Severe weather drives higher Q3 losses for Intact and Definity
Severe weather drives higher Q3 losses for Intact and Definity | Insurance Business Canada
Catastrophe & Flood
Severe weather drives higher Q3 losses for Intact and Definity
What do the figures reveal?
Catastrophe & Flood
By
Jonalyn Cueto
Intact Financial Corp. (Intact) and Definity Financial Corp. (Definity Financial) have reported significant increases in catastrophe losses for the third quarter of 2024, largely driven by severe weather events.
According to a report from AM Best, Intact announced total catastrophe losses of $1.2 billion (US$871.6 million), a substantial upward revision attributed to September’s Hurricane Helene and Storm Boris, which caused widespread damage in Europe.
Definity Financial disclosed that its catastrophe losses would affect its operating income by approximately US$170 million, net of reinsurance recoveries. Key events that impacted Definity’s losses include a hailstorm in Alberta, flooding in Ontario and Quebec due to severe rain, and wildfires near Jasper.
Intact’s announcement came after an August update, which projected catastrophe losses to exceed $1.1 billion. The company noted that the recent figures reflected ongoing evaluations of damage from various weather events, including torrential rains in southern Ontario, wildfires in Jasper, and flooding in Quebec.
According to Intact, personal property losses accounted for $723 million, with personal automobile losses adding $113 million and commercial losses totaling US$380 million.
The commercial losses breakdown included $298 million in Canada, $68 million in the United Kingdom and Ireland, and $14 million in the United States. All figures reported by Intact are net of reinsurance.
“Our priority continues to be supporting customers through the claims process,” said Charles Brindamour, chief executive officer of Intact.
“We are leveraging our investments in On Side and the Intact Service Centres to provide immediate and local on-the-ground support for impacted customers. In fact, we have already closed almost 50% of the approximate 50,000 claims related to the four severe Canadian weather events.”
Definity Financial reported losses of $17 million in personal auto, $128 million in personal property, and $25 million in commercial losses. The company indicated it has fully utilized its catastrophe aggregate reinsurance treaty limit for 2024 due to these events.
Definity also reported $4 million in auto catastrophe losses related to its Sonnet subsidiary, which is set to exit personal automobile insurance in Alberta by year-end.
Intact’s operating entities hold a Best’s Financial Strength Rating of A+ (Superior), while Definity is rated A- (Excellent).
How can homeowners mitigate their risks associated with severe weather events? Share your thoughts in the comments below.
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