Financial Services Opportunities in Canada

An Expert's View about Insurance, Reinsurance, Pension Funding in Canada

Last updated: 14 Mar 2011

Toronto is considered Canada’s primary financial services centre and ranked third in North America after New York and Chicago. The UK financial services industry is well regarded in Canada.

Sector briefing Financial Services Opportunities in Canada NB: Latest available figures used Why Canada? In 2009, the finance and insurance sectors contributed CAD$81.8B (£52.5B) or 6.84% to Canadian GDP. Toronto is considered Canada?s primary financial services centre and ranked third in North America after New York and Chicago. The March 2010 Global Financial Centres Index (GFCI), ranked Toronto at 12, Vancouver at 29, and Montreal at 32. Canada remained in relatively good shape during the global economic slowdown. Canadian banks remain stable and profitable, and did not require financial support by Graphs on a computer screen government during the recent financial crisis. The Bank of Canada anticipates the Canadian economy will grow 3.7% in 2010, 3.1% in 2011 and 1.9% in 2012. ?Toronto is considered Canada?s primary financial Find general information on the Canadian services centre and ranked market conditions on the UKTI Website. The third in North America after Doing Business in Canada Guide for Canada New York and Chicago.? gives an overview of Canada?s economy, business culture, potential opportunities and an introduction to other relevant issue. UK Trade & Investment Sector briefing: Financial Services Opportunities in Canada operations in Canada include Aviva, Lloyds of Opportunities London, Standard Life, Royal & Sun Alliance (RSA). Banking The Canadian banking industry is comprised of Public- Private Partnerships (PPP) 77 banks, 47 trust companies, 19 loan Overall, PPP continues to gain acceptance as companies, seven co-operative Credit an alternative form of financing for all levels of Associations, and one co-operative retail government (municipal, Provincial/territorial, association. The banks include: federal) in Canada. Many provincial levels of ¾ 22 domestic banks government have led the momentum and ¾ 26 foreign banks established dedicated PPP agencies to drive ¾ 22 full service foreign bank branches forward the PPP agenda in Canada. Many UK ¾ 7 foreign bank lending branches operate in companies have established a presence in Canada. Canada to better service the PPP market, Together these institutions manage nearly including Carillion Canada, John Laing CAD$2.9 trillion (£1.9 trillion). Infrastructure Canada, Balfour Beatty Capital, Turner & Townsend. Other UK companies are The six major Canadian banks include able to serve the market without maintaining a Scotiabank, Bank of Montreal (BMO), Toronto physical presence in Canada. Dominion Canada Trust (TD), Royal Bank of Canada (RBC), the Canadian Imperial Bank of Federal: The 2007 federal budget outlined a Commerce (CIBC), which are headquartered in CAD$1.3B (£0.83B) Public-Private Partnerships Toronto, the National Bank of Canada (NBC) is (P3 Fund) to invest in PPP suitable projects headquartered in Montreal. In 2009 net based on the Building Canada Fund. The 2008 income for the six major banks increased by federal budget included the establishment of a 17.3% to CAD$14.3B (£9.18B), compared to crown corporation, PPP Canada Inc, to develop CAD$12.2B (£7.8B) in 2008. Combined they and support the PPP market in Canada. managed CAD$2.57 trillion (£1.65 trillion) in total assets. Global presence of major British Columbia (BC): Led by the province?s Canadian banks is primarily in the US, Latin PPP agency, Partnerships BC, since its America, and Caribbean. establishment in 2002, 25 projects have been completed, are under construction or have Foreign banks in Canada are present as been announced. The investment value of subsidiaries, representative offices or these projects is approximately CAD$10B branches, and engage in retail, corporate and (£6.4B), CAD$5B (~£3.2B) of which is private investment banking. UK banks with a presence capital. in Canada include Lloyds TSB Offshore Limited, HSBC, and RBS. Alberta: Alberta established the Alternative Capital Financing Office to assess the use of alternative means, including PPP, in pursuing Insurance capital projects where better value can be There are 286 insurance companies operating demonstrated. The province?s 2008-11 Capital in Canada, including 83 life insurance plan outlines plans for CAD$22B (£14.1B) companies, 17 fraternal