Intact Financial reports decreased net income

Intact Financial Corporation has reported a net income of Cdn$74.2 million for 2009 Q2, as compared to a net income of Cdn$112 million for 2008 Q2.
The insurer’s combined ratio increased slightly     quarter-over-quarter, from 95.6% in 2008 Q2 to 95.7% in 2009 Q2.
The strength of the company’s underwriting performance was offset by lower investment income, according to a release.
Direct written premiums were up 2.8% to Cdn$1.25 billion — the largest quarterly increase in almost two years — as premiums continued to move upwards in personal insurance, the release said. 
But, Intact’s return on equity dropped 9.2 points, from 10.3% in 2008 Q2 to 1.1% in 2009 Q2.
“Our operating performance remained sound this quarter as a result of a decrease in the number of severe storms and the positive impact of our home insurance plan,” Charles Brindamour, president and CEO at Intact Financial, said in the release. “Auto insurance also performed well.
“Overall, our underwriting income increased by more than 15% in the first six months of the year as improved personal insurance results were partly offset by lower commercial underwriting income.
“The growth of our direct written premiums is beginning to show positive momentum as industry conditions are pointing to a firmer pricing environment in all lines of business over the next 12 months,” Brindamour added.