Financial Results
In 2022, our funded position decreased to 92.9, down from the 2021 result of 106.4. This was primarily due to losses on investments and unfavourable actuarial experience adjustments. The 2022 financial results reflect a year of investment market volatility and inflationary pressures. Our overall funding strategy and a well-diversified portfolio are designed to help us balance returns and risks.
2022 Management Discussion and Analysis
2022 Financial Statements
Our Costs
WCB Nova Scotia assessment revenue funds the entire workers’ compensation system, including the Workers’ Advisers Program (WAP), the Workers’ Compensation Appeals Tribunal (WCAT), the Occupational Health and Safety Division of the Nova Scotia Department of Labour, Skills and Immigration (LSI), the Office of the Employer Advisor (OEA) and the Office of the Worker Counsellor (OWC).
Assessable Payroll
Assessable payroll for covered employers in Nova Scotia grew more than expected in 2022 to $14.0 billion, due to economic recovery from the pandemic.
Assessment Revenue
Assessment revenue increased by 8.3 per cent in 2022 to $370.9 million.
Investment Income
In 2022, we saw negative investment returns, resulting in a loss of $175.3 million, a decline over 2021 income of $210.3 million, resulting in a weakened funded position. This is a reflection of the investment market volatility in 2022.
Claim Payments
Claims payments increased in 2022, as we continued to adapt to the changing realities of workplace injury and support workers and employers who experience its impact. Total claim payments for 2022 were $277.8 million. The number and cost of new extended earnings replacement benefits was higher than expected.
Assets and Liabilities
In 2022, we saw a decline in our assets and increase in our liabilities, which decreased our funded percentage to 92.9 per cent by the end of the year (down from 106.4 in 2021).
Further changes to the funded ratio are anticipated in 2023 with the implementation of IFRS 17 which will mark the benefits liabilities to a market rate, creating volatility as markets fluctuate on a short-term basis.
Our long-term investment, diversified portfolio and funding strategies will guide us and create stability over the long-term, withstanding short-term market fluctuations. Assets for 2022 were $2.34 billion, and liabilities were $2.52 billion.
