Intact says summer storms contribute to 2009 Q3 loss of Cdn$8 million

Thanks in part to an unusual number of summer storms, Intact Financial Corporation (TSX: IFC) reported a net loss of Cdn$8 million in 2009 Q3, compared to a profit of Cdn$57.3 million in the same period last year.
“While the pace of growth of our direct written premiums has been most encouraging, the high costs of property damage associated with the unusual number of summer storms resulted in one of our worst underwriting results since the 1998 ice storm,” Intact Financial Corporation president and CEO Charles Brindamour said in a company release. “Despite the disappointing impact of these events, our underlying home insurance results continued to improve and our auto insurance business performed well both during the quarter and throughout 2009.”
The company reported a 2009 Q3 underwriting loss of Cdn$53.2 million, down 185.9% from its underwriting profit of Cdn$61.9 million in 2008 Q3.
At the same time, direct written premium growth accelerated by 4%, to $1.1 billion, with increases in all lines of business, reflecting growth initiatives and firming industry conditions.
Personal auto results continued to be good, the company said, with a combined ratio of 95.9% and underwriting income of Cdn$21.4 million.
But the underwriting performance in auto was offset by a high number of severe weather events, which mainly affected property results.
“Overall, personal property underwriting results were poor due to a high number of severe storms, resulting in a combined ratio of 129.3%,” the company said.
In commercial lines, direct written premiums increased by 2.9%, showing further evidence of firming market conditions.
“Strong underwriting performance in commercial auto, resulting in a combined ratio of 87.1%, was offset by lower underwriting results in commercial property and casualty (P&C),” the company reported.
Commercial P&C underwriting results decreased mainly due to a small number of significantly large fires that led to a combined ratio of 109%.
The company’s overall combined ratio in 2009 Q3 was 105.2%.