Intact’s net operating income reaches $180 million in 2012 Q2

Improved underwriting performance, growth in insurance portfolio and higher investment income helped Intact Financial Corporation reach $180 million in net operating income for 2012 Q2, up $85 million from the same quarter in 2011.

“The initiatives we undertook over the last year notably in home and auto insurance continue to deliver substantially improved operating results, which reduced the financial impact of declining interest rates and the volatility of the equity markets,” says Charles Brindamour, chief executive officer of Intact.

Written premiums grew 46% to reach $2 billion in 2012 Q2. “Direct premiums written in personal insurance increased 37% from a year ago, while premium growth in commercial insurance was up 71% over the same period,” the company reports.

Underwriting income in 2012 Q2 rose by $90 million to $123 million compared to the same period in 2011 due to the “addition of AXA Canada and a reduction in catastrophe losses from $105 million to $62 million,” the Intact statement notes.

“The contribution of the AXA Canada portfolio continues to enhance both our growth profile and our operating performance as customers and brokers embrace our expanded offering,” Brindamour says.

Commercial property and casualty underwriting income in 2012 Q2 reached $31 million compared to $7 million recorded in the second quarter of 2011. “The combined ratio in commercial P&C insurance improved 4.9 percentage points to 91.3%, reflecting lower catastrophe losses and higher favourable prior-year development, partially offset by less favourable current-year results due in part to an increase in the severity of claims,” the company adds.