February 17, 2010 by Canadian Underwriter
Intact Financial Corporation (TSX: IFC) reported a net income of $126.7 million in 2009, a 1.2% decrease from 2008’s net income of $128.2 million.
The firm’s combined ratio increased year-over-year, from 97.1% in 2008 to 98.7% in 2009.
“The combined ratio in business insurance deteriorated during the quarter due to a number of large fire losses and the costs of claims associated with a number of unprofitable group accounts that have been cancelled,” Charles Brindamour, Intact’s president and CEO noted in a press release.
Brindamour further noted the company has nearly $860 million in excess capital.
Underwriting income saw a 53.8% decrease from 2008 to 2009, dropping from $117 million to $54 million in 2009.
At the same time, direct premiums written increased 3.1% — from $4.15 billion in 2008 to $4.27 billion in 2009.
“The robust underwriting performance in home insurance, with a combined ratio of 87.8%, reflects a significant improvement in that line of business,” said an Intact release. “Personal auto underwriting income also improved significantly with a combined ratio of 98%.
“The improvement reflects better current accident year results and the release of a provision associated with minor injury cap reforms, which had a $22.4-million positive impact on underwriting income,” it added.
“While the industry pricing environment is unfolding as we anticipated, the unpredictability of weather patterns and the high cost of medical claims in Ontario may continue to impact the industry’s performance in the short term,” Brindamour added.