Intact reports strong rebound in Q3 results

Intact Financial Corporation reported a dramatic improvement in its 2010 Q3 net income, increasing from a net loss of $8 million in 2009 Q3 to a net income of $82.3 million.
The company attributes the gains to improved underwriting results and investment gains.
The insurer reported an 8.6% decrease in its combined ratio, from 105.2% in 2009 Q3 to 96.6% in 2010 Q3.
Underwriting income also improved from a loss of $53.2 million in 2009 Q3 to an underwriting income of $36.7 million in the same period of 2010.
Net investment losses, excluding HFT bonds, were modest at $6.4 million compared to a $12.7-million loss on investments in 2009 Q3. Year-to-date, the company has investment gains of $7.4 million compared to a loss of $174.1 million in the nine months of 2009.
The underwriting performance in home insurance improved, with a combined ratio of 106% in 2010 Q3. This marked a 23.3% improvement over the same period in 2009.
The company’s income in personal auto declined by $1.6 million, down to $19.8 million. The combined ratio in personal auto was 96.3% in 2010 Q3.
“The decline mainly reflects the increased cost of medical claims in Ontario in the first two months of the quarter, before the introduction of a new regulatory regime in the province, as well as the losses associated with the July hailstorm that hit the Calgary area,” the company said in a press release.
Commerical insurance underwriting income also improved during 2010 Q3. Intact reported an underwriting income of $31.5 million in this segment, compared to a loss of $7 million in 2009 Q3. Unlike personal auto, commercial auto results were “excellent,” the company said, with a combined ratio of 80.5%. The combined ratio in commercial property and casualty insurance improved to 92%, representing a jump of 17%.
Intact reports having $800 million in excess capital, and is “well positioned to take advantage of the opportunities that will result from improving market conditions.”