Press release from CNW Group
Intact Financial Corporation releases estimates of the financial impact from recent catastrophic events
Monday, July 22, 2013
Intact Financial Corporation releases estimates of the financial impact from recent catastrophic events07:09 EDT Monday, July 22, 2013
TORONTO, July 22, 2013 /CNW/ - Intact Financial Corporation (TSX: IFC) announced today that it has been helping approximately 16,000 customers get back on track following the Alberta flooding, Lac-Mégantic train derailment, Greater Toronto Area rain storm and early July hail storms.
The company will record after-tax catastrophe losses of $123 million or $0.92 per share, net of reinsurance, in its second quarter results. In addition, IFC estimates that the early July catastrophic events will negatively impact its third quarter results by $134 million after-tax or $1.01 per share, net of reinsurance.
"The devastation brought on by recent flooding and torrential rain is unprecedented," said Charles Brindamour, Chief Executive Officer of Intact Financial Corporation. "The scope of the damage and destruction that we have witnessed in recent weeks is a stark reminder that we must adapt the protection offered to Canadians to ensure it remains sustainable in light of the greater prevalence and severity of weather events."
Alberta storms and flooding (June 20)
The company estimates that the cost of helping its Alberta customers restore their homes, autos and businesses following the devastating storms and flooding will amount to more than $300 million for an after-tax impact of $105 million or $0.79 per share net of reinsurance. These costs will be recorded in the company's second quarter financial results, which will be released on July 31.
Lac-Mégantic train derailment (July 6)
The train derailment and explosion in the town of Lac-Mégantic will result in a $25 million impact to the company's third quarter results. Our thoughts are with the community at this very difficult time as they grieve and cope with the loss they suffered in the aftermath of this tragic event.
Greater Toronto Area rain storm (July 8)
The severe rain storm that impacted thousands of Intact customers in the Greater Toronto Area resulted in an estimated $170 million of insurable damages.
Helping customers when they need us most
Intact's dedicated team of adjusters, brokers, contractors, vendors and engineers have been helping its customers to assess damages and begin to restore their lives. To accelerate the process, Intact has mobilized its community response teams to provide assistance and support to its customers over the phone and in person. Field adjusters were dispatched from across the country to communities in Alberta and the Greater Toronto Area.
About Intact Financial Corporation
Intact Financial Corporation (www.intactfc.com) is the largest provider of property and casualty insurance in Canada. Intact offers home, auto and business insurance through Intact Insurance, belairdirect, Grey Power, BrokerLink and Jevco.
Forward Looking Statements
This document may contain forward looking statements that involve risks and uncertainties. The company's actual results could differ materially from these forward looking statements as a result of various factors, including those discussed in the company's most recently filed Annual Information Form and annual Management's Discussion & Analysis. Please read the cautionary note at the end of the MD&A.
SOURCE INTACT FINANCIAL CORPORATION
For further information:
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Vice President, Investor Relations
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