Intact reports slight decrease in Q3 net income

Intact Financial Corporation (TSX: IFC) reported a net income of $101 million in 2011 Q3, marking an $8-million decrease from 2010 Q3’s net income.
The decrease reflects $29-million worth of integration-related costs recorded in 2011 Q3 following Intact’s acquisition of AXA Canada.
The combined ratio improved by 2.4% year-over-year (to 94.2%) despite $53 million in catastrophe losses due to Tropical Storm Irene and a number of wind and hailstorms.
Underwriting income improved from $37 million in 2010 Q3 to $65 million in 2011 Q3.
“Our underwriting performance continued to be strong this quarter as personal auto results improved significantly,” said Charles Brindamour, Intact Financial Corporation’s CEO.
“We are increasingly optimistic that the initiatives adopted by the Ontario government in curbing the inflation of medical costs will be effective over time and will result in a more stable environment for consumers.”
The insurer achieved an ROE of 14% with a 13% increase in book value per share in the last 12 months, an Intact release says.
Direct premiums written increased 2% over the same quarter a year ago to reach $1.2 billion.