benefit societies, and worth of capital projects for municipal 186 property and casualty insurance infrastructure, highways, healthcare, schools, companies. Life and health, and property and community facilities, water and wastewater casualty insurance are issued by separate management, housing, government facilities, companies: equipment and other capital, and emergent ¾ Life and health: Providers of projects. group/individual life/health insurance, and retirement products. Ontario: In 2004, Ontario released its ¾ Property and casualty: Providers of framework strategy for Alternative Financing automobile, property, liability, sickness, and Procurement (AFP), ?Building a Better accident, and underwriters of aviation and Tomorrow? and in 2005, established marine insurance. Infrastructure Ontario. Under ReNew Ontario: In 2009, insurance carriers and related Five-Year Infrastructure Investment Plan, the services contributed CAD$21.8B (£14B) to Province plans CAD$30B (£19.4B) worth of Canada?s GDP. UK insurance companies with UK Trade & Investment Sector briefing: Financial Services Opportunities in Canada infrastructure investment. About one-quarter website. Find out more on UKTI?s business will be AFP. opportunities service on the UKTI website Quebec: In 2010, Infrastructure Québec was established to oversee all provincial government infrastructure procurement and construction in Quebec. It will consider how projects are procured and assumes the role of the former L'Agence des partenariats public- privé du Québec (PPP Quebec). Islamic Finance Islamic finance is generating interest in Canada. The Office of the Superintendant for Financial Institutions (OSFI) is reviewing the first applications to open Islamic banks in Canada. Initial concern is establishing what regulatory treatment would apply. The Muslim population in Canada was estimated at 800,000 to 1 million (~3% of the population) in 2006, and expected to comprise 3.7% to 4.9% of the population by 2017, along with increased demand for related Islamic financial services. Availability of products in the market is limited. UM Financial is one firm currently offering sharia compliant mortgages via its partners and in 2010 launched Canada's first Halal-approved payment card. Financial and Professional Services for Creative and Knowledge Driven Sectors Canada maintains key strengths in many creative and knowledge driven sectors, however, financing, and development of new business models and revenue streams have not kept pace with supporting these industries. Significant contribution to the economy and growing sophistication of the film industry, interactive media and games sectors, and R&D intensive ICT and Life Sciences sectors have increased demand for related financial and professional services to meet the needs of these sectors. If you have any questions on the opportunities above, contact the UKTI contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to business opportunities on a regular basis by registering on the UKTI UK Trade & Investment Sector briefing: Financial Services Opportunities in Canada Major events and activities UKTI contacts Canadian Council for Public-Private Gilda Carbone Partnerships (CCPPP) Annual Conference Trade Officer www.pppcouncil.ca/events_nationalCon.asp British Consulate-General Toronto, Canada Canadian Venture Capital Association AGM Tel: (001) 416 593 1290 ext 1+2224 www.cvca.ca Email: Gilda.Carbone@fco.gov.uk Web: www.ukti.gov.uk Banff Venture Forum www.banffventureforum.com Mathieu Blandford Trade Associate GameON Finance (next edition Jan 2011) British Consulate-General www.gameonfinance.com Toronto, Canada Tel: (001) 416 593 1290 ext 1+2257 Email: Mathieu.Blandford@fco.gov.uk Find full details of all events in this Web: www.ukti.gov.uk country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Financial Services Opportunities in Canada Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for you business in the Canadian market are advised to to meet contacts and promote your undertake as much market research and company in the Chinese market planning as possible in the UK. UKTI?s team in Canada with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential customers specialist advice, please visit the UKTI website in the Canadian market to find contact details for your local UKTI ? Establishment of interest of such contacts office. in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Financial Services Opportunities in Canada
Posted: 29 September 2010, last updated 14 March 2011