Intact Financial Corp., Canada’s largest property and casualty insurer, reported an 8 per cent fall in first-quarter profit as harsh winter conditions hurt underwriting income.
Toronto-based Intact said on Wednesday its net income fell to C$160-million, or C$1.17 per share, in the quarter ended March 31, from C$174-million, or C$1.27 per share, a year earlier.
Underwriting profit fell 39 per cent to C$51-million, as extremely cold winter weather, combined with a few rapid thaws, led to increases in burst pipes, auto accidents, fires, and sewer backups.
Weather-related catastrophe losses for the quarter amounted to C$75-million.
The company’s combined ratio was 97.1 per cent, compared with 95.1 per cent a year earlier. A ratio below 100 per cent means the company is taking in more from premiums than it is paying out in claims and expenses.
Direct premiums written slipped 1 per cent to C$1.50-billion.
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