC web site. Comment letters may be addressed to:

Rosemary Chan Senior Vice President and General Counsel Investment Industry Regulatory Organization of Canada 121 King Street West, Suite 1600 Toronto, Ontario M5H 3T9

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Sunshine boosts stock prices: study

The link between sunshine and mood is well-known in Canada, where long winter nights boost cases of seasonal affective disorder. Extra sunshine tends to elevate moods, but new research suggests it could also raise share prices, according to a report on InvestmentNews.com.

A study of earnings announcements for publicly traded companies found those that revealed their results on a day when it was sunny in New York enjoyed better share price performance than those that announced earnings on dreary days.

This trend affected not only companies with positive earnings, but also those who disappointed investors.

“Those companies didn’t do as badly as expected,” says John J. Shon, assistant professor of accounting and taxation at Fordham University, and co-author of the study. “You see this phenomenon particularly with those companies that people hear about through someone as this great stock pick, but no one has heard of the company.”

the difference between announcing in sunshine versus bad weather was about 50 basis points, but the affect is only temporary. After a few days, the market tends to digest the news and the price reverts to “where it should be,” Shon says.

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JovFunds replaces sub-advisor

JovFunds Management has announced the addition of Triasima Portfolio Management as subadvisor to the Jov Prosperity Canadian Equity Fund.

Triasima replaces Fiduciary Trust Company of Canada on the fund. The addition of Triasima does not affect existing sub-advisors McLean Budden Limited and Foyston, Gordon & Payne Inc.

Established in 1998, Montreal-based Triasima managed roughly $430 million, as at September 30, 2009. Canadian equity mandates represent the majority of total assets.

(12/16/09)