May 9, 2018 09:45
Just as Economical Insurance, the harsh winter has affected the financial results ofIntact financial Corporation during the first quarter of 2018. The insurer has seen a decline of 29 % in its net income, which amounted to 103 million dollars ($M), against$ 146m recorded in the same quarter of the previous year. The combined ratio also deteriorated to a point, up to 99,2 %.
“The winter has been exceptionally hard everywhere in Canada, which has increased the frequency of claims in all sectors of activity,” says Charles Brindamour, president and chief executive officer of Intact. Despite a difficult start to the year, fundamentals in our sectors of property insurance and insurance business remain very good. “
Increase in direct premiums written of 20 %
Direct written premiums, however, increased 20 %, from $ 1.73 billion dollars (G$) in the first quarter of 2017 2.08 G$ for the period ended march 31, 2018. Intact points out that the inflation in the costs of claims gives rise to price increases in all markets in personal auto. Insurance of property of individuals, the insurer estimates that the favorable market conditions are expected to continue.
The market of the insurance companies shows “obvious signs” of appreciation, ” says Intact. In the United States, although prices are competitive currently, Intact says see signs of a trend rate to the increase varying between 1 % and 3 % in certain lines of specialty products.
“The measures to improve profitability in personal auto are progressing as planned and we remain committed to bringing down the combined ratio to around 95% by the end of 2018. We are also pleased with the progress achieved by our sector of specialty products in the United States which has posted a combined ratio of 95 %, ” said Mr. Brindamour.