Intact Financial Corp. reported that recent extreme weather events, including floods in Toronto and Montreal, wildfires in Jasper, and hailstorms in Calgary, have led to an estimated C$1.1 bn ($809 mn) in net, pretax catastrophe losses in the third quarter. If this estimate holds, losses would be 80% higher than the same period last year.
Jasper National Park and the town are still closed to visitors, but Highway 16 through the park is open and the Icefields Parkway that connects Jasper to Banff and Lake Louise reopened to through traffic last week.
Losses were driven by mid-July rains in southern Ontario, wildfires in Jasper that began on July 22, a hailstorm in Calgary on Aug. 5, and heavy rains from an extratropical cyclone in the Montreal area on Aug. 9, according to the company.
At the end of July, CFO Louis Marcotte mentioned significant expected losses from the Toronto floods and Jasper wildfires. At that time, the company remained confident in its annual catastrophe loss guidance of C$900 mn, an increase from C$700 mn the previous year.
With over a month left in the quarter, the estimated C$1.1 bn in catastrophe losses contrasts with C$611 mn a year earlier and C$238 mn in Q3 2022. Personal Lines Senior Vice President Guillaume Lamy noted that the company expects weather-related losses to rise by 50% by 2040.
The string of disasters began with record-breaking rainfall in mid-July, causing extensive flooding and wind damage in Ontario, including Toronto.
In Jasper, wildfires destroyed roughly one-third of structures. Residents of the town have just begun to return, assessing damages.
However, people outside the town remain barred from returning due to ongoing fire hazards. The fires have burned approximately 82,300 acres as of Aug. 19, according to Parks Canada.
COO Patrick Barbeau estimated that around 250 of 700 policyholders, both personal and commercial, suffered significant damage based on mapping and imagery.
Earlier in the year, Intact recorded C$96 mn in catastrophe losses in the second quarter, bringing total first-half losses to C$193 mn.
Although lower than expected at that time, the situation has since worsened due to a destructive hailstorm in Calgary, which the Northern Hail Project likened to a 2020 event that caused C$1.2 bn in damages.
Firefighters, Unified Command, and supporting agencies are operating in challenging conditions to protect infrastructure both within and outside the Municipality of Jasper.
Parks Canada campgrounds and places attract millions of visitors each year offers, offering a unique blend of natural beauty, accessibility and variety. We understand many residents, Indigenous partners, visitors and staff have strong connections to these Parks Canada places. We hope the following status updates and photos can help you process some of these losses.
In Quebec, insurers processed over 70,000 claims following severe floods from cyclone Debby on Aug. 9, according to the Insurance Bureau of Canada. The IBC emphasized that insurers are working to address this surge in claims from four successive major events.
CEO Charles Brindamour highlighted Intact’s resilience in handling these severe weather events, citing the company’s strong financial position, solid underlying performance, and mid-teens operating ROE.
He also noted that Intact estimates ultimate losses more quickly than competitors, often leading to favorable results in subsequent quarters.
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