Private Passenger Automobile Insurance Rates Decline During Third Quarter 1997

October 29, 1997 (NORTH YORK, Ont.) -- Ontario private passenger auto insurance rates decreased during the third quarter of 1997, marking the fifth successive quarterly decrease since 1996 and continuing a downward trend in rates for a second consecutive year, Ontario Insurance Commission (OIC) rate information shows.

The rates approved by the OIC during the third quarter ending September 30, 1997 indicate a decrease in auto insurance rates of 3.24 %, when weighted by market share. With the latest filings by insurers, the average cost of auto insurance in Ontario is now 6.60% below the price a year ago when Bill 59 (the Automobile Insurance Rate Stability Act, 1996) was introduced. Bill 59 passed on June 22, 1996, and came into effect on November 1, 1996.

Of the 20 company filings approved in the third quarter of 1997, 16 dealt with rate reductions while the remaining four dealt with other matters that had no impact on the overall rate level: rating rule changes, implementing the Canadian Loss Experience Automobile Rating (CLEAR) system and modifying an existing group rate program. The approved rate reductions ranged from 0.10% to 7.66%. Some of the approved rate changes are effective already, while others will become effective over the next six months.

In reviewing rate filings, the OIC looks for actuarial soundness and ensures that an insurance company's projected rates are based on solid and verifiable information. These rates must be able to sustain the company's long-term capacity to meet its claim costs. Company filings are also scrutinized for inefficiencies in the claims management process to avoid such costs being passed on to consumers. To help consumers, the OIC has published Your 1997 Guide to Rates in Ontario that gives rate comparisons of all auto insurance companies in Ontario. It's available from the OIC by calling 1-800-263-7965 (English), 1-800-668-5821 (French) during business hours.

The OIC publishes this rate information to help consumers make better choices. Consumers who are unclear about what prices they are paying for specific coverages should check with their agent or broker and/or shop around to see how their policy compares in the marketplace.

The rate filings approved for the third quarter of 1997 and Your 1997 Guide to Rates in Ontario can be found on the OIC's Web site on the Internet at:
< http://www.ontarioinsurance.com >

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Media contact: Willie Handler, OIC (416) 590-7230

ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS APPROVED

July 1, 1997 to September 30, 1997

Company
Market Share
(1996)
Effective New Business Date
Effective Renewal Business Date
Approved Rate Change
Allstate Insurance Company of Canada 4.11% Jul 25, 1997 Jul 25, 1997 -0.10%
Allstate Insurance Company of Canada 4.11% Oct 1, 1997 Nov 1, 1997 -7.66%2
Belair Insurance Company Inc. 0.81% Sept 2, 1997 Sept 2, 1997 0.00%1
Canadian Group Underwriters Insurance Company 0.10% Aug 1, 1997 Oct 1, 1997 -7.10%3
Canadian Surety Company 0.87% Aug 1, 1997 Oct 1, 1997 -3.85%
Citadel General Assurance Company 0.75% Sept 1, 1997 Oct 1, 1997 -1.10%
Co-operators General Insurance Company 7.20% Aug 15, 1997 Aug 15, 1997 -1.20%
Economical Mutual Insurance Company 4.39% Sept 15, 1997 Nov 1, 1997 -2.80%
Facility Association 3.10% Feb 1, 1998 Apr 1, 1998 -0.15%
Gore Mutual Insurance Company 0.71% Aug 15, 1997 Oct 15, 1997 0.00%1
Guarantee Company of North America 0.90% Nov 1, 1997 Nov 1, 1997 -6.01%2
Guardian Insurance Company 1.40% Aug 1, 1997 Oct 1, 1997 -5.30%
Lombard Canada Ltd. (Group Business) 0.18% Sept 1, 1997 Nov 1, 1997 -2.67%
Lumbermen's Mutual Casualty Company 1.30% Aug 20, 1997 Oct 10, 1997 0.00%2
Motors Insurance Corporation 0.21% Sept 1, 1997 NA 0.00%3
National Frontier Insurance Company 0.51% Sept 22, 1997 Nov 6, 1997 -3.60%
Royal Insurance Company 4.02% Sept 1, 1997 Nov 1, 1997 -5.30%
State Farm Mutual Automobile Insurance Company 10.26% Jan 1, 1998 Jan 1, 1998 -2.70%2
Waterloo Insurance Company 0.03% Sept 15, 1997 Nov 1, 1997 -2.80%
Zurich Indemnity Company 0.07% Sept 1, 1997 Sept 1, 1997 -5.50%
Total Market Share 40.92% a a a

1 These filings dealt with rating rule changes with no overall changes.
2 These filings dealt with the introduction of CLEAR.
3 This filing dealt with the modification of existing group rate program.

