Intact Financial Corporation (TSX: IFC) reported an underwriting profit of $118 million in 2011 Q4, up significantly from the $21-million underwriting profit it reported in 2010 Q4.
"Our excellent fourth quarter results rounded off a strong year for our company as we recorded our best underwriting performance in the past five years," Intact Financial Corporation CEO Charles Brindamour said in a press release.
Its total underwriting income of $273 million was up 41% over the entire year of 2011. This was despite a $113-million increase in catastrophe losses resulting from the Slave Lake wildfires, Tropical Storm Irene and a number of other severe storms.
The company cited improved auto insurance results in Ontario, increased investment income and the ongoing integration of AXA Canada activities as factors in its improved underwriting performance.
Personal auto underwriting income amounted to $52 million in 2011 Q4, up from a loss of $18 million recorded in 2010 Q4. The company's 2011 Q4 combined ratio in personal auto improved by 9.7% (up to 93.3%) primarily as a result of an improvement in Ontario.
Investment income of $103 million in 2011 Q4 was up 45% from the same period in 2010 as a result of an increase in assets.
And the integration of AXA Canada activities is on track and expected to be completed within 18 months of the closing of the transaction, the company said in a press release. "The company remains confident that it will progressively reach its $100 million in after-tax synergies [as a result of the AXA Canada acquisition] by the second half of 2013."
The company had a minimum capital test score of 197% and $435 million in excess capital at the end of 2011.