Intact reports Q4 catastrophe loss estimates

Losses driven by windstorms, other non-weather events

Intact reports Q4 catastrophe loss estimates

Catastrophe & Flood

By Mika Pangilinan

Intact Financial Corporation has reported around $200 million in estimated catastrophe losses for the fourth quarter of 2023.

A press release from the Toronto-headquartered insurer said this total is on a pre-tax basis and is equal to a net after-tax impact of $0.85 per share.

The table below depicts a breakdown of the reported total:

(in millions of

Canadian dollars)

Canada - personal lines

Canada - commercial lines

UK & I

US

Total

Total current accident year CATs

6

24

152

18

200

The UK&I segment experienced the most significant losses during the quarter due to two severe windstorms in October.

Meanwhile, catastrophe losses in Canada and the US were attributed to weather and non-weather-related events.

Intact also reported catastrophe losses of $65 million for its UK home operations, part of the personal insurance business it recently exited.

It was revealed last month that Intact’s subsidiary, UK-based RSA, sold its direct personal insurance operations to Admiral Group. In 2023, RSA also pulled out of the personal lines motor market.

For the third quarter of 2023, Intact reported catastrophe losses of roughly $611 million. But it still managed to see a net operating income per share of $2.10 and an operating direct premium written (DPW) growth of 6%.

CEO Charles Brindamour said the company’s third-quarter performance was indicative of “a long track record of successfully navigating volatility in catastrophe losses.”

“The third quarter was no different, as we delivered an operating ROE of 12.2%, and our balance sheet remained strong with $2.8 billion of total capital margin,” he said.

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