9 April 2019 13:30
For the first quarter, with catastrophe losses and those linked to weather, other disasters have cost more than expected at Intact financial Corporation, does it. These costs have exceeded $ 165 million ($M) forecasts of the company.
“This quarter was marked by abundant snow fall, freezing rain and rain showers while the ground was still covered with snow and ice, which caused more property damage arising from seepage of water than usual and a record number of collapses of roofs, especially in the east of Canada. The freezing rain and the intense cold increased the frequency of collisions of automobiles “, highlights Intact.
The insurance companies affected
In respect of catastrophe losses, the benefit before tax and net of reinsurance were$ 128 Million,$ 95 Million more than expected, ” according to the historical averages for a first quarter “. “In total, 60 % of catastrophe losses related to the insurance of property of individuals, the rest were insurance companies,” says Intact.
For the weather events that are not related to disasters, the cost has exceeded by approximately$ 70 Million, before tax, of the forecasts made according to the seasonal trends. Of this cost, 40 % related to the insurance companies, another 40 % in personal auto insurance and the rest in insurance of property of individuals, refers to the insurer.
Intact also stresses that a high level of weather related events has been saved in personal auto, which affected the combined ratio by six points, ” which is almost the double of the normal seasonal first quarter “.
The market is still favourable
“Our teams have worked hard to help clients get back on their feet during this winter particularly difficult, that we has once again reminded of the impact that severe weather can have on our business. These events are likely to keep market conditions favourable current. With our dedicated team and our strong foundation in all our sectors of activity, we are in a good position to maintain an excellent service and take advantage of opportunities on the market, ” said Louis Gagnon, president of canadian operations.