Intact 2011 Q1 results down slightly, based on comparison with “remarkable” 2010 Q1 results

Intact Financial Corporation (TSX: IFC) reported a net operating income of $101 million for 2011 Q1, down 4% (or $12 million) on a per share basis from the performance of 2010 Q1.
The company noted its “remarkable” 2010 Q1 performance was buoyed by an unusually mild winter season, whereas severe storms in Ontario and Quebec in March 2011 have contributed to slowing down 2011 Q1 results in comparison with last year.
Still, the company said its strong performance in 2010 Q1 has generally prevailed throughout the early months of 2011 Q1.
“We continue to reap the benefits of the action plans we have adopted over the past two years while winter weather conditions remained generally favourable,” said Charles Brindamour, president and CEO of Intact Financial Corporation.
The company’s direct premiums written increased 3% in 2011 Q1, up to $943 million.
“Home insurance premiums grew by 5% as a result of increases in both rates and amounts insured,” the company announced. “The growth rate of personal auto premiums slowed to 1% during the quarter as a result of our disciplined approach in Ontario as the regulatory reforms unfold.”
Overall, underwriting income for 2011 Q1 was $58 million, with a 94.6% combined ratio.
Looking forward into 2011, the company said “industry premiums are likely to increase in the next 12 months at a pace similar to last year, with percentage growth in the mid-single digits in personal auto and upper-single digits in personal property.
“These increases will be driven by rate inadequacies in auto insurance in Ontario and the impact of water-related losses and more frequent and severe storms.
“Commercial lines premiums are expected to grow at a low, single-digit rate, with no acceleration from the pace of the last 12 months.”