Definity Financial Corporation announced October 5 that catastrophe losses in the third quarter of 2023 will negatively impact operating income. The company’s third quarter results are due out November 10.
All told, operating income is expected to be negatively impacted by approximately $122-million. “This is largely in line with Definity’s September 5, 2023 announcement regarding estimated catastrophe losses in July and August 2023,” they state.
At the time, the company reported that it estimated the impact would be approximately $120-million.
Broken down, estimated catastrophe losses by line of business in the third quarter of 2023 are expected to come in around $8-million for personal auto, $104-million for personal property and $10-million for commercial insurance.
“Wildfires in British Columbia represented the largest of the 11 events reaching Definity’s catastrophe loss threshold during the quarter,” they add. “Other notable events included severe wind and rainstorms leading to flooding in Ontario and Quebec and Nova Scotia, tornados in Ontario and Quebec and a number of hail events across Canada. As a result of these events, we have fully utilized our catastrophe aggregate reinsurance treaty limit for 2023.”
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