TORONTO, Jan. 12, 2024 /CNW/ – Intact Financial Corporation (TSX: IFC) today provided an update on catastrophe losses in the fourth quarter of 2023 impacting both our continuing and exited lines of business.
The Company estimates total catastrophe losses1 of $200 million on a pre-tax basis and net of reinsurance2 (after-tax impact of $0.85 on Net Operating Income Per Share3). The table below provides a breakdown by line of business:
| (in millions of Canadian dollars) | Canada Personal Lines | Canada Commercial Lines | UK&I | US | Total |
| Total current accident year CATs | 6 | 24 | 152 | 18 | 200 |
- Catastrophe losses in the UK&I segment were driven by two severe windstorms in October, Storms Ciaran and Babet.
- In Canada and the US, catastrophe losses were both weather and non-weather related.
In addition, catastrophe losses of $65 million (pre-tax and net of reinsurance) related to the two October windstorms were incurred in our UK home insurance operations. These losses will be reported in Exited Lines in Q4 2023, along with the underwriting results for all exited businesses, including UK&I personal lines.
| 1 For details on our catastrophe loss expectations, definition and disclosure policy, please refer to Section 11 in our Management’s Discussion and Analysis for the year ended December 31, 2022, which is incorporated by reference. This document is available on our website at www.intactfc.com and on SEDAR+ at www.sedarplus.ca. |
| 2 None of the catastrophe events in the quarter met the threshold for reinsurance under IFC’s catastrophe reinsurance treaties. |
| 3 NOIPS is a non-GAAP ratio, which does not have a standardized meaning prescribed by GAAP and may not be comparable to similar measures used by other companies in our industry. It is calculated by dividing net operating income attributable to common shareholders, divided by the weighted-average number of common shares outstanding on a daily basis during a specific period. Net operating income attributable to common shareholders is a non-GAAP measure which represents the net income attributable to shareholders, excluding the after-tax impact of non-operating results, net of net income (loss) attributable to non-controlling interests (non-operating component), preferred share dividends and other equity distributions. See Non-GAAP measures at the end of this press release. |
About Intact Financial Corporation
Intact Financial Corporation (TSX: IFC) is the largest provider of property and casualty (P&C) insurance in Canada, a leading provider of global specialty insurance, and, with RSA, a leader in the U.K. and Ireland. Our business has grown organically and through acquisitions to over $21 billion of total annual premiums.
In Canada, Intact distributes insurance under the Intact Insurance brand through a wide network of brokers, including its wholly-owned subsidiary BrokerLink, and directly to consumers through belairdirect. Intact also provides affinity insurance solutions through the Johnson Affinity Groups.
In the U.S., Intact Insurance Specialty Solutions provides a range of specialty insurance products and services through independent agencies, regional and national brokers, and wholesalers and managing general agencies.
In the UK, Ireland, and Europe, Intact provides personal, commercial and specialty insurance solutions through the RSA brands.Forward-Looking Statements
Certain statements made in this press release are forward-looking statements. These statements include, without limitation, statements relating to estimated catastrophe losses, including on a per common share basis. The words “may”, “will”, “would”, “should”, “could”, “expects”, “plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”, “estimates”, “predicts”, “likely”, “potential” or the negative or other variations of these words or other similar or comparable words or phrases, are intended to identify forward-looking statements. Unless otherwise indicated, all forward-looking statements in this press release are made as of the date hereof and subject to change.
Forward-looking statements are based on estimates and assumptions made by management based on management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Many factors could cause the Company’s actual results, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements. In the case of estimated claims and losses, due to the preliminary nature of the information available to prepare estimates, future estimates and the actual amount and categorization of claims and losses associated with events described above may be materially different from current estimates.
All of the forward-looking statements included in this press release are qualified by these cautionary statements and those made in the “Risk Management” sections of the Company’s Q3-2023 Management’s Discussion and Analysis (Sections 17-18), and the Company’s Management’s Discussion and Analysis for the year ended December 31, 2022 (Sections 30-34), in Notes 10 and 13 of the Company’s Consolidated Financial Statements for the year ended December 31, 2022 and in the Company’s Annual Information Form dated February 7, 2023, all of which are available on our web site at www.intactfc.com or on SEDAR+ at www.sedarplus.ca. These factors are not intended to represent a complete list of the factors that could affect the Company. These factors should, however, be considered carefully. Although the forward-looking statements are based upon what management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. Investors should not rely on forward-looking statements to make decisions and investors should ensure the preceding information is carefully considered when reviewing forward-looking statements made in this press release. Undue reliance should not be placed on forward-looking statements made in this press release. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.Non-GAAP Measures
The Company uses both GAAP and certain non-GAAP measures to assess performance.
Non-GAAP financial measures and Non-GAAP ratios (which are calculated using Non-GAAP financial measures) do not have standardized meanings prescribed by GAAP and may not be comparable to similar measures used by other companies. They are used by management to assess the Company’s performance.
Supplementary financial measures, non-GAAP financial measures and non-GAAP ratios used in this Press Release and the Company’s financial reports include NOIPS, operating ROE, BVPS, combined ratio, claims ratio, expense ratio, GWP, DPW, and adjusted debt-to-total capital ratio.
For more information about these supplementary financial measures, Non-GAAP financial measures and non-GAAP ratios, including definitions and explanations of how these measures provide useful information, refer to Section 19 – Non-GAAP and other financial measures in the Company’s Q3-2023 Management’s Discussion and Analysis dated November 7, 2023, which Section is incorporated by reference into this press release and which is available on the Company’s website at www.intactfc.com and on SEDAR+ at www.sedarplus.ca.
SOURCE Intact Financial Corporation
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