Intact Financial has disclosed a preliminary estimate that catastrophe and large losses in the second quarter came in $247 million (all figures in Canadian dollars), above expectations on a pre-tax basis, net of reinsurance, which is equivalent to $1.08 per diluted common share after tax.
The figures are ahead of the company's full second-quarter results, due July 28, and are subject to change once audited financials are finalized.
Total catastrophe losses affecting continuing operations reached about $416 million pre-tax and net of reinsurance for the quarter. Of that total, Canada accounted for $295 million, split across personal property ($252 million), commercial lines ($37 million), and personal auto ($6 million), while the UK and Ireland (UK&I) segment accounted for $121 million.
Intact reported no catastrophe losses in its US operations for the quarter.
Intact said Canadian catastrophe losses were driven by weather events, including torrential storms that caused flooding and water and wind damage across several regions. In the UK&I, catastrophe losses came in well above expectations and were primarily attributed to commercial fires.
Beyond catastrophe losses, the company flagged an unusually high level of large losses in the quarter, which added 3 points to the underlying current year loss ratio overall. The impact varied by segment: 3 points in Canada personal property, 3 points in Canada commercial lines, and 7 points in the UK&I. Intact said the large losses included a higher frequency of fire claims and other property losses across various geographies and risk segments, and that no discernible pattern had been identified linking them.
CEO Charles Brindamour (pictured) said the company's claims operations were focused on customer support through the elevated loss activity.
"Our claims teams and extensive supply chain network are mobilized to provide our customers fast, local support," he said. "Together they are delivering superior service and helping our customers return to normal as quickly as possible."
Intact's UK&I exposure traces back to its 2021 acquisition of RSA Insurance Group's Canada, UK, and international operations for roughly C$5.1 billion, jointly executed with Denmark's Tryg A/S. The deal was, at the time, the largest ever by a Canadian P&C insurer and added roughly 30% to Intact's premium base, giving the company entry into UK and European markets alongside its existing Canadian business.
In 2025, Intact rebranded its RSA and NIG operations under the Intact Insurance name across the UK, Ireland, and Europe, retiring the RSA brand entirely.
Intact remains Canada's largest P&C insurer by direct premiums written, holding roughly 17% market share, well ahead of its nearest competitors Desjardins and Aviva Canada, though the broader market remains fragmented with no single insurer controlling more than a fifth of premium.
The disclosure comes as Canada's 2026 catastrophe season has started earlier and more intensely than usual.
By late June, CatIQ, Canada's official catastrophe tracker, had declared five separate catastrophe events in five weeks, including flooding in downtown Montreal and the West Island area, regions that have not historically seen frequent flood losses.
CatIQ president and CEO Laura Twidle has said the season "shifted up a month" compared to typical years. That follows a 2025 that was already the tenth-costliest year on record for severe weather losses in Canada, with insured damage exceeding $2.4 billion, itself a relative reprieve after 2024, when losses surpassed $8 billion nationally for the first time.
Intact's own annual guidance had called for catastrophe losses of roughly $1.2 billion for 2026, with about 75% of that expected to come from Canada. Q2's $416 million in catastrophe losses alone account for roughly a third of that full-year budget, with two more quarters, including peak wildfire and hurricane season, still to come. The company has not yet indicated whether it will revise full-year expectations.
For Intact, an early and intense start to catastrophe season raises the question of whether 2026 will follow the pattern of 2024's record year rather than 2025's partial reprieve, with direct implications for full-year earnings.
Reinsurance cost is one channel to watch: most Canadian catastrophe treaty reinsurance renews January 1, so this quarter's losses will factor into pricing discussions well before they appear in a renewal, giving Intact and its peers time to adjust retention and layer structures if the elevated loss trend continues.
The UK&I fire losses add a second, less weather-dependent pressure point, suggesting this quarter's miss reflects broader claims severity trends across the group's international book, not solely Canadian weather.
Investors and analysts will watch the July 28 results for whether management adjusts full-year catastrophe guidance or characterizes this as a one-quarter deviation within a still-intact annual plan.
