Intact Financial Corporation’s (IFC) estimated catastrophe losses, net of reinsurance, for 2017 Q2 is about $105 million on a pre-tax basis, reports Canada’s largest provider of property and casualty.
On an after-tax basis, the estimated loss amounts to $77 million or $0.58 per share, notes an IFC press release late Wednesday afternoon.
Heavy precipitation resulting in flooding during the second quarter of the year hit customers in Quebec and Ontario particularly hard. Intact witnessed water and wind claims, primarily to its personal property line of business.
“We will continue to ensure that the protection we offer remains sustainable and work with government to help Canadians adapt to climate change,” says Charles Brindamour, chief executive officer of IFC, which has more than $8.0 billion in annual premiums in Canada.
Financial losses from persistent heavy rainfall across several Canadian provinces are expected to reach well into the millions in U.S. dollars, Impact Forecasting, Aon Benfield’s catastrophe model development team, noted in an alert this past May.
Several low-pressure systems brought rainfall to portions of Ontario, Quebec and the Maritimes from May 1 to 6, following a wet April, the alert noted, although the most significant of the early-May downpours occurred May 5 and 6.
A low-pressure system became wedged between two high-pressure areas and stalled over eastern Canada, causing further heavy, prolonged rainfall for the already saturated provinces and resulting in numerous rivers overflowing their banks.
In late June, Insurance Bureau of Canada (IBC) applauded a move by the federal and provincial governments to contribute $1.185 billion towards a project intended to, among other things, raise the grade in the area by an average of two metres.
The planned funding includes Ottawa contributing as much as $384 million, Ontario will kick in about $400 million and Toronto will provide about $400 million to Waterfront Toronto, some of which will be used for flood mitigation.
About 715 acres southeast of downtown Toronto “are at risk of flooding from the Don River watershed and cannot be revitalized under they are flood-protected,” notes a backgrounder from Waterfront Toronto, a corporation overseen by all three levels of government whose mandate is to convert about 2,000 acres of brownfield land along the shore of Lake Ontario for redevelopment.
IBC argues that investments in flood mitigation will help make Toronto’s under-used Port Lands safer for mixed-use development.
“Recognizing that this is a floodplain, the federal government, the Government of Ontario and the City of Toronto are investing the needed funds to ensure this new community is inoculated against flood risk,” says Craig Stewart, IBC’s vice president of federal affairs.