Definity Financial Corporation (Definity) has released an estimate of the catastrophe losses it incurred in July and August 2023.
The firm estimated the impact on its operating income to be around $120 million net of reinsurance recoveries and inclusive of reinstatement premiums or around $0.76 per common share, net of taxes.
The estimate was based on the information received from customers as well as the firm’s analysis of the exposures.
"Severe storms and wildfires continue to impact communities across the country. Our claims team is working tirelessly to provide support for our customers and affected communities so they can recover as quickly as possible.” said Rowan Saunders, president and chief executive officer of Definity.
While the wildfires occurring in British Columbia were the largest contributor to the losses, there were at least 10 other events that had reached the insurance company’s catastrophe loss threshold in the two months.
These events include the severe wind and rainstorms that had caused flooding in Ontario, Quebec, and Nova Scotia, as well as tornados in Ontario and Quebec.
Losses were only considered to be catastrophe losses if they were the result of either an event that had caused gross losses in excess of $2 million and had more than 100 claims, or if there was a single claim that had a gross loss in excess of $3 million.
Definity said their personal property business bore the vast majority of the losses.
“The ongoing elevated level of severe weather events underscores the importance of building a resilient organization capable of delivering on our purpose to help our clients and communities adapt and thrive.” said Saunders.
The firm said it expects catastrophe losses in Q3 2023 to be higher than prior expectation. It plans to release an update for the entire quarter in the first half of October.
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