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.