November 7, 2018 11:30
Photo : Freepik
As the results of the third quarter and the outlook for the next twelve months ofIntact financial Corporation for the automobile insurance industry of individuals show signs of improvement. “The tariff measures, the increase of the volumes of the residual market and the narrowing of the capacity to support our vision of a market that is improving rapidly “, says Intact.
Throughout the year, the combined ratio improved in the sector. For the three-month period ended 30 September, the combined ratio improved by 6.1 points compared to the third quarter of 2017. It reaches 99 %, against 105,1 % last year. Intact claims to be “on track” to achieve its target of a combined ratio standardized to 95% by the end of the year.
In general, the combined ratio deteriorated by 2 percentage points to 93.8% for the third quarter. For the first nine months of the year, the combined ratio amounted to 96.3 %, up 1.3 %.
Decrease in net result of 17 % for the year
Intact has also recorded a net profit of 199 million dollars ($M) in the third quarter of 2018, an increase of 16% compared to the corresponding quarter of the previous fiscal year.
The net income for the first nine months of the year, however, presents a decrease of 17 % compared to the same period of 2017. Last year, it was$ 560 Million for the period ended September 30, compared to$ 463 Million this year.
“Our business has recorded strong results for the quarter, and we’ve made further progress against our goals in the short term. The sector of personal auto insurance, continues to improve and remains on track to achieve a combined ratio normalized around 95 % by the end of the year. Market conditions in North America continue to evolve favourably, and should feed into a better internal growth over the next year, ” says Charles Brindamour, ceo of Intact.
Growth among brokers and BrokerLink
As for the net proceeds of the distribution, the latter improved by 13 %, from$ 30 Million in the third quarter of 2017 to$ 34 Million this year. These data take into account the operating result of BrokerLink, a subsidiary of Intact, excluding interest and taxes, and operating result of the broker, including interest and taxes for a defined period of time. The insurer argues that growth is fueled by the increase in ” continue [the] network of brokers “.
For the fiscal year to date, the net proceeds of the distribution increased from$ 6 Million to reach$110 Million.