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