Mild winter boosts Intact’s 2010 Q1 results

A mild winter and improving market conditions have boosted Intact Financial Corporation’s 2010 Q1 results.
The company’s 2010 Q1 profit was $119.7 million, compared to a $36.3-million loss during the same period last year.
The company’s combined ratio improved six percentage points during the quarter, down to 93.2%. The company’s operating ratio reached 10.9% in 2010 Q1.
“This was a particularly strong quarter, with one of the best underwriting performances in the past three years, as we benefited from remarkably mild weather conditions,” Intact Financial Corporation president and CEO Charles Brindamour said in a press release. “All business lines performed well as a result of the positive impact of our action plans, especially in home insurance, which recorded excellent results.”
The company said home insurance was profitable for the second consecutive quarter. Its underwriting gain of $29 million significantly surpassed the $26.9-million loss recorded in the home insurance line in 2009 Q1.
In personal auto lines, the company’s auto underwriting income declined slightly to $15.9 million, with a combined ratio of 97%, “mainly as a result of higher medical costs in Ontario which offset improvements in other provinces,” the company said.
Intact also noticed signs of a hardening of the Ontario commercial lines market.
“While pricing conditions in business insurance remain soft, there are clear signs that pricing is firming up, particularly in Ontario, in the segments where we operate,” the company said. “The company expects that similar conditions will develop across the country over time.”