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Major insurer’s Q2 profits cut in half by wildfires

Major insurer’s Q2 profits cut in half by wildfires

Major insurer’s Q2 profits cut in half by wildfires The Intact property insurance business got burned in the second quarter by the huge Alberta wildfire that forced a mass evacuation of the Fort McMurray area in May.

Intact Financial (TSX:IFC) says its profit fell by more than half to $93 million or 67 cents per share.

That's down from $199 million or $1.47 per share in last year's second quarter.

The Toronto-based insurer says the Fort McMurray catastrophe drove down its net operating income by 46 per cent to $114 million, or 83 cents per share.

Excluding that fire, Intact says its net operating income would have been up 15 per cent.

Revenue from insurance policy premiums was $2.46 billion, up five per cent from $2.34 billion a year ago, but underwriting income fell to $16 million from $158 million as the fire offset growth elsewhere.

Intact says most of the impact from the fire was from property insurance and a smaller portion from auto insurance.

The Canadian Press

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