1 August 2018 13:30
The harsh climate has affected the financial results ofIntact financial Corporation during the second quarter of 2018. The insurer suffered a decline of 34 % in net income, as determined at 161 million dollars ($M), against$ 243 Million recorded in the same quarter of the previous year.
The combined ratio remained rather stable, with a deterioration of 1.1 percentage point, reaching for 96.1 %. “The strong performance of OneBeacon 93.8% was offset by the increase in catastrophe losses in Canada,” says the insurer.
A little earlier this month, the Journal of insurance has recognized that the cost of catastrophe losses for the first half of 2018 in Canada was on track to exceed that of 2017 Intact.
Three weather events, the major in Canada
Insurance of property of individuals recorded a combined ratio to 102.7 % with 18.1 points were attributable to claims related to the three weather events the major events during the 2nd quarter.
Personal auto insurance has experienced an improvement in its combined ratio by 2.2 percentage points and stood at 95.6 %. The insurer attributes this to the improvement of the claims ratio underlying arising from the action plan in auto insurance. He argues, however, that this improvement has been impeded by the adverse claims experience of previous years.
“Our business has again demonstrated its resilience despite the level of catastrophe losses higher than expected. The measures taken in motor insurance individuals are accelerating and the results are expected to achieve a combined ratio of around 95 % by the end of the year, ” says the chief executive of Intact, Charles Brindamour.
Premium increase of 16 %
Direct premiums written were up 16% for the quarter, for a total of 2.9 billion dollars (G$). Intact attribute this increase to the acquisition of OneBeacon.
In Canada, premium growth amounted to 2 % for the quarter as the insurer due to a good growth in the insurance business, in terms of the measures to improve profitability in personal auto insurance, including rate increases.
Growth in business insurance
In Canada, the insurance business recorded a growth of 7 % and a combined ratio to be 92.9 %, of which 7 percentage points were attributable to claims related to the disaster. Intact expects a premium growth of between 3% and 6 % over the next 12 months.