Major insurer’s Q2 profits cut in half by wildfires

Major insurer’s Q2 profits cut in half by wildfires | Insurance Business Canada

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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