TORONTO, July 8, 2026 /CNW/ - Intact Financial Corporation (TSX: IFC) announced today that catastrophe losses(1) and large losses(2) were elevated in the second quarter. Combined, these losses were $247 million above our expectations on a pre-tax basis and net of reinsurance ($1.08 per diluted common share after-tax).
Catastrophe losses
Total catastrophe losses for the second quarter impacting continuing operations were approximately $416 million on a pre-tax basis and net of reinsurance.
The table below provides a breakdown of catastrophes by reporting segment:
(in millions of Canadian dollars) Total
Personal auto 6
Personal property 252
Commercial lines 37
Canada 295
UK&I 121
US --
Total current accident year CATs 416
-- In Canada, catastrophe losses were driven by weather events, including
torrential storms causing flooding, water and wind damage across several
regions.
-- In the UK&I, catastrophe losses were well above expectations and
primarily due to commercial fires.
Large losses
In addition to catastrophe losses, we are providing further disclosure on the unusually high level of large losses in the second quarter.
The impact of large losses above expectations in the quarter on the underlying current year loss ratio(3) was 3 points overall, and by line of business was as follows:
-- 3 points in Canada Personal property -- 3 points in Canada Commercial lines -- 7 points in the UK&I
These losses included a higher frequency of fire claims and other property losses across various geographies and risk segments. No discernable patterns have been identified.
Charles Brindamour, Chief Executive Officer of Intact Financial Corporation said:
"Our claims teams and extensive supply chain network are mobilized to provide our customers fast, local support. Together they are delivering superior service and helping our customers return to normal as quickly as possible.
At an industry level, these events reinforce firm market conditions."
(1) For details on our catastrophe loss expectations and definition, please refer to Section 8 in our Management's Discussion and Analysis for the year ended December 31, 2025. This document is available on our website at www.intactfc.com and on SEDAR+ at www.sedarplus.ca. (2) Large losses represent significant individual claims that are below the applicable catastrophe threshold. Expectations for large losses are derived on a historical 5-year average basis. (3) For details on the calculation of underlying current year loss ratio, please refer to Section 32.2 in our Management's Discussion and Analysis for the year ended December 31, 2025. This document is available on our website at www.intactfc.com and on SEDAR+ at www.sedarplus.ca.
About Intact Financial Corporation
Intact Financial Corporation (TSX: IFC) is a global provider of property and casualty insurance founded on core values and a belief that insurance is about people, not things. Intact's success is fueled by its 32,000 employees worldwide who embody the company's purpose: to help people, businesses and society prosper in good times and be resilient in bad times. To achieve its ambitions, Intact seeks to ensure customers are its advocates, its people are engaged, and the company is one of the most respected.
Intact is the largest provider of property and casualty insurance in Canada and has successfully exported its strengths across North America, the UK, and Europe. Its growing commercial and specialty solutions network now spans over 150 countries. With a customer-driven mindset, Intact has expanded its operations to include insurance distribution, restoration, and prevention.
Intact solidifies its outperformance by leveraging its competitive advantages: global leadership in data and AI for pricing and risk selection; deep claims expertise and integrated supply chain network; and strong capital and investment management. Intact's total annual operating Direct Premiums Written has tripled over the last decade to $25 billion.
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 diluted 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 Management's Discussion and Analysis for the year ended December 31, 2025 (Sections 24-27), in Notes 8 and 10 of the Company's Consolidated Financial Statements for the year ended December 31, 2025 and in the Company's Annual Information Form dated February 10, 2026, 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.
SOURCE Intact Financial Corporation
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July 08, 2026 17:01 ET
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