Bad Weather Pulls ING Canada’s Earnings Down

ING Canada Inc., the country’s largest p&c insurance provider,  has reported a decline in its second-quarter profit. In a statement, the company operating income fell to  $109.5 million or 89 cents a share for the three months ended June 30 from $132.5 million or $1.06 a share a year earlier. The insurer attributes the decrease largely to severe storms in June and the lingering effects of an extended winter.

“Despite the impact of the weather conditions, our operating performance during the quarter was sound with three of our four lines of business,” comments ING Canada president and CEO Charles Brindamour. “Excluding the effects of the severe storms, operating profitability before taxes improved year-over-year,” he continues, adding, however, that a June 10th hail storm that hit Montreal South Shore “alone resulted in $26 million in damages, bringing total claims losses for the three most severe storms during the quarter to more than $40 million.”

In a statement, the company reports that direct premiums written increased marginally in the quarter to $1,216.7 million, excluding industry pools, as the company remains committed to its disciplined approach to risk selection and pricing.

Net income dropped to $112 million or 91 cents a share from $194.3 million or $1.56 a share a year ago, due mainly to the weakness of the equity markets last year, which resulted in a significant reduction in investment gains.

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