Canadian life insurance new annualized premium rose 13% year over year to C$508 mn in the first quarter of 2025, according to LIMRA’s Individual Life Insurance Sales Survey.
Permanent life insurance products led the growth. Whole life new premium rose 15% to C$346.7 mn, marking the third consecutive quarterly gain and the second straight double-digit increase.
However, whole life policy count declined by 2%. Whole life accounted for 68% of total life insurance premium in Canada (see TOP 50 Insurance companies in the US & Canada).
Participating whole life products were the main driver, rising 17% year over year. LIMRA reported that estate short pay and wealth short pay offerings made up a significant portion, with the latter contributing nearly one-third of whole life premiums.
Universal life new annualized premium also rose 15% to C$67.3 mn. The increase came mainly from non-level cost-of-insurance products, which made up 81% of UL premium.
Policy count improved 4% from the previous year. UL represented 13% of total new annualized premium.
Term life premium increased 6% to C$94.4 mn, with policy count up 5%. Term products held a 19% share of the total new premium.
Total policies sold rose 2% compared to the same period last year. LIMRA noted that demand for permanent products often rises during uncertain economic periods due to guaranteed returns and principal protection.
If current conditions continue, LIMRA expects continued strength in permanent life sales throughout 2025.
