Intact Financial Corporation has announced that severe winter weather has driven net catastrophe and non-catastrophe weather losses of almost CA$200 million (pre-tax) on its Canadian operations in the first-quarter of 2019.
Net of reinsurance, catastrophe losses totalled approximately CA$128 million (pre-tax), which, based on Q1 historical averages, is CA$95 million above expectations.
This, combined with non-catastrophe weather losses above expected seasonal patterns of CA$70 million (pre-tax), takes the firm’s Q1 hit from severe winter weather to CA$198 million, which the firm says is CA$165 million (pre-tax) above its expectations for a first-quarter.
Overall, this is expected to add 8 points on the firm’s Canada combined ratio, or CA$0.87 per share after-tax.
The figures suggest that the firm expects roughly CA$33 million of net catastrophe and non-catastrophe weather losses in a first-quarter, based on historical averages. However, in the first-quarter of this year, heavy snowfall, freezing rain and subsequently higher auto losses, significantly increased the impact of severe weather events on the firm’s Canada operations.
According to Intact Financial, 60% of its total cat losses impacted personal property, with the remainder hitting commercial lines. Within its non-cat weather loss total, 40% impacted commercial lines, 40% hit personal auto and the balance in personal property.
The firm states that personal auto experienced roughly 6 percentage points of elevated weather-related claims, which is approximately double seasonal patterns for a Q1.
Intact Financial’s President of Canada Operations, Louis Gagnon, commented: “Our teams have worked hard during these unusually difficult winter months to get customers back on track as we were again reminded of the impact severe weather can have on our operations.
“These events are likely to sustain the firm market conditions we are seeing. With a dedicated team and strong fundamentals across all our businesses, we are positioned well to maintain service excellence and take advantage of market opportunities.”