Intact Insurance turns a profit despite Fort McMurray fire losses
The largest casualty and property insurer in Canada, Intact Insurance Corporation, has declared a profit in spite of the Fort McMurray fire losses. The second–quarter profit was greater than anticipated even as the corporation faced the effects of the devastating wildfire.
The fire in Northern Alberta started on May 1, 2016, and spread across thousands of hectares before the declaration that it was under control on July 5, 2016. It destroyed thousands of homes and property and disrupted operations of oil-related businesses. It is the priciest natural disaster in the history of Canada. Insurance Bureau of Canada estimates the insured losses to be $3.6-billion.
The second-quarter profit of $93-million is less than half of the $199-million that Intact posted a year ago in the same quarter. The decrease in profit is a result of the fire.
Initially, Intact assessed the wildfire’s destruction using satellite geocoding and imagery to be greater than the actual damage exposed after extinguishing of the fire. The disaster caused losses in the quarter amounting to $127-million, after taxes.
Charles Brindamour, the CEO of Intact, talked to analysts on a conference call. He said they are fully committed to getting their customers back on track and would be on the ground for as long as needed. He stated that Intact had resolved almost all automobile claims caused by the fire and solutions were underway for the rebuilding of homes and commercial businesses.