Canadian Underwriter

Weather-related losses higher than expected in Q1 2018

April 11, 2018   by Staff

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weather-04Severe winter conditions in Canada in the first quarter of 2018 resulted in catastrophe and non-catastrophe weather-related losses that were higher than expected by approximately $130 millionpre-tax, or $0.70 per share after tax, reports Intact Financial Corporation. This represents an increase in weather-related losses of approximately $40 million over first quarter 2017, which also experienced difficult winter conditions. The increase impacted equally personal auto and commercial lines in Canada.

Catastrophe losses in the first quarter of 2018 totalled approximately $36 million, almost twice expected levels. The winter conditions observed in January and February this year also brought significantly higher than expected non-catastrophe weather related losses, due to severe cold, frequent shifts in temperature and increased days with precipitation, both rain and snowfall. These conditions led to higher frequency of auto collisions, water damage from frozen pipes and large fire losses.

“Our claims teams have been working hard to get our customers back on track during these exceptionally difficult winter months.” says Louis Gagnon, president, Canadian Operations, Intact Financial Corporation.

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This story was originally published by Canadian Insurance Top Broker.