Intact Financial reports a 62% increase in 2010 Q2 profit

Intact Financial Corporation (TSX: IFC) reported a 62% increase in its 2010 Q2 profits, observing that its net income increased from $72.4 million in 2009 Q2 to $120.2 million.
Overall, the company’s combined ratio improved by 2% during the quarter to 93.7%. Direct premiums written increased 5.4% over the same quarter a year ago to reach $1.3 billion.
The company cited a number of different factors for the improved results, including an improved economic environment, re-vamped corporate strategies and the gradual hardening of some market lines.
“Home and commercial insurance results continued to improve significantly, reflecting the effectiveness of our action plans, while the performance of our auto insurance business remains solid,” said Charles Brindamour, president and CEO of Intact Financial Corporation. “However, as anticipated, the severe summer storms and the increasing cost of medical claims in Ontario, pending the introduction of new regulatory measures this September, continued to impact upon our performance.
“Overall, our top-line growth continues to gain momentum as the pricing environment is firming up gradually in a number of our markets.”
The commercial market remains soft, however, the company notes.