Q3 Roundup: Intact, Economical, RSA, Industrial Alliance

Less flooding helps insurers, but many feel pain from Alberta hail

Catastrophes old and new dominated Canadian insurers’ quarterly results, as some bounced back from 2013’s wet summer and others took a hit from hail.

Intact posted a $185 million operating profit for the third quarter of the year—up $126 million from last year, which was, the company noted, “impacted by severe rainstorms in the Greater Toronto Area and Quebec, as well as hail storms in Alberta.”

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Hail this year dealt a blow to Economical Insurance, with president and CEO Karen Gavan saying that the storm in Airdrie, Alberta, contributed to the company’s “disappointing third quarter and year-to-date underwriting results.”

Economical posted an underwriting loss of $38.3 million and combined ratio of 108.2 percent in Q3.

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RSA Group also felt the pain from Airdrie, reporting in its quarterly results that the storm cost the company nearly $20 million (£11 million). Overall, RSA reported weak underwriting results, partly mitigated by some disposals—including its sale of Noraxis to Arthur J. Gallagher.

Industrial Alliance, meanwhile, said its home and auto lines “benefited from favourable weather conditions and delivered a good contribution” to its $98.5 million profit attributable to shareholders—still a 14 percent dip from Q3 2013.

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