By: Luke Jones, Published on July 7, 2017 08:05 AM, Last Update on July 7, 2017 05:06 AM
Intact Financial Corporation’s (IFC) has announced an estimated catastrophe loss, net of reinsurance, of around $105 million for the second quarter of 2017. The company’s release is on a pre-tax basis. Considering after-tax estimations, the insurer says its predicted loss is $77 million, or $0.58 per share.
Canada’s largest property and casualty insurance provider sent out a press release on Wednesday, saying poor climate conditions through Q2 resulted in the loss. Specifically, heavy rain and floods across Canada during May, particularly in Quebec and Ontario.
“We will continue to ensure that the protection we offer remains sustainable and work with government to help Canadians adapt to climate change,” says Charles Brindamour, chief executive officer of IFC.
Intact holds more than $8 billion in premiums around the country and can be heavily impacted by widespread climate events.
Heavy precipitation resulted in flooding and high-water levels, in some areas with records broken for the time of year. The total cost to the insurance industry is expected to run into many millions of U.S. dollars.
Canadian insurance companies are still reeling from last year’s Fort McMurray wildfire. The May 2016 event was the largest insurance loss in Canadian history, resulting in around $4 billion in losses. Most insurance companies were left with substantial year-end losses as a result of Fort McMurray, with only a few of the biggest carriers making money last year.
Fort McMurray is now in the past, but persistent poor weather and cat events are not giving the insurance industry time to regroup. Wildfire season is now here again, and above average rain and floods have already set in motion a 2017 that could see companies struggle once again.