Intact continues to feel impact of natural catastrophes in Q3 2023

CEO highlights track record of "navigating volatility"

Intact continues to feel impact of natural catastrophes in Q3 2023

Catastrophe & Flood

By Mika Pangilinan

Intact Financial Corporation has unveiled its third quarter financials, reporting a net operating income per share of $2.10 despite elevated catastrophe losses.

 The insurer said its undiscounted combined ratio of 98.3% included eight points of catastrophe losses above expectations. 

 Still, the quarter brought an operating direct premium written (DPW) growth of 6%, which was attributed to “good momentum” in personal lines, as well as continued rate adjustments across all business segments.

 Intact said its balance sheet remains strong with $2.8 billion of total capital margin. Book value per share (BVPS) also increased 1% sequentially, reflecting earnings per share (EPS) of $0.83 and an equity issuance for acquiring Direct Line Insurance Group’s brokered commercial lines operations, the company reported.

 Commenting on the Intact’s third quarter financial performance, CEO Charles Brindamour pointed to “a long track record of successfully navigating volatility in catastrophe losses.” 

 “The third quarter was no different, as we delivered an operating ROE of 12.2%, and our balance sheet remained strong with $2.8 billion of total capital margin,” he said.

“I am pleased to see continued organic growth momentum in the context of strong underlying underwriting performance and an acceleration in the UK&I segment’s path to outperformance.”

 Brindamour also spoke of the company’s work to help customers get back on track following “several months of elevated severe weather activity.” 

 “It is in precisely these moments that we can best demonstrate our purpose – to help people, businesses, and society be resilient in bad times,” the CEO said.  

 Intact reported that most of its Q3 catastrophe losses within the Canadian segment were due to 14 severe weather events, including widespread floods in Atlantic Canada, Quebec, and Ontario and hailstorms in Ontario, Alberta, and Manitoba.

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