Frédérique De Simone
31 July 2019 11:30
Intact financial Corporation has concluded the first half of 2019 with a slight increase in net income. In addition, the majority of its sectors of activity shows a growth.
For the second quarter of 2019, the insurer earns a net income of $ 168 million, ($M). This is a repeat of 4 % compared to the previous year. It was then of$ 161 Million at the end of the second quarter of 2018.
In Canada, premium growth was 8% and over 10 % in insurance companies. Also, the acceleration of the growth in personal insurance is fueling the growth of the turnover of Intact.
Average increase of 7 % of premiums
In a context of a tighter market, average rates have increased by 7 % in all sectors of activity Intact. Due to the adverse claims experience of previous years in automobile insurance, offset by a drop in catastrophe losses, the combined ratio for this year is 97 % compared to 96.1% in the last year in the 2nd quarter.
The ratio of the losses underlying of 59% has increased by 5.3 percentage points compared to the performance of the previous fiscal year. How do you explain that? It is the fault of climate, due to higher claims related to the weather conditions.
Charles Brindamour is the point
For the chief executive officer of Intact, the current market is conducive to the growth. “Our action plans automobile insurance shall be effective, as evidenced by the excellent underlying performance,” said Charles Brindamour. All in all, the market conditions are very firm, which allows us to take advantage of growth opportunities. “
Mr. Brindamour has said, however, ” disappointed at the volume of activities related to old files of automobile insurance higher than expected. This has led us to increase cautiously the provisions “, he mentioned. The evolution of claims from previous years, in particular due to the increase in these provisions in relation to records in Alberta, and others prior to the reform in Ontario has resulted in a negative variance of 7.6 points.
In personal auto, We experienced an increase in its premiums of 6% in the second quarter of 2019, which is explained among others by tariff increases in a market that was still considered ” firm “. The combined ratio increased by 3.9 percentage points compared to the previous fiscal year to reach 99.5 % at mid-year. The ratio of the losses underlying knows him also an improvement of 2.9 points compared to the previous fiscal year and displays 66.8 per cent in the second quarter of 2019.
Premiums increased by 11% thanks to the contribution of all sectors, and tariff increases that are deployed in current market conditions, indicates the insurer. The combined ratio of 92.8 % for the current quarter remained stable compared to the previous year. The catastrophe losses were down 4 points compared to the high levels of the year before, while the favourable trend in claims from previous years was down 3.9 points.
In the United States, the insurance premiums of the company increased by 14% for the 2nd quarter, primarily due to strong new business growth, rate increases and higher retention levels. Market conditions remain favourable in almost all sectors. The premiums have increased by$ 425 Million or 10 % in constant currency.
Intact said to make progress with the improvement plan of profitability of OneBeacon, and expects to achieve a combined ratio equal to, or slightly greater than 90 % by the end of 2020.