Definity Financial Corporation – the parent company of Economical Insurance, Sonnet Insurance, Family Insurance Solutions, and Petline Insurance – has released its estimate of the financial impact caused by the derecho storm that struck Ontario and Quebec on May 21.
The insurer estimates a negative impact on net income arising from the storm event of between $26 million and $29 million ($0.22 and $0.25 per share) currently outstanding, net of taxes and reinsurance. Definity explained that it came to this conclusion based on information it had received from customers to date, as well as its own analysis of its exposures.
"The severe weather that affected Ontario and Québec in late May was a reminder of the importance of delivering on our purpose to support our clients and communities," said Definity president and CEO Rowan Saunders. "Our claims team is responding with on-the-ground support to help our customers and broker partners rebuild their communities and recover as quickly as possible."
The May 21 derecho storm kicked up winds with speeds of up to 190 km/h, causing damage along its 1,000-kilometer path. As many as 1.1 million customers were affected by power outages resulting from the storm, and to this day some households are still without power due to extensive damages to the power grid. At least 11 people were killed by the storm.
As reported by CTV News, Hydro Ottawa stated that the May 21 storm cost it between $25 million and $30 million to clean up and repair the power grid – more than five times what the 2018 tornadoes had cost the utility company.