Intact unveils catastrophe-hit Q2 results

Figures reflect impact of extreme weather events

Intact unveils catastrophe-hit Q2 results

Insurance News

By Mika Pangilinan

Intact Financial Corporation has released its financial results for the second quarter of 2023, posting a combined ratio up 6.1 points year-on-year. 

The P&C insurer said its undiscounted combined ratio of 96.3% included 4 points of catastrophe losses that ran “higher than expected.” Catastrophe losses rose by $176 million on-year to $421 million.

Intact reported a 31% decrease on its net operating income, as it dropped to $402 million from $581 million in the prior-year quarter.

Despite the decrease and a $2.5 billion of total capital margin, operating return on equity (ROE) was at 12.8% for the 12 months to June 30, 2023.

Operating direct written premiums (DPW) also grew to 6%, or 7% excluding Intact’s strategic exits from UK personal lines motor and certain delegated relationships.

Intact’s operating net investment income increased 55% year on year to $326 million, driven by higher reinvestment yields, increased portfolio turnover, and a $25 million special dividend.

“With multiple severe weather events this quarter, our employees were often first on site in affected communities, offering a reassuring presence and support to customers in a time of need,” said CEO Charles Brindamour.

“Despite the scale of the fire, flood, and freeze events, we maintained a strong balance sheet and delivered a 13% operating ROE, a testament to the resilience of our operations. We will continue to leverage our experience with natural disasters to collaborate with governments and help communities adapt to climate change.”

When Intact shared its catastrophe loss estimates in July, it was revealed that nearly half of the losses in its Canada segment were due to wildfires.

Intact said the greatest financial impact came from Atlantic Canada, with other notable losses from an ice storm and flood in Quebec.

Regional performance

Intact also reported the following figures for its lines of business across Canada, the UK, and the US.


Personal auto premiums rose 6% from the prior year, which was attributed to rate actions in firming market conditions and an improving unit trajectory. Combined ratio was also at 91.2%.

Personal property premiums increased 5% in firm-to-hard market conditions. Similarly, the combined ratio rose 22.7 points to 119.2%, as the company saw higher catastrophe losses, elevated large losses, and inflation.

Commercial lines premiums grew 6% on the back of continued rate increases and strong retention in most lines, while combined ratio was at 89.5%.


Personal lines premiums were down 7% on a constant currency basis. Excluding the impact of the UK personal lines motor market exit, growth sat at 6% for the quarter. Meanwhile, combined ratio was at 98.0%, reflecting the impact of inflation and severe weather.

Commercial lines premiums increased 1% on a constant currency basis, while the combined ratio improved 2.1 points to 92.1%, even with 9 points of catastrophe losses.


Commercial premiums rose 19% on a constant currency basis, resulting from new business and rate increases, as well as new products brought by Intact’s Highland acquisition last year. As for the combined ratio, it inched slightly higher to 91.3% due to catastrophe losses.

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