TORONTO, April 8, 2019 /CNW/ - Intact Financial
Corporation (TSX: IFC) today announced that severe winter weather
resulted in net catastrophe1 and non-catastrophe
weather1 losses of approximately $165 million pre-tax above expectations for a
first quarter (8 points on the Canada combined ratio, or $0.87 per share after-tax).
Catastrophe losses, net of reinsurance, totaled approximately
$128 million pre-tax, representing
$95 million above expectations based
on first quarter historical averages. 60% of total catastrophe
losses impacted personal property with the remainder in commercial
lines.
Non-catastrophe weather losses were above expected seasonal
patterns by approximately $70 million
pre-tax, with 40% impacting commercial lines, 40% in personal auto
and the balance in personal property.
Personal auto experienced approximately six points of elevated
weather-related claims, approximately double seasonal patterns for
a first quarter.
This past quarter saw heavy snowfall, freezing rain, and rain
while snow and ice were on the ground, which led to elevated
property damage from water infiltration and record numbers of roof
collapses, mostly in eastern Canada. Freezing rain and intense cold also
led to higher frequency of auto collisions.
"Our teams have worked hard during these unusually difficult
winter months to get customers back on track as we were again
reminded of the impact severe weather can have on our operations.
These events are likely to sustain the firm market conditions we
are seeing. With a dedicated team and strong fundamentals across
all our businesses, we are positioned well to maintain service
excellence and take advantage of market opportunities." said
Louis Gagnon, President, Canadian
Operations.
1 For a definition of catastrophe losses and
non-catastrophe weather losses, please refer to the "Important
notes" section on page 2 of our 2018 Annual Management's Discussion
and Analysis.
About Intact Financial Corporation
Intact Financial
Corporation (TSX: IFC) is the largest provider of property and
casualty (P&C) insurance in Canada and a leading provider of specialty
insurance in North America, with
over $10 billion in total annual
premiums. The Company has approximately 14,000 full- and part-time
employees who serve more than five million personal, business and
public sector clients through offices in Canada and the U.S. In Canada, Intact distributes insurance under the
Intact Insurance brand through a wide network of brokers, including
its wholly-owned subsidiary BrokerLink, and directly to consumers
through belairdirect. In the U.S., OneBeacon Insurance Group, a
wholly-owned subsidiary, provides specialty insurance products
through independent agencies, brokers, wholesalers and managing
general agencies.
Forward-Looking Statements
Certain statements made in
this news release are forward-looking statements. These statements
include, without limitation, statements relating to claims,
catastrophe losses and non-catastrophe losses caused by severe
weather, the anticipated effect on combined ratio as well as on a
per share basis and by line of business, the estimated impact of
reinsurance, and the anticipated effect of applicable and future
federal and provincial tax regulations. All such forward-looking
statements are made pursuant to the 'safe harbour' provisions of
applicable Canadian securities laws.
Forward-looking statements are based on estimates and
assumptions made by management based on management's experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors that management
believes are appropriate in the circumstances. Many factors could
cause the Company's actual results, performance or achievements or
future events or developments to differ materially from those
expressed or implied by the forward-looking statements. In the case
of estimated claims and losses, due to the preliminary nature of
the information available to prepare estimates, future estimates
and the actual amount of claims and losses associated with events
described above may be materially different from current
estimates.
All of the forward-looking statements included in this press
release are qualified by these cautionary statements, those made in
the "Risk Management" section of our 2018 Annual Management's
Discussion and Analysis. These factors are not intended to
represent a complete list of the factors that could affect the
Company. These factors should, however, be considered carefully.
Although the forward-looking statements are based upon what
management believes to be reasonable assumptions, the Company
cannot assure investors that actual results will be consistent with
these forward-looking statements. When relying on forward-looking
statements to make decisions, investors should ensure the preceding
information is carefully considered. Undue reliance should not be
placed on forward-looking statements made in this press release.
The Company has no intention and undertakes no obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by
law.
SOURCE Intact Financial Corporation