Canada's Intact Financial raises catastrophe loss estimate

Reuters

TORONTO, Sept 30 (Reuters) - Property and casualty insurerIntact Financial Corp said it will take catastrophelosses of C$199 million in the third quarter due mainly to aseries of bad weather events and a fiery train derailment thatdevastated the town of Lac-Mégantic, Quebec in early July.

The after-tax estimate, which equates to C$1.51 a share,follows an initial catastrophic loss estimate of C$134 millionin late July, which took into account losses from the trainderailment and a July 8 rain storm that caused flooding inToronto.

In a statement on Monday, Intact said the losses for theevents in the late July estimate were largely unchanged, butthat subsequent catastrophes added to the total.

"In aggregate, 10 events led to the catastrophe losses inthe quarter, including hail storms in Alberta and rain storm inOntario and Quebec," the company said.

The expected losses build on a year that has seenhigher-than-usual weather and disaster-related losses forCanadian insurers.

Intact's second-quarter results were cut by C$105 milliondue to flooding in Alberta that shut down the oil industrycapital of Calgary, displacing more than 100,000 people andcutting off power for days.

In Lac-Mégantic, 47 people were killed when a runaway trainhauling 72 oil tanker cars derailed and exploded in the heart ofthe small town.

Intact will report results on Nov. 6. The company's sharesfell 14 Canadian cents to C$61.78 on the Toronto Stock Exchange.The loss estimate was released after markets closed.

View Comments (0)