Two of Canada's largest property and casualty insurers have flagged heavy third-quarter catastrophe losses after a summer of flooding, storms and wildfires. Intact Financial and Definity Financial together expect about $850 million in cat losses, net of reinsurance.
Intact estimates catastrophe losses for the quarter at about $660 million pre-tax and net of reinsurance, or $2.76 per diluted share after tax. Of that, $615 million came from Canada, $38 million from the UK and Ireland, and $7 million from the US.
Definity said catastrophe losses would reduce third-quarter underwriting income by about $190 million net of reinsurance recoveries, or $1.15 per common share. That updates a preliminary estimate the company issued on September 3 covering July and August.
At both companies, home insurance took the largest share of losses. Personal property accounted for $390 million of Intact's total, followed by commercial lines at $173 million and personal auto at $52 million. At Definity, personal property made up $136 million, or about 72%, with commercial insurance at $37 million and personal auto at $17 million.
Intact said its Canadian losses came from storms causing flooding, water and wind damage across several regions, as well as wildfires in British Columbia. Definity pointed to rainstorms that caused flooding in Ontario and Alberta, British Columbia wildfires, and a storm system that brought damaging winds, hail and flooding to southern Ontario in early September.
The industry-wide figures reflect the same events. Catastrophe Indices and Quantification Inc. (CatIQ) now puts insured losses from the June 30 to July 3 storms in southern Ontario and southern Quebec at $491 million, much of it from basement flooding in Ottawa. Its estimate for the Bald Range Fire near Summerland, BC, stands at $293 million.
Intact chief financial officer Ken Anderson said catastrophe losses over the past 12 months totalled $1.29 billion, modestly above the company's annual guidance of $1.20 billion. He noted that the third quarter is historically an active period for weather.
Chief executive Charles Brindamour said the recent events followed benign activity in 2025 and early 2026.
"At an industry level, these events reinforce firm market conditions," Brindamour said.
Definity president and CEO Rowan Saunders said severe weather had continued into September and affected communities across the country.
Brindamour's comment is the clearest signal for brokers. After a quieter 2025, when industry-wide insured catastrophe losses fell to about $2.4 billion, some had expected personal property pricing to ease. A third quarter that pushed Canada's largest insurer above its annual cat guidance makes that less likely, particularly for homeowners in flood-exposed urban areas.
The concentration in personal property also matters for renewal conversations. Water losses are driving claims at both carriers, so brokers should expect continued attention on sewer backup and overland flood endorsements, deductibles and mitigation measures, especially in areas hit this summer such as southwest Ottawa and parts of Alberta.
Both companies will report full third-quarter results in the coming weeks, which should show whether the cat losses have affected underlying underwriting performance and growth.
