Auto Insurance Rates for the Second Quarter of 2005 - (Bill 5)

Ontario private passenger auto insurance rates decreased further during the second quarter of 2005 (April 1, 2005 to June 30, 2005).

The rate applications approved during the second quarter of 2005 indicate an average decrease of 1.62%, when weighted by 2004 market share for those insurers making rate changes. The weighted average rate change for the year 2004, was -10.6% for the entire market. The average rate change for the first quarter of 2005 was -1.12%, when weighted by 2003 market share for those insurers making rate changes.

The average price of auto insurance in Ontario at the end of the second quarter of 2005 was 4.26% lower when compared with the end of the second quarter a year earlier. This calculation is based on the renewal effective dates of the rate changes. This compares to the 0.98% average increase reported in the second quarter of 2004 over the second quarter of 2003, and the 18.61% increase reported in the second quarter of 2003 over the second quarter of 2002. The rate decreases approved in the second quarter of 2005 become effective in the third quarter of 2005 or later, for renewal business, and will further reduce the average price of auto insurance at that time.

The approved rate change shown for each insurance company is the average for that particular company. The impact of a rate change on an individual consumer will vary depending on where the consumer lives, the type of car he or she is driving, and other risk characteristics.

The rate changes posted reflect cost saving measures arising from recent reforms to the automobile insurance system, which are being passed on to consumers in the form of lower rates.

FSCO will continue to ensure that insurance companies' rate changes are reasonable and justified, and that the rates insurers charge are balanced with their ability to meet their future claims costs.

ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED Reflecting Auto Insurance Reforms)

April 1, 2005 to June 30, 2005

Insurer	2004 Market Share (%)	Effective New Business Date	Effective Renewal Business Date	Approved Rate Change (%)
AXA Insurance (Canada)	1.54	11-Jul-05	01-Sep-05	-1.00
CAA Insurance Company (Ontario) (2)	1.33	15-Jul-05	01-Sep-05	-1.60
Canadian Northern Shield Insurance Company (3)	0.00	15-Jun-05	n/a	n/a
Citadel General Assurance Company (2)	0.51	01-Jul-05	01-Sep-05	-2.96
Coachman Insurance Company (2)	0.28	01-Jul-05	01-Jul-05	-1.98
CUMIS General Insurance Company (2)	0.23	01-Aug-05	01-Oct-05	-2.80
Dominion of Canada General Insurance Company, The	4.92	01-Jul-05	01-Sep-05	-0.54
Dominion of Canada General Insurance Company, The (2)	4.92	01-Jul-05	01-Sep-05	-2.26
Economical Mutual Insurance Company (2)	4.50	08-Jul-05	01-Sep-05	0.00
Farm Mutual Reinsurance Plan Inc.	1.56	01-Jun-05	01-Jul-05	-0.20
Federated Insurance Company of Canada (2)	0.03	01-Sep-05	01-Sep-05	-4.06
Federation Insurance Company of Canada (2)	0.77	08-Jul-05	01-Sep-05	0.00
Gore Mutual Insurance Company (2)	0.91	15-Aug-05	15-Aug-05	-2.90
Gore Mutual Insurance Company	0.91	15-Jun-05	15-Aug-05	-0.18
Guarantee Company of North America (2)	1.18	01-Aug-05	01-Aug-05	-1.90
Kingsway General Insurance Company	1.86	15-Aug-05	15-Sep-05	-3.00
Kingsway General Insurance Company (2)	1.86	15-Aug-05	15-Sep-05	-2.20
Lloyd’s Underwriters (2)	0.10	01-Jul-05	01-Jul-05	-3.26
Lombard General Insurance Company of Canada (2)	0.24	30-Sep-05	30-Sep-05	-3.03
Lombard Insurance Company (2)	1.04	30-Sep-05	30-Sep-05	-2.46
Optimum Frontier Insurance Company	0.24	15-May-05	01-Jul-05	-0.29
Optimum Frontier Insurance Company (2)	0.24	15-Jun-05	01-Aug-05	-2.87
Perth Insurance Company	1.57	08-Jul-05	01-Sep-05	-0.40
Perth Insurance Company (2)	1.57	08-Jul-05	01-Sep-05	-2.60
Portage La Prairie Mutual Insurance Company (2)	0.15	01-Aug-05	01-Aug-05	-3.30
RBC General Insurance Company (2)	2.74	01-Aug-05	15-Sep-05	-2.80
Sovereign General Insurance Company (3)	0.00	01-Jun-05	n/a	n/a
State Farm Mutual Automobile Insurance Company (2)	10.62	01-Jul-05	01-Jul-05	0.00%
Trafalgar Insurance Company	1.00	13-Jun-05	10-Aug-05	-2.10
Trafalgar Insurance Company (2)	1.00	15-Jul-05	13-Sep-05	0.00
Unifund Assurance Company (1)	2.35	01-Aug-05	01-Aug-05	0.00
Waterloo Insurance Company (2)	0.42	08-Jul-05	01-Sep-05	0.00
Wawanesa Mutual Insurance Company, The (2)	3.79	01-Oct-05	01-Oct-05	-3.59
York Fire & Casualty Insurance Company (2)	1.54	01-Aug-05	01-Aug-05	-2.80
Zenith Insurance Company	0.35	01-Jun-05	01-Jul-05	-1.00
Zenith Insurance Company (2)	0.35	30-Sep-05	30-Sep-05	-2.89
Zurich Insurance Company (2)	0.02	01-Aug-05	01-Sep-05	-4.30
Total Market Share Represented	45.79
Weighted Average Rate Change	-1.62