Ontario Insurance Commission
October 1997


ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS EFFECTIVE BY QUARTER
OCTOBER 1, 1996 - SEPTEMBER 30, 1997

Page 1 of 2 pages

Insurer
Market
Share
1996
4th
Quarter
1997
1st
Quarter
1997
2nd
Quarter
1997
3rd
Quarter
Cumulative
Allianz Insurance Company 0.72% -0.20% a a a -0.20%
Allstate Insurance Company of Canada 4.11% -5.00% -4.90% a -0.10% -10.00%
Axa Insurance (Canada) 2.20% -5.10% a a -4.00% -9.10%
Belair Insurance Company Inc. 0.81% -9.90% a a a -9.90%
CAA Insurance Company (Ontario) 1.06% 0.00% a -4.60% a -4.60%
Canada Life Casualty Insurance Company 1.08% -1.00% a a -0.10% -1.10%
Canadian General Insurance Company 0.29% -5.00% a -7.07% a -12.07%
Canadian Group Underwriters Insurance Company 0.10% 0.00% a a a 0.00%
Canadian Surety Company 0.87% -5.00% a a a -5.00%
Chubb Insurance Group 0.20% 0.00% a a a 0.00%
CIBC General Insurance Company Limited 1.13% -0.20% -3.40% a -3.10% -6.70%
Cigna Insurance Company of Canada 0.02% 0.00% a a a 0.00%
Citadel General Assurance Company 0.75% -0.15% a a a -0.15%
Coachman Insurance Company 0.27% -3.50% a a a -3.50%
Commercial Union Assurance 1.35% 0.00% -1.10% a -4.20% -5.30%
Co-operators General Insurance 7.20% -0.50% a aa -1.20% -1.70%
Coseco Insurance Company 0.53% -1.70% a a a -1.70%
Cumis General Insurance Company 0.13% -0.50% -4.90% a a -5.40%
Dominion of Canada General Insurance Company 5.05% -5.53% a a -0.61% -6.14%
Economical Mutual Insurance Company 4.39% -0.10% a a a -0.10%
Facility Association 3.10% -7.90% a a a -7.90%
Farm Mutual Reinsurance Plan Inc. 0.87% -5.50% a a a -5.50%
Farmers' Mutual (Lindsay) 0.35% 0.00% a a a 0.00%
Federated Insurance Company 0.04% 5.00% a a a 5.00%
Federation Insurance Company of Canada 0.72% -12.00% -6.60% a a -18.60%
Gan Canada Insurance Company 0.35% -4.00% a a a -4.00%
Gan General Insurance Company 0.26% -7.00% a -0.10% a -7.10%
General Accident Assurance Company 3.12% -11.30% a a a -11.30%
Gore Mutual Insurance Company 0.71% -10.00% -5.20% a -0.50% -15.70%
Guarantee Company of North America 0.90% -6.80% a a a -6.80%
Guardian Insurance Company 1.53% 0.00% a a a 0.00%
Halifax Insurance Company 3.47% -9.30% -2.30% a -3.20% -14.80%

Ontario Insurance Commission October 1997

ONTARIO PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILINGS EFFECTIVE BY QUARTER
OCTOBER 1, 1996 - SEPTEMBER 30, 1997
Page 2 of 2 pages
Insurer Market
Share
1996
4th
Quarter
1997
1st
Quarter
1997
2nd
Quarter
1997
3rd
Quarter
Cumulative
Hartford Canada 0.51% 0.00% a as a 0.00%
Kingsway General Insurance Company 0.50% -0.20% a a a -0.20%
Liberty Mutual Insurance Company 4.28% -1.00% a -3.20% a -4.20%
Lloyd's Non-Marine Underwriters 0.94% -4.00% a a -4.90% -8.90%
Lombard Canada Ltd. 1.70% -0.21% -2.60% -6.49% -0.01% -9.31%
Lombard Canada Ltd.(Group Business) 0.18% -0.14% -1.90% a -0.06% -2.10%
Lumbermens Mutual Casualty Company 1.30% -0.20% a -3.80% a -4.00%
Markel Insurance Company of Canada 0.20% 7.50% a a a 7.50%
Motors Insurance Corporation 0.21% -5.90% a a a -5.90%
National Frontier General Insurance Company 0.51% -7.80% a a a -7.80%
Pafco Insurance Company 1.57% -0.80% a a -1.65% -2.45%
Personal Insurance Company of Canada 2.15% -4.50% -0.30% -4.10% a -8.90%
Pilot Insurance Company 5.81% -4.00% a a a -4.00%
Portage La Prairie Mutual Insurance Company 0.90% -10.40% a a a -10.40%
Progressive Casualty Insurance Company of Canada 1.32% -9.20% a a a -9.20%
Prudential of America General Insurance Company 1.30% -0.10% a a a -0.10%
Royal Insurance Canada 4.02% 3.50% a a -0.50% -4.00%
Scottish & York Insurance Company 0.74% -5.00% a a a -5.00%
Security National Insurance 1.89% -8.10% a a a -8.10%
State Farm Mutual Insurance Company 10.26% -8.90% a a a -8.90%
St. Paul Property & Liability Insurance 0.02% 0.00% a a a 0.00%
Traders General Insurance Company 1.95% -5.00% a a a -5.00%
Trafalgar Insurance Company 1.29% -0.20% a -8.20% a -8.40%
Unifund Assurance Company 1.28% -4.70% a a a -4.70%
Waterloo Insurance Company 0.30% -0.10% a a a -0.10%
Wawanesa Mutual Insurance Company 2.69% -11.05% a a a -11.05%
Western Assurance 0.62% -1.10% a -1.60% -0.20% -2.90%
York Fire & Casualty Insurance Company 0.44% -0.10% a a a -0.10%
Zurich Indemnity of Canada 0.07% -3.50% a a -5.50% -9.00%
Zurich Insurance Company 5.89% -3.20% a -9.60% a -12.80%

Ontario Insurance Commission
October 1997