Definity sees over $120 million in catastrophe losses in Q3

Which event contributed the most to the losses?

Definity sees over $120 million in catastrophe losses in Q3

Catastrophe & Flood

By Mika Pangilinan

Definity incurred approximately $122 million in catastrophe losses for the third quarter, with the wildfires in British Columbia causing the lion's share of the losses. 

The fires were the largest of the eleven events contributing to Definity reaching its catastrophe loss threshold during the third quarter.

Other events that contributed to losses include floods caused by severe wind and rainstorms in Ontario, Québec, and Nova Scotia, tornados in Ontario and Québec, and several hail events across Canada.

The breakdown of Definity’s estimated catastrophe losses by line of business is:   

  • Personal auto - $ 8 million
  • Personal property - $104 million
  • Commercial insurance - $10 million 

The figures largely align with a previous announcement revealing Definity’s estimated catastrophe losses for July and August.  

President and CEO Rowan Saunders commented on the company’s efforts to aid communities impacted by these catastrophes. 

“We were able to deploy our dedicated catastrophe response teams in the field quickly and mobilize supporting claims and vendor resources from around the country to help our customers,” he said. 

“Broker and customer feedback has been positive, and our dedicated teams strive to consistently deliver exceptional service to ensure the timely rebuilding of impacted communities." 

Definity also said it has fully utilized its catastrophe aggregate reinsurance treaty limit for 2023 following the quarter’s events. 

In its second-quarter results, the insurer reported a combined ratio of 95.3%, which included 5.4 points of catastrophe losses.  

What are your thoughts on this story? Feel free to comment below. 

Related Stories

Keep up with the latest news and events

Join our mailing list, it’s free!