Intact Financial confirmed cat losses “above expectations”
Published: April 9, 2019
CATEGORY: Industry News
Intact Financial says its losses were “above expectations” during the first quarter of this year due to weather led catastrophe. Canada’s largest insurance company says catastrophe and non-catastrophe weather events combined to create insurance losses of $165 million, before tax.
In a press release, Intact said net reinsurance catastrophe losses were at around $128 million before tax. The company says this amount was $95 million over what historical averages suggest cat losses should be through the first quarter of a year.
Personal losses drove the increase, with 60% of total catastrophe losses handled by Intact Financial involved a personal property, with the remaining 40% from commercial.
Weather led Intact’s losses, with non-catastrophic events occurring more frequently than normal. Intact says these events cost its $70 million before tax, 40% of which were from personal auto claims. Commercial lines accounted for 40% of those claims, with personal property carrying the remainder.
Among the weather events that occurred across the country over the last three months included freezing rain, early spring floods, rain, and heavy snow. Intact says it handled claims for a record number of roof collapses, with the highest concentration in eastern Canada.
“Our teams have worked hard during these unusually difficult winter months to get customers back on track as we were again reminded of the impact severe weather can have on our operations. These events are likely to sustain the firm market conditions we are seeing,” said Intact Financial Canadian operations president Louis Gagnon.
Gagnon says continued catastrophe and non-catastrophe events are likely to continue to harden the market. However, he adds Intact is “positioned well to maintain service excellence and take advantage of market opportunities.”