Definity Financial Corporation has released its preliminary estimate of the financial impact resulting from a series of catastrophic events in July and August 2024.
Significant incidents in July included the Jasper wildfire and heavy rainstorms that triggered flooding in Ontario. August saw further disasters, with flooding in Quebec, a major hailstorm in Alberta, and more severe rainstorms in Ontario.
Definity considers catastrophe losses as either an event causing gross losses above $2 million (and generally greater than 100 claims) or a single claim with a gross loss exceeding $3 million.
The company anticipates a hit to its operating income of around $150 million, net of reinsurance recoveries, translating to roughly $0.97 per common share after taxes and reinsurance. These reinsurance recoveries include the full use of the $25 million available under Definity’s catastrophe aggregate treaty.
The estimate is derived from the data currently available from affected customers and an assessment of exposure levels. With the summer catastrophe season proving more active than expected, and the likelihood of further events, Definity plans to provide a comprehensive update on its quarterly catastrophe losses in early October.
Rowan Saunders (pictured), president and chief executive of Definity, commented: “This summer’s severe weather and wildfire activity have been devastating to several communities across Canada, demonstrating just how extensively our customers continue to be impacted by the effects of climate change.
“In these times, the immediate work of our catastrophe response teams to help our customers recover truly underscores our purpose at Definity – to help our clients and communities adapt and thrive.”